Anticipated expansion in the automotive sector will likely stimulate growth in the market for high-speed steel cutting tools, according to the High-Speed Steel Cutting Tool Market Report by The Business Research Company.
The report delivers a detailed market assessment, covering size projections from 2025 to 2034. This report explores crucial market trends, major drivers, and market segmentation by key segment categories.
Projected growth
Recent years have seen robust growth in the market size of high-speed steel-cutting tools. A jump is predicted from $9.07 billion in 2024, to $9.52 billion in 2025, marking a compound annual growth rate (CAGR) of 5.0%. The former growth spurt is largely due to heightened demand for precise manufacturing, expansion in the automotive sector, a surge in the requirement for high-caliber tools, growth in the aerospace industry, and the pursuit of cost-efficient solutions.
Anticipations show consistent growth in the high-speed steel cutting tool market in the coming years, anticipated to reach a figure of $11.47 billion by 2029, with a compound annual growth rate (CAGR) of 4.8%. Factors attributed to this expected surge during the forecast period are increased demand for high-grade materials, greater industrial automation, expansion in the aerospace and automotive sectors, augmented demand for energy-efficient solutions, and a shift towards environmentally friendly manufacturing processes. Noteworthy trends during this time include the incorporation of superior coatings, increased implementation in 3D-printing applications, the integration of Artificial Intelligence and Internet of Things in manufacturing, progress in additive manufacturing, and cutting-edge improvements in machining technology.
The automotive sector includes the designing, manufacturing, marketing, and selling of vehicles like cars and trucks, and the associated components and services. This sector's surge is powered by rising consumer demand and progresses in electric and self-driving cars, technological evolutions, governmental incentives, and a growing global transport infrastructure.
High-speed steel (HSS) cutting tools serve the automotive industry by executing accurate machining of engine components, transmission parts, and other metallic parts. These tools provide excellent resistance to wear, durability, and efficiency during high-temperature cutting tasks. To illustrate, the European Automobile Manufacturers' Association, a Belgian-based association for vehicle industries, reported in March 2024 that the EU car market observed a strong expansion by 13.9% in 2023 when juxtaposed with 2022, with sales reaching 10.5 million units. Consequently, the expansion of the automotive industry will bolster the growth of the high-speed steel cutting tool market.
