The tool steel market size has grown strongly in recent years. It will grow from $6.53 billion in 2024 to $6.92 billion in 2025 at a compound annual growth rate (CAGR) of 6%. The growth in the historic period can be attributed to strong economic growth in emerging markets, growth in the automotive industry, and a rise in demand for forged metals.
The tool steel market size is expected to see strong growth in the next few years. It will grow to $8.96 billion in 2029 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to increasing investments in infrastructure projects, a growing building and construction sector, and rising urbanization. Major trends in the forecast period include technological advancement, developments in tool steel such as advanced alloys, mergers and acquisitions, and product innovations.
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 $11.48 billion in April 2020 to $20.77 billion. 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 rapid pace of technological progress in recent years indicates that advancements will likely continue into the future. These developments can enhance efficiency and productivity, leading to new and improved products and services. Major companies in the tool steel market are concentrating on creating new technological solutions to bolster their market position. For instance, in October 2024, Sandvik, a Sweden-based engineering firm, introduced the Osprey HWTS 50, a hot work tool steel powder specifically designed for additive manufacturing. This innovative product is engineered for high-temperature applications such as die casting and forging, providing improved wear resistance and thermal stability. The powder is especially effective for producing complex geometries and intricate designs, addressing the rising demand for durable, high-performance tooling in various manufacturing sectors.
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 include Hitachi Metal ltd, Swiss Steel Group, Voestalpine AG, China Baowu Steel Group Corp, Tiangong International, Sandvik, QiLu Special Steel Co. Ltd, Samuel Son & Co, NACHI - Fujikoshi Corporation, Nippon Steel, JFE Steel Corporation, Tata Steel Limited, Kobe Steel Limited, Ningbo BST Metal Products Co. Ltd., Nanjing Hengjie Industrial Co. Ltd., ArcelorMittal, Suzuki Garphyttan Ab, Avocet Steel, ANCORA SCM, Valteknica Incom SRL, Beloretsk Metallurgical Plant AO, Hudson Tool Steel Corporation, Nucor Corporation, Sovereign Steel Manufacturing, Algoma Steel Inc., Ternium S.A., Continental Steel & Tube 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, BSi Steel Pty Ltd.
Asia-Pacific was the largest region in the tool steel market in 2024, 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.
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 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 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.
This product will be delivered within 3-5 business days.
The tool steel market size is expected to see strong growth in the next few years. It will grow to $8.96 billion in 2029 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to increasing investments in infrastructure projects, a growing building and construction sector, and rising urbanization. Major trends in the forecast period include technological advancement, developments in tool steel such as advanced alloys, mergers and acquisitions, and product innovations.
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 $11.48 billion in April 2020 to $20.77 billion. 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 rapid pace of technological progress in recent years indicates that advancements will likely continue into the future. These developments can enhance efficiency and productivity, leading to new and improved products and services. Major companies in the tool steel market are concentrating on creating new technological solutions to bolster their market position. For instance, in October 2024, Sandvik, a Sweden-based engineering firm, introduced the Osprey HWTS 50, a hot work tool steel powder specifically designed for additive manufacturing. This innovative product is engineered for high-temperature applications such as die casting and forging, providing improved wear resistance and thermal stability. The powder is especially effective for producing complex geometries and intricate designs, addressing the rising demand for durable, high-performance tooling in various manufacturing sectors.
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 include Hitachi Metal ltd, Swiss Steel Group, Voestalpine AG, China Baowu Steel Group Corp, Tiangong International, Sandvik, QiLu Special Steel Co. Ltd, Samuel Son & Co, NACHI - Fujikoshi Corporation, Nippon Steel, JFE Steel Corporation, Tata Steel Limited, Kobe Steel Limited, Ningbo BST Metal Products Co. Ltd., Nanjing Hengjie Industrial Co. Ltd., ArcelorMittal, Suzuki Garphyttan Ab, Avocet Steel, ANCORA SCM, Valteknica Incom SRL, Beloretsk Metallurgical Plant AO, Hudson Tool Steel Corporation, Nucor Corporation, Sovereign Steel Manufacturing, Algoma Steel Inc., Ternium S.A., Continental Steel & Tube 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, BSi Steel Pty Ltd.
