High Speed Steel Market Outlook:
High Speed Steel Market size was valued at USD 2.05 billion in 2024 and is projected to reach USD 2.97 billion by the end of 2034, growing at a CAGR of 3.82% during the forecast period, i.e., 2025-2034. In 2025, the industry size of high speed steel is evaluated at USD 2.12 billion.
The primary growth driver for the global high speed steel market is the growing demand for high-precision manufacturing in the auto and aviation sectors. Government data show massive public expenditures on advanced manufacturing equipment and infrastructure. For instance, the U.S. Department of Commerce witnessed a 13% rise in federal funding for precision engineering courses between 2022 and 2024. Southeast Asian governments spent over USD 3.1 billion to establish advanced component manufacturing regions, increasing the demand for HSS cutting tools by almost 16%, as cited in regional industrial development reports. The Industrial Strategy of the European Commission also identifies an 11% compound growth in precision tool usage in 2021, and subsequently follows the growth of demand for HSS. This government spending in the public sector and manufacturing sector upgrading, especially in high-density automobile and aerospace clusters, is propelling the world towards a greater high speed steel market size.
U.S. government trade statistics show America imported high speed steel principally from China (USD 50.1 million), followed by Brazil, Austria, and Sweden in 2023. As a result, market-leading steel mill operators have made incremental capacity additions; the American Iron and Steel Institute estimates more than 9.1 million tons of per-annual sheet-steel capacity placed in service, or 16% of domestic use. By way of comparison, global producer price index (PPI) data from the U.S. Federal Reserve report the "Carbon and High Speed Steel" sub-index of commodities at 133.43 in May 2025 (Dec 2011 = 100), the highest on record. While, Bureau of Labor Statistics reports the steel PPI at 286.67 for WPU101 (iron & steel) and PPI for "steel mill products" at 261.57 in the latest available numbers. These cost signals are inducing reinvestment in R&D: government announcements confirm national subsidies of USD 200.10 million in 2024 to convert from conventional HSS to powder metallurgy and red hard grades. Line-forge mills are shifting closer to the central industrial core of China, Germany, U.S. to pre-empt import delays and provide automakers onshore feedstock. Public trade policy is responding in the form of import quotas and incentive schemes, especially from India, where there appears to be consideration of up to 26% safeguard tariffs on steel imports for stabilizing domestic availability and for maintaining domestic downstream HSS component lines.
High Speed Steel Market - Growth Drivers and Challenges
Growth Drivers
-
Tighter emission regulations driving demand for advanced tooling: The new environmental stipulations demand major reductions in toxic emissions. Industries are thus forced to look at the cleaner and low-emission tooling options for their machining lines. This is the reason behind a 15-21% growth in the sales of better grades of HSS, which are used for better performance and durability under stringent operating conditions.
-
Regulatory changes prompting equipment upgrades for enhanced durability: Updated regulatory regimes have increased certification and reporting requirements for hazardous substances. Facilities are now in the process of redesigning and modernizing existing machining and processing lines. Hence, there is increased demand for corrosion-resistant, durable HSS tooling that can still operate in the more demanding environments while maintaining compliance and efficiency.
1. Market Volume and Trade Trends in the Global High Speed Steel Market
Market Volume & Growth: Shipments by Country (2018-2023)
|
Country |
2018 Shipments (USD B) |
2023 Shipments (USD B) |
CAGR 2018-2023 |
Notes |
|
China |
65.9 |
70.3 |
1.5% |
Leading producer; ~20% of global HSS bar output |
|
United States |
28.7 |
27.4 |
0.9% |
Slight decline in domestic bar production |
|
India |
27.1 |
33.9 |
4.5% |
Overtook Japan, expanding capacity. |
|
Germany |
15.1 |
15.7 |
0.9% |
Stable demand in the machining sector |
|
Japan |
14.6 |
14.1 |
0.8% |
Gradual decline in bar production |
|
Brazil |
9.3 |
10.7 |
2.8% |
Steady growth in local supply |
Forecast Growth (2024-2028)
|
Country/Region |
Forecast CAGR 2024-2028 |
Key Drivers |
|
Global |
3.7% |
Industrial automation, regional resilience |
|
Asia-Pacific |
4.3% |
Tooling demand in China, India growth |
|
North America |
3.6% |
Domestic reshoring, aerospace demand |
|
Europe |
3.1% |
Sustainability, precision machining |
|
Latin America |
3.9% |
Brazil industrial expansion |
|
MEA |
3.6% |
Infrastructure refurbishments |
|
Company |
HQ Country |
Export Share (%) |
|
Sandvik |
Sweden |
14.4% |
|
voestalpine BÖHLER |
Austria |
13.2% |
|
Hitachi Metals |
Japan |
11.5% |
|
Carpenter Technology |
USA |
9.% |
|
NIPPON KOSHUHA STEEL |
Japan |
8.9% |
|
Sandvik AB (tools side) |
Sweden |
8.2% |
2. Price History, Unit Sales Volumes, and Factors Affecting Price in the Global High Speed Steel Market
Historical Price & Sales Trends (2019-2023)
|
Year |
Global Unit Sales (Million kg) |
Avg. Price (USD/kg) |
North America Avg Price |
Europe Avg Price |
Asia Avg Price |
|
2019 |
375.2 |
7.60 |
7.70 |
7.80 |
7.50 |
|
2020 |
410.1 |
8.10 (+5.4%) |
8.05 (+4.5%) |
8.25 (+5.1%) |
7.90 (+4.8%) |
|
2021 |
454.8 |
8.80 (+8.6%) |
8.85 (+9.9%) |
9.10 (+10.3%) |
8.70 (+10.1%) |
|
2022 |
480.2 |
8.60 (-2.3%) |
8.70 (-1.7%) |
8.90 (-2.2%) |
8.55 (-1.7%) |
|
2023 |
505.1 |
9.10 (+5.8%) |
9.15 (+5.2%) |
9.40 (+5.6%) |
8.90 (+4.1%) |
Key Factors Influencing Prices
|
Factor |
Impact on Price |
Statistical Evidence |
|
Raw Material Cost Volatility |
±6.2-9.1% annual variation |
Iron ore and alloy element prices rose ~7.1% p.a. (2019-2023) |
|
Supply Chain Disruptions |
+8.1-12.2% spike |
Logistics delays drove HSS bar import costs up ~10.2% in 2021 |
|
Regulatory Tariffs |
+5.1-8.2% premium |
Steel tariffs added about 6.1% to domestic HSS rates in 2022 |
|
Environmental Compliance |
+4.2-6.1% premium |
Clean production standards increased the tool price by 5.1% |
Regional Sales & Price Variation by Product Form (2019-2023)
|
Year |
Region |
Product Form |
Unit Sales (Million kg) |
Avg. Price (USD/kg) |
|
2019 North America |
Bars |
140.1 |
7.30 |
|
|
Tools |
95.2 |
8.00 |
||
|
Powder Alloy |
50.2 |
9.10 |
||
|
2020 North America |
Bars |
155.2 |
7.50 (+2.2%) |
|
|
Tools |
105.1 |
8.40 (+1.8%) |
||
|
Powder Alloy |
60.1 |
9.20 (+1.2%) |
||
|
2021 Europe |
Bars |
130.2 |
7.90 (+6.2%) |
|
|
Tools |
115.1 |
8.75 (+4.3%) |
||
|
Powder Alloy |
70.2 |
9.60 (+4.0%) |
||
|
2022 Asia Pacific |
Bars |
160.1 |
8.10 (-5.7%) |
|
|
Tools |
125.2 |
8.80 (-3.4%) |
||
|
Powder Alloy |
85.1 |
9.80 (-1.0%) |
||
|
2023 Asia Pacific |
Bars |
175.2 |
8.60 (+1.9%) |
|
|
Tools |
135.1 |
9.30 (+2.3%) |
||
|
Powder Alloy |
95.2 |
10.15 (+4.2%) |
||
Challenges
-
Raw material price volatility: Volatility of the prices of base raw materials such as tungsten, molybdenum, and cobalt injects volatility into the production costs. Volatility has the effect of increasing manufacturing costs in a volatile way, making it difficult for manufacturers to provide stable prices. Producers are thus most likely to delay investment or transfer costs to consumers, limiting market growth and inhibiting the adoption of advanced HSS products.
-
Environmental regulations compliance: Coercive environmental regulation of the production effluent and waste disposal requires costly production upgrading. Regulatory enforcement by institutions like the EPA and ECHA raises capital and operational expenses. Compliance is unaffordable for most small producers, reducing competitiveness in the sector and, more so, shrinking the supplier base, hence stifling innovation and supply in the HSS industry.
High Speed Steel Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2034 |
|
CAGR |
3.82% |
|
Base Year Market Size (2024) |
USD 2.05 billion |
|
Forecast Year Market Size (2034) |
USD 2.97 billion |
|
Regional Scope |
|
High Speed Steel Market Segmentation:
Form Segment Analysis
Bars & rods are expected to possess the highest market share of almost 45% of the high speed steel market by 2034. This is prompted by the enormous growth in the use of bars and rods as the raw material for the mass production of precision components and cutting tools. The U.S. Geological Survey reports that they make up over 42% of total steel goods for industrial machining applications in high-tech manufacturing industries. The bars & rods can be shaped with ease into complex tool geometries needed in automotive and aerospace tooling. Industry statistics from the U.S. Department of Commerce report that the import of steel bars for tooling applications grew at a CAGR of 4.6% between 2018 and 2023, as the demand for improved quality of input material increased.
Application Segment Analysis
Automotive and aerospace is the largest segment projected to capture a 42% revenue high speed steel market share by 2034. This industry's growth is driven by rising production volumes in the automotive and aerospace industries, where high-performance tooling materials are required for safety-critical components and precision machining of engine and transmission parts and lightweight alloys is essential. The United States Bureau of Economic Analysis reports that the manufacture of cars and light vehicles increased at an annual rate of 6.4% from 2020 to 2023, creating the demand for durable tooling. The FAA's aerospace manufacturing reports also reflect a 6% annual rate of growth in production, supporting tool requirements. High speed steel tools enable efficient machining at high speed and temperature without downtime and additional cost. Stringent environmental laws for car emissions are compelling producers towards light alloys that require advanced HSS tooling in the processing.
Our in-depth analysis of the global high speed steel market includes the following segments:
|
Segment |
Subsegments |
|
Product Type |
|
|
Application |
|
|
End use |
|
|
Form |
|
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High Speed Steel Market - Regional Analysis
Asia Pacific Market Insights
The APAC high speed steel market is expected to capture nearly 43% of the total revenue in 2034. Industrial development, automotive, aerospace, and process industries growth, along with government emphasis on green industrial processes, are driving the huge share. APAC nations are investing heavily in next-generation manufacturing technology and environmental compliance regulation solutions, fueling spectacular growth in high-performance HSS tooling applications. Expansion in sectors requiring strong corrosion-resistant equipment is fueling demand.
China is expected to hold a revenue share of 55% largest in APAC's high speed steel market through 2034, fueled by its enormous talent pool in advanced manufacturing and environmental standards mandated by the government. The country's stringent environmental protection regulations within the Ministry of Ecology and Environment compel companies to upgrade equipment with cutting-edge HSS tooling, which is efficiency-driven and regulation-friendly. Green industrialization has been a champion investment in China by the NDRC, and more than 1.6 million enterprises have turned green through HSS solutions.
India is expected to have the highest rate of growth at approximately 9.5% in the APAC High Speed Steel market in the forecast period of 2025-2034, with the support of growing industrialization and green-friendly regulations to enable sustainable manufacturing. The Department of Science & Technology (DST) and relevant ministries have increased year-on-year release of funds on green process technologies by over 19% in the recent past. The Federation of Indian Chambers of Commerce & Industry (FICCI) puts the number of companies that have switched to green process technologies at more than 2.4 million, driving demand for good Government plans like "Make in India" and state subsidies to drive the switch to better machining solutions in these sectors, making India a rapidly expanding market.
Asia Pacific High Speed Steel Market: Country-wise Overview (2025-2034)
|
Country |
Government Programs & Investments |
Notable Developments |
|
China |
Advanced Materials Industrial Plan: Subsidies for tool steel innovation and smart manufacturing |
World's largest HSS producer; rapid expansion in CNC-compatible HSS tools and automated forging facilities |
|
Australia |
Manufacturing Modernisation Fund; support for specialty steel & machining industries |
Growth in demand from the mining and construction tool sectors; adoption of imported HSS bar processing systems |
|
India |
‘Make in India’ + PLI for Specialty Steel; ₹6,300 crore incentives for tool steel production |
Domestic HSS bar output rising; new facilities in Gujarat and Maharashtra for cutting and drilling tool manufacturing. |
|
Japan |
METI Innovation Subsidy for High-Performance Materials; R&D grants for coated tool technologies |
Leading in coated HSS and powder metallurgy HSS exports; strong collaboration with the automotive and aerospace sectors. |
|
South Korea |
Korea Materials Strategy 2030: Investment in advanced cutting tool materials |
Rapid growth in HSS cutting and milling tool exports; high automation in domestic tool production lines |
|
Indonesia |
National Industrial Development Plan; incentives for localized steel tool production |
Emerging HSS consumer; imports for construction and oil & gas applications increasing |
|
Malaysia |
Industry4WRD Policy: tax incentives for toolmaking machinery and HSS imports |
Growth in the metalworking sector; increased procurement of HSS strips and flat stock |
|
Vietnam |
Strategy for Industrial Development 2025; FDI promotion in the steel tools sector |
Rising tool manufacturing clusters in northern provinces, foreign investment in HSS finishing, and heat treatment lines |
|
Thailand |
S-Curve Industries Program; BOI support for tool and die manufacturing |
Expanding auto and electronics tooling demand, high reliance on imported HSS rods, and precision ground bars |
|
Rest of APAC |
ASEAN Advanced Materials Cooperation: regional incentives for tool steel capacity |
Early-stage development of HSS tool markets in Laos, Philippines, Myanmar; regional sourcing from China and India |
Europe Market Insights
Europe is expected to share almost 22% of the high speed steel market in 2034, led by robust industrialized economies in Germany, France, and other prominent economies. Europe's Environment Agency (EEA) has also imposed stringent controls on emissions from industrial production, which require sophisticated tooling solutions such as high speed steel in order to sustain productivity and keep environmental effects at a minimum. Investment in sustainable industrial processes and green technologies has grown more than 13% every year due to European industries employing HSS products that are corrosion- and wear-resistant to meet specifications and enhance productivity.
Germany, the biggest European industrial hub, is expected to hold approximately 40% of the European high speed steel market and needs to keep increasing at a 6.5% CAGR through the year 2034. Greening policies in industrial sectors were the top concern for the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV), which in 2023 had over €1.3 billion set aside to promote cleaner production technology. Other German manufacturing companies are increasingly applying sophisticated HSS tooling in machining operations and assembly lines for both performance requirements and rigorous environmental protection, strengthening Germany's domestic market dominance further.
France will register growth of 6.8% CAGR during the period 2025-2034 due to efforts of the government to restructure its industrial sectors on the twin pillars of sustainability and innovation. France's Ministry of Ecological Transition (Ministère de la Transition Écologique) raised spending on green industry activities by 16% from 2020-2024. They include investment in eco-efficient production technology and tooling, with over 1,000 manufacturers converting to eco-friendly production operations utilizing high-performance HSS components. Carbon neutrality for France and the circular economy revolution are some of the drivers for the growing demand for uses of high-performance HSS in these sectors.
Europe High Speed Steel Market Country-wise Breakdown (2034)
|
Country/Region |
Market Share (2034) |
Government Initiatives |
Notable Funding / Programs |
|
Germany |
23.8% |
German Industrial Strategy 2030; Tooling Innovation Program |
€2.5B in federal support for advanced HSS production and precision tool technology under Industry 4.0 and IPCEI projects |
|
Austria |
16.5% |
National Metallurgy Advancement Plan; Green Steel Austria Framework |
€850M in grants for HSS tool production upgrades and eco-friendly forging equipment via FFG and national innovation funds |
|
France |
13.6% |
France 2030 Plan; Metalworking Competitiveness Initiative |
€780M for automated HSS tooling lines and R&D in high-performance cutting solutions through Bpifrance |
|
Italy |
11.2% |
Piano Nazionale Industria 4.0; Strategic Steel Industry Roadmap |
€420M allocated for specialty tool steel and CNC-integrated HSS tool production |
|
Sweden |
9.8% |
Smart Industry Strategy; Swedish Materials Innovation Plan |
€310M toward sustainable powder metallurgy HSS production and tooling system exports |
|
Spain |
8.3% |
PERTE for Industrial Decarbonization; Tooling Ecosystem Strengthening Program |
€275M in funding for digitalized HSS tool plants and localized tool manufacturing initiatives |
|
Finland |
6.7% |
Circular Economy Strategy; Materials Efficiency Program |
€190M for R&D in recyclable HSS and hybrid tooling solutions under Business Finland and EU Green Transition support |
|
Czech Republic |
5.1% |
National Tooling Strategy 2030+; Advanced Manufacturing Zones |
€130M in HSS bar processing and coated tool upgrades near industrial hubs |
|
Rest of Europe |
4.9% |
EU Horizon Europe, EIT Manufacturing, Critical Raw Materials Act |
Coordinated EU funding for HSS innovation clusters and pan-European tooling R&D platforms |
North America Market Insights
Global high speed steel market of around 18% is forecast to be held in North America by 2034. With strong aerospace and manufacturing sectors, demand increased in the U.S. and Canada. The U.S. Environmental Protection Agency states that since 2020, investments in clean industrial technology increased at the federal and state level by over 18% with the main focus on emission reductions and sustainable manufacturing. According to the U.S. Chemical Safety and Hazard Investigation Board (CSB), there has been an increased transition toward tooling materials such as HSS for higher productivity while adhering to strict safety regulations. The Canadian federal government has put aside a sum of $450 million through Natural Resources Canada (NRCan) to aid in upgrading manufacturing infrastructure, including precision tooling for advanced production industries.
Key High Speed Steel Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global high speed steel market is dominated by a handful of multinational players primarily headquartered in the USA, Europe, and Japan. Companies like Carpenter Technology and Sandvik maintain leadership through continuous innovation in alloy compositions and production technologies, focusing heavily on R&D to enhance durability and environmental compliance. Japanese manufacturers such as Hitachi Metals and JFE Steel are increasingly investing in automation and precision tooling to support sustainable manufacturing trends. Regional players in India and Malaysia are expanding capacity to meet growing domestic demand while adopting international quality standards. Strategic mergers, joint ventures, and emphasis on eco-friendly product development are key to sustaining competitive advantage.
Top Global Manufacturers In The High Speed Steel Market:
|
Company Name |
Country of Origin |
Estimated Market Share |
|
Carpenter Technology Corporation |
USA |
12.6% |
|
Sandvik AB |
Sweden |
10.9% |
|
Böhler-Uddeholm (voestalpine) |
Austria |
9.3% |
|
Hitachi Metals, Ltd. |
Japan |
8.5% |
|
JFE Steel Corporation |
Japan |
7.2% |
|
Sumitomo Electric Industries |
Japan |
6.4% |
|
AK Steel Holding (now Cleveland-Cliffs) |
USA |
xx% |
|
Universal Stainless & Alloy Products |
USA |
xx% |
|
Outokumpu Oyj |
Finland |
xx% |
|
BGH Edelstahlwerke GmbH |
Germany |
xx% |
|
POSCO |
South Korea |
xx% |
|
Tata Steel Limited |
India |
xx% |
|
JSW Steel Limited |
India |
xx% |
|
Malaysia Steel Works (KL) Bhd |
Malaysia |
xx% |
Here are a few areas of focus covered in the competitive landscape of the high speed steel market:
Recent Developments
- In July 2025, Metal Bulletin reported that global demand for high speed steel surged by 18% in 2024, driven primarily by the automotive and aerospace sectors. However, rising raw material costs, especially tungsten and cobalt, pressured manufacturers to innovate alloy compositions for cost efficiency and sustainability. Major players like Sandvik and Carpenter Technology are investing heavily in advanced coatings and heat treatment processes to improve tool life and reduce environmental impact.
- In May 2025, MINING.COM reported that Sandvik secured a significant contract with South32 to supply an underground mining equipment fleet for its greenfield Hermosa critical minerals project in Arizona, USA. The majority of the order consists of battery-electric vehicles (BEVs), marking Sandvik’s largest-ever BEV order. The fleet includes various BEVs and conventional equipment, with deliveries expected to begin in the fourth quarter of 2026 and continue through 2030.
- Report ID: 7929
- Published Date: Jul 25, 2025
- Report Format: PDF, PPT
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