Global High Speed Steel Market Overview
The High Speed Steel Market Size was estimated at 1.82 (USD Billion) in 2022. The High Speed Steel Industry is expected to grow from 1.89 (USD Billion) in 2023 to 2.65 (USD Billion) by 2032. The High Speed Steel Market CAGR (growth rate) is expected to be around 3.81% during the forecast period (2024 - 2032).
Key High Speed Steel Market Trends Highlighted
The increasing demand for high-speed machining and cutting operations in industries such as automotive, aerospace, and construction is driving the growth of the High Speed Steel Market. The superior properties of HSS, including its high hardness, wear resistance, and ability to maintain its cutting edge at high temperatures, make it an ideal choice for these demanding applications. Furthermore, the growing adoption of advanced manufacturing technologies, such as CNC machines and robotics, requires high-performance cutting tools, further fueling market growth.Opportunities in the High Speed Steel Market include the development of new and improved HSS alloys with enhanced properties, such as increased toughness and corrosion resistance. Additionally, the exploration of new applications in industries such as electronics and medical devices presents significant growth potential. Lastly, the increasing emphasis on sustainability and environmental regulations is creating opportunities for HSS to replace less eco-friendly materials in cutting and machining operations.Recent trends in the High Speed Steel Market include the growing popularity of powdered metallurgy (PM) HSS, which offers improved homogeneity, finer grain structure, and higher performance compared to conventional HSS. The increasing adoption of cryogenic treatment to enhance the hardness and wear resistance of HSS tools is also gaining traction. Furthermore, the development of advanced coating technologies, such as titanium nitride (TiN) and titanium aluminum nitride (TiAlN), is enhancing the performance and longevity of HSS cutting tools, expanding their applications in various industries.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
High Speed Steel Market Drivers
Rapidly Growing Aerospace and Defense Industry
One of the major consumers of high-speed steel is the aerospace and defense industry. This material is widely used in aircraft engines, landing gears and weapon systems. With the growing number of air travelers and newly produced military aircraft, the high-speed steel market is expected to be driven by the aerospace and defense sector. According to the forecast, the aerospace and defense industry will continue to grow, thus, increasing the demand for high speed steel.Moreover, the High Speed Steel Market Industry will grow considerably in the next ten years, mainly due to the greater demand from aerospace and defense.
Increasing Use of High-Speed Steel in the Automotive Industry
Automotive high-speed steel is used increasingly in the automotive industry, especially, it is used in performance vehicles. The application in the automotive industry is expected to grow in the coming years. Automotive is one of the major consumers of high-speed steel. It is used in a variety of applications like engine components, transmission gears and brake systems. The result of the increase in the production of vehicles, especially in the developing world, has enabled the growth of high-speed steel in the market.According to Klein, the High Speed Steel Market industry will grow by a significant margin in the coming years.
Growing Demand for High-Speed Steel in the Medical Industry
High-speed steel is also increasingly used in medicine, including as a material for the manufacture of surgical instruments. This trend is also expected to have a positive effect on the market. It is no secret that at the present time, surgeons are trying to work with as precise and highly efficient tools as possible. Today, the medical industry is one of the main suppliers of market demand. This trend is facilitated by an increase in the number of medical procedures, in particular, surgeries in developing countries.Given that the modern High Speed Steel Market Industry is interactive, it will also naturally develop in the next decade.
