High Speed Steels Market Expected to Reach $9.4 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “High Speed Steels Market," The high speed steels market size was valued at $5.3 billion in 2022, and is estimated to reach $9.4 billion by 2032, growing at a CAGR of 6.2% from 2023 to 2032.

High-speed steels (HSS) are a type of tool steels known for their ability to machine and cut materials at high speeds (high hot hardness). It is frequently found in power-saw blades and drill bits. In comparison to older high-carbon steel tools, high-speed steel can sustain higher temperatures without losing its temper (hardness). High-speed steels are complex iron-based alloys containing carbon, chromium, vanadium, molybdenum, or tungsten in various combinations.

High-speed steel's key advantage is its resistance to wear and tear at high speeds. Therefore, it is perfect for use in cutting tools since it can survive the high temperatures generated when cutting at fast speeds. Furthermore, high-speed steel has a better heat resistance than tool steel, making it excellent for use in applications requiring extremely high temperatures. In addition, the automotive industry is a major consumer of high-speed steel tools due to the demand for precision machining and premium components. The demand for HSS tools is increasing as the vehicle industry expands, particularly in emerging economies. Furthermore, high-speed machining procedures are becoming increasingly important as technology progresses in order to increase productivity and efficiency.

High-speed steel has the disadvantage of being more expensive than tool steel. This is projected to be the major restraining factor for the market expansion in the future. Furthermore, high-speed steel may not be as robust as tool steel, making it unsuitable for heavy-duty applications. The increase in use of carbide-based cutting tools in various end-use sectors, as well as the low manufacturing capacity of high-speed steel, are likely to act as major limitations on the high speed steels market growth rate during the forecast period.

High-speed steel (HSS) tool manufacturers are seeing appealing opportunities owing to increased research activities, the presence of large players, and the developing automotive industry in various nations. These factors contribute to overall demand for HSS tools and foster a positive market environment for manufacturers. High-speed steel tool demand is being driven by R&D initiatives aimed at improving automotive production processes, especially machining. Automotive manufacturers need innovative tooling solutions such as HSS tools as they aim for increased production, efficiency, and cost savings. The increased research activity in this field creates a market for HSS tool manufacturers to provide novel and high-performance products. The presence of established key players in the automotive and manufacturing industries adds to the prospects for HSS tool manufacturers.

The high speed steels market share is segmented on the basis of type, production method, grade, end user, and region. By type, it is classified into tungsten high speed steel, molybdenum high speed steel, cobalt high-speed steel, and others. By production method, it is classified into conventional HSS, powder metallurgy (PM) HSS, and spray forming (SF) HSS. By grade, it is classified into M grade, T grade, and advance grade. By end user, it is classified into automotive, plastic, aerospace, energy, manufacturing, mechanical engineering, construction, and others. By region, the high speed steels market analysis across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the high-speed steels market report include Sandvik AB, NIPPON KOSHUHA STEEL CO., LTD., Proterial, Ltd., ArcelorMittal, Amada Co., Ltd, OSG corporation, Kennametal, Kyocera, Walter AG, and RUKO GmbH.

The report offers a comprehensive analysis of the global high speed steels market trend by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of COVID-19 on the Global High Speed Steels Industry

• Automotive production, one of the largest consumers of high-speed steel, has been negatively impacted due to the COVID-19 pandemic, while declining energy prices have resulted in significantly reduced demand for high speed steels from the oil & gas sector. Many non-essential construction projects were halted as a result of the COVID-19 pandemic, which also hampered the steel demand.
• The pandemic caused fluctuations in demand for various industrial products. Sectors heavily reliant on HSS tools, such as manufacturing, construction, and automotive, experienced slowdowns or temporary shutdowns, leading to reduced demand for HSS products.
• As economies started recovering, certain sectors like construction and manufacturing picked up pace again, leading to a gradual rebound in demand for HSS tools. The pandemic accelerated certain long-term trends, such as the adoption of automation and digital technologies in manufacturing..

Key Findings of the Study

• Based on type, the molybdenum high speed steel sub-segment emerged as the global leader in 2022 and the tungsten high speed steel sub-segment is anticipated to be the fastest growing during the forecast period.
• Based on production method, the powder metallurgy (PM) HSS sub-segment emerged as the global leader in 2022 and is anticipated to be the fastest growing sub-segment during the forecast period.
• Based on grade, the M grade sub-segment emerged as the global leader in 2022 and is anticipated to be the fastest growing sub-segment during the forecast period.
• Based on end user, the automotive sub-segment emerged as the global leader in 2022 and is predicted to show the fastest growth in the upcoming years.
• Based on region, North America registered the highest market share in 2022 and is projected to maintain its position during the forecast period.