The Global Machine Tool Steel Market was valued at USD 5.81 Billion in 2022 and is projected to reach USD 7.73 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 4.9% during the forecast period (2023–2028). This robust growth trajectory is fueled by rising automation in manufacturing, the expansion of the automotive and aerospace sectors, and the persistent demand for high-performance, durable tooling solutions that enhance productivity and precision.

As global industries increasingly rely on advanced machinery for production, the critical role of machine tool steel—the high-grade material used for cutting, shaping, and forming other materials—has never been more apparent. These specialized steels are the backbone of modern manufacturing, enabling the creation of everything from vehicle components to consumer electronics. In this analysis, we profile the Top 10 Companies in the Machine Tool Steel Industry—a diverse group of global steel producers and specialty alloy experts driving innovation and setting the standard for quality and performance.

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🔟 1. Voestalpine AG

Headquarters: Linz, Austria
Key Offering: High-speed steels (HSS), Tool steels for hot and cold work, Plastic mold steels

Voestalpine is a leading technology and capital goods group with a formidable specialty steel division. Its Böhler brand is globally recognized for premium tool steels used in the most demanding applications across the automotive, aerospace, and energy sectors. The company’s focus on research and development ensures its products meet the highest standards for wear resistance, toughness, and thermal stability.

Innovation and Sustainability Focus:

• Pioneering powder metallurgy (PM) steel grades for superior performance

• Commitment to CO2-neutral steel production by 2050

• Development of digital tools for optimized tool life and maintenance

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9️⃣ 2. Sandvik Materials Technology

Headquarters: Sandviken, Sweden
Key Offering: Stainless steels, High-alloy steels, Tool steels, Wire and strip products

Sandvik is a world leader in high-performance alloys and tool steels. Its materials are engineered to withstand extreme conditions of heat, pressure, and corrosion, making them indispensable for manufacturing tools, components, and wear parts. Sandvik’s expertise in material science drives continuous improvements in tool longevity and machining efficiency.

Innovation and Sustainability Focus:

• Advanced additive manufacturing (3D printing) powders for tooling

• Strong emphasis on circular economy and material recycling

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8️⃣ 3. Daido Steel Co., Ltd.

Headquarters: Nagoya, Japan
Key Offering: Die steel, High-speed steel, Special steel, Magnetic materials

Daido Steel is a major Japanese manufacturer renowned for its high-quality special steels. The company excels in producing tool steels for die-casting, forging, and plastic molding applications. Its strong presence in the Asian market, particularly in the automotive supply chain, makes it a pivotal player in the global machine tool steel landscape.

Innovation and Sustainability Focus:

• Development of high-performance steels for electric vehicle (EV) component manufacturing

• Investment in energy-efficient production processes

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7️⃣ 4. Nachi-Fujikoshi Corp.

Headquarters: Tokyo, Japan
Key Offering: Cutting tools, Bearings, Hydraulic equipment, Machine tools & parts

Nachi-Fujikoshi is an industrial conglomerate with a strong foothold in the machine tool ecosystem. While famous for its cutting tools, the company also produces and utilizes high-grade tool steels for its own product lines, ensuring end-to-end quality control. Its integrated approach from steel to finished tool provides a significant competitive advantage.

Innovation and Sustainability Focus:

• Proprietary surface treatment technologies to enhance tool life

• Focus on automation and robotics solutions for smart factories

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6️⃣ 5. ThyssenKrupp AG

Headquarters: Essen, Germany
Key Offering: Carbon steels, Stainless steels, Tool steels, Materials services

ThyssenKrupp is one of Europe’s largest steel producers, with a significant portfolio in high-grade engineering steels. Its tool steel segment supplies the manufacturing industry with reliable materials for a wide array of applications, supported by extensive technical service and a global distribution network.

Innovation and Sustainability Focus:

• Decarbonization strategy targeting climate-neutral steel production

• Development of tailored solutions for lightweight construction and e-mobility

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Machine Tool Steel Market – View in Detailed Research Report

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5️⃣ 6. Kennametal Inc.

