Heat Treating Market Size, Share & Trends Analysis Report By Material (Steel, Cast Iron), By Application (Automotive, Aerospace), By Process, By Equipment, By Region, And Segment Forecasts, 2024 - 2030

Heat Treating Market Size & Trends

The global heat treating market size was estimated at USD 107.18 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 3.5% from 2024 to 2030. The rapid growth of the electric vehicle industry, coupled with the growing demand for metallurgical alterations to suit specific applications, is expected to boost market growth over the forecast period. The increasing demand for heat treatment in EVs is fueled by the pivotal role it plays in enhancing the performance, efficiency, and longevity of critical components within EV drivetrains and battery systems.

As automakers strive to optimize the efficiency of electric propulsion systems, heat treatment becomes indispensable for components like electric motor components, gears, and battery cells. Moreover, heat treating helps improve the hardness, durability, and overall structural integrity of materials, ensuring that components withstand the rigorous demands of EV operations.

EVs require heat treatment for specialized materials in DC and AC motors, laminations, bearings, and shafts. Heat treatment for EVs requires a flexible heat-treating approach and is likely to increase the demand for new equipment over the forecast period.

The COVID-19 pandemic resulted in significant losses for the automotive industry of the U.S. resulting in supply chain and raw material price volatility. Moreover, the pandemic accelerated the growing environmental concerns, which are anticipated to increase the demand for environment-friendly heat treatment equipment over the forecast period.

Heat treatment processes that are commonly used to improve the microstructure of these automotive components encompass annealing, isothermal annealing, normalizing, spheroidizing, quenching, tempering, austempering, and case hardening. Growing requirements for lightweight and fuel-efficient automobiles motivated the demand for heat treatment to achieve desirable properties of automotive components.

The pandemic has triggered self-sufficiency in manufacturing, primarily in the U.S. and Europe. Increased use of technologies such as IIOT technology and application of data analytics and continuous monitoring of furnaces are expected to augment the industry growth over the forecast period.

The furnaces used in heat treating consume a significant amount of energy to achieve the desired temperature required for heating the metals. Conventional gas-fired and fuel-fired furnaces use fossil oil (FO) and light diesel oil (LDO) as fuel for heat treating. This leads to higher heat losses and thus high environmental impact, which is likely to hamper industry growth.

Market Concentration & Characteristics

Market growth stage is low, and pace of the market growth is accelerating. The market is characterized by a high degree of innovation owing to the rapid technological advancements. Moreover, the companies are further adopting various organic and inorganic growth strategies, such as product launches, geographical expansions, mergers & acquisitions, and collaborations, to strengthen their position in the global market.

The heat-treating market is also characterized by a high level of product launch activity by the leading players. This is due to several factors, including increasing the reach of their products in the market and enhancing the availability of their products & services in diverse geographical areas.

The market is closely tied to the demand from industries such as automotive, aerospace, oil and gas, electronics, and construction. Changes in demand in these sectors directly impact the market. Moreover, compliance with industry standards and regulations is crucial in the market. Companies need to adhere to specific quality and safety standards to meet customer requirements and ensure the reliability of their heat-treated products.

Different heat treating facilities specialize in treating specific materials, such as ferrous metals, non-ferrous metals, and exotic alloys. The market may be segmented based on the types of materials processed. Furthermore, increasing emphasis on energy efficiency and sustainable practices in manufacturing processes affects the market. Companies that adopt eco-friendly practices may gain a competitive edge.

Material Insights

The steel material segment led the market with a revenue share of 80.0% in 2023. Growing demand for heat-treated steel parts in the construction industry, especially in the U.S., China, and India, is expected to propel the demand for heat treating for steel over the forecast period. Steel is subjected to heat treating to obtain certain mechanical properties including strength, wear properties, and surface hardness. Controlled heating and cooling of steel structures improve machining and formability, along with recovering grain size. The aforementioned advantages of heat treating in steel are likely to boost the demand for this segment.

The demand for cast heat treating services remains robust, driven by the persistent growth in industries such as automotive, aerospace, construction, and oil and gas, all of which heavily rely on cast components for various applications. The automotive sector, in particular, continues to expand, fueled by increasing consumer demand and technological advancements, thereby elevating the need for heat-treated castings to enhance component durability and performance.

The ongoing trend of material innovation, with the development of new casting alloys and technologies, further amplifies the demand for specialized heat treating services to optimize material properties. Regulatory requirements and quality standards in these industries continue to necessitate precise heat treatment processes to meet safety and performance criteria, contributing to sustained demand for heat treating services. Moreover, as global manufacturing landscapes evolve, the demand for cost-effective and high-quality heat treating solutions persists, reflecting the industry's responsiveness to shifting production centers. In summary, the market's buoyancy is intricately linked to the dynamic growth in end-user industries, technological advancements, and the perpetual need for customized, compliant, and high-performance cast components.

