The tool steel market research report describes the various market matrix by analyzing market determinants such as market drivers, opportunities, challenges and market restraints. The market trends explain the current market situation. To explain the market scenario in detail, the global tool steel market is segmented into various parts. The segments are as follows:
The global tool steel market growth is supported by various market drivers and some major market determinants. Some of them are increasing demand from various industries such as automotive, packaging, and construction, increasing investment in industrial segments, growth in manufacturing activities and many more. However, increasing consumer preference for cutting tools based on carbide may restrain the market growth. The substitute product can hamper the market growth owing to its cost benefits over tool steel in the market.
Construction Industry possess great opportunity for the market
Tool steel has various applications in different construction activities. The flourishing construction industry provide a boost in sales of industrial cutting tools such as taps, drills, saw blades and gear cutters. As per a study from Oxford Economics and Global Construction Perspectives, average construction growth was estimated 3.9% pa to 2030, driven by developing countries those are majorly focusing on growth of industries. Regionally, Europe will register a fastest growth with UK— a considerable growth market, with Germany by holding a sixth position in world by 2030 in the global construction market. Considering Asia-Pacific, the region can also contribute some interesting facts based on participation of China and India as strong construction industries. India’s urban population is expected to grow by ~165million by 2030, that will support the construction industrial growth in the country. Whereas, China’s construction industrial growth has witnessed a slowdown in housing output. But country’s focus towards service-driven economy will provide a boost to various infrastructural projects. Hence, these facts showcase different market situation depending upon need of the regions, apart from region specific results, the overall global tool steel market will witness major opportunities in the construction industry in future.
APAC witnessed a substantial growth of the market, owing to increasing demand for infrastructural development in India—due to rising population, government support in infrastructural development; rising investments in infrastructure of China and other countries as well. India witnessed a massive spending on urban infrastructure, railways, roads, irrigation and others in last five years. Indian infrastructure sector witnessed deals of worth $5.4 billion in 2017 with 91 Mergers and Acquisitions deals, as per IBEF. Likewise, other countries in APAC have wide presence of industries such as packaging, construction and others, and favorable government policies drive the regional market growth over the forecast period. Infrastructural development requires various tools and tool steel is highly used in roofing, building insulation, windows and doors and flooring, which may boost the product demand.
Europe dominated the market in 2018, owing to region’s growing manufacturing industries and high demand of precision manufacturing. Tool steel consist of excellent polishability, good machinability, , photo-etching features, weldability, and low sulfur content makes it highly demandable in manufacturing industries that stimulate the regional market growth over the forecast period.