High Speed Steel Market

High-Speed Steel Market Growth Outlook (2023 to 2033)

The High Speed Steel market size was valued at US$2.6 billion in 2022 & is expected to expand at a compound annual growth rate (CAGR) of 6.7% from 2023 to 2033

Sales of high-speed steel market are valued to be US$ 2.7 billion in 2023 and to reach US$ 5.2 billion by the end of 2033.

High-speed steels, abbreviated as HSS, are steel alloys named primarily for their ability to machine and cut materials at high speeds. It is often used in power-saw blades and drill bits. High-speed steel is superior to older high-carbon steel tools in that it can withstand higher temperatures without losing its temper.

Report Attributes	Details
High-Speed Steel Market Size (2022A)	US$ 2.6 Billion
Estimated Market Value (2023E)	US$ 2.7 Billion
Forecasted Market Value (2033F)	US$ 5.2 Billion
Global Market Growth Rate (2023-2033)	6.7% CAGR
North America Market Share (2023)	23.9%
US Market Growth Rate (2023-2033)	6.1% CAGR
Key Companies Profiled	Erasteel Kennametal Voestalpine AG Graphite India Ltd. NACHI-FUJIKOSHI CORP. Tiangong International Co. Ltd

Historic and Future Pathway Analysis for the High-Speed Steel Market

Major building components of HSS are alloys of carbon, vanadium, chromium, molybdenum or tungsten, or combinations. These raw materials are adding value to high-speed steel with improved chemical composition to cater to applications and use cases in end-use industries.

The demand for high-speed steel is growing across various industries due to its properties such as durability, good hardness retention capabilities, high working hardness, and high wear resistance. HSS continues to make its path for mass production and also for its high-temperature operations.

Due to this, over the past half-decade, high-speed steel has portrayed absolute growth at a CAGR of 4.2% from 2018 to 2022.

• Short Term (2023-2026): Rising use of cutting tools applications to bolster the HSS market growth in the short run.
• Medium Term (2026-2029): Growth in lightweight vehicle demand in the automobile sector to pave the way for the high-speed steel market.
• Long Term (2029-2033): Asia pacific markets like China and India will lead the demand in long run pertaining to the growing automotive and manufacturing industries demanding keen tools for various operations.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 6.7% CAGR between 2023 and 2033.

Market Dynamics Overview

“Versatility and Requisition in HSS Encourages Consumption among Industries”

HSS is used in mechanical engineering, automotive, dies and molds, aerospace, machine tool, and other industries. HSS proves versatile and is used in shaper cutters, milling cutters, broaches, hobs, shaver cutters, and bevel cutters for fabricating gears. Subsequent development and research have made variations on molybdenum and tungsten balancing.

HSS properties such as wear resistance, hardness, and temperature resistance, among others, open a plethora of applications for the HSS market players.

Other elements such as cobalt and vanadium are added to enhance the further properties of HSS. Upcoming technology in HSS production forms will provide further space to HSS in the market for a variety of unexplored applications.

“Availability of Alternatives to Hamper HSS Market Growth”

Carbide tools and their application remained a major competition and a strong alternative to high-speed steel tools. Carbide steel tools have 6-7 times higher speed than steel and offer exceptional hardness and wear resistance. Cemented carbide is an extremely hard material used as a cutting tool in numerous industrial applications. Carbide drills also offer strong strength and toughness used for high-volume whole production with high material removal rate.

Manufacturing companies continue to maintain a cut-throat competition between carbide and HSS tools. Despite being better in many instances, carbide tools hold a drawback in pricing. HSS tools are quite economical compared to carbide tools. This helps HSS to compete against the carbide tool market and sustain its position in industries. Presently, cutting tool industries are procuring both carbide and HSS as their cutting tool.

Country-wise Insights

Why the Demand for High-Speed Steel is Growing Faster in China Compared to Other Countries?

The main consumer of steel in Asia is the construction industry, which is expected to rise significantly during the projected period. The construction sector accounts for almost two-thirds of all steel consumption in Asian nations, which continues to be a positive sign for the high-speed steel market growth.

The automotive industry is one of the key manufacturing sectors in the country. China produces more than half of the automobiles in the Asia-Pacific region. Being a developing country, continuously increasing spending on infrastructure development will lead to higher demand for HSS in China.

What Factors are making the US dominate the demand for High-Speed Steel?

The U.S. developed industrial sector is one of the main factors supporting HSS market growth. The manufacturing industry accounts for 10.8% of the United States economy calculated by gross domestic product (GDP), according to CMS' Office of the Actuary estimates.

The United States continues to be one of the greatest markets in the world for industrial equipment, making it a lucrative market for producers of HSS tools. Additionally, significant end-use industries in the United States, including automotive and transportation, oil and gas, and construction, are anticipated to fuel the HSS market growth.

Category-wise Insights

Why Powder Metallurgy is Gaining Traction?

Manufacturers in the high-speed steel market focus on the production method of HSS such as powder metallurgy and spray forming to secure upper-hand capabilities in this competitive market. Key players in the high-speed steel market are focusing on providing better production methods compared to conventional HSS technology to deliver the required material to meet the end-user’s requirement for keen-edge tools.

Other methods are also used to produce high-speed steel which also accounts for a certain share of the market.

Which End-Use Industry is driving High-Speed Steel Market?

The automotive industry holds approximately 1/4th of the total demand for high-speed steel. The rising demand for high-end industrial machinery and equipment from the automotive industry is the main reason for overall growth.

High-speed steel is highly used in the production of various spare parts and components for passenger and commercial vehicles due to numerous properties offered by them like high strength, resistance to abrasion and wear, more hardness, and others.

Eminent Players Key Stratagems

Prominent high-speed steel manufacturers are Erasteel, Kennametal, Voestalpine AG, Graphite India Ltd., NACHI-FUJIKOSHI CORP., Tiangong International Co. Ltd., ThyssenKrupp AG, Sandvik AB, Hitachi Metals Ltd., and DAIDO STEEL, among others.

The market has various well-established market players and numerous strategies such as collaboration and long-term trade relations to remain competitive. New entrants are entering the market by leveraging the power of advancing technologies and price differentiation strategy.

Fact.MR has provided detailed information about the price points of key manufacturers of high-speed steel positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of High-Speed Steel Industry Research

• By Production Method :

  • Conventional HSS
  • Powder Metallurgy (PM) HSS
  • Spray Forming (SF) HSS

• By Grade :

  • M Grade
  • T Grade
  • Advance Grade

• By Application :

  • Cutting Tools
    • Drills
    • Taps
    • Milling Cutters
    • Tools Bits
    • Hobbing Cutters
    • Saw Blades
    • Router Bits
  • Metal Cutting
  • Milling
  • Others

• By End-Use Industry :

  • Automobiles
  • Manufacturing
  • Aerospace
  • Mechanical Engineering
  • Construction
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa