The Global Machine Tool Steel Market was valued at USD 382.7 Million in 2024 and is projected to reach USD 642.9 Million by 2032, growing at a Compound Annual Growth Rate (CAGR) of 6.7% during the forecast period (2024–2032). This substantial growth is being propelled by expanding manufacturing activities, the global push towards automation under Industry 4.0, and the relentless demand for high-precision components across the automotive, aerospace, and industrial machinery sectors.

As manufacturing evolves toward smarter, more efficient, and sustainable operations, the focus turns to the leading material suppliers who are engineering the advanced alloys that make modern production possible. In this blog, we profile the Top 10 Companies in the Machine Tool Steel Industry—a group of global metallurgy giants and specialty steel producers shaping the future of precision manufacturing worldwide.

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🔟 1. Sandvik Materials Technology

Headquarters: Sandviken, Sweden
Key Offering: High-Speed Steels, Tool Steels, Powder Metallurgy Steels

Sandvik Materials Technology is a global leader in the development and manufacturing of high-performance stainless steels and special alloys, with a formidable presence in the machine tool steel segment. The company’s expertise lies in producing steels with exceptional wear resistance, hardness, and thermal stability, critical for demanding machining and forming applications. Their product portfolio includes advanced high-speed steels and tool steels used for cutting tools, molds, and dies.

Innovation and Sustainability Initiatives:

• Pioneering powder metallurgy steel grades for superior performance

• Investment in sustainable production processes and recycling technologies

• Strong R&D focus on developing cobalt-free alloy alternatives

Download FREE Sample Report: Machine Tool Steel Market – View in Detailed Research Report

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9️⃣ 2. Nachi-Fujikoshi Corporation

Headquarters: Tokyo, Japan
Key Offering: High-Speed Steels (HSS), Cutting Tools, Bearings

Nachi-Fujikoshi is a prominent Japanese manufacturer renowned for its cutting tools, bearings, and high-quality machine tool steels. The company has a vertically integrated operation, controlling the entire production process from steelmaking to finished tool manufacturing. This allows for exceptional quality control and consistency in their high-speed steel grades, which are celebrated for their long tool life and reliability in high-temperature machining operations.

Innovation and Sustainability Initiatives:

• Recent launch of enhanced HSS grades offering 15% longer tool life

• Continuous improvement in heat treatment technologies

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8️⃣ 3. Daido Steel Co., Ltd.

Headquarters: Nagoya, Japan
Key Offering: Specialty Steels, Tool Steels, High-Speed Steels

Daido Steel is a major Japanese specialty steel producer with a significant share in the global tool steel market. The company manufactures a wide range of high-grade tool steels, including die steels, high-speed steels, and plastic mold steels. Daido is known for its technical expertise and ability to produce steels that meet the precise requirements of various industrial applications, from automotive component manufacturing to electronics.

Innovation and Sustainability Initiatives:

• Development of advanced die steels for the automotive and electronics industries

• Focus on energy-efficient production methods

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7️⃣ 4. Voestalpine AG

Headquarters: Linz, Austria
Key Offering: Tool Steels, High-Performance Steels, Special Sections

Voestalpine is a leading technology and capital goods group based in Austria, with a strong specialty steel division that produces high-quality tool steels. The company’s tool steels are known for their precision, durability, and performance in challenging applications. Voestalpine serves a diverse range of industries, including automotive, aerospace, and energy, providing materials for tools, molds, and machine components.

Innovation and Sustainability Initiatives:

• Investment in premium segment tool steels with enhanced properties

• Commitment to sustainable steel production and reducing carbon footprint

Download FREE Sample Report: Machine Tool Steel Market – View in Detailed Research Report

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6️⃣ 5. Kennametal Inc.

Headquarters: Pittsburgh, Pennsylvania, USA
Key Offering: Tooling Systems, Tool Steels, Advanced Materials

Kennametal is a global industrial technology leader offering a wide array of tooling and engineered components. While renowned for its cutting tools, the company also has expertise in materials science, including the development and application of tool steels. Kennametal’s solutions are integral to various manufacturing and machining processes, emphasizing efficiency, productivity, and longevity.

Innovation and Sustainability Initiatives:

• Development of application-specific tooling solutions

• Focus on digital integration and smart tooling technologies

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5️⃣ 6. Erasteel SAS

Headquarters: Paris, France
Key Offering: High-Speed Steels, Powder Metallurgy Tool Steels

Erasteel, a part of the Erasteel Group, is a world-leading producer of high-speed steels and tool steels, with a particular strength in powder metallurgy (PM) steels. The company’s ASP® (Advanced Sintered Powder) steels are recognized for their superior performance, offering excellent wear resistance, toughness, and red-hardness. Erasteel’s products are essential for high-performance cutting tools and wear-resistant components.

Innovation and Sustainability Initiatives:

• Leadership in powder metallurgy high-speed steel technology

• Commitment to eco-design and sustainable manufacturing practices

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4️⃣ 7. Carpenter Technology Corporation

Headquarters: Philadelphia, Pennsylvania, USA
Key Offering: Specialty Alloys, Tool Steels, High-Performance Metals

Carpenter Technology is a recognized leader in the manufacturing and distribution of premium specialty alloys, including a range of high-performance tool steels. The company’s products are critical for applications requiring high strength, temperature resistance, and durability. Carpenter serves demanding markets such as aerospace, defense, medical, and energy, providing materials that meet stringent specifications.

Innovation and Sustainability Initiatives:

• Expertise in producing ultra-clean steels for critical applications

• Focus on advanced metallurgy and material science research

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3️⃣ 8. Thyssenkrupp AG

Headquarters: Essen, Germany
Key Offering: Carbon Steels, Stainless Steels, Tool Steels

Thyssenkrupp is a German industrial conglomerate with a major steel production division that supplies various grades of tool steels to the global market. The company offers a comprehensive portfolio of materials for tool and die making, focusing on quality, precision, and reliability. Their products support a wide array of manufacturing processes across multiple industries.

Innovation and Sustainability Initiatives:

• Investment in sustainable steel production technologies (e.g., hydrogen-based)

• Development of high-strength and lightweight steel solutions

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2️⃣ 9. Tiangong International Holdings Limited

Headquarters: Jiangsu, China
Key Offering: High-Speed Steel, Die Steel, Tool Steel

Tiangong International is a leading Chinese manufacturer of high-speed steel and tool steel products. The company has grown significantly, leveraging cost-effective production and a strong domestic market. Tiangong serves both Chinese and international customers, providing a range of tool steels for various industrial applications. The company has been expanding its production capacity to meet growing global demand.

Innovation and Sustainability Initiatives:

• Recent announcement of a 20% capacity expansion in China

• Focus on increasing market share through competitive pricing and scaling

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1️⃣ 10. Nippon Koshuha Steel Co., Ltd.

Headquarters: Tokyo, Japan
Key Offering: Tool Steels, Specialty Steels, Magnetic Materials

Nippon Koshuha Steel is a specialized Japanese steelmaker focused on producing high-quality tool steels and other specialty steel products. The company has a long history and expertise in metallurgy, supplying materials known for their precision and performance. Their tool steels are used in manufacturing processes that demand high durability, wear resistance, and dimensional stability.

Innovation and Sustainability Initiatives:

• Specialization in high-grade tool steels for precision applications

• Commitment to quality and technological advancement in steelmaking

Get Full Report Here: Machine Tool Steel Market – View in Detailed Research Report

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🔧 Outlook: The Future of Machine Tool Steel Is Smarter and More Sustainable

The machine tool steel market is undergoing a significant transformation. While traditional steel grades continue to serve critical functions, the industry is increasingly focused on developing advanced alloys, adopting digital manufacturing technologies, and implementing sustainable production practices.

📈 Key Trends Shaping the Market:

• Accelerated adoption of powder metallurgy for superior steel properties

• Growing demand for tool steels compatible with additive manufacturing processes

• Increased focus on circular economy principles and recycling of tool steels

• R&D into alternative alloying elements to mitigate supply chain risks

Get Full Report Here: Machine Tool Steel Market – View in Detailed Research Report

The companies listed above are not only supplying essential materials for global manufacturing—they’re driving the innovation and sustainability required for the factories of the future.