Tool steel refers to a variety of carbon and alloy steels that are particularly well-suited to be made into tools. Their suitability comes from their distinctive hardness, resistance to abrasion and deformation and their ability to hold a cutting edge at elevated temperatures. The Japan Tool Steel Market is projected to witness a rise in its revenue from US$ 182.3 Mn in 2021 to US$ 241.4 Mn by 2027. The market is registering a CAGR of 4.5% over the projection period. Tool steels are used for cutting, machining, stamping, and shaping other materials. Their use in tooling is essential, for instance, injection molds require tool steels for their resistance to abrasion- an important criterion for mold durability which enables hundreds of thousands of molding operations over its lifetime. 

The market is majorly driven by factors such as increasing demand for forged tool steel and lucrative growth in the automotive industry. Forged steel has a high strength, toughness, and shock resistance. Growth in manufacturing activities due to rising foreign investments and growing government initiatives to support the manufacturing sector is propelling market growth. Furthermore, growing demand for forged metals from factory automation, defense, automotive and aerospace industries is estimated to accelerate market growth over the projection period. Moreover, the growth of automotive industry is providing a lucrative opportunity for market growth as tool steel provides certain benefits such as high resistance to wear, good thermal conductivity, good hardenability, cost-effective machinability, excellent polishing, and acid-treatment properties which are suitable for use in automotive industry. Japan’s automobile industry is the world’s third largest, with 78 manufacturers in 22 prefectures employing over 5.5 million people. It is a vital pillar of the country’s economy. Automotive industry accounts for 89 percent of Japan’s manufacturing sector, thereby triggering market growth. However, rising consumer preferences for carbide machine tools are hindering market growth. 

 Report Summary

The study of the Japan Tool Steel Market considers various market determinants, industry value chain analysis and competitor analysis of the market. The report discusses the analysis of the tool steel industry in Japan for the period 2017-2027, where the base year is 2021 and the forecast period is 2022-2027. The report provides a detailed analysis of the Japan Tool Steel Market across 10 Chapters and 109 pages. The report includes data presentation across 11 tables and 32 statistical figures. 

The report provides PESTLE analysis, which is a tool to examine the external market environment factors that have an impact on the industry. The PESTLE analysis examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment. Thus, sufficiently examining the threats and weaknesses of the industry. The research report also provides Porter’s five forces analysis wherein bargaining power of buyers is moderate and intensity of rivalry is high. 

The subsequent section provides details of the market analysis based on different segments such as material, product, process, and application. The report includes a detailed study of the value chain of the industry. It includes material providers, tool steel manufacturers, distributors, and end users. The report also covers extensively about the key competitors in the market for tool steel in Japan. 

Key Takeaways from the Japan Tool Steel Market Report:

• Based on material, the chromium material segment holds the highest share in the Japan Tool Steel Market in 2021 and is further estimated to continue its dominance over the projection period. This is because chromium material is affordable and is preferred by various end-use industries for cold working products. However, the molybdenum segment registers the highest CAGR over the forecast period due to its high ductile strength.
• In terms of product, the cold work tool steel dominates the Japan Tool Steel Market in 2021. The cold-work tool steels include the O series (oil-hardening), the A series (air-hardening), and the D series (high carbon-chromium). These are steels used to cut or form materials that are at low temperatures. This group possesses high hardenability, wear resistance, average toughness, and heat softening resistance. However, the plastic mold steels have the highest growth rate over the forecast period. 
• In terms of process, the rolled segment has the highest market share in 2021 owing to its lower cost compared to forged steel. However, the forged segment holds the highest CAGR over the projection period as forged steels are stronger and more reliable. 
• Based on application, the automotive segment holds the highest share in the Japan Tool Steel Market in 2021 and is estimated to continue its dominance over the projection period. This is because tool steels play a vital role in the manufacturing of automobile headlamps, cold press dies for producing automobile parts, engine parts, crankshafts and motorcycle components, which is propelling the market growth. Moreover, automotive industry accounts for 89 percent of Japan’s manufacturing sector, thereby triggering market growth. 

Competitive Landscape

The key competitors in the Japan Tool Steel Market are Mitsubishi Hitachi Tool Engineering, Ltd., Voestalpine AG, Baoshan Iron and Steel Co., Ltd., Eramet, and TPR Co., Ltd., among others. Through extensive research, it is found that big players have adopted various competitive strategies such as merger & acquisition in order to have a grip in the stabilized Japanese market. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies. 

Segmentation Overview

The following are the different segments of the Japan Tool Steel Market:

By Material segment of the Japan Tool Steel Market is sub-segmented into:

• Chromium
• Tungsten
• Molybdenum
• Vanadium

By Product segment of the Japan Tool Steel Market is sub-segmented into:

• High Speed Steel
• Cold Work Steel
• Hot Work Steel
• Plastic Mold Steel
• Die Steel
• Others Steel

By Process segment of the Japan Tool Steel Market is sub-segmented into:

• Rolled
• Forged

By Application segment of the Japan Tool Steel Market is sub-segmented into:

• Automotive
• Shipbuilding
• Aerospace
• Heavy Machinery
• Other Manufacturing