Process Insights

The case hardening process segment is anticipated to show lucrative growth over the forecast period. The demand for case hardening processes within the market remains strong, driven by industries where enhanced surface hardness and wear resistance of metal components are paramount. In applications such as automotive manufacturing, aerospace, and industrial machinery, case hardening plays a critical role in extending the lifespan and improving the performance of components subjected to heavy wear and friction. The automotive sector, for instance, relies on case hardening to enhance the durability of gears, camshafts, and other critical engine components.

The demand for annealing processes in the market remains significant, driven by industries that prioritize material refinement, stress relief, and improved mechanical properties. Annealing is widely employed in sectors such as metallurgy, electronics, and manufacturing, where it is instrumental in reducing hardness, enhancing ductility, and relieving internal stresses in metal components. In the electronics industry, annealing is crucial for optimizing the electrical properties of semiconductor materials.

Normalizing is similar to annealing; it involves heating the metal at a temperature much above the critical temperature and then it undergoes air cooling. This results in uniform carbide distribution of the metal, which improves the fatigue and wear resistance of the metal and the end product. The increase in demand for carbon and low alloyed steels in body panels, tin plates, and wire products is expected to boost the demand for normalizing heat treatment. Other processes include vacuum heat treatment, thermal processes, and case hardening processes such as nitriding, laser beam hardening, and others. This segment is also expected to grow at a healthy rate considering the growing use of newer and special processes attributed to the technological advancements and the growing need for greener technologies.

Equipment Insights

The electrically heated furnace equipment segment is anticipated to show lucrative growth over the forecast period. High operational efficiency achieved using an electrically heated furnace and higher environmental sustainability as compared to conventional fuel-fired systems are expected to propel the demand for electrically heated furnaces over the forecast period. Electrically heated furnaces have easy installation and automated temperature control that improves operational efficiency. Moreover, the implementation of high-end technology ensures temperature uniformity and the ability to perform high-temperature operations. Growing demand for environmentally friendly technology is expected to propel the industry growth of electrically heated furnaces over the next few years.

The demand for fuel-fired furnace equipment remains robust, particularly in industries where high-temperature processes are essential, such as metal casting, heat treatment, and glass manufacturing. Fuel-fired furnaces powered by natural gas, propane, or other fuels offer a cost-effective and versatile solution for achieving elevated temperatures required in various industrial applications. These furnaces are crucial for processes like melting, forging, and annealing, providing efficient heat transfer and precise temperature control. Low cost as compared to electrically-heated furnaces has led to a high preference for fuel-fired furnaces among the industry players. However, unstable fuel prices and emissions of greenhouse gases have restrained the growth of conventional fuel-fired furnaces. The demand for natural gas-fired furnaces from developing economies is likely to boost the segment growth.

Application Insights

The automotive application is anticipated to show lucrative growth over the forecast period due to the growing EV industry and the increasing demand for greener technologies, which can deliver energy-efficient heat treatment. Moreover, new and advanced equipment required for EVs is expected to propel industry growth. The demand for heat treating in the automotive industry remains robust, driven by the sector's relentless pursuit of lightweight materials, improved mechanical properties, and enhanced durability. Heat treating plays a pivotal role in the automotive manufacturing process, ensuring the desired hardness, strength, and wear resistance of critical components such as gears, shafts, and engine components. As automotive designs evolve to incorporate advanced materials like high-strength alloys and composites, the need for precise heat treatment processes becomes increasingly vital to optimize the performance and longevity of these components.

The demand for heat treating in the aerospace industry remains high, driven by the stringent requirements for precision, reliability, and material performance in critical aerospace components. Heat treating plays a pivotal role in enhancing the strength, hardness, and structural integrity of materials used in aircraft parts, such as turbine blades, landing gear components, and structural elements. Aerospace manufacturers rely on heat treatment processes to achieve specific metallurgical properties that meet the demanding standards for safety, weight reduction, and performance in extreme operating conditions.

Regional Insights

Asia Pacific led the market with a revenue share of 39.6% in 2023. The demand for heat treating in the region is experiencing significant growth, driven by the burgeoning industrialization, expanding automotive and aerospace sectors, and the continuous development of infrastructure projects. As manufacturing activities surge in countries like China, India, Japan, and South Korea, there is an increasing need for heat treating processes to enhance the mechanical properties of critical components across diverse industries. The rising automotive production, coupled with the expansion of aerospace and electronics manufacturing, underscores the pivotal role of heat treating in ensuring the quality, durability, and performance of materials. In addition, the construction boom in the region fuels demand for heat-treated components in infrastructure projects. With a dynamic and rapidly evolving industrial landscape, the Asia Pacific region stands as a key driver in the global demand for heat treating services.

Stringent government regulations around the use of green technologies have been a major factor behind the increase in demand for environment-friendly heat treatment technologies in Europe. Moreover, growing construction and automotive industries in Germany and the UK are expected to augment the demand for heat treating in the region.The demand for heat treating in Europe remains robust, fueled by the region's thriving automotive, aerospace, and precision engineering industries. European manufacturers place a strong emphasis on producing high-quality, precisely engineered components, driving the need for advanced heat treatment processes to optimize material properties. With a focus on innovation and technological advancements, the aerospace sector in Europe relies heavily on heat treating to meet stringent safety and performance standards.