High Speed Steel Market Segment Insights
High Speed Steel Market Grade Insights
The High Speed Steel Market based on Grade has been segmented into Molybdenum, Tungsten, Cobalt, and Vanadium. Molybdenum had the maximum market share of 44.8% in 2018. It is widely used in the construction of high-speed steel tools owing to their excellent high-temperature strength and wear resistance characteristics. Tungsten-based high-speed steel provides usage hardness, superior wear resistance, and cutting performance and precision needed by engineers, thereby expected to drive the market demand during the forecast period. Cobalt increases temperature and wear resistance in high-speed cutting applications.Vanadium increases the car bombing affinity required for grain refinement and improves cutting properties. Increasing usage in industries such as aerospace, automotive, and energy sectors has driven the growth of the Grade segment. It is expected to expand to 1.95 billion by 2024 at a CAGR of 4.2%. The growth can be attributed to the increasing demand for high-performance materials.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
High Speed Steel Market Application Insights
Cutting Tools Market. The market size of this segment is the highest because high-speed steel is widely used in the manufacturing industry to cut various workpieces by turning, milling, etc. The cutting tools market is expected to grow at an average rate of 4.7% from 2019 through 2022. Mining and Construction Equipment Market. A considerable part of the total market is occupied by this segment since construction and mining components require high durability, rigidity, and wear resistance. This market is expected to have an average annual growth rate of 4.9% from 2019 to 2023. Automotive Components Market. As high-speed steel is increasingly used for such automotive parts as gears, shafts, and bearings, its market share has been increasing, too. According to GLOBE NEWSWIRE, this market is predicted to grow annually at 5.1% throughout 2019-2023. Aerospace and Defense Market. This segment is not highly volatile and has demonstrated continued growth. Industry demands the usage of high-speed steel due to its requirement for high strength and resistance to high temperatures. Its rise in market size is not significant, and it is expected to grow at an average annual rate of 4.1% from 2019 through 2023.
High Speed Steel Market Industrial End-User Insights
The 'Automotive' segment held the largest share in the Industrial End-User segment in 2023 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 3.8% during the forecast period. The growth of the segment is attributed to the increasing demand for high-speed steels in the automotive industry, as they offer higher cutting speeds and longer tool life, leading to increased productivity and reduced manufacturing costs. The 'Construction' segment is expected to witness a CAGR of 3.6% during the forecast period, driven by the rising demand for high-speed steels in construction applications, such as cutting, drilling, and shaping of metal components.The 'Fabrication' segment is projected to grow at a CAGR of 3.7% during the forecast period, owing to the increased usage of high-speed steels in the fabrication industry for cutting and forming of metal parts. The 'Machinery and Equipment Manufacturing' segment is expected to witness a CAGR of 3.5% during the forecast period, driven by the growing demand for high-speed steels in the manufacturing industry for cutting, milling, and drilling operations. The 'Mining' segment is projected to grow at a CAGR of 3.4% during the forecast period, owing to the increasing demand for high-speed steels in the mining industry for drilling and cutting operations.
High Speed Steel Market Regional Insights
The High Speed Steel Market is segmented into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023, accounting for over 35% of the global revenue. The region is expected to continue to dominate the market over the forecast period, driven by the presence of major automotive and aerospace industries. Europe is the second-largest market for high-speed steel, followed by APAC. The APAC region is expected to witness the fastest growth over the forecast period, driven by the increasing demand from emerging economies such as China and India.South America and MEA are expected to account for a smaller share of the global market but are expected to grow at a steady pace over the forecast period.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
High Speed Steel Market Key Players And Competitive Insights
The high speed steel market major players are constantly trying to maximize their profits through various business strategies. Currently, leading high-speed steel market competitors invest in research and development to move their products forward. The future of the high speed steel market competitive landscape depends on the further consolidation of the market. Participants are investing in the unique demands of different industries to create innovative, high-performance products for modern manufacturing needs. Future novelties will shape the unique demand of potential clients and shape the future of the high speed steel market.The presented table shows that the high-speed steel market is very dynamic and highly competitive. Uddeholm and Bohler are the major high-speed steel market manufacturers recognized worldwide. Uddeholm operatives in Sweden, the United States, and China produce a wide range of vertical products, including flat roll products, round bars, and wire rods. The producer provides high-speed steels with good high hardness, slamming, wear resistance, and alloyed high resistance version characteristics. The types of the company’s products can be used in cutting tools, mining equipment, and automotive components. From the summary presented after the case study, it is clear that the company has many opportunities to benefit from the growing demand for quality and received products that exceed the customer’s expectations.Bohler is another High Speed Steel Market major player. The company operates in Austria, Germany, and the United States. The company offers high-speed steel products for motor vehicles, consumer appliances, and machine tools. The company provides high-performance products famous for their strength, toughness, and wear resistance. Overall, the high-speed steel market is highly competitive, and companies seek to benefit from a highly dynamic market by maximizing their profit.
