India Heat Treating Market Report

India Heat Treating Market Analysis By Material (Steel, Cast Iron), By Process (Case Hardening, Annealing), By Equipment (Fuel-fired Furnace, Electrically-heated Furnace), By Application (Automotive, Aerospace), And Segment Forecasts, 2018 - 2027

  • Published Date: Jan, 2018
  • Base Year for Estimate: 2016
  • Report ID: GVR-2-68038-065-1
  • Format: Electronic (PDF)
  • Historical Data: 2012 - 2015
  • Number of Pages: 95

Industry Insights

The India heat treating market size was valued at USD 3.8 billion in 2016 and is estimated to register a remarkable CAGR of 7.5% from 2017 to 2027. Heat treating is an industrial process used to modify and improve various mechanical properties of materials, such as wear strength, fatigue resistance, and surface hardness. Prospective growth in crude steel production in the country has resulted in rapid market growth over the recent past.

South and West India have been major contributors to industry growth. Soaring presence of automobile and machinery manufacturers in MIDC sectors in the western part of the country has driven demand for heat treating services. Furthermore, Gujarat has witnessed substantial industrial development in the recent past due to political stability in the state.

India heat treating market

The automotive industry plays a pivotal role in driving the market in the country. Various parts and components of an automobile undergo heavy stress and require high durability. Automotive components such as crankshafts, fasteners, rods and arms, panels, camshafts, drive shafts, steering knuckles, oil pump gears, valves, brake pad liner plates, and A/T gears undergo heat treatment. Strength and improved mechanical performance are the key objectives of the metal heat treatment market. Efficient metal heat treating helps in improving microstructure and hardness by modifying various properties such as strength, toughness, fatigue, strength, and wear.

Significant growth in automotive production in the country has fueled the market for heat treating in India. Robust rise in automotive demand has encouraged various automotive manufacturers to strengthen their manufacturing base in the country. Favorable government policies such as Make in India, StartUp India, Foreign Direct Investment (FDI), and Goods and Services Tax have attracted significant investments from foreign players. Thus, increasing presence of major automotive manufacturers in the country has contributed towards the growth of the industry.

The industry faces significant challenges owing to various environmental, technological, and social factors. Furnaces used in heat treating consume a significant amount of energy to achieve the desired temperature required for heating metals. Limited availability of energy recovery systems in the country, contrary to developed countries in Europe and North America, is a factor that restrains market growth. Lack of energy-efficient systems also impose a significant challenge to the India heat treatment market.

Use of old and outdated technology has acted as a constraining factor for the industry over the past few years. Various players refrain from using advanced techniques owing to lack of knowledge. Unavailability of automated and modern computerized technologies has resulted in lower productivity and reduced operational efficiency. Therefore, domestic players have been unable to gain a competitive edge in the international market over the past few years.

Temperature control in the heating process is highly energy intensive. Players are focusing on the use of natural gas-fired furnaces and electrical furnaces to reduce their fossil fuel usage. Heat treating units in the country are focusing on the use of various furnace models to improve the thermal profile of the system. Use of induction heating is expected to increase at a rapid pace. Furthermore, hybrid methods including two or more heat treating processes are gaining popularity owing to improved performance. Energy audits are projected to emerge as a tool to promote energy savings.

Numerical modeling systems are used to stimulate the process. Various software tools including Process Heating Assessment and Survey Tool (PHAST) have been developed, which has improved thermal efficiency. Use of automation in temperature control, eco ventilators for hot air exhaust, and installation of Automatic Power Factor Controller (APFC) system is expected to increase owing to energy efficiency achieved by their usage.

Material Insights

Materials that are heat treated include steel, cast iron, aluminum, and copper alloys. Steel dominated the market in 2016 and a similar trend is anticipated to continue over the forecast period. A positive outlook in steel production and demand has enabled it to dominate the industry in recent years.

Rising use of materials such as aluminum, brass, and copper in various industries is expected to drive market growth over the forecast period. Heat treated aluminum components are easy to bend and have excellent machinability. Growing demand for lightweight aluminum products with high strength, especially in the aerospace industry, is expected to drive the metal heat treating market growth.

Process Insights

Hardening and tempering has emerged as the most commonly used process in the industry over the past few years. This segment accounted for a 28.0% share in the market in 2016 and is expected to continue its lead throughout the forecast period. Case hardening, annealing, normalizing, surface hardening, and stress relieving are other major processes used in the field.

Case hardening was the second-largest segment, accounting for 24.0% of the market in 2016. Growing preference for emerging processes such as carburizing, carbonitriding, electron beam hardening, and laser beam hardening has fueled the growth of this segment.

Equipment Insights

Fuel-fired furnace accounted for the largest share of 54.1% in the industry in 2016. However, the share of the segment is expected to drop over the next few years, owing to its growing environmental footprint. Use of fossil-based fuels such as fossil oil (FO) and light diesel oil (LDO) has a harmful impact on the environment. As a result, growing environmental awareness in the country is expected to result in a decline in market share of fuel-fired furnaces in the country.

Electrically-heated furnaces are expected to witness prospective growth over the forecast period. High operational cost and high initial capital investments have hindered the growth of electrically-heated furnaces in the past. However, rising awareness regarding their advantageous features is expected to propel the segment’s growth.

Application Insights

Automotive was the largest application segment in the industry in 2016, with a 50.0% share in the overall revenue. Augmented growth of the automotive sector can be attributed to this segment’s dominance in the country. Rising presence of various automotive manufacturers in the country has propelled industry demand. Several processes such as annealing, normalizing, spheroidizing, quenching, hardening and tempering, and case hardening are used to optimize the strength of automotive components.

India heat treating market

Aerospace is likely to be the most lucrative application segment in the market, driven by favorable government policies. Key aerospace components that require heat treating include landing gears, jet engine components, turbines, space crafts, satellite systems, and launching and control systems.

Regional Insights

The southern region of India has been the highest revenue-generating segment in the industry over the past few years. The region is estimated to witness steady growth over the forecast period owing to lucrative growth of end-use industries. Prospective industrial expansion in southern states, especially in Tamil Nadu, Karnataka, and Andhra Pradesh, have led to surging demand for heat treating services in this region. Various automotive manufacturers have investment plans in the southern region of the country. As a result, demand is expected to witness substantial growth over the next few years.

The western region formed the second-largest segment in the industry in 2016, followed by North, Central, and East. Gujarat and Maharashtra were the leading contributors to the significant demand in West India. Automotive manufacturers such as General Motors Company, Fiