Heat Treating Market Analysis Report By Material, By Process, By Equipment, By Application And Segment Forecasts From 2018 To 2025

Industry Insights

The global heat treating market size was accounted for USD 90.7 billion, in 2016. It is projected to ascend with a CAGR of 3.5% over the estimated duration. The growing application of heat treating across various industries such as electronics, aerospace, construction, automotive, and mining is anticipated to fuel the market growth from 2017 to 2025. Also, the use of lightweight materials in the manufacturing of automobiles and the surging use of different metals such as copper and steel are also predicted to boost the market growth over the forecast duration.

Aerospace and automotive are the leading application segments of heat treating. The growing preference for air travel owing to high aviation needs caused by air traffic influx is the key factor for heat-treating activities. Moreover, the growing requirement for heat-treating for construction, particularly in the Middle East & Africa, and the Asia Pacific, is expected to bode well for the market growth over the forecast years.

The growing automotive industry is driving the use of heat treatment in developing nations such as China, Brazil, Indonesia, India, and Mexico. Automotive producers have been widely preferring heat treatment services for the past many years. The increasing operation of key automotive producers in developing nations is projected to supplement the market growth in the coming years. Proficient heat treating to various components and parts of automobiles can enhance the durability and mechanical strength, thereby, improving the performance of the automobile.

The heat treatment used in the metal industry requires a high amount of energy, resulting in restraining market growth. The application of high-energy-inefficient machines can cause harm to the environment and affects operational efficiency. The use of obsolete technology and various outdated processes deployed by small and medium-sized companies, especially in developing nations across Central and South America and the Asia Pacific, is expected to restrain the market growth from 2017 to 2025.

Material Insights

Different material requires treatment for various applications some of the widely used materials are cast iron, steel, brass, titanium alloys, aluminum, copper alloys, and other. Steel led the market, but it is predicted to lose its market share in the coming years due to the growing preference for aluminum and other metals for the production of parts in the aerospace and automotive industry.

The rising demand for lightweight components and parts with flexible nature for aircraft and automobiles to lower secondary and primary weight is predicted to boost the heat treating market growth for several other metals, particularly aluminum.

Process Insights

Hardening & tempering and case hardening are the widely used processes in heat treatment. Case hardening occupied the largest market share of more than 25.0% in 2016. This process is predicted to grow rapidly over the projected duration owing to the rising use of case hardening methods such as carbonitriding, carburizing, and cyaniding for several end-use industries. Enhanced chemical and mechanical properties arising from the process are projected to drive the segment growth over the forecast period.

The traditional hardening process is expected to lose its share from 2017 to 2025 owing to the rising application of annealing, and surface hardening processes for key activities in defense, automotive, and aerospace.

Equipment Insights

The electrically-heated furnaces segment led the market in 2016 and is predicted to foresee steady growth over the forecast years owing to the growing preference for electrical furnaces by the key players. Boilers, ovens, and electrically-heated furnaces allow service providers to enhance operational efficiency and save on fuel costs.

Furnaces fired via fossil fuels such as gas, petroleum and diesel occupied the second-highest revenue share in the market. The segment is expected to grow substantially over the estimated duration due to the growing preference for electrical furnaces. Increasing norms for standard temperature wastes from furnaces, and boiler emissions has encouraged the use of electric furnaces over fuel-driven furnaces. Moreover, increasing awareness regarding the hazardous effects of heat treating via fossil fuel furnaces has promoted the demand for sustainable and cleaner technologies.

Application Insights

The automotive segment led the heat treating market in 2016 and is predicted to grow substantially over the estimated duration owing to the rapid rise in vehicle manufacturing across the world. Increasing demand for lightweight commercial vehicles and economy cars has resulted in the expansion of the automotive industry globally. This factor is predicted to bode well for the segment growth in the upcoming years.

Construction is a major segment for heat treatment applications. Steel structures utilized in construction activities such as grills, beams, and columns undergo the specified process. The roof covering system and its components also use such a process. The booming construction industry owing to huge government spending on various infrastructure projects in the Asia Pacific is projected to augment the market growth over the projected period.

Regional Insights

The Asia Pacific led the market to occupy a major revenue share in 2016. The steady growth across various industries such as construction, automotive, and aerospace in various developing nations such as Indonesia, India, and China are attributing to this regional market growth.

The aerospace application segment in the Asia Pacific is predicted to foresee considerable growth over the forecast years owing to the increasing production of aircraft systems and parts in developing nations such as China and India. Moreover, increasing aviation demand has resulted in rising in the production of commercial aircraft, thereby, predicted to boost the aerospace industry.

North America region is propelled by the growing demand for services in the U.S. The growing aerospace and automotive industries are the key factors for the industry growth in the region. Moreover, the increasing automobile production and various manufacturing undertaking in Mexico is projected to fuel the demand over the estimated period.

Heat Treating Market Share Insights

The industry witnesses high competition due to the operation of various small, medium, and large-sized companies having diverse products offering and geographical presence. Leading players in the industry are Bohler Uddeholm; Solar Atmosphere Inc.; Bluewater Thermal Solutions; Bodycote Heat Treatments Ltd.; Ajax Tocco International Ltd.; and American Metal Treating Inc.

Companies in the market are emphasizing vertical integration in the value stream, from furnace production to post-treatment facilities. Manufacturers such as Aichelin Holding GmbH, Ajax Tocco International, and Pillar Induction Inc. use a combined approach and offer several furnaces and processes for numerous applications. Moreover, these companies also provide post-process services. Players are focusing on various strategic initiatives such as technological alliances, M&A, and combining various heat treatment services to maintain their dominance over the forecast duration.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global heat treating market report on the basis of material, process, equipment, application, and region:

• Material Outlook (Revenue, USD Million, 2014 - 2025)
    • Steel
    • Cast Iron
    • Others

• Process Outlook (Revenue, USD Million, 2014 - 2025)
    • Hardening & tempering
    • Case hardening
    • Annealing
    • Normalizing
    • Others

• Equipment Outlook (Revenue, USD Million, 2014 - 2025)
    • fuel-fired furnace
    • Electrically heated furnace
    • Others

• Application Outlook (Revenue, USD Million, 2014 - 2025)
    • Automotive
    • Aerospace
    • Metalworking
    • Machine
    • Construction
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • U.S.
    • Europe
        • U.K.
        • Germany
    • the Asia Pacific
        • China
        • Japan
        • India
    • Central & South America
        • Brazil
    • Middle East & Africa
        • South Africa