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Tool Steel Market Size, Share and Forecast 2026-2036

The global tool steel market is worth USD 8.1 bn in 2026 and is forecast to reach USD 12.0 bn by 2036, growing at a 4.0% CAGR. China is the largest country market and Cold work is the largest by type segment.

USD 8.1 bnMarket size 2026
USD 12.0 bnForecast 2036
4.0%CAGR 2026-2036
ChinaLargest country

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5 segmentation views25 countries2026 to 2036 yearly forecast

Market overview

The global tool steel market is worth USD 8.1 bn in 2026 and is forecast to reach USD 12.0 bn by 2036, growing at a 4.0% CAGR. China is the largest country market and Cold work is the largest by type segment.

ScopeAlloy steels made for cutting, forming and moulding other materials: cold work, hot work, high speed, plastic mould and shock-resistant tool steels.
IndustryChemicals and Materials
Value 2025USD 7.8 bn
Value 2026USD 8.1 bn
Value 2036USD 12.0 bn
CAGR 2026-20364.0%
Volume 20261.75 million tonnes
Volume 20362.35 million tonnes
Average price 2026USD 4,634 per tonne
Report priceStarts from USD 1,999
PublishedNovember 2026

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Tool Steel market size and forecast, 2026-2036

Exhibit 1The global tool steel market is forecast to grow from USD 8.1 bn in 2026 to USD 12.0 bn by 2036, a rise of 48%Global market value in USD: 2025 base year, 2026 estimate and forecast to 2036. CAGR 2026 to 2036: 4.0%
Tool Steel market value, 2025 to 2036Market value by year. 2025: USD 7.8 bn; 2026: USD 8.1 bn; 2027: USD 8.4 bn; 2028: USD 8.8 bn; 2029: USD 9.1 bn; 2030: USD 9.5 bn; 2031: USD 9.9 bn; 2032: USD 10.3 bn; 2033: USD 10.7 bn; 2034: USD 11.1 bn; 2035: USD 11.5 bn; 2036: USD 12.0 bn. Compound annual growth rate 2026 to 2036: 4.0%.20258.1 bn20269.9 bn203112.0 bn20364.0% CAGR

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

YearMarket value
2026USD 8.1 bn
2027USD 8.4 bn
2028USD 8.8 bn
2029USD 9.1 bn
2030USD 9.5 bn
2031USD 9.9 bn
2032USD 10.3 bn
2033USD 10.7 bn
2034USD 11.1 bn
2035USD 11.5 bn
2036USD 12.0 bn

Tool Steel market segmentation

By type

Exhibit 2Cold work is the largest segment by type, with 32.0% of 2026 revenueEstimated share of 2026 global revenue, by type
Tool Steel market share by type, 2026Share of 2026 revenue by type. Cold work: 32.0%; Hot work: 22.0%; High speed: 20.0%; Plastic mould: 16.0%; Shock-resistant and water hardening: 10.0%.Cold work32.0%Hot work22.0%High speed20.0%Plastic mould16.0%Shock-resistant and water hardening10.0%

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Cold work32.0%31.7%USD 2.6 bn3.9%
Hot work22.0%21.8%USD 1.8 bn3.9%
High speed20.0%20.8%USD 1.6 bn4.4%
Plastic mould16.0%16.6%USD 1.3 bn4.4%
Shock-resistant and water hardening10.0%9.0%USD 811 mn2.9%

By end use

Exhibit 3Automotive adds the most revenue by end use, growing from USD 2.3 bn in 2026 to USD 3.3 bn by 2036Estimated revenue in USD by end use, 2026 and 2036 forecast, six largest segments
Tool Steel market by end use, 2026 and 2036Revenue by end use in 2026 and 2036. Automotive: USD 2.3 bn in 2026, USD 3.3 bn in 2036, change +47%; Machine tools and cutting: USD 1.9 bn in 2026, USD 2.7 bn in 2036, change +40%; Plastics moulding: USD 1.3 bn in 2026, USD 2.0 bn in 2036, change +54%; Energy: USD 811 mn in 2026, USD 1.3 bn in 2036, change +54%; Aerospace: USD 649 mn in 2026, USD 1.1 bn in 2036, change +70%; Construction: USD 649 mn in 2026, USD 909 mn in 2036, change +40%.20262036 forecastChangeAutomotive+47%2.3 bn3.3 bnMachine tools and cutting+40%1.9 bn2.7 bnPlastics moulding+54%1.3 bn2.0 bnEnergy+54%811 mn1.3 bnAerospace+70%649 mn1.1 bnConstruction+40%649 mn909 mn

