High Speed Steel (HSS) Tools Market

2021 Analysis and Review: High Speed Steel (HSS) Tools Market by Fabrication – Coated and Non-Coated for 2021 – 2031

High Speed Steel Tools Market Snapshot

The high speed steel (HSS) tools market will register positive growth with the overall valuation forecast to surpass US$ 5.5 Bn in 2021. The market’s worth will increase at a compound annual growth rate (CAGR) of 5.9% between 2021 and 2031.

Global sales are expected to rise at 5% in 2021 after a period tepid growth in 2020. With shipments reaching nearly 225,274,037 units in 2021, FMI presents a positive growth outlook for the market. In terms of volume, the HSS tools market is set to expand at 5.5% CAGR over the course of the assessment period.

Key Points Covered in High Speed Steel Tools Market Study

  • Market estimates and forecast 2015-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on HSS tools market and How to Navigate
  • Recommendation on Key Winning Strategies

High speed Steel (HSS) Tools Market Historic Sales Compared to 2021-2031 Forecast Outlook

Driven by increasing investments in mechanical equipment and the rapid industrialization in developing nations, the high-speed steel (HSS) tools market rose at above 2.9% CAGR during 2016-2020.

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 customer include durability and convenient usage, which makes it favorable for various end use applications. High speed steel tools find use owing to its wide range of dedicated applications in myriad end use sectors.

Cutting and precision tools are driving the demand for HSS tools due to its enhanced implementation in various industries not only in developed but developing countries. Increasing the investments for industrial machinery and machining equipment is a prime factor driving the growth of the market. As per FMI, the market will rise at 5.9% CAGR between 2021 and 2031.

What is the Impact of Increasing Interest in Do-it-Yourself activities?

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 in developing regions.

The relatively faster rise of population, coupled with increasing disposal income, is fueling the DIY market. Evolving lifestyle in middle-income countries will emerge as a chief driver of HSS tools sales.

The use of DIY products lowers long-term costs, as outsourced to expensive labor. This has resulting 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 in DIY applications.

Moreover, 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.

What is the Impact of the COVID-19 Crisis on the High-Speed Steel (HSS) Tools Market?

There are three major ways that COVID-19 has impacted the global economy: Directly influencing manufacturing and demand, by disrupting supply chains, and by its financial impact on companies.

The HSS tool market has been affected owing to disruptions and uncertainties associated to short-term supply and demand. Therefore, the short- and medium-term outlook for high-cost producers, smallholders and high-debt businesses appears to be challenging.

Inefficient, heavily indebted businesses can experience a liquidity crisis, with some of them being forced out of business. Some large firms may change or accelerate their diversification plans in other segments, leading to a change in business models.

Country-wise Insights

Why is the U.S. dominating North America HSS Tools Market?

North America is expected to hold dominant share during the forecast period, according to Future Market Insights. According to the study, the U.S. is expected to account for nearly 85% of the North America market through 2031.

The U.S. ' developed industrial sector is one of the main factors supporting market growth. The manufacturing industry accounts for 10.8 percent in the United States economy calculated by Gross Domestic Product (GDP), according to CMS' Office of the Actuary estimates.

Furthermore, the U.S. remains one of the world's largest markets for industrial equipment, making it a lucrative market for HSS tools manufacturers. In addition, prominent end use sectors such as automotive and transportation, oil and gas, and construction sectors in the U.S. are expected to drive the growth in demand during forecast period.

Why is the Demand for HSS Tools Increasing in Germany?

Demand in the Germany market is expected to rise at nearly 4% CAGR over the forecast period. Owing to investments in industrial expansions and technological developments, Germany has become one of the world’s leading machinery producing nations.

Consequently, it accounts for relatively higher expenditure among other countries in Europe. As per the report, Germany is recognized as a primary market, and it is expected to continue exhibiting high demand for HSS Tools through the forecast period.

Rsing research activities, the presence of several major players, and the growing automotive industry in the country is providing attractive opportunities for high-speed steel (HSS) tools producers in the long-term.

Why is Innovation Key to Succeed in the China Market?

China is one of the world’s top manufacturers and consumers of industrial machinery. It is expected to account for over 35% of HSS tools sales within East Asia throughout the forecast period.

Manufacturers in the country have a competitive advantage as they have access to cutting edge research to address previously unexplored challenges. Additionally, they are constantly investing in order to expand their operations, which is resulting in a promising and innovative market for cutting and precision tools.

China is also a leading producer of high-tech solutions and industrial expansion in the country is expected to gain from government initiatives and investments. This is boosting the demand for HSS tools in the forecast Period.

Importantly, the shift of the manufacturing industry from Europe to China as a consequence of low cost and improved manufacturing capabilities will also generate a strong growth trajectory.

How are Government Initiatives Boosting HSS Tool Sales in India?

In 2021, India will account for over 35%  sales in South Asia. Government initiatives like Make in India, and Invest in India are anticipated to aid the expansion of India's industrial sector.

In addition, India is considered to be one of the leading countries for industrial manufacturing processes in the South Asia and Pacific region, which results in the increasing demand for high-speed steel (HSS) tools in the country.

Growth in the Indian automobile industry and the government’s lookout towards the same is also driving demand as the Government of India presented a vision to be the 2nd largest automobile manufacturer by 2030.

Category-wise Insights

Why is the Demand for Drills High in HSS Tools Market?

Based on product types, drills account for a leading category, accounting for nearly 37% of the market in 2021, 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 are Machine Based Tools a Preferred Configuration?

Machine based tools are primarily used with high-speed machinery such as lathe machines and CNC machines among others. The massive growth in industrialization, and the demand for automated and semi-automated solutions will drive demand.

Machine based HSS tools will account for over 95% of the market by the end of the forecast period in 2031. Higher demand for precision tools will also contribute to long term developments in the industry.

Which Fabrication is More Preferred for HSS Tools?

The coated segment is estimated to hold the highest demand share of HSS tools market. Coated products are estimated to account for more than 65% in 2021 due to its anti-corrosive properties.

Also, coated tools provide higher resistance to wear and tear which enhances its durability. Rising coating technology and innovative coating materials are being launched which is expected to drive the sales higher for the coated HSS tools segment.

Why Does the Automotive and Transportation Exhibit High HSS Tools Demand?

The automotive and transportation segment is expected to contribute a maximum revenue share of more than 50% 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 has 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 is fueling sales.

Competitive Landscape

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 huge amount in research and development activities.

Also, 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. For instance:

  • 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.
  • China based 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.

The leading companies operating in the market are:

  • Sandvik AB
  • Mitsubishi Materials Corporation
  • OSG Corporation
  • Kennametal Inc.
  • YG-1 Co., Ltd.
  • TTI Group
  • Stanley Black & Decker, Inc
  • Tiangong International Co. Ltd.
  • Sumitomo Electric Hartmetall GmbH
  • TDC Cutting Tools Inc.
  • KYOCERA Corporation
  • Gühring KG
  • Walter AG
  • RUKO GmbH
  • Tivoly SA
  • Alpen-Maykestag Gmbh
  • Izar Cutting Tools SaL
  • August Beck GmbH & Co. KG
  • Karnasch Tools
  • Krino Spa
  • Dürr AG
  • PT GmbH
  • Bohrcraft Werkzeuge GmbH & Co. KG
  • VÖLKEL Threading Solutions
  • PFERD GmbH & Co. KG
  • IMC International Metalworking Companies B.V.
  • Allied Machine & Engineering Corp
  • Narex S.R.O.

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of Report



Forecast Period


Historical Data Available for


Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

Tool type, By Fabrication, By Configuration, By End Use Industry and Region

Key Companies Profiled

  • Sandvik AB
  • Mitsubishi Materials Corporation
  • OSG Corporation
  • Kennametal Inc.
  • YG-1 Co., Ltd.
  • TTI Group
  • Stanley Black & Decker, Inc
  • Tiangong International Co. Ltd.
  • Sumitomo Electric Hartmetall GmbH
  • TDC Cutting Tools Inc.
  • KYOCERA Corporation
  • Gühring KG
  • Walter AG
  • RUKO GmbH

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • How much is the high speed steel (HSS) tools Market worth?