Canada Heat Treating Market

The Canada market is driven by an increasing number of automobile production facilities and manufacturing facilities. The demand for heat treating services in Canada remains integral to the country's diverse industrial landscape, encompassing sectors such as automotive, aerospace, mining, and energy. As a country with a strong emphasis on resource development, heat treating plays a crucial role in enhancing the durability and performance of components used in mining equipment and machinery. In addition, the Canadian automotive industry's focus on producing high-quality and technologically advanced vehicles sustains the demand for precise heat treatment processes.

Germany Heat Treating Market

The Germany market is expected to witness growth in the coming years owing to the country's globally renowned precision engineering and manufacturing sectors. As a key player in the automotive and machinery industries, Germany places a premium on producing high-quality components, necessitating advanced heat treatment processes for optimal material performance. The aerospace sector also contributes to the demand, with a focus on innovative and lightweight materials that require precise heat treatment to meet stringent safety and performance standards. In addition, Germany's commitment to technological advancement and continuous innovation in manufacturing processes sustains the steady demand for heat treating services across various industries, reinforcing its role as an essential element in ensuring the reliability and longevity of critical components.

China Heat Treating Market

The China market is expected to witness growth in the coming years owing to escalating construction activities. Moreover, as the country undergoes rapid urbanization and infrastructure development, the demand for high-quality and durable materials is on the rise. Heat treating processes play a pivotal role in enhancing the strength, hardness, and overall performance of construction-related components such as structural steel, reinforcing bars, and fasteners. The need for heat-treated materials ensures that these components withstand the demanding conditions of construction projects, contributing to the longevity and safety of infrastructure. The construction boom in China positions heat treating services as a vital element, meeting the stringent quality standards required for the country's ambitious and expansive development initiatives.

Brazil Heat Treating Market

The Brazil market is expected to be driven by growing industrial sectors, including automotive, aerospace, and metallurgy. As Brazil continues to be a major player in South America's manufacturing landscape, there is a growing need for precise heat treatment processes to enhance the mechanical properties of materials used in critical components. The automotive industry, in particular, relies on heat treating to meet stringent performance standards, while the aerospace sector benefits from these processes to ensure the durability of crucial parts. The expanding energy and mining sectors also contribute to the demand for heat treating services, reflecting the diversified applications of this essential industrial process in supporting the reliability and longevity of various components across Brazil's industrial spectrum.

Saudi Arabia Heat Treating Market

The Saudi Arabia market is expected to be driven by the country's thriving oil and gas, petrochemical, and construction industries. With Saudi Arabia being a major player in the global energy sector, there is significant demand for heat treating services to enhance the performance and longevity of critical components used in oil drilling equipment, pipelines, and refinery machinery. Moreover, the construction sector, fueled by ongoing infrastructure projects such as the Riyadh Metro and NEOM city development, requires heat-treated materials for structural steel beams, reinforcing bars, and construction machinery components to meet safety and durability standards.

Key Heat Treating Company Insights

To increase market penetration and cater to changing technological requirements from various end-uses, such as automotive, machine, construction, aerospace, and metalworking, manufacturers use a variety of strategies, such as joint ventures, mergers, acquisitions, new product launches, and geographical expansions. Manufacturers are undertaking strategic acquisitions to gain an edge in the industry and increase their geographic presence. For instance, in January 2022, Honeywell International Inc. inaugurated a new production facility in Jubail, Saudi Arabia, outfitted with Callidus Flare technology. This technology is specialized in manufacturing products utilizing thermal combustion for the oil and gas industry. The range of flares produced encompasses basic utility flares to high-performance ultra-low steam flares.

Recent Developments

• SECO/WARWICK Allied Pvt. Ltd. saw an increase of 15% in its production in 2023 compared to that of 2022, and in January 2024, invested in production capacity development, by expanding its plants in China, India, and the U.S., by as much as 60%.

• In August 2022, SECO/WARWICK delivered a Vector vacuum furnace to Atlas Autos Ltd. The furnace is designed for tempering and hardening processes, featuring a unique design that enables efficient gas cooling of elements and dies essential for automotive production components.

Heat Treating Market Report Scope

Global Heat Treating Market Report Segmentation

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 2018 to 2030. For this study, Grand View Research has segmented the global heat treating market report based on material, process, equipment, application, and region:

• Material Outlook (Revenue, USD Billion, 2018 - 2030)

  • Steel

  • Cast Iron

  • Others

• Process Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hardening & Tempering

  • Case Hardening

  • Annealing

  • Normalizing

  • Others

• Equipment Outlook (Revenue, USD Billion, 2018 - 2030)

  • Fuel-fired Furnace

  • Electrically Heated Furnace

  • Others

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Automotive

  • Aerospace

  • Metalworking

  • Machine

  • Construction

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • Spain

    • UK

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • UAE

    • Saudi Arabia