The manufacturing industry, which is expected to drive the need for tool steel to make a variety of tools, including saw blades, dies, milling cutters, tool bits, taps, punches, drills, cutters, and others, is responsible for the expansion of the global tool steel market. Throughout the projection period, tool steel is also anticipated to be dominated internationally by the expansion of the building and construction industry. Therefore, the expanding building and construction sector is one of the key factors anticipated to propel the growth of the worldwide tool steel market. Additionally, rising demand for forged metals from various end-use industries, including the automotive, defense, industrial automation, and aerospace sectors, is anticipated to increase tool steel demand and fuel the market's development rate.
The tool steel market has been under a global lockdown due to the COVID-19 virus. This has recently restrained the expansion of the tool steel market and is predicted to do so into 2021. In the first four months of 2021, COVID-19 affected the sales of products in the tool steel market, and it is anticipated that this effect will continue throughout the year. Most raw materials, components, and materials used by tool steel producers are imported. Due to a lack of raw materials, enterprises have been compelled to suspend production due to the export restrictions imposed by so many countries. When the tool steel market recovers, automotive, marine, energy and power, military, aerospace, and tool steel manufacturing all experience growth during or after COVID-19. COVID-19 negatively impacted the tool steel by 2020, which lef to a decline in product shipments and sales. Market expansion was consequently slower in the first half.
Increasing Demand from the Plastics Sector to Drive Market Growth
The global market for tool steel is anticipated to advance due to rising equipment industry demand. The product is frequently used in forging, cutting, stamping, and plastic extrusion. The product is crucial to shape materials like plastics and other metal sheets into the suitable components needed by end-use industries. One of the most significant uses for tool steel is the production of forging dies. Recently, there have been improvements and changes, especially in the metal forging industry. Due to their less weight and superior performance compared to other materials like steel, materials like aluminum and titanium are quickly gaining popularity in the medical, aerospace, and automotive industries.
Low Tool Steel Production Capacity Is A Significant Industry Constraint
The tool steel market is experiencing significant growth challenges due to the price volatility of the steel used to make tool steel. In addition, shifting consumer preferences away from tool steel in favor of carbide-based substitutes are hindering market expansion and diminishing the growth of the tool steel industry. The industry for tool steels is expected to grow slowly during the anticipated period due to a lack of funding for R&D efforts in the field and an increase in the use of carbide-cutting tools in various end-use industries. Tool steel's poor production capacity severely constrains the sector.
Based on material, the tool steel market is segmented into tungsten, chromium, vanadium and molybdenum. The tungsten category dominated the market in 2022 due to a rise in the demand for high-speed applications and hot forming. It boasts a product's ability to maintain its original properties at high temperatures and its hardness, toughness, and capacity. As a result, it is in great demand in end-use industries like automotive and aerospace.
Based on application, the tool steel market is segmented into injection molding, die work and forging. The injection molding category dominated the market in 2022. Bottle caps, packing materials, and car dashboards are a few of the goods made using injection molding techniques. Due to polish-ability, hardness, corrosion resistance, wear and tear resistance. Thermal stability tool steel is expected to be used more frequently in injection molding applications during the forecast period.
By Product Type
Based on product type, the tool steel market is segmented into water-hardening, cold-work, shock-resisting, high-speed, hot-working and special purpose. The cold-work category dominated the market in 2022 due to the growth of the manufacturing industry worldwide and increased urbanization. High carbon steels with low manganese, chromium, and molybdenum concentration are known as cold work tool steels. Its outstanding qualities, such as minimal distortion flexibility, hardening capability, and economic feasibility, are projected to create significant potential for its employees in various applications.
By End Use
Based on end use, the tool steel market is segmented into general manufacturing, automotive, defence and aerospace, electronic and electrical, ship building and others. The automotive category dominated the market in 2022. The global automotive industry's continued expansion will fuel the tool steel market. The automotive sector is active, with new advancements hitting the market daily. The demand for custom tool and die designs for the automotive industry is growing daily. These tools and dies are used to form and work plastic components.
By Format Type
Based on the format type, the tool steel market is segmented into round format, square format and other format. The round format category dominated the market in 2022. There are numerous industrial and commercial uses for round bars, a long, cylindric metal bar stock. Shafts are the most frequent use. Tool steel round format bars are most frequently used in pump shafts, valves, dairy equipment, machine tools, pins, hinges, machined components, surgical parts, metal parts, etc.
Based on process, the tool steel market is segmented into forged and rolled. The rolled category dominated the market in 2022. Roll-type manufacturers have created goods that can be delivered in a single roll without compromising overall strength, have a better surface polish, and give more resistance to mechanical damage and fatigue. The segment's expansion as a whole benefit from such development of superior items.
Asia Pacific is projected to hold the largest share of the tool steel market over the forecast period. The major manufacturing hub in the region is China, but "Make in India," and other government programs are expected to propel manufacturing growth in India. In addition, rising industrial activity in the region is expected to lead to lucrative growth for the Southeast Asian economy. The elements above should greatly fuel the expansion of the regional market. On the other hand, North America tool steel market is anticipated to grow significantly by the region's thriving aerospace components manufacturing sector. In reality, the United States captured a market share of roughly 47% in the world's aircraft parts manufacturing sector. As a result, the U.S. represents a sizeable market for tool steel due to the country's increasing need for forged aerospace components.
- February 2019: To produce cutting-edge blades for the future, Cangshan Cutlery Co. and Sandvik (Sweden), two award-winning premium knife manufacturers, formed cooperation. Knives manufactured of the high alloy Sandvik14C28N steel are the most recent advancement in knife steels.
- February 2018: Precipitation-hardened stainless steel, which has strong corrosion resistance, was introduced by Sandvik (Sweden). Most of their uses are in medical equipment, including dental drill bits, needles, and other items.
LIST OF KEY COMPANIES PROFILED:
- NACHI-FUJIKOSHI CORP. (Japan)
- Daido Steel (Japan)
- voestalpine High Performance Metals GmbH (Austria)
- Sandvik AB (Sweden)
- Kennametal Inc. (U.S.)
- Hudson Tool Steel Corporation (U.S.)
- ERASTEEL (France)
- ArcelorMittal (Luxembourg),
- Baosteel Group Corporation (China),
- POSCO (South Korea),
- Nippon Steel and Sumitomo Metal Corporation (Japan),
- JFE Holdings, Inc. (Japan),
- TATA Steel Ltd. (India),
- United States Steel (U.S.),
- Angang Steel Company Limited (China),
- Gerdau SA (Brazil)
- Maanshan Iron and Steel Company Limited (China)
|Market Size in 2022
|USD 4.7 Billion
|Market Forecast in 2030
|USD 6.2 Billion
|Compound Annual Growth Rate
|Revenue (USD Million) and Volume (Kilo Tons)
|By Material, By Application, By Product Type, By End Use, By Format Type, By Process, and By Geography
|By Product Type
|By End Use
|By Format Type