1 Global HSS Round Tools Market Insight Analysis
The global HSS Round Tools Market is expected to reach a value of USD 3224.56 million in 2024, growing at a CAGR of approximately 5.36% from 2024 to 2033.
HSS Round Tools usually refers to a round tool made of high-speed steel, which is widely used for its high hardness, high wear resistance and good thermal stability. There are a wide variety of high-speed steel tools, including but not limited to drills, taps, end mills, etc., which play an important role in the manufacturing industry, especially in situations where high cutting speeds and loads are required.
Figure Global HSS Round Tools Market Size (M USD) and CAGR (2024-2033)
2 HSS Round Tools Market Growth Drivers and Restraints
The HSS Round Tools market is influenced by a multitude of factors that either stimulate growth or pose limitations. Key drivers include the global industrialization drive, precision manufacturing requirements, and the increasing popularity of advanced manufacturing technologies such as CNC machine tools. The transformation and upgrading of the manufacturing industry, along with the improvement of processing efficiency and product quality requirements, have led to a growing demand for high-performance cutting tools. HSS tools, known for their high working hardness, durability, high wear hardness, and good hardness retention, are particularly important in the machining and metal cutting industry.
The precision manufacturing sector relies heavily on HSS round tools for metal cutting, which is widely used in the automotive industry, machinery, energy, medical, rail transport & aircraft, and mold industry, among others. The expansion of the global automotive market and the rapid development of the new energy vehicle market are expected to further drive the demand for HSS round tools. Additionally, the growth of CNC machine tools, which require HSS round tools for high precision and efficiency drilling, is a significant market driver. Automation and CNC machining offer advantages such as higher output, higher precision, and lower labor costs, which are crucial for manufacturers striving to remain competitive and increase productivity.
However, the market faces challenges that could limit growth. The HSS round tools industry is highly sensitive to macroeconomic conditions. Fluctuations in the economy can affect the demand for these tools, as they are integral to the manufacturing cycle. Technical risks also pose a challenge, including manufacturing process complexities, tool design, coating technology, tool-machine matching, and tool use and maintenance. The industry is capital-intensive, requiring significant investment in research and development, high-precision manufacturing equipment, and raw materials. Furthermore, the industry has high technical barriers due to the complex production processes involved in making HSS round tools, which can be a limitation for new entrants.
3 Technological Innovations and Mergers in the HSS Round Tools Market
Technological innovations and corporate M&A activities are significantly shaping the HSS circular cutter market. On the technological front, there is a growing trend to develop HSS circular cutters with advanced coatings and geometries. These enhancements improve tool performance and life, address specific industry needs, and provide customized drilling solutions. For example, nanocomposite coating technology has been widely used in a variety of cutting tools, including high-performance HSS drill bits and wire taper cutters. This technology has led to the development of multiple series of nano-coated products, which improves the hardness, wear resistance, and toughness of the coating.
Cutting tool geometries are also evolving, and tool design and manufacturing techniques are constantly improving with the goal of improving machining efficiency and quality. The development of mathematical models for drill bits, geometric design, manufacturing methods, and drilling process modeling are dynamic research areas that are driving industry progress.
Mergers and acquisitions have played a major role in market consolidation and expansion. Leading companies such as Sandvik have been actively acquiring companies to strengthen their market position and expand their product offerings. For example, Sandvik’s acquisition of a majority stake in Suzhou Arno and Almü PräzisionsWerkzeug GmbH has enabled the company to enhance its product offering in the automotive sector, which is increasingly focusing on lightweight components due to the shift to electric vehicles. Such strategic moves not only enhance the acquired company’s product portfolio but also influence the competitive landscape in the high-speed steel round tool market.
4 Global HSS Round Tools Market Size by Type
The global HSS Round Tools market is segmented into various types, each catering to different applications and industries. In 2024, the market is anticipated to be segmented into drills, taps, and other round tools, with each type contributing significantly to the overall market revenue.
Drills, being a primary tool for creating holes in workpieces, are expected to generate revenue of $826.20 million in 2024, holding a market share of 25.62%. This type of HSS round tool is essential in a wide range of applications, from automotive to aerospace, where precision drilling is required. The revenue and growth rate of drills are projected to increase at a CAGR of 6.58% from 2024 to 2029, indicating a robust demand for these tools in the foreseeable future.
Taps, used for internal thread machining, are forecasted to bring in $796.49 million in revenue, capturing a market share of 24.70%. Taps are crucial in the manufacturing process, especially in the production of threaded holes in metals and other materials. The market for taps is expected to grow at a CAGR of 7.31% from 2024 to 2029, reflecting the importance of this tool type in various industrial sectors.
Table Global HSS Round Tools Market Size and Share by Type in 2024
|
Type |
Market Size (M USD) 2024 |
Market Share 2024 |
|---|---|---|
|
Drills |
826.20 |
25.62% |
|
Taps |
796.49 |
24.70% |
|
Other Round Tools |
1601.87 |
49.68% |
5 Global HSS Round Tools Market Size by Application
The global HSS Round Tools market is diverse, with applications spanning across various industries. In 2024, the market is anticipated to be segmented into key applications such as Automobile, Machinery, Energy, Rail Transport & Aircraft, Medical, and Others. Each application demands specific characteristics from HSS round tools, influencing the market’s revenue and share.
