High-Speed Steel Cutting Tool Market Report 2026

The high-speed steel cutting tool market size has grown steadily in recent years. It will grow from $9.4 billion in 2025 to $9.8 billion in 2026 at a compound annual growth rate (CAGR) of 4.3%. The growth in the historic period can be attributed to expansion of metalworking industries, demand for durable cutting tools, growth of automotive manufacturing, reliance on hss tooling, industrial equipment production.

The high-speed steel cutting tool market size is expected to see steady growth in the next few years. It will grow to $11.6 billion in 2030 at a compound annual growth rate (CAGR) of 4.3%. The growth in the forecast period can be attributed to automation in machining operations, demand for high-speed and high-accuracy tools, growth of aerospace manufacturing, innovation in tool coatings, adoption of advanced cnc machines. Major trends in the forecast period include rising demand for precision machining tools, growth of cnc-based manufacturing, adoption of high-performance cutting materials, expansion of automotive and aerospace machining, focus on tool life and accuracy.

Growth in the automotive industry is expected to drive the growth of the high-speed steel cutting tool market going forward. The automotive industry includes the design, production, marketing, and sale of motor vehicles, including cars, trucks, and other vehicles, along with their components and related services. This growth is fueled by rising consumer demand, advancements in electric and autonomous vehicles, technological innovations, government incentives, and expanding transportation infrastructure worldwide. High-speed steel (HSS) cutting tools are used in the automotive industry for precision machining of engine components, transmission parts, and other metal parts, offering high wear resistance, durability, and efficiency in high-temperature cutting operations. For instance, in March 2024, according to the European Automobile Manufacturers' Association, a Belgium-based vehicle industry association, the EU car market grew robustly in 2023 by 13.9% compared to 2022, reaching a volume of 10.5 million units. Therefore, growth in the automotive industry is driving the high-speed steel cutting tool market.

Major companies in the high-speed steel (HSS) cutting tools market are focusing on innovative solutions such as internal coolant technology to improve operational efficiency, tool durability, and machining quality. Internal coolant supply integrates a coolant delivery system directly within the tool body, allowing coolant to flow precisely to the cutting zone, minimizing heat generation, friction, and chip accumulation during high-speed machining. For example, in November 2023, YG-1, a South Korea-based global cutting tool manufacturer, launched the HSS-PM Synchro Tap with Internal Coolant, a high-speed steel powdered metallurgy tapping tool using this technology for high-speed tapping in steel, stainless steel, cast iron, and cast aluminum. It features axial and radial coolant flow, compatibility across spiral flute, spiral point, straight flute, and form tap types, and a metric fine size range up to M20, enabling up to three times faster spindle speeds, longer tool life, and improved thread quality. The HSS-PM Synchro Tap with Internal Coolant enhances productivity by maintaining stable tapping, reducing cost per component, and improving thread finish consistency for industrial machining users.

In July 2024, ARCH Cutting Tools Corp., a US-based manufacturer of precision cutting tools, acquired O-D Tool & Cutter Inc. for an undisclosed amount. This acquisition strengthens ARCH Cutting Tools' position as a leader in the precision tooling market, expanding its capabilities and product range. O-D Tool & Cutter Inc., a US-based company, specializes in high-performance tooling solutions.

Major companies operating in the high-speed steel cutting tool market are Sumitomo Electric Industries Ltd., Stanley Black & Decker Inc., Sandvik AB, Kennametal Inc., OSG Korea Corporation, Walter AG, Tiangong International Company Limited, YG-1 Co. Ltd., Dormer Tools Inc., Böhler-Uddeholm Corporation, Seco Tools AB, Guhring Inc., Nachi America Inc., ARCH Cutting Tools Corp., Tivoly Inc., Somta Tools (Pty) Ltd, Greenfield Industries Inc., Sutton Tools Pty Ltd, LMT Tools USA L.P., Addison & Co. Ltd, Morse Cutting Tools.

North America was the largest region in the high-speed steel-cutting tool market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the high-speed steel cutting tool market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the high-speed steel cutting tool market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The high-speed steel cutting tool market consists of sales of drill bits, taps, threading tools, and turning tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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