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Automotive28.0%27.8%USD 2.3 bn3.9%
Machine tools and cutting24.0%22.7%USD 1.9 bn3.4%
Aerospace8.0%9.2%USD 649 mn5.4%
Plastics moulding16.0%16.7%USD 1.3 bn4.4%
Energy10.0%10.4%USD 811 mn4.4%
Construction8.0%7.6%USD 649 mn3.4%
Other6.0%5.7%USD 487 mn3.4%

By product form

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Bars and rods38.0%36.0%USD 3.1 bn3.4%
Plates and blocks28.0%28.0%USD 2.3 bn4.0%
Forgings20.0%20.0%USD 1.6 bn4.0%
Powder and additive manufacturing14.0%16.0%USD 1.1 bn5.4%

By process

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Conventional ingot52.0%49.0%USD 4.2 bn3.4%
Electroslag remelt20.0%19.0%USD 1.6 bn3.5%
Powder metallurgy28.0%32.0%USD 2.3 bn5.4%

By sales channel

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Direct mill38.0%36.0%USD 3.1 bn3.4%
Service centres and stockists44.0%43.0%USD 3.6 bn3.8%
Online18.0%21.0%USD 1.5 bn5.6%

Top 25 countries for tool steel by revenue

Countries are ranked by revenue earned from sales in the country, not by where the product is made. The ten largest hold 79.5% of 2026 revenue and the 25 countries below together hold 95.1%.

Exhibit 4China is the largest country market at USD 2.3 bn in 2026, and the three largest countries hold 48.0% of global revenueEstimated 2026 revenue in USD and share of the global market, ten largest countries
Tool Steel market, ten largest countries in 2026Ten largest countries by 2026 revenue. China: USD 2.3 bn, 28.0%; United States: USD 892 mn, 11.0%; Japan: USD 730 mn, 9.0%; Germany: USD 730 mn, 9.0%; India: USD 487 mn, 6.0%; South Korea: USD 406 mn, 5.0%; Italy: USD 324 mn, 4.0%; France: USD 243 mn, 3.0%; Brazil: USD 203 mn, 2.5%; Turkey: USD 162 mn, 2.0%.China2.3 bn 28.0%United States892 mn 11.0%Japan730 mn 9.0%Germany730 mn 9.0%India487 mn 6.0%South Korea406 mn 5.0%Italy324 mn 4.0%France243 mn 3.0%Brazil203 mn 2.5%Turkey162 mn 2.0%

