The design of modern construction materials with heterogeneous microstructures requires a numerical model that can predict the distribution of microstructural features instead of average values. The accuracy and reliability of such models depend on the proper identification of the coefficients for a particular material. This work was motivated by the need for advanced experimental data to identify stochastic material models. Extensive experiments were performed to supply data to identify a model of austenite microstructure evolution in steels during hot deformation and during the interpass times between deformations. Two sets of tests were performed. The first set involved hot compressions with a nominal strain of 1. The second set involved hot compressions with lower nominal strains, followed by holding at the deformation temperature for different times. Histograms of austenite grain size after each test were measured and used in the identification procedure. The stochastic model, which was developed elsewhere, was identified. Inverse analysis with the objective function based on the distance between the measured and calculated histograms was applied. Validation of the model was performed for the experiments, which were not used in the identification. The distance between the measured and calculated histograms was determined for each test using the Bhattacharyya metric and very low values were obtained. As a case study, the model with the optimal coefficients was applied to the simulation of the selected industrial hot-forming process.