The high speed steel (HSS) tools market registered a valuation of USD 5.6 billion in 2022. The market’s worth is anticipated to increase at a compound annual growth rate (CAGR) of 6% between 2023 and 2033. According to Future Market Insights, the high speed steel (HSS) tools market is anticipated to reach USD 10.6 billion by the end of the 2023 to 2033 period of assessment.
| Attributes | Details |
|---|---|
| High Speed Steel (HSS) Tools Market Value (2022) | USD 5.6 billion |
| High Speed Steel (HSS) Tools Market Value (2023) | USD 5.9 billion |
| High Speed Steel (HSS) Tools Market Expected Value (2033) | USD 10.6 billion |
| High Speed Steel (HSS) Tools Market Projected CAGR (2023 to 2033) | 6% |
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Driven by increasing investments in mechanical equipment and rapid industrialization in developing nations, the high-speed steel (HSS) tools market rose at a 5.2% CAGR from 2018 to 2022.
The automotive and industrial sector has experienced rapid growth in recent years owing to which manufacturers are expanding their production capacities. The conventional methods for various industrial applications make this process very time consuming as well as risky for the workers. This has pushed investments in innovative solutions.
Key factors that drive the popularity of HSS tools amongst customers include durability and convenient usage, which makes them favorable for various end-use applications. High-speed steel tools find use owing to their wide range of dedicated applications in myriad end-use sectors.
Cutting and precision tools are driving the demand for HSS tools due to their enhanced implementation in various industries not only in developed but developing countries. Increasing investments in industrial machinery and machining equipment is a prime factor driving the growth of the market. As per FMI, the market will rise at a 6% CAGR between 2023 and 2033.
Upgrade in lifestyle in Developed Nations to Propel The Market growth
Changes in lifestyle, observed especially in developed countries in North America and Europe have led to the emergence of a new generation of DIY interior decorators. This trend is gradually penetrating developing regions.
The relatively faster rise in population, coupled with increasing disposable income, is fueling the DIY market. Evolving lifestyles in middle-income countries will emerge as a chief driver of HSS tool sales.
The use of DIY products lowers long-term costs, as outsourced to expensive labor. This has resulted in increased demand for DIY and household applications. Additionally, the advent of e-commerce has enabled easy access and better discounts for consumers. These factors are expected to bolster the demand for DIY applications.
The growing use of smartphones and the convenience of purchasing products from the comfort of their home is driving growth. The Internet has revolutionized the retail industry by expanding the reach of retailers. Therefore, consumers have inclined towards online purchases as compared to offline options.
Developed Industrial Sector in United States to Accelerate the Market growth
North America is expected to hold a dominant share during the forecast period, according to Future Market Insights. According to the study, the United States is expected to account for nearly 87% of the North American market through 2033.
The United States developed industrial sector is one of the main factors supporting market growth. The manufacturing industry accounts for 10.8 percent of the United States economy calculated by Gross Domestic Product (GDP), according to CMS' Office of the Actuary estimates.
Furthermore, the United States remains one of the world's largest markets for industrial equipment, making it a lucrative market for HSS tools manufacturers. In addition, prominent end-use sectors such as automotive and transportation, oil and gas, and construction sectors in the United States are expected to drive growth in demand during the forecast period.
High Expenditure in Industrial Growth to Propel the Market
Demand in the German market is expected to rise at nearly 5% CAGR over the forecast period. Owing to investments in industrial expansions and technological developments, Germany has become one of the world’s leading machinery producing nations.
Consequently, it accounts for relatively higher expenditure among other countries in Europe. As per the report, Germany is recognized as a primary market, and it is expected to continue exhibiting high demand for HSS Tools through the forecast period.
Rising research activities, the presence of several major players, and the growing automotive industry in the country are providing attractive opportunities for high-speed steel (HSS) tools producers in the long term.
The emergence of Hi-tech Solution to Raise the Market Growth
China is one of the world’s top manufacturers and consumers of industrial machinery. It is expected to account for over 40% of HSS tools sales within China throughout the forecast period.
Manufacturers in the country have a competitive advantage as they have access to cutting-edge research to address previously unexplored challenges. Additionally, they are constantly investing in order to expand their operations, which is resulting in a promising and innovative market for cutting and precision tools.
