How big is the Tool Steel Market | Industry Trends & Forecast 2025

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Code: MTA9494

Publication Date: Sep 2025

What is the size of Tool Steel Market?

According to 6Wresearch internal database and industry insights, the Global Tool Steel Market was valued at USD 23.8 Billion in 2024 and is expected to reach USD 33.9 Billion by 2031, growing at a compound annual growth rate of 7.80% during the forecast period (2025-2031).

The primary factors contributing to this development are the demand for high-performance tooling in the precision machining industries, the growth of automotive and aerospace manufacturing, the development of new alloy capabilities, the increasing demand for wear-resistant tooling, and the escalation of infrastructure investment.

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Growth Factors for Tool Steel Industry

Increasing interest in high-performance alloy steels for the manufacture of tooling and dies.
The demand for tool steel increases with the penetration of precision machining in metalworking.
The automotive and aerospace industries have higher demands for steel that displays high hardness and thermal stability.
The construction and manufacturing industries require durable cutting, stamping, and forging tools.
The development of hot-work, cold-work, and high-speed steels has demonstrable improvements in performance lives.

Tool Steel Market Trends

The trends in Tool Steel Markets indicate a preference for specialty tool steels in a manner that demonstrates high hardness and thermal stability. Tool Steel manufacturers have priority in research and development in high-speed tool steel and cold work tool steel families. A rising use of alloying elements is becoming more prevalent in tool steel, such as tungsten, chromium, and vanadium. New surface treatments and coatings are used to improve wear-resistance. Digital design and simulation tools can be utilized to improve the performance and functionality of tooling and steel.

Emerging Developments in the Tool Steel Market

The Tool Steel Market developments involve combining tool steel with advanced surface engineering and coatings to extend tool life. Single-piece and segmented tooling and modular tooling solutions are emerging. Manufacturers are developing more energy-efficient heat treatment processes. Additive manufacturing of tool steel components gains traction. E-commerce and industrial supply chain digitisation improve delivery and customisation.