Asia-Pacific was the largest region in the tool steel market in 2024, 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.
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 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 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.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Tool Steel Market Characteristics3. Tool Steel Market Trends and Strategies4. Tool Steel Market - Macro Economic Scenario including the impact of Interest Rates, Inflation, Geopolitics and Covid and Recovery on the Market32. Global Tool Steel Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the Tool Steel Market34. Recent Developments in the Tool Steel Market
5. Global Tool Steel Growth Analysis and Strategic Analysis Framework
6. Tool Steel Market Segmentation
7. Tool Steel Market Regional and Country Analysis
8. Asia-Pacific Tool Steel Market
9. China Tool Steel Market
10. India Tool Steel Market
11. Japan Tool Steel Market
12. Australia Tool Steel Market
13. Indonesia Tool Steel Market
14. South Korea Tool Steel Market
15. Western Europe Tool Steel Market
16. UK Tool Steel Market
17. Germany Tool Steel Market
18. France Tool Steel Market
19. Italy Tool Steel Market
20. Spain Tool Steel Market
21. Eastern Europe Tool Steel Market
22. Russia Tool Steel Market
23. North America Tool Steel Market
24. USA Tool Steel Market
25. Canada Tool Steel Market
26. South America Tool Steel Market
27. Brazil Tool Steel Market
28. Middle East Tool Steel Market
29. Africa Tool Steel Market
30. Tool Steel Market Competitive Landscape and Company Profiles
31. Tool Steel Market Other Major and Innovative Companies
35. Tool Steel Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
Tool Steel Global Market Report 2025 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.
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- All data from the report will also be delivered in an excel dashboard format.
Description
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 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 market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) By Product Type: Water-Hardening, Cold-Work, Shock-Resisting, High Speed, Hot-Working, Special Purpose2) By Material Type: Tungsten, Chromium, Vanadium, Molybdenum
3) By End Use: General Manufacturing, Automotive, Defense and Aerospace, Electronics and Electrical, Ship Building, Other End Uses
Subsegments:
1) By Water-Hardening: W1 Tool Steel; W2 Tool Steel2) By Cold-Work: D-Series (D2, D3 Tool Steel); O-Series (O1, O2 Tool Steel); a-Series (A2, A6 Tool Steel)
3) By Shock-Resisting: S1 Tool Steel; S5 Tool Steel; S7 Tool Steel
4) By High Speed: M-Series (M2, M42 Tool Steel); T-Series (T1 Tool Steel)
5) By Hot-Working: H-Series (H11, H13 Tool Steel); AISI H19 Tool Steel
6) By Special Purpose: P-Series (Plastic Mold Steels); L-Series (Low-Alloy Steels); F-Series (Forging Tool Steels)
Key Companies Mentioned: Hitachi Metal ltd; Swiss Steel Group; Voestalpine AG; China Baowu Steel Group Corp; Tiangong International
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
- Hitachi Metal ltd
- Swiss Steel Group
- Voestalpine AG
- China Baowu Steel Group Corp
- Tiangong International
- Sandvik
- QiLu Special Steel Co. Ltd
- Samuel Son & Co
- NACHI - Fujikoshi Corporation
- Nippon Steel
- JFE Steel Corporation
- Tata Steel Limited
- Kobe Steel Limited
- Ningbo BST Metal Products Co. Ltd.
- Nanjing Hengjie Industrial Co. Ltd.
- ArcelorMittal
- Suzuki Garphyttan Ab
- Avocet Steel
- ANCORA SCM
- Valteknica Incom SRL
- Beloretsk Metallurgical Plant AO
- Hudson Tool Steel Corporation
- Nucor Corporation
- Sovereign Steel Manufacturing
- Algoma Steel Inc.
- Ternium S.A.
- Continental Steel & Tube 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
- BSi Steel Pty Ltd.
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 200 |
Published | March 2025 |
Forecast Period | 2025 - 2029 |
Estimated Market Value ( USD | $ 6.92 Billion |
Forecasted Market Value ( USD | $ 8.96 Billion |
Compound Annual Growth Rate | 6.7% |
Regions Covered | Global |
No. of Companies Mentioned | 40 |