Key Companies in the High Speed Steel Market Include
- Aperam Stainless Services
- POSCO
- Sandvik Materials Technology
- Carpenter Technology
- ArcelorMittal
- Sumitomo Corporation
- Outokumpu
- Nippon Steel Sumikin Stainless
- Taiyuan Iron Steel (Group)
- JFE Steel
- Baoshan Iron Steel
- Uddeholms AB
- Hitachi Metals
High Speed Steel Market Industry Developments
The global high-speed steel market is projected to grow from USD 1.89 billion in 2023 to USD 2.65 billion by 2032, at a CAGR of 3.81% from 2024 to 2032. Rising demand for high-speed steel in automotive, aerospace, and industrial machinery sectors is driving market growth. The increasing adoption of automation and the growing popularity of electric vehicles are further propelling the market. The Asia-Pacific region is expected to dominate the market due to the presence of major automotive and industrial hubs in China, India, and Japan. Key industry participants include Sandvik, Bhler, and Uddeholm. Recent developments include the launch of new high-speed steel grades with improved wear resistance and toughness.
High Speed Steel Market Segmentation Insight
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High Speed Steel Market Grade Outlook
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High Speed Steel Market Application Outlook
- Cutting Tools
- Mining and Construction Equipment
- Automotive Components
- Aerospace and Defense
- Medical Devices
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High Speed Steel Market Industrial End-User Outlook
- Automotive
- Construction
- Fabrication
- Machinery and Equipment Manufacturing
- Mining
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High Speed Steel Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
1.82(USD Billion) |
| Market Size 2023 |
1.89(USD Billion) |
| Market Size 2032 |
2.65(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
3.81% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Aperam Stainless Services, POSCO, Sandvik Materials Technology, Carpenter Technology, ArcelorMittal, Sumitomo Corporation, Outokumpu, Nippon Steel Sumikin Stainless, Taiyuan Iron Steel (Group), JFE Steel, Baoshan Iron Steel, Uddeholms AB, Hitachi Metals |
| Segments Covered |
Grade, Application, Industrial End-User, Regional |
| Key Market Opportunities |
Growing demand for highspeed cutting tools Increasing adoption in the automotive industry Advancements in metallurgy and tool design Expansion of aerospace and defense sectors Rising investment in infrastructure development |
| Key Market Dynamics |
Growing demand from the automotive and aerospace industries The rising popularity of high-performance cutting tools Technological advancements in steelmaking Stringent government regulations on carbon emissions Fluctuating prices of raw materials |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The High Speed Steel Market is expected to reach a valuation of USD 2.65 Billion by 2032, expanding at a CAGR of 3.81% over the forecast period (2024-2032).
The Asia Pacific region, led by China and India, is anticipated to dominate the Global High-Speed Steel Market throughout the forecast period owing to the rising demand from the automotive and manufacturing industries.
High Speed Steel finds extensive applications in the manufacturing of cutting tools such as drill bits, milling cutters, taps, and dies. The increasing demand for high-performance cutting tools in industries like automotive, aerospace, and metalworking is propelling the market growth.
Some of the prominent players in the High Speed Steel Market include Bohler Uddeholm AG, Carpenter Technology Corporation, Crucible Industries LLC, Eramet, and Fagersta AB.
Factors such as the growing adoption of High Speed Steel in the automotive industry, technological advancements leading to enhanced tool performance, and the rising demand for high-speed machining are anticipated to drive the market expansion.
The emergence of Powder Metallurgy (PM) High Speed Steel, which offers improved wear resistance and toughness, is a significant trend shaping the market. Additionally, the growing adoption of sustainable manufacturing practices is driving the demand for eco-friendly High Speed Steel grades.
Fluctuating raw material prices, stringent environmental regulations, and competition from alternative cutting tool materials like ceramics and carbides pose challenges to the growth of the High Speed Steel Market.
The COVID-19 pandemic initially disrupted the High Speed Steel Market due to supply chain disruptions and reduced demand from key end-use industries. However, the market is expected to recover as economic activities resume and industries return to pre-pandemic levels.
The High Speed Steel Market is anticipated to witness steady growth over the forecast period. The increasing demand for high-performance cutting tools, technological advancements, and the expanding manufacturing sector in developing economies are expected to contribute to market growth.
Key players are focusing on research and development to enhance product performance and expand their product portfolio. Additionally, strategic partnerships, mergers, and acquisitions are being employed to strengthen market presence and gain access to new technologies and markets.
