Heat Treating Market Size, Share & Trends Report

Heat Treating Market Size, Share & Trends Analysis Report By Material (Steel, Cast Iron), By Process, By Equipment, By Application (Automotive, Aerospace), And Segment Forecasts, 2018 - 2025

  • Published Date: Jan, 2018
  • Base Year for Estimate: 2016
  • Report ID: GVR-2-68038-287-7
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 115

Industry Insights

The global heat treating market size was valued at USD 90.7 billion in 2016 and is estimated to expand at a CAGR of 3.5% from 2017 to 2025. Growing penetration of heat treating applications in aerospace, automotive, construction, machining, and electrical and electronics industries is projected to act as the key market driver over the next eight years. 

Automotive and aerospace are two crucial application segments. Growing demand for heat treating services in aerospace can be attributed to rapidly increasing demand for commercial vehicles due to high aviation demand and rising air passenger traffic. Furthermore, upsurge in heat treating services for construction, primarily in Asia Pacific and Middle East and Africa, is projected to benefit overall heat treatment market growth.

U.S. heat treating market

The automotive industry plays an essential role in driving heat treating services in emerging economies such as Brazil, India, Indonesia, Mexico, and China. Automotive manufacturers have been propelling the demand for heat treating over the past few years. Increasing presence of major automotive manufactures in the aforementioned countries have contributed to the growth of the heat treatment market. Various parts and components of automobiles undergo heavy stress and thus require high durability. Efficient heat treating can provide strength and improve mechanical performance.

The metal heat treatment industry is highly energy intensive, as a result of which, industry participants face several constraints. Use of highly energy-inefficient equipment poses a threat to the environment and impacts operational efficiency. Use of outdated technology and process by small and medium players, primarily in emerging economies across Asia Pacific and Central and South America, is expected to hamper growth in the near future.

Material Insights

Different materials undergo treatment for several applications; key materials in the industry include steel, cast iron, aluminum, copper alloys, nickel alloys, brass, titanium alloys, and other metals. Steel dominated the industry in terms of material; however, the segment is likely to lose market share over the forecast period owing to increasing use of aluminum and other metals for the manufacture of components in automotive and aerospace industries.

Growing demand for lightweight components with high tensile strength for automobiles and aircraft to reduce primary and secondary weight is expected to drive market growth for other metals, especially aluminum.

Process Insights

Hardening and tempering and case hardening are two of the most commonly used heat treatment processes. Case hardening accounted for the largest share by process, accounting for over 25.0% in 2016. The process is expected to witness the highest growth over the forecast period on account of increasing use of case hardening processes such as carburizing, cyaniding, and carbonitriding for various end-use applications. Improved mechanical and chemical properties resulting from these processes have aided segment growth.

The conventional hardening process segment is likely to lose market share over the next few years on account of increasing use of surface hardening and annealing processes for key applications in automotive, aerospace, and defense.

Equipment Insights

Electrically-heated furnaces dominated the heat treating equipment industry in 2016 and the segment is likely to witness the highest growth over the next eight years on account of growing popularity of electrical furnaces among industry players. Electrically-heated furnaces, boilers, and ovens enable service providers to save fuel cost and improve operational efficiency.

Furnaces fired through fossil fuels such as petroleum diesel and gas accounted for the second-largest share in industry revenues. The segment is projected to witness steady growth in future owing to increasing use of electrical furnaces. Increasing number of regulations pertaining to boiler emissions, standard temperature, and effluents from furnaces has led to a shift from fuel-fired furnaces to electric furnaces. In addition, growing awareness concerning harmful effects of heat treating through fossil-fueled furnaces has led to a high demand for cleaner technologies.

Application Insights

Automotive dominated the global market in 2016 and is expected to gain momentum over the forecast period on account of rapidly increasing vehicle production across the globe. Soaring demand for economy cars and light commercial vehicles has resulted in an upsurge in the global automotive industry; this is expected to act as a key driver for industry growth over the forecast period.

Construction is one of the key applications for heat treatment; steel structures used in construction, such as beams, columns, and grills, undergo the aforementioned process. Roof cladding systems and components also require such treatment. The rapidly growing construction industry in Asia Pacific on account of increasing government expenditure on key infrastructure projects is expected to drive demand in the construction sector over the forecast period.

Regional Insights

Asia Pacific dominated the metal heat treating market in terms of revenue. These services in the region are largely driven by rapidly growing automotive, aerospace, and construction industries across key emerging economies such as India, China, and Indonesia.

The aerospace application in the region is expected to witness the highest growth during the next few years on account of an upsurge in the manufacture of aircraft parts and systems in emerging economies of India and China. Furthermore, increasing demand for commercial aircraft by China on account increasing aviation demand is likely to benefit the aerospace industry in the country. This, in turn, is expected to drive the industry in the said application over the next eight years.

Global heat treating market

The industry segment in North America is primarily driven by the rapid service demand growth in the U.S. The U.S. automotive and aerospace industry are identified as the key drivers for the overall industry in the region. In addition, the increasing automobile production and other manufacturing activities in Mexico is likely to propel demand in the industry over the forecast period.

Heat Treating Market Share Insights

The industry exhibits intense competition owing to presence of numerous large, small, and medium-sized companies with an extensive product portfolio and geographical reach. Key industry participants include Bluewater Thermal Solutions; Bohler Uddeholm; American Metal Treating Inc.; Solar Atmosphere Inc.; Ajax Tocco International Ltd.; and Bodycote Heat Treatments Ltd.

Companies in the domain engage in vertical integration across the value chain, from furnace manufacturing to post-treatment services. Companies such as Ajax Tocco International; Pillar Induction Inc.; and Aichelin Holding GmbH follow an integrated approach and provide numerous furnaces and different processes for various applications. In addition, these companies offer post treatment and finishing services.

Furthermore, technological collaborations, integration of heat treatment facilities within automobile manufacturing facilities, and mergers and acquisitions between furnace manufacturers and service providers were identified as key growth strategies adopted by numerous industry participants.

Report Scope

Attributes

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation

Revenue in USD Million & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Report coverage

Revenue forecasts, company share, competitive landscape, growth factors, and trends

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Segments Covered in the Report:

This report forecasts revenue growth at global, country, and regional levels and provides an analysis on industry trends in each of the sub-segments from 2012 to 2027. Grand View Research 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 (USD Million, 2014 - 2025)

    • Automotive

    • Aerospace

    • Metalworking

    • Machine

    • Construction

    • Others

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • Japan

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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