    The global HSS tools market is estimated to be valued around US$ 5.5 Bn in 2021. It can be termed as a high-value-high-volume oriented market.

  • What will be the demand outlook for high speed steel tools market?

    Sales of HSS tools is expected to record increase of around 1.8X from current value by the end of 2031.

  • What was the last 5 year high speed steel tools market CAGR?

    HSS tools market recorded CAGR of around 2.4% in terms of unit volume from 2016 until 2020.

  • What are the key trends prevailing in high speed steel tools market?

    High speed steel tools manufacturers are focusing on designing and development of HSS tools for extended period of operation cycles that would complement a variety of work-pieces. It also is identified as key product development theme recently.

  • What are the key factors fuelling the demand for high speed tools?

    Efficiency and interoperability of HSS tools along with their availability at reasonable price points will spur their demand.

  • What is the market share of top players in high speed tools market?

    Sandvik Group, KYOCERA Corporation, Stanley group, Kennametal Inc., OSG Corporation, TTI group (Milwaukee, Ryobi), IMC Group, Tiangong, Mitsubishi Materials Corporation, and SUMITOMO ELECTRIC Hartmetall GmbH are the top market players. These companies held over 50% of the market in 2020.

  • What are the top 5 countries driving high speed steel tools sales?

    Top 5 countries in terms of sales of HSS tools are China, U.S., Germany, France, U.K. and Japan

  • What is the North America high speed tools market Outlook?

    The market for HSS tools in North America is expected to grow at a sound pace in wake of rising domestic manufacturing sector output indices and emergence of DIY based power tools. The North America market will exhibit 5.5% CAGR between 2021 and 2031 in terms of value.

  • At what percentage is high speed steel tools going to register growth in Europe?

    The Europe market is projected to register an average growth of 4.9% per annum during the forecast period

  • Which countries are key producers of high speed steel tools?

    The U.S., South Korea, Japan, Germany, and Sweden have been identified as the prominent production hubs of HSS Tools

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High Speed Steel (HSS) Tools Market by Category

By Tool Type:

  • Drill Taps
    • Combo Taps
    • Spiral Flute Taps
    • Spiral Point Taps
    • Taper Pipe Taps
    • Fluteless Taps
    • Machine Taps
    • Hand Taps
    • Round Dies
  • Drills
    • Extra Length Drill
    • Double Ended Body Drill
    • Straight Flute Drill
    • Spiral Drill
    • Slow Helix
    • Taper Pin Drills
    • Straight Shank Drills
    • Taper Shank Drills
    • Parallel Shank Drills
    • Aircraft Extension Drills
    • Worm Pattern Drills
    • Central Drills
    • Spade Drills
    • Step Drills
    • Sheet Drill
    • Spot Drills
    • Slot Drills
  • Mills
    • End Mills
    • Hollow Mills
    • Threaded Mills
  • Countersinks
    • Single Flute Based
    • Three Flute Based
    • Deburring Countersinks
  • Cutters
    • Back Spot Face Cutters
    • Slot Cutters
    • Routing Cutters
    • Corner Rounding Cutter
    • Single Flute Deburring Cutter
    • Annular Cutter
    • Dovetail Cutter
    • Woodruff Cutters
  • Reamers
    • Drill Reamers
    • Socket Reamers
    • Ball Pin Reamers
    • Taper Shank Bridge Reamer
    • Angle Reamer
    • Sprue Bush Reamers
    • Extra Length Reamers
    • Chucking Reamers
    • Diemaker Based Reamers
  • Drill Blanks and Sets
  • Square Tool Bits
  • Counterbores
  • Round Bits
  • Rotary Burrs
  • Hole Saws

By Fabrication:

  • Coated
  • Non-Coated

By Configuration:

  • Hand Based
  • Machine Based

By End Use Industry:

  • Metal Fabrication
  • Automotive and Transportation
    • Automotive
    • Railways
    • Aerospace
    • Marine
  • Heavy Machinery
  • Construction
  • Furniture & Carpentry
  • Oil & Gas
  • DIY
  • Other Manufacturing

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East and Africa (MEA)

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High Speed Steel (HSS) Tools Market