High Speed Tool Steel Market Size, Share, Growth, and Industry Analysis, By Type (Water-Hardening Class, Cold-Work Class, Shock-Resisting Class), By Application (Automotive, Shipbuilding, Machinery, Others), Regional Insights and Forecast to 2031

Updated On: 20 November 2023

HIGH SPEED TOOL STEEL MARKET REPORT OVERVIEW

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The global high speed tool steel market size expanded rapidly in 2022 and the market is projected to grow substantially by 2028, exhibiting a prodigious CAGR during the forecast period.

High speed tool steel is a type of alloy steel that is designed to withstand high temperatures and maintain its hardness, which makes it suitable for cutting tools such as drills, milling cutters, and tool bits. The market for high-speed tool steel is influenced by various factors, including the manufacturing and construction industries, as well as the demand for high-performance tools in machining applications.

The demand for high speed tool steels is closely tied to the growth of the manufacturing industry, particularly in sectors such as automotive, aerospace, and machining.  Innovations in manufacturing technologies and machining processes drive the need for high-performance tool materials. Manufacturers are often looking for tool steels with enhanced properties to improve efficiency and reduce downtime.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The tool steel industry, like many manufacturing sectors, could have experienced disruptions in the supply chain. Lockdowns, restrictions on movement, and other COVID-related measures may have affected the production and transportation of raw materials and finished goods. The demand for high speed tool steel is closely tied to industries such as manufacturing, construction, and automotive. Depending on the specific applications, the demand for tool steel may have fluctuated during the pandemic due to disruptions in these industries. The overall economic impact of the pandemic could have influenced investment decisions, capital expenditure, and infrastructure projects, which, in turn, could affect the demand for high-speed tool steel.

LATEST TRENDS

"Increasing Demand in Manufacturing Industries to Drive Market Growth"

High speed tool steel is widely used in manufacturing industries, especially in cutting, shaping, and forming applications. As global manufacturing activities continue to grow, the demand for tool steel is likely to increase. The automotive and aerospace industries are significant consumers of high-speed tool steel for various applications such as cutting and machining of components. With these industries experiencing growth, the demand for high-performance tool steel is expected to rise. Ongoing technological advancements in metallurgy and manufacturing processes contribute to the development of new and improved high-speed tool steel grades. Enhanced properties, such as better hardness, wear resistance, and toughness, are often sought after in the market. Sustainability concerns are impacting various industries, including the steel industry. There is an increasing emphasis on developing environmentally friendly processes for manufacturing high speed tool steel, as well as the recyclability of these materials.

HIGH SPEED TOOL STEEL MARKET SEGMENTATION

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• By Type

Based on type the global market can be categorized into Water-Hardening Class, Cold-Work Class, Shock-Resisting Class.

Water-hardening class of high speed tool steel is known for its excellent water quenching properties. It has good toughness and wear resistance, making it suitable for applications where the tool undergoes repeated heating and quenching cycles. Cold-work tool steels are designed to be used at room temperatures or slightly elevated temperatures without losing their hardness. Shock-resisting class of tool steel is specifically designed to resist shock and impact loads. It has good toughness and is suitable for applications where the tool is subjected to sudden and heavy loads.

• By Application

Based on application the global market can be categorized into Automotive, Shipbuilding, Machinery, Others.

High speed tool steels are used for cutting and machining various components in the automotive industry, such as engine parts, transmission components, and body parts. These tool steels play a crucial role in the shipbuilding industry for cutting and shaping metal components, including hulls, propellers, and other structural elements. Tool steels are widely used for manufacturing cutting tools such as drills, milling cutters, taps, and reamers used in various machinery production processes.  These steels are used also in the aerospace industry for manufacturing tools and dies used in the production of aircraft components.

DRIVING FACTORS

"Increasing Demand from End-Use Industries to Boost the Market"

High speed tool steel is widely used in industries such as automotive, aerospace, manufacturing, and construction. The growing demand for these end-use products and industries contributes to high speed tool steel market growth. Technological advancements in manufacturing processes, such as CNC machining and rapid prototyping, often require high-performance cutting tools. High-speed tool steel, with its excellent hardness and wear resistance, is favored in these advanced manufacturing applications. The trend towards precision machining in various industries necessitates cutting tools that can maintain sharpness and durability over extended periods. High speed tool steel meets these requirements, driving its adoption in precision machining applications.  The automotive industry is a significant consumer of tool steel due to its use in the production of components like gears, camshafts, and bearings. As the automotive industry expands, so does the demand for high-speed tool steel.

"Infrastructure Development and Construction Activities to Expand the Market"

Infrastructure development projects, including construction of buildings, bridges, and other structures, drive the demand for high speed tool steel. The material's durability and ability to withstand heavy loads make it essential in construction applications. The globalization of manufacturing has led to a higher demand for efficient and durable cutting tools. High-speed tool steel is preferred in this context for its ability to withstand high-speed machining and provide consistent performance. The aerospace industry requires materials that can withstand extreme conditions and provide high precision. High-speed tool steel, with its heat resistance and toughness, is used in the production of aerospace components, contributing to market growth. Tool steel finds applications in the energy sector, especially in the production of components for power generation and transmission. As the energy sector expands and upgrades its infrastructure, the demand for high speed tool steel is likely to increase.

RESTRAINING FACTORS

"Fluctuations in Prices of Raw Materials to Potentially Impede Market Growth"

High speed tool steel production relies on specific alloying elements, and fluctuations in the prices of these raw materials, such as tungsten, molybdenum, and chromium, can impact production costs and, consequently, market prices. Continuous advancements in materials science may lead to the development of alternative materials that could compete with or surpass the performance of tool steel. Companies in the industry might face challenges in maintaining market share if alternative materials become more cost-effective or offer superior properties.

HIGH SPEED TOOL STEEL MARKET REGIONAL INSIGHTS

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"North America Region Dominating the Market due to Presence of a Large Consumer Base"

North America has emerged as the most dominant region in the high speed tool steel market share due to several factors. The region, the U.S. in particular, has a significant manufacturing sector, especially in aerospace, automotive, and other high-tech industries that require high-speed tool steel for cutting and shaping materials. Research and development activities in the U.S. contribute to advancements in tool steel technologies.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The High speed tool steel market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in High speed tool steel, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Nachi-Fujikoshi Corporation (Japan)
• Daido Steel (Japan)
• Voestalpine (Austria)
• SandviKMaterials Technology (Sweden)
• Kennametal (U.S.)
• Hudson Tool Steel (U.S.)
• Erasteel (India)

INDUSTRIAL DEVELOPMENT

April 2022:  JFE Steel Corporation and thyssenkrupp Steel Europe jointly released new high-strength steel sheets capable of cold forming in the 980 and 1180 MPa classes for the manufacturing of vehicle frame components in April 2022.

October 2021: ArcelorMittal and Nippon Steel Corp.'s joint venture steel business in India announced a proposal to expand its activities in the nation by investing Rs. 1 trillion (US$ 13.34 billion) over a 10-year period in October 2021. This expansion will provide the market with an opportunity.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.