Tool steel market overview and forecast growth from 2023-2032
Steel NewsDate: 11-07-2023 by: Ngan Le
The tool steel market indicates its importance when it is present in almost all manufacturing sectors such as automotive, aviation, and other energy fields. According to the latest data reports, the tool steel market size will reach a 6% annual growth rate until 2032 due to the rise of industrial production demand in many countries around the world.
Demand consumption of the steel tool market in recent years
According to some data reports, the demand for tool steel has risen in recent years, specifically the line of high-speed steel (HSS) - a form of tool steel that can cut materials faster than other carbon steel. HSS's outstanding toughness and hardness properties make them ideal in metal cutting and drilling applications.
The primary consumption market for tool steel is divided into specific sectors, the highest consumption sectors including automotive, aerospace, machinery, and energy manufacturing. The automotive and aerospace industries use aluminum as input material, so aluminum processing requires high-speed cutting tools because aluminum is molten. If the cutting tools are not fast and hard enough, like HSS steel, it will easily make the cutter stick to the aluminum section.
It can be seen that the need for tool steels in the manufacturing fields is showing signs of expansion because they help the production process become more efficient and faster, thereby promoting the growth of the consumption tool steel market.
Forecast the tool steel market trends from 2023 - 2032
According to the newly-updated reported data, the tool steel market size will be valued at USD 5.9 billion in 2022, and this number will increase rapidly to USD 6.29 billion by 2023. From 2023 to 2032, the tool steel market size will have a compound annual growth rate of 6.64%, with a milestone of 10.52 billion USD in 2032.
Forecast the tool market size in from 2022 - 2032 with the CAGR is 6%
Forecast consumption trend of tool steel in fields
During the 2022 - 2032 period, the sector that is expected to account for the most growth consumption is the automobile and aerospace segment. Currently, the majority of aircraft parts are produced with the participation of tool steel products. Other potential consumption growth fields of the tool steel market include machinery manufacturing and energy. The demand for tool steel in these markets is expected to increase due to the trend of promoting industrial economic models in many countries.
Applications in the oil & gas sector and renewable energy sections are appreciated highly in future consumption. The outstanding durability with high resistance will help the tool steel to perform well in production processes such as drilling, cutting, and milling in the oil and gas pipeline. Regarding the renewable energy industry, the demand for tool steel in wind and solar panels will be driven by the trend of using eco-friendly energy in the current context.
Forecast consumption trend of tool steel in each region
The North American market will become the most significant tool steel sales market in 2021 due to the US being a country that invests a lot in research and development fields. The evidence is clear that the aerospace sectors are increasingly expanding in the United States, in addition to the construction and the automobile manufacturing industry also significantly driving the demand for tool steel in this region.
Thanks to the development of the automotive industry in Europe, this market is also considered a substantial consumption of tool steels. Specifically, a number of car-producing countries account for the majority, such as Germany, France, and the UK.
The tool steel market in Asia is expected to replace the North American market, and it will become the most significant tool steel sales market globally from 2023 to 2032. Construction and manufacturing activities are expanding rapidly in typical countries such as China, India, and Japan, these markets are essential factors in driving the consumption of tool steel significantly. Although the Asia market's starting point is lower than the European and North American markets, after a long time, this is a market with a remarkable growth rate of tool steel consumption.
Forecast regional overall of tool steel market development from 2022 - 2032
Development opportunities for the tool steel market in Vietnam
As one of the countries with the fastest GDP growth in the world in recent years, Vietnam has been promoting the industrial economy and increasing production well. Expressly, in the period from 2025 to 2030, the government has set out a strategy to develop Vietnam's automobile industry, which promises a further breakthrough development of the country's auto industry. The promotion of automobile production also shows that Vietnam will be an ideal place for the tool steel market as the automotive industry has always been the field with the most vital consumption of tool steel.
In addition, Vietnam is also a country developing a renewable energy industry. This country promotes the use of wind turbines and solar panels to replace traditional fossil energy sources. Up to now, Vietnam has inaugurated 8 solar panel factories, marking a new potential opportunity for promoting tool steel consumption in this country.