The tool steel is a high quality alloy steel that is particularly designed and manufactured for the purpose of making the cutting tools, molds, dies, and other equipment’s which play vital role in the manufacturing and metalwork processes. Because of its extra-ordinary properties that make it suitable for the various applications. The most common and efficient tool steel properties include hardness, abrasion resistance and deformation. There are some benefits gained out of these tool steel such as good thermal conductivity, hardenability, cost effective surface finish and many more.
The rise in the technology and the demand for the tool steel in the sectors such as the automotive and the aerospace are driving the tool steel markets growth. The steel tool is used for the making machine dies or hand tools. Other application for the steel tool include the plastic extrusion, forging, stamping, cutting, and slitting. Due to its effective properties and the benefits gained the demand for tool steel is high across the globe.
Market Size:
- 2022: USD 5.63 Billion
- 2030: USD 9.15 Billion
- CAGR (2023-2030): 4.8%
Increasisng application in Automotive and Aerospace sectors are the major contributors to tool steel market
The need for the tool steel is constantly rising due to its properties and the benefits it provides. The automotive industry is expected to grow the market for the tool steel during the forecast period. The automotive sector comprises of designing, promoting and manufacturing of vehicles. The various components and the parts of the vehicles are made with the use of the tool steel products such as the high carbon or the galvanised steel, stainless steel, high strength steel etc. According to survey, the manufacturing of one single car near about 700 kg of steel is required, yearly Indian motor vehicle production reached to 5,456,857.000 units in the 2022. With the rise in the population the demand for the vehicles are rising resulted in increasing demand for tool steel.
For instance, Jindal steel and power posts record steel production and sales in 2022. JSP’s steel production and sales hits a record of 8.01mt and 7.63mt respectively in 2022.
For instance, January-November 22, India produced 113.43 million tonne of steel that is 10 per cent high compared to last year. The government is also aiming to double the country’s annual steelmaking capacity to 300mt from 150mt.
Recent Developments:
In July 2023, Syntagma Capital announces completion of acquiring the Erasteel a division of Eramet S.A. Erasteel a global leader into the conventional and powder metallurgy of high –speed steels used for the high performance machining, drilling and cutting tools.
In June 2022, Ryerson a leading processor and distributor of industrial metals acquired the Ford tool steels a tool steel processor based company. With this acquisition Ryerson expands its tool steel franchise.
Restraining Factor:
Variable Prices & alternative carbides are the factors that restrained the growth of the market:
The challenges that the tool steel market are facing that constantly fluctuating prices of the tool steel products due to the changing raw material costs, energy expenses, and even due to the market dynamics. This fluctuating prices led the manufactures find an alternative solution. On the other hand, carbide with its advantages of high hardness, wear resistance, and excellent heat resistance, emerged as the favourable competitor.
With the rising popularity of the carbide due to its properties many of the sectors including automotive and aerospace preferred carbide over tool steel.
Opportunities:
The tool steel sector offers ample of opportunities for growth and expansion in the upcoming years. The improvements in manufacturing processes and technologies present a significant opportunity for development. As businesses search for increased efficiency and precision, tool steel producers can profit from this trend by creating and offering cutting-edge tool steel grades that satisfy a variety of application criteria. These cutting-edge tool steels may make use of cutting-edge nanotechnology and modern materials science to provide exceptional hardness, wear resistance, and heat resistance. In the aircraft, automotive, and electronics industries, where performance and accuracy are essential, these steels are particularly relevant. Additionally, as the importance of sustainability rises, there is a chance to develop environmentally friendly tool steel production methods to fulfil the growing need for ecologically responsible manufacturing.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 5.63 Billion |
| Market Forecast in 2030 | USD 9.15 Billion |
| Compound Annual Growth Rate (CAGR) | 4.8 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Product Type, By Mask Shop Type, By Application, By End-User, & By Region |
| By Product Type |
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| By Mask Shop Type |
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| By Application |
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| By End-User |
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| By Application Type |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Tool Steel Market
The tool steel market is segmented by product type, material type, operation, shape, application and region. On the basis of product type, the Tool Steel market is segmented into plastic mold, high speed, cold work, hot work, and others. by material type, the market is bifurcated into chromium, tungsten, molybdenum, vanadium, and others. by operations the market is subdivided into forged and rolled, by shape type it is classified into round, square, and others, application-wise, the market is divided into manufacturing, shipbuilding, automotive, aerospace, and others.
By Product Type
The cold work segment is anticipated to grow at the highest CAGR over the forecast period
The tool steel market based on the vehicle type is divided into plastic mold, high speed, cold work, hot work, and others. Of which the cold work segment dominated the market and is expected to retain its dominance during the forecast period.
Due to its properties such as high hardness, toughness, and wear resistance at room temperature cold work tool steel are ideal to be used in wide range of applications.
By Material Type
By material segment the tool steel market is further classified into chromium, tungsten, molybdenum, vanadium and others. Among these the tungsten type has dominated the market in 2022. Due to its several properties such as increasing the hardness, toughness and capacity of product to keep original qualities same even at very high temperatures which makes it the most favourable material for the hot forming tools and the high-speed machines. The demand for the high-speed application and hot forming which uses tungsten is further driving the market. It is also used into various cutting tools applications such as hobs, broaches, taps, reamers, drills, milling cutters, and dies.
By Application
The Automotive segment has accounted for the largest market share in the year 2022:
In 2022, automotive sector dominated the tool steel market in terms of market share. The high expansion of the automotive industry globally is driving the market’s growth. The automotive sector expects the newly innovated tools and technologies that are reliable, superior in strength, and are durable. Other factors such as the rising customization in the applications for the manufacturing of the tools and dies that are further used for the forming and working plastic components accounts for the markets growth.
Regional Analysis
North America Tool Steel Market dominates the overall market:
North America is expected to dominate the market in the upcoming years due to the rising demand for the cutting tools from the manufacturing and the automotive industries with the growing industrialization need in the region.
Europe’s market is expected with a gradual growth during the forecasted period. The presence of the big manufacturers such as BMW, Mercedes-Benz, Volkswagen and others are the major contributors to the manufacturing sector rising the demand for the high-performance cutting tools is one of the factor fuelling the market’s growth. The expanding market of Europe tool steel is mainly contributed by Germany, UK etc. With the increasing investments in the real estate and automotive industrialization in the APAC regions such as India and China the demand for the passenger vehicles, electric vehicles is rising with the rise in the population that is driving the tool steel market.
List of the prominent players in the Tool Steel Market:
- Hitachi Metals, Ltd.
- Voestalpine AG
- Nachi-Fujikoshi Corp.
- Bohler
- Hudson Tool Steel Corporation
- Samuel Son & Co
- Sandvik
- Baosteel Group
- Pennsylvania Steel Company
- Schmiedewerke Groditz
- Universal Stainless
- Tata Steel ltd
- QiLu Special Steel Co.,Ltd.
- Tiangong International Co.,Ltd.
- Daido Steel Co.Ltd.
Tool Steel Market Report Scope
By Product Type
- Plastic Mold
- High Speed
- Cold Work
- Hot Work
- Others
- Chromium
- Tungsten
- Molybdenum
- Vanadium
- Others
- Forged
- Rolled
- Round
- Square
- Others
- Manufacturing
- Shipbuilding
- Automotive
- Aerospace
- Others
Impact of the COVID-19 pandemic on the Automated Telematics Market:
Like other sectors the tool steel market also had a negative impact of the covid-19. The initial phase of the pandemic i.e. in 2020, the industry experienced various disruption into their supply chain, manufacturing operations, and the demand for the tool steel products. Due to the heavy restriction and the lockdowns imposed to restrict the spread of the virus that took the industry force shut-down its manufacturing facilities which let to less availability of the tool steel products into the market. Automotive & Aerospace which are known to be the major consumers were negatively affected.
Despite these obstacles, the resurgence in manufacturing and the infrastructure developments helped to rebound in the demand.
