Global Tool Steel Market Size, Share and Industry Analysis Report by Material (Tungsten, Chromium, Vanadium, Molybdenum), Product Class (Cold-work, Hot-Work, High Speed, Plastic Mold) and Application (Injection Molding, Die Work, Forging), By End-use (Aut

Global Tool Steel Market Size, Share and Industry Analysis Report by Material (Tungsten, Chromium, Vanadium, Molybdenum), Product Class (Cold-work, Hot-Work, High Speed, Plastic Mold) and Application (Injection Molding, Die Work, Forging), By End-use (Automotive, Aerospace, Food & Packaging), Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2022 - 2028

The tool steel market is expected to witness significant growth by 2028 owing to rising demand for molded plastics across various regions. In addition, the growing automotive industry, along with increasing uptake of cutting tools in manufacturing, is speculated to support market growth over the forecast period.

During the COVID-19 pandemic, strict lockdowns and safety protocols imposed by governments across the globe halted business operations, especially construction projects, thereby hampering market growth. However, the resumption of manufacturing activities and mounting product penetration in the construction industry have bolstered market reach in recent years.

Moreover, key participants in the industry have been engaging in strategic growth partnerships and enhancing their product portfolios to fortify their market position, which has been favorable for the competitive landscape. For instance, in May 2022, Sandvik, a multinational engineering company, signed an acquisition agreement with Peterson Tool Company Inc., a U.S.-based custom tools manufacturer. With the acquisition, Sandvik purposed to broaden its offerings, particularly for the general engineering and automotive segments.

The tool steel market has been divided on the basis of end-use, product class, material, application, and region.

In terms of material, the industry has been categorized into vanadium, tungsten, molybdenum, and chromium. The molybdenum segment is anticipated to reach a valuation of $2,900 million by the end of 2028 as a result of high red hardness and wear resistance in steel.

From the product class standpoint, the tool steel market has been segmented into plastic mold, cold-work, high speed, hot-work, and others. The plastic mold segment is slated to record a valuation of approximately $860 million by the end of the review period. The others product class segment, which includes water hardening tool steels, shock resistant tool steels, and low carbon & low alloy tool steels, is foreseen to garner substantial growth by 2028, progressing at more than 3.5% CAGR over the analysis timeline.

With reference to application, the tool steel market has been bifurcated into forging, injection molding, die work, and others. The others application segment, which consists of high precision knives and customized Swiss knives, is projected to accumulate a valuation of around $1,565 million by the end of 2028.

With respect to end-use, the industry has been classified into food & packaging, automotive, aerospace, and others. The automotive segment is forecast to depict a CAGR of roughly 4.5% between 2022 and 2028.

In the regional landscape, the Latin America tool steel industry is estimated to witness steady growth with a CAGR of above 4.0% over 2022-2028 owing to increasing consumer inclination toward luxury automobiles in the LATAM region. Meanwhile, on account of rapid industrialization and expanding manufacturing base in the MEA region, the Middle East & Africa tool steel market is poised to amass significant gains at about 4.0% CAGR through the review period.