In the Automobile sector, HSS round tools are vital for precision manufacturing in the automotive industry, with an expected revenue of $926.87 million, holding a market share of 28.74%. This sector’s growth is attributed to the expanding global automotive market and the rapid development of the new energy vehicle segment.
Machinery industry applications are forecasted to generate the highest revenue at $1115.08 million, capturing a market share of 34.58%. HSS round tools are extensively used in the precision machining of general machinery components, such as valves, flanges, and bearings, making this sector a significant consumer of HSS round tools.
The Energy sector is projected to contribute $106.94 million, with a market share of 3.32%. Rail Transport & Aircraft applications are expected to bring in $424.84 million, representing a 13.18% share. The Medical sector, although smaller, is anticipated to generate $72.34 million, holding a 2.24% share.
Table Global HSS Round Tools Market Size and Share by Application in 2024
|
Application |
Market Size (M USD) 2024 |
Market Share 2024 |
|---|---|---|
|
Automobile |
926.87 |
28.74% |
|
Machinery |
1115.08 |
34.58% |
|
Energy |
106.94 |
3.32% |
|
Rail Transport & Aircraft |
424.84 |
13.18% |
|
Medical |
72.34 |
2.24% |
|
Others |
578.49 |
17.94% |
6 Global HSS Round Tools Market Size by Region
The United States is expected to contribute $556.72 million, with a market share of 17.27%. Europe, with a more established market, is forecasted to generate $659.84 million, capturing a 20.46% share. China, a rapidly growing market, is anticipated to lead with $1066.21 million in revenue, holding a significant 33.07% share. This growth is attributed to China’s ambitious targets for economic growth and its focus on industrial modernization.
Japan, known for its advanced manufacturing, is expected to contribute $138.60 million, with a 4.30% share. India, with its growing economy and industrialization, is forecasted to generate $105.23 million, holding a 3.26% share. Southeast Asia, another region experiencing rapid growth, is anticipated to contribute $99.78 million, with a 3.09% share.
Latin America and the Middle East and Africa are also significant, with expected revenues of $240.96 million and $180.72 million, respectively. These regions, though smaller in comparison, are expected to experience growth due to increasing industrial activities and the adoption of advanced manufacturing technologies.
Figure Global HSS Round Tools Market Size (M USD) by Region in 2024
7 Global HSS Round Tools Market Analysis by Major Players
7.1 Sandvik
Company Introduction and Business Overview:
Sandvik, established in 1862 and headquartered in Sweden, operates globally, offering a broad range of engineering solutions. With a strong presence in mining, metal-cutting, and materials technology, Sandvik is a recognized leader in the HSS Round Tools market.
Sandvik’s extensive product portfolio includes metal-cutting tools and tooling systems such as boring, drilling, milling, reaming, and turning tools. They also offer tailor-made tools and inserts, as well as tooling systems. Their products are used across various industries, including automotive, aerospace, and general engineering.
Products:
Sandvik’s HSS Round Tools include CoroTap® 200, which features spiral point taps for through holes. These taps are designed for various materials and offer superior wear resistance and tool life, resulting in fewer machine stoppages and reduced cost-per-hole.
Market Performance in 2024:
In 2024, Sandvik is projected to lead with a revenue of $605.95 million USD, maintaining a gross margin of 35.12%.
7.2 Guhring
Company Introduction and Business Overview:
Guhring, founded in 1898 and based in Germany, has a global sales reach. The company is known for its precision tools and has established itself as a significant player in the HSS Round Tools market.
Guhring specializes in the design, manufacture, and marketing of precision tools such as drilling, thread cutting, PCD/CBN, and countersinking tools. They also offer milling cutters, gun and twist drills, reamers, and tool clamping devices.
Products:
Guhring’s HSS Round Tools include a variety of taps and drills. Their M4/ISO3/6G/DIN 371/HSS-E/TiN machine taps are designed for ISO metric threads and are suitable for a range of applications, from blind hole to through hole threading.
Market Performance in 2024:
Guhring follows with a revenue of $197.15 million USD and a gross margin of 34.17%.
7.3 OSG
Company Introduction and Business Overview:
OSG, established in 1938 and headquartered in Japan, has a significant sales presence mainly in the Asia Pacific, Europe, and North America. The company is renowned for its cutting tools for industrial applications.
OSG Corporation manufactures and sells a wide array of cutting tools, including taps, drills, end mills, index able tools, rolling dies, gauges, and tailored tooling solutions. Their products cater to industries like automotive, die/mold, aerospace, and energy.
Products:
OSG’s HSS Round Tools include general-purpose NPT/ANPT taps featuring HSS material and increased wear resistance. Their tools are known for their bright, steam oxide surface treatment and TiN, TiCN coatings for extended tap life.
Market Performance in 2024:
OSG is estimated to generate $163.75 million USD in revenue with a gross margin of 31.94%.