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

#CountryValue 2026Share 2026Value 2036CAGR 2026-36
1ChinaUSD 2.3 bn28.0%USD 3.5 bn4.5%
2United StatesUSD 892 mn11.0%USD 1.2 bn3.0%
3JapanUSD 730 mn9.0%USD 985 mn3.0%
4GermanyUSD 730 mn9.0%USD 985 mn3.0%
5IndiaUSD 487 mn6.0%USD 961 mn7.0%
6South KoreaUSD 406 mn5.0%USD 576 mn3.6%
7ItalyUSD 324 mn4.0%USD 432 mn2.9%
8FranceUSD 243 mn3.0%USD 324 mn2.9%
9BrazilUSD 203 mn2.5%USD 300 mn4.0%
10TurkeyUSD 162 mn2.0%USD 240 mn4.0%
11MexicoUSD 157 mn1.9%USD 233 mn4.0%
12ArgentinaUSD 157 mn1.9%USD 233 mn4.0%
13TaiwanUSD 148 mn1.8%USD 221 mn4.1%
14SpainUSD 128 mn1.6%USD 192 mn4.1%
15PolandUSD 112 mn1.4%USD 167 mn4.1%
16AustriaUSD 97 mn1.2%USD 145 mn4.1%
17SwedenUSD 84 mn1.0%USD 126 mn4.1%
18RussiaUSD 74 mn0.9%USD 110 mn4.1%
19SwitzerlandUSD 64 mn0.8%USD 96 mn4.1%
20CanadaUSD 56 mn0.7%USD 83 mn4.0%
21ThailandUSD 49 mn0.6%USD 72 mn4.0%
22Czech RepublicUSD 42 mn0.5%USD 64 mn4.2%
23VietnamUSD 36 mn0.5%USD 59 mn4.9%
24IndonesiaUSD 32 mn0.4%USD 52 mn5.0%
25NetherlandsUSD 28 mn0.3%USD 42 mn4.3%
Rest of worldUSD 398 mn4.9%USD 579 mn3.8%
Exhibit 5China and India account for 44% of the USD 3.9 bn the market is forecast to add by 2036Forecast revenue added between 2026 and 2036 by country, in USD
Tool Steel market, where the growth to 2036 comes fromRevenue added between 2026 and 2036. Market value 2026: USD 8.1 bn. China: +USD 1.3 bn; India: +USD 474 mn; United States: +USD 308 mn; Japan: +USD 255 mn; Germany: +USD 255 mn; 20 other countries: +USD 1.2 bn; Rest of world: +USD 180 mn. Market value 2036: USD 12.0 bn.Market value 20268.1 bnChina+1.3 bnIndia+474 mnUnited States+308 mnJapan+255 mnGermany+255 mn20 other countries+1.2 bnRest of world+180 mnMarket value 203612.0 bn

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

Competitive landscape

Group 1: Global leaders

  • voestalpine
  • Daido Steel
  • Proterial
  • Carpenter Technology
  • Sandvik
  • Swiss Steel Group
  • Kobe Steel

Group 2: Regional and specialist players

  • Erasteel
  • Dörrenberg Edelstahl
  • Aubert & Duval
  • Crucible Industries
  • Latrobe Specialty Metals
  • Dongbei Special Steel
  • Aichi Steel
  • Nachi-Fujikoshi

Group 3: Emerging and niche players

  • Sanyo Special Steel
  • Industeel
  • Zapp Precision Metals

Research methodology

Every figure on this page comes from the research framework that we apply to all of the markets we cover. The 2025 base for the tool steel market is built from the volume sold and the price that buyers pay, and is cross-checked against the size of the wider industry the market belongs to. Where a market can be sized in more than one way, the routes are compared before a figure is set.

The forecast runs year by year from the 2025 base to 2036. Growth in each year reflects demand from the industries that buy the product, adoption of new technology, pricing, regulation and replacement cycles. Volume and price are modelled together, so revenue in each year equals volume multiplied by average price. The 2026 to 2036 compound annual growth rate of 4.0% is calculated from the resulting values.

The market is divided by type, by end use, by product form, by process, by sales channel. The 25 largest countries are ranked by revenue earned from sales to buyers in each country, not by where the product is made. Segment values and country values add up to the market total in every year, and every report is checked for consistency before it is published.

Companies are placed in three groups: global leaders, regional and specialist players, and emerging and niche players. The groups describe how companies compete in the market. They are not a ranking and they are not market shares.

Our analysts also carry out primary research. Customized reports add interviews with key opinion leaders, such as senior executives, technical specialists and buyers, to test the assumptions behind the numbers for the question being asked.

Read the full research methodology

Frequently asked questions

How big is the tool steel market?

The global tool steel market is estimated at USD 7.8 bn in 2025 and USD 8.1 bn in 2026.

How fast will the tool steel market grow?

It is forecast to reach USD 12.0 bn by 2036, a compound annual growth rate of 4.0% from 2026, an increase of USD 3.9 bn.

Which country is the largest market for tool steel?

China is the largest market by revenue at USD 2.3 bn in 2026, 28.0% of the global total. The three largest countries together hold 48.0%.

Which country is growing fastest?

Among the ten largest markets, India is growing fastest at 7.0% a year from 2026 to 2036.

Which tool steel segment is largest?

In the by type split, Cold work is the largest segment with 32.0% of 2026 revenue.

Who are the leading tool steel companies?

Global leaders include voestalpine, Daido Steel, Proterial, Carpenter Technology.

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