China is also a leading producer of high-tech solutions and industrial expansion in the country is expected to gain from government initiatives and investments. This is boosting the demand for HSS tools in the forecast Period. Importantly, the shift of the manufacturing industry from Europe to China as a consequence of low cost and improved manufacturing capabilities will also generate a strong growth trajectory.
Expansion in the Indian Automobile Industry to propel the market
In 2022, India accounted for over 39% of sales in South Asia. Government initiatives like Make in India and Invest in India are anticipated to aid the expansion of India's industrial sector.
India is considered to be a leading countries for industrial manufacturing processes in the South Asia and Pacific region, which results in the increasing demand for high-speed steel (HSS) tools in the country.
Growth in the Indian automobile industry and the government’s lookout towards the same is also driving demand as the Government of India presented a vision to be the 2nd largest automobile manufacturer by 2030.
Production of Heavy Equipment and Construction to Drive Segment Growth
Based on product types, drills account for a leading category, accounting for 41% of the market in 2022, surpassing drill taps, mills, countersinks, cutters, reamers, square tool bits, and more.
The availability of drills for multiple applications such as furniture, metalworking, automotive parts manufacturing, heavy machinery manufacturing, and construction has created attractive market prospects.
Machine Based Tools Segment to Hold Highest Market Share
Machine based tools are primarily used with high-speed machinery such as lathe machines and CNC machines among others. The massive growth in industrialization, and the demand for automated and semi-automated solutions will drive demand.
Machine based HSS tools will account for over 95% of the market by the end of the forecast period in 2033. Higher demand for precision tools will also contribute to long-term developments in the industry.
Coated Segment to Account for Lion’s Share
The coated segment is estimated to hold the highest demand share of the HSS tools market. Coated products were estimated to account for more than 68% in 2022 due to their anti-corrosive properties.
Coated tools also provide higher resistance to wear and tear which enhances its durability. Rising coating technology and innovative coating materials are being launched which is expected to drive the sales higher for the coated HSS tools segment.
The automotive and transportation segment is expected to contribute a maximum revenue share of more than 51% in the global high-speed steel (HSS) tools market, various countries are investing a huge amount of capital to develop and enlarge the automotive and transportation sector, with the influx of EVs and hybrids creating key opportunities.
Advancements in the production of automotive vehicles and their parts have created a huge scope for the application of HSS tools in the automotive industry. Also, various auto manufacturers are investing in fabrication and machining techniques which are fueling sales.
Companies operating in the high-speed steel (HSS) tools market are aiming at expanding their product range for precise applications for which they are investing a huge amount in research and development activities.
Manufacturers are targeting end users by providing customized products for specific applications which is enhancing their market share while bolstering consumer loyalty.
Companies are focusing on strategic collaborations and partnerships with other manufacturers to expand their product portfolio while addressing the demand to expand their customer base.
| Attribute | Details |
|---|---|
| Market Value in 2023 | USD 5.9 billion |
| Market Value in 2033 | USD 10.6 billion |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Quantitative Units | USD billion for Value |
| Key Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, China, Japan, South Korea, Singapore, Thailand, Indonesia, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Segments Covered | Tool Type, Fabrication, Configuration, End Use Industry, Region |
| Key Companies Profiled | Sandvik AB; Mitsubishi Materials Corporation; OSG Corporation; Kennametal Inc.; YG-1 Co. Ltd.; TTI Group; Stanley Black & Decker Inc.; Tiangong International Co. Ltd.; Sumitomo Electric Hartmetall GmbH; TDC Cutting Tools Inc.; CERATIZIT S.A.; KYOCERA Corporation; Gühring KG; Walter AG; RUKO GmbH |
| Customization & Pricing | Available upon Request |
The market expanded at a CAGR of 5.2%.
The market is valued at USD 5.9 billion in 2023.
The Internet has revolutionized the retail industry by expanding the reach of retailers.
The United States is expected to account for nearly 87% through 2033.
The market is likely to surpass USD 10.6 billion by 2033.
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High Speed Steel (HSS) Tools Market
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