Headquarters: Pittsburgh, Pennsylvania, USA
Key Offering: Metal cutting tools, Tooling systems, Advanced materials

Kennametal is a global leader in industrial tooling and wear-resistant solutions. The company’s expertise extends to the development and application of specialized tool steels and cemented carbides that deliver exceptional performance in machining and forming operations. Kennametal’s products are critical for increasing productivity in demanding industrial environments.

Innovation and Sustainability Focus:

• Leadership in digital machining solutions and IoT-enabled tools

• Sustainability initiatives focused on reducing the environmental footprint of manufacturing

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4️⃣ 7. ArcelorMittal S.A.

Headquarters: Luxembourg City, Luxembourg
Key Offering: Flat steel, Long steel, Tool steels, Mining and processing solutions

As the world’s largest steel producer, ArcelorMittal has a substantial presence in the tool steel market through its specialty product lines. The company supplies high-quality tool steels to various industrial segments, leveraging its massive R&D capabilities and production scale to meet global demand.

Innovation and Sustainability Focus:

• Ambitious 2050 net-zero carbon emissions target

• Investment in Smart Carbon and innovative steelmaking technologies

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3️⃣ 8. Carpenter Technology Corporation

Headquarters: Philadelphia, Pennsylvania, USA
Key Offering: Specialty alloys, Titanium alloys, Tool and die steels, Engineered products

Carpenter Technology is a premier producer and distributor of premium specialty alloys, including high-performance tool steels. The company is known for its strict quality control and ability to produce highly customized alloys for critical applications in the aerospace, medical, and energy industries.

Innovation and Sustainability Focus:

• Advanced material solutions for additive manufacturing

• Focus on supplying materials for next-generation energy and transportation systems

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2️⃣ 9. Erasteel

Headquarters: Stockholm, Sweden (Part of the Erasteel Group, a subsidiary of ERAMET)
Key Offering: High-speed steels (HSS), Powder metallurgy (PM) steels, Tool steels

Erasteel is a global leader in the production of high-speed steels, particularly those made via the powder metallurgy process. This results in steels with a fine, homogeneous microstructure, offering superior hardness, wear resistance, and toughness compared to conventionally produced steels. They are a key supplier to the cutting tool industry.

Innovation and Sustainability Focus:

• World-leading expertise in ASP® (powder metallurgy) high-speed steels

• Commitment to reducing the environmental impact of steel production processes

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1️⃣ 10. Tiangong International Company Limited

Headquarters: Danyang, Jiangsu, China
Key Offering: High-speed steel, Die steel, Cutting tools, Titanium alloys

Tiangong International is a leading Chinese manufacturer of high-speed steel and die steel. The company has grown significantly, capitalizing on China’s vast manufacturing sector. It plays a crucial role in supplying cost-effective, high-performance tool steels to both domestic and international markets, particularly for tool and die makers.

Innovation and Sustainability Focus:

• Rapid expansion of production capacity and product portfolio

• Increasing investment in R&D to compete with global premium brands

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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, driven by the overarching trends of digitalization and sustainability. While the core demand for high-performance materials remains strong, the industry is increasingly focused on developing smarter alloys and eco-friendly production methods to meet the challenges of modern manufacturing.

📈 Key Trends Shaping the Market:

• Industry 4.0 Integration: Development of tool steels compatible with smart, data-driven manufacturing environments, allowing for predictive maintenance and optimized tool life.

• Lightweighting and E-Mobility: Rising demand for specialized tool steels to manufacture lightweight components for electric vehicles and aerospace applications.

• Advanced Coating Technologies: Growing adoption of Physical Vapor Deposition (PVD) and Chemical Vapor Deposition (CVD) coatings to drastically enhance the performance and longevity of tool steels.

• Sustainability and Circularity: Intensifying focus on reducing the carbon footprint of steel production and promoting the recycling of tool steel scrap within a circular economy model.

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Machine Tool Steel Market – View in Detailed Research Report

The companies profiled above are not merely suppliers of raw materials; they are essential innovators enabling the precision, efficiency, and sustainability of global manufacturing. Their ongoing advancements in material science will continue to shape the capabilities of industries worldwide for years to come.