PUBLISHER: The Business Research Company | PRODUCT CODE: 1429969
PUBLISHER: The Business Research Company | PRODUCT CODE: 1429969
Tool steel is a specialized type of carbon and alloy steel renowned for its distinctive properties, including wear resistance, hardness, toughness, and the ability to withstand elevated temperatures without softening. This makes it ideal for crafting precision tools such as hand tools and machine dies. Tool steel plays a crucial role in the manufacturing of cutting tools used for machining various metals.
The tool steel market encompasses a range of products tailored for specific applications, including water-hardening, cold-work, shock-resisting, high-speed, hot-working, and special purpose tool steels. Water-hardening tool steel, also known as W-group tool steel, achieves hardening through a simple process of heating and quenching in water. Key alloying elements in tool steel production include tungsten, chromium, vanadium, and molybdenum. Tool steel finds diverse applications across industries such as general manufacturing, automotive, defense and aerospace, electronics and electrical, shipbuilding, and more.
The tool steel market research report is one of a series of new reports from The Business Research Company that provides tool steel market statistics, including tool steel industry global market size, regional shares, competitors with a tool steel market share, detailed tool steel market segments, market trends and opportunities, and any further data you may need to thrive in the tool steel industry. This tool steel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The tool steel market size has grown strongly in recent years. It will grow from $6.19 billion in 2023 to $6.58 billion in 2024 at a compound annual growth rate (CAGR) of 6.3%. The historical growth of the tool steel market can be attributed to robust economic expansion in emerging markets, a flourishing automotive industry, and an increased demand for forged metals.
The tool steel market size is expected to see strong growth in the next few years. It will grow to $8.41 billion in 2028 at a compound annual growth rate (CAGR) of 6.3%. The forecasted growth is driven by heightened investments in infrastructure, a thriving building and construction sector, and escalating urbanization. Key trends in this period encompass technological advancements, advancements in tool steel such as advanced alloys, mergers and acquisitions, and innovative product developments.
The tool steel market is anticipated to experience growth, driven by the expanding automotive industry. The automotive sector encompasses companies engaged in the development, design, manufacturing, and marketing of motor vehicles. Tool steel, including stainless steel, high-strength steel, low-carbon steel, high-carbon steel, or galvanized steel, plays a crucial role in the production of various vehicle and engine components. For example, as reported by the India Brand Equity Foundation in January 2022, the total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 1.86 million units, underscoring the significance of tool steel in supporting the automotive industry. The continued growth of the automotive sector is expected to drive the demand for tool steel during the forecast period.
The tool steel market is propelled by the expansion of the building and construction sector. Tool steel is widely used in the production of structural sections, window frames, mullions, building profiles, and various other construction components. It is also an integral component of machines used for pipe bending, punching, and metal stamping in construction processes. The construction sector has witnessed a notable increase in investment and expenditure, contributing to the growing demand for tool steel. For instance, a report published by Canada's national statistical agency in 2022 indicated an increase in building construction investment from $11,487 million in April 2020 to $20,779 million. This growth in the building and construction sector is expected to significantly fuel the expansion of the tool steel market.
A notable trend is the increasing popularity of innovative products and technologies. Key players in the market are actively focused on developing advanced tools with innovative materials to meet industry demands and enhance their market presence. For instance, in November 2022, Headmade Materials GmbH, a German-based company specializing in productive metal 3D printing processes, introduced M2 tool steel. This product boasts properties such as good toughness, wear resistance, hardness, and a high part density of 99%, replacing grade T1 in numerous global applications and becoming a popular high-speed steel type. Additionally, in October 2021, Westminster Tool, a US-based tool steel manufacturer, implemented a hybrid 3D printing platform with rigorous Design of Experiments (DOE) on 3D-printed tool steels. This platform enables mold makers to produce high-tolerance metal components faster, cost-effectively, and with reduced secondary finishing.
The ongoing rapid technological progress is expected to continue as a prominent trend in the tool steel market. Major companies are committed to developing new technological solutions to enhance their market positions. For instance, in August 2021, Buffalo Precision Products, a US-based drill rod supplier, introduced a new feature on its online platform, allowing customers to purchase tool steel off-cuts around the clock. The web shop, available for customers in Canada and the USA, offers select grades such as P20, P20 High Hard, Premium H13, and 420 Annealed for Canadian customers, and P20 Modified, Stainless Pre-Hard Holder, and Holder for US customers. This initiative expands the range of options for customers seeking tool steel materials in addition to providing precision flat ground and drill rods at competitive prices with quick delivery. The incorporation of tool steel off-cuts adds more versatility to the BPP website, offering additional material options for customers, including metal additive manufacturing powders.
In January 2022, GWS Tool Group, a North America-based vertically integrated manufacturer specializing in highly engineered custom, standard, and modified cutting tools, acquired Peterson Tool Company. The acquisition, made for an undisclosed amount, is aimed at establishing a compelling value proposition for customers operating in advanced machining environments, particularly in the realms of custom round and insert tooling. Peterson Tool Company, based in the US, is a leading designer and manufacturer of carbide inserts and special cutting steel tools.
Major companies operating in the tool steel market report are Hitachi Metal Ltd., Swiss Steel Group, Voestalpine AG, Eramet SA, China Baowu Steel Group Corp, Tiangong International, Sandvik, QiLu Special Steel Co. Ltd., Samuel Son & Co, NACHI - Fujikoshi Corporation, Nippon Steel, JFE Steel Corporation, Bekaert SA, Tata Steel Limited, Kobe Steel Limited, Ningbo BST Metal Products Co. Ltd., Nanjing Hengjie Industrial Co. Ltd., Hengshui Huaxing Steel Wire Rope Co. Ltd., Wuxi Shengli Steelrope Co. Ltd., ArcelorMittal, Suzuki Garphyttan Ab, Avocet Steel, Barnfather Wire (Midlands) Ltd., SWR Group, Ormiston Wire, KTS Wire Ltd., ANCORA SCM, Valteknica Incom SRL, Vandor Industry SRL, Beloretsk Metallurgical Plant AO, the Heico Companies, Hudson Tool Steel Corporation, Nucor Corporation, Summit Utility Structures LLC, Sovereign Steel Manufacturing, AK Steel Holding, Algoma Steel Inc., Ternium S.A., Arnold Magnetic Technologies, Continental Steel & Tube Co., Johnson Bros. Roll Forming Co., A-1 Alloys, AAA Metals Co. Inc., Gibbs Wire & Steel Co., Tata Steel Minerals Canada Ltd., Posco America, Ternium Argentina SA, Aperam South America, Gerdau, The Yehuda Group, Hod Assaf Industries Ltd., Ezz Steel, Kandil Steel Company, Omega Egypt, BSi Steel Pty Ltd.
Asia-Pacific was the largest region in the tool steel market in 2023, and it is expected to be the fastest-growing region in the forecast period. The regions covered in the tool steel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the tool steel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The tool steel market consists of sales of blacksmith chisels, cold chisels, hot working chisels, and clutch parts. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Tool Steel Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on tool steel market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for tool steel? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The tool steel market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.