High-Speed Steel Cutting Tools Market Forecast to Reach USD 20.73 Billion by 2031, Driven by Asia-Pacific Growth and Advanced Material Adoption

High-Speed Steel Cutting Tools Market Overview 

According to Modor Intelligence, the High-Speed Steel Cutting Tools Market is on a steady growth trajectory, with its market size projected to expand from USD 16.21 billion in 2026 to USD 20.73 billion by 2031, at a CAGR of 5.04%. This growth reflects increasing demand across manufacturing, automotive, aerospace, and energy sectors. Rising industrialization in Asia, combined with the expansion of e-commerce channels for DIY users in North America, is broadening market access for various high-speed steel (HSS) products. Additionally, the adoption of cobalt-enriched and powder metallurgy (PM) grades for specialized applications, such as aerospace alloys and medical device manufacturing, is shaping new avenues for growth. Despite challenges, including fluctuating molybdenum and cobalt prices and a gradual shift toward carbide tools in high-volume automotive production, the High-Speed Steel Cutting Tools industry continues to present robust opportunities for manufacturers and end-users alike. 

Growth Drivers in the High-Speed Steel Cutting Tools Market 

Low-Cost Tooling in Emerging Asian Job Shops 

The proliferation of tier-2 and tier-3 job shops in countries like China, India, and Vietnam is driving demand for cost-efficient HSS tools. Conventional HSS products, such as milling cutters and drills, are widely used due to their affordability and compatibility with basic CNC machines. Government support for local machine-tool manufacturers further strengthens domestic sourcing, resulting in repeated procurement cycles that boost regional HSS tool consumption. 

DIY and Home-Improvement Retail Growth in North America 

The rise of hobbyist and prosumer segments in North America has accelerated online sales of consumer-grade HSS bits, taps, and hole saws. Manufacturers are responding with tailored tool geometries, coatings, and bundled kits with compact lathes or cordless drills. This trend is expanding the addressable market, making e-commerce a key channel for the High-Speed Steel Cutting Tools industry, with notable growth in smaller workshops and home-based operations. 

Re-shoring and Versatile HSS Adoption in North America & Europe 

Policy-driven incentives are encouraging manufacturers to bring production back to the U.S., Canada, and the EU. Reshored facilities, often handling small-batch or multi-part runs, rely on versatile HSS tools for roughing, fixturing, and prototyping tasks. Hybrid manufacturing cells that combine additive and subtractive processes typically reserve HSS tools for setup operations, creating a steady demand for mid-range, cost-effective cutting solutions. 

Adoption of Cobalt-Enriched HSS for Aerospace 

Aerospace manufacturers are increasingly using cobalt-rich M42 HSS grades for machining nickel-based superalloys and other high-temperature alloys. These tools maintain hardness up to 650°C, extend tool life, and reduce insert changes during complex operations such as blisk and engine casing production. This trend is fostering specialized growth within the High-Speed Steel Cutting Tools Market. 

Supply-Side Challenges 

Volatile molybdenum and cobalt prices, influenced by global supply constraints and demand from other industries, continue to affect margins. Manufacturers are adapting by exploring vanadium-rich HSS chemistries and revising procurement contracts to mitigate cost pressures. 

High-Speed Steel Cutting Tools Market Segmentation 

By Tool Type 

• Milling Cutters 
• Drills 
• Taps 
• Reamers & Broaches 
• Others (Saws, Countersinks) 

By Material Grade 

• Conventional HSS (M-Series) 
• High-Cobalt HSS (T-Series/M42/M35) 
• Powder-Metallurgy HSS (PM-HSS) 

By Production Process 

• Conventional Forged 
• Powder Metallurgy 

By Distribution Channel 

• Direct OEM Sales 
• Industrial Distributors 
• E-commerce/DIY Retail 

By End-user Industry 

• Manufacturing & Automotive 
• Oil & Gas 
• Mining & Quarrying 
• Agriculture, Fishing & Forestry 
• Construction 
• Healthcare & Pharmaceutical 
• Energy Generation (Turbines & Nuclear) 
• Other End users (distributive trade, etc.) 

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/high-speed-steel-cutting-tools-market?utm_source=industrytoday.uk  

Key Players in the High-Speed Steel Cutting Tools Market 

• Sandvik AB 
• Kennametal Inc. 
• OSG Corporation 
• Sumitomo Electric Industries Ltd. 
• Nachi‑Fujikoshi Corp. 

Conclusion 

The High-Speed Steel Cutting Tools Market Growth is driven by regional industrial expansion, specialized material adoption, and evolving end-user requirements. Asia-Pacific remains the largest revenue contributor, while North America and Europe benefit from reshoring and specialized aerospace and energy applications. Emerging regions offer diversification opportunities, particularly in maintenance and localized production. 

The market’s trajectory is shaped by trends such as e-commerce penetration, powder metallurgy adoption, and high-performance cobalt-enriched HSS grades. While supply-side pressures persist, the ongoing demand from manufacturing, automotive, aerospace, energy, and healthcare sectors ensures continued expansion. With moderate competitive concentration and increasing digital engagement, the High-Speed Steel Cutting Tools Market Forecast to 2031 highlights both stable and high-growth avenues, making it a key sector in global industrial tooling. 

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