The high-speed steel (HSS) tools market registered a valuation of US$ 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 US$ 10.6 billion by the end of the 2023 to 2033 period of assessment.
High-Speed Steel (HSS) Tools Market Historic Sales Compared to 2023 to 2033 Forecast Outlook
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.
What is the Impact of Increasing Interest in Do-it-Yourself activities?
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.
Why is the United States dominating North America HSS Tools Market?
Developed Industrial Sector in the 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 tool 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.
Why is the Demand for Drills High in HSS Tools Market Expanding?
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.
Why is the Automotive and Transportation Exhibiting High HSS Tools Demand?
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. In June 2021, Desktop Metal unveiled 4140 low-alloy steels for applications in production system platforms with the company’s proprietary single pass jetting technology for mass production applications.
Tiangong International Company Limited announced the acquisition of Quintus Technologies, with the objective of expanding production capacity through expanding its production facility in the Jiangsu province. In May 2021, Bosch Power Tools announced the launch of its cordless PROFACTOR 18V ½-In. Impact Wrench with Friction Ring (GDS18V-740) and PROFACTOR 18V ¾-In. Impact Wrench with Friction Ring and Thru-Hole (GDS18V-770) for automotive, structural steel, and carpentry applications.
Walter introduced new MD340 and MD344 Supreme solid carbide milling cutters in January 2023. The MD340 Supreme (diameter 2-25 mm or 1/16-34") was developed especially for steel roughing, full slotting, and evolving milling. The MD344 Supreme four-edge cutter was developed for 90° plunging or accelerating due to its special face geometry (dia. 6-20 mm).
ARCH Cutting Tools Corp. disclosed the acquisition of Custom Carbide Cutter, Inc. (CCCI), a Cincinnati-based firm that offers high-quality cutting instruments to producers and resellers, in January 2023. ARCH Cutting Equipment, which specializes in high-performance personalized tooling, will benefit from its latest acquisition.
These insights are based on a report on
High-Speed Steel (HSS) Market
by Future Market Insights