High Speed Steels Market - Forecast(2023 - 2028)

High Speed Steels Market Overview

High-Speed Steels Market size is expected to reach a value of US$4.2 billion by the end of the year 2027 after growing at a CAGR of 5.1% during the forecast period from 2022-2027. The increase in demand for high-speed steel is widely used in automobiles, aerospace, pharmaceutical, and construction. Due to unique characteristics such as high wear resistance, high resistance to softening effect to heat, and excellent toughness for effective use in industrial cutting tools is one of the major factors driving the high-speed steel industry growth. High-speed steel produced by injection molding includes composition which is used for industrial tools cutting in various sectors such as construction and marine. Powder metallurgy high-speed steels are offered to improve cutting tool life, provide better toughness, high working hardness, and wear resistance which makes them ideal for various end-use industries such as automotive and construction which in turn is driving the high-speed steels market.

COVID-19 impact

Amid the Covid-19 pandemic, a noticeable impact on the high-speed steels market was experienced. The various regulations on trading activities restricted the high-speed steels industry. In the tragedy of COVID-19, most of the countries have gone under lockdown, due to which the projects and operations of various industries such as automotive are disruptively stopped, hampering the high-speed steels industry growth. According to Asian Automobile Analysis (AAA), Toyota’s automobile sales in China fell 70.2% to 24,000 units in February 2020. In March 2021 according to the International Organization of Motor Vehicle Manufacturers (OICA), vehicle production in Europe, North America, and South America fell by 21%, 20%, and 30%, respectively. However, the global high-speed cutting tools demand was hugely affected in terms of consumption from the automotive industry which is limiting the market growth.

Report Coverage

The report: “High-Speed Steels Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the High-Speed Steels Industry.

By Composition: Tungsten, Chromium, Vanadium, Cobalt, Molybdenum, Carbon, and Others (Silicon, Sulfur, others).
By Application: Cutting Tools, Saw Blades, Taps, Milling Cutters, and Others (Gear Cutter, Broaches, others).
By End-Use Industry: Transportation {Automotive (Passenger Cars, Light Weight Commercial Vehicles, Heavy Duty Commercial Vehicles), Marine, Aerospace}, Oil & Gas, Construction Industry, Pharmaceutical Sector, Pulp and Paper, Plastic Industry, and Others 

Key Takeaways

• The Asia Pacific held the largest share in the high-speed steels market owing to the growing economy and various end-use industries such as automotive, aerospace, and marine.
• According to the Mexican Automotive Industry Association (AMIA) & the United States Department of Commerce, vehicle export in Mexico is expected to reach 2,998 thousand in 2021 from 2,681 thousand in 2020.
• Additionally, high-speed steel includes molybdenum, tungsten, vanadium, and chromium are widely used raw materials due to wear resistance, absorption ability, and reduce oxidation damage during heat treatment is estimated to create an opportunity for the use of such steels.
  
  

Figure: Asia Pacific High-Speed Steels Market, 2021-2027 (US$ Billion)

High-Speed Steels Market Analysis – By Composition

Molybdenum held the largest share of more than 25% in the high-speed steels market in 2021. Molybdenum increases temper brittleness, enhances fine grain formation, provides high weldability, and has a high tendency during tempering. Molybdenum steels have a lower melting point than tungsten steels. Molybdenum offers high abrasion resistance and is tougher than tungsten. Molybdenum (a metal group that is produced by injection molding) is used to cutting tools such as drills, reamers, saw blades, milling cutters, planar tools, punches, routers, gear cutters saws, and broaches which makes them ideal for automotive, shipbuilding, aircraft, and aerospace. In 2019, according to the American Automotive Policy Council, 13.7 million were sold vehicles including cars and trucks in the U.S., Canada, and Mexico which will increase to around 12 million per year by 2025. Molybdenum high-speed steel (which is processed by powder metallurgy) composition is possessed various physical properties such as melting points (2623 ⁰C) and thermal expansion (25 ⁰C). Thus, due to these physical properties, this material is widely used for the composition of high-speed steel. 

High-Speed Steels Market Analysis – By Application

Cutting tools held the largest share of more than 40% in the high-speed steels market in 2021. Cutting tools are used to remove an excess layer of material from the workpiece by shearing during machining to obtain the desired shape, size, and accuracy. High-speed steel with carbon composition is used for cutting tools as it offers hardness, abrasion resistance, and resistance against softening at high temperatures. Cutting tools such as drill, milling cutter, fly cutter, shaper, boring bar, and others are used in the various industrial sector such as aviation, pharmaceutical, oil & gas, and automotive. According to the India Brand Equity Foundation (IBEF), the MRO (maintenance, Repair, and Operation) industry in India is expected to grow US$2.4 million by 2028 from US$ 800 million in 2018. Hence, the growing consumption of cutting tools is expected to propel the high-speed steels industry growth.

High-Speed Steels Market Analysis – By End-Use Industry

Transportation held the largest share of more than 30% in the high-speed steels market in the year 2021. High-speed steel offers excellent grinding which is ideal for the transportation industry for cutting tools such as tool bits, milling cutters, saw blades, drills, taps, broaches, and more for use in aircraft and automotive interiors. Thus, the growing aerospace and automotive sector is estimated to fuel the demand for high-speed steel. According to the General Aviation Manufacturers Association (GAMA), the total value of airplanes shipped through the second quarter of 2021 was US$8.6 billion, an increase of approximately 9.4% over the second quarter of 2021. According to the International Organization of Motor Vehicle Manufacturers (OICA), global vehicle production increased by 21.08 million in January-march 2021 compared to 18.03 million in January-March 2020. Hence, the growing transportation sector is expected to propel the high-speed steels industry growth.

High-Speed Steels Market Analysis – By Geography

The Asia Pacific region held the largest share of more than 40% in the high-speed steels market size in the year 2021, due to the increasing demand from various end-use industries such as automotive in Asian countries including India and China. According to the Federation of Automobile Dealers Associations (FADA), in India, sales of passenger vehicles reached to 2,91,001 units in November 2020, against 2,79,365 units in November 2019. According to the International Trade Administration (ITA), the Chinese government is expected to run the production of automobiles with 35 million units by 2025. Thus, the increasing automotive market in Mexico is also boosting the demand for high-speed steel. According to the Mexican Automotive Industry Association (AMIA) & the United States Department of Commerce, vehicle production in Mexico is expected to reach 3,383 thousand in 2021, an increase of 11.28% from 3,040 thousand in 2020. Hence, these are hugely creating an opportunity for market growth in the region.

High-Speed Steels Market Drivers

Increasing adoption of High-Speed Steels from various Industrial

High-speed steel is used for hobs, broaches, shaper cutters, shaver cutters, milling cutters, and bevel cutters for fabricating gear. Powder metallurgy high-speed steel provides high strength, wear resistance, and excellent toughness for effective use in industrial cutting tools which is one of the major driving factors for the market growth. High-speed steel is used to manufacture screw taps, wire-drawing die, saw web, and so on which is an increase in the demand for steel in various industrial usages such as automotive and aerospace. According to the International Organization of Motor Vehicle Manufacturers (OICA), commercial vehicles production in China had reached 5.2 million in 2020, an increase of 16.6% from 4.3 million in 2019. According to the India Brand Equity Foundation (IBEF), the Indian aerospace & defense (A&D) market is projected to reach ~US$ 70 billion by 2030, which is one of the major driving factors for the industry growth. High-speed steel offers high strength, increased hardness, and high resistance to wearing and abrasion, thus it is widely used in the manufacturing of spare parts and components of industrial machines. This will further drive the high-speed steel industry. 

Increasing Adoption from the Transportation Sector

High-speed steel is used to manufacture valves, injector needles, pistons, valve balls, and valve seats. High-speed steels are based on injection molding under which, it is used to manufacture plastic parts they are used as headlamps, tail lamps, and inner panels of automobiles. Thus, growth in the automotive industry is expected to augment the demand for high-speed steel. According to the European Automobile Manufacturer Association (ACEA), the automotive sector is a major investor in R&D in Europe, which has increased by 6.7% to reach €57.4 billion (US$ 64.25 billion) annually as of 2019. In 2020, according to the European Automobile Manufacturers Association (ACEA), automobile manufacturers operate some 226-vehicle assembly and production plants in the European Union. According to India Brand Equity Foundation (IBEF), the Union Ministry of Défense formulated the Défense Production and Export Promotion Policy 2020 aims for aerospace & defense products and services space to generate revenue and exportation worth Rs. 175,000 crore (US$ 23.49 billion) and Rs. 35,000 crore (US$ 4.70 billion), respectively by 2025. Hence, the globally increased transportation industry is estimated to boost the demand for high-speed steel.

High-Speed Steels Market Challenges

Increasing adoption of Carbide-Based Cutting Tools

Carbide steel offers high cutting speed than high-speed steel. It is 4-7 times higher than high-speed steel to cutting tools. Tungsten carbide is much harder and has abrasion resistance than high-speed steel, as carbide steel provides red hardness at 1000 Celsius which is higher than high-speed steel (650 Celsius) Carbide has a longer tool life due to its hardness and faster cutting data than conventional high-speed steel which is one of the major challenges faced by the industry. Carbide steel is the best choice for deep cuts with small tip sizes in harder materials. This will further restraint the high-speed steel industry. 

High-Speed Steels Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. High-Speed Steels top 10 companies include: 

1. Voestalpine AG
2. Nippon Koshuha Steel Co., Ltd.
3. Jiangsu Fuda Special Steel Co., Ltd.
4. Daido Steel Co., Ltd.
5. Graphite Limited
6. ArcelorMittal S.A.
7. Heye Special Steel Co., Ltd.
8. Hudson Tool Steel Corporation
9. West Yorkshire Steel Co., Ltd.
10. Big Kaiser Precision Tooling Inc, and more.

Recent Developments

• In October 2021, ArcelorMittal and Nippon Steel Corp.’s joint venture steel firm in India announced a plan to expand its operations in the country by investing ~Rs. 1 trillion (US$ 13.34 billion), over 10 years. This expansion will create an opportunity for the market. 

Relevant Reports

Automotive High Speed Tool Steel Market - Forecast(2021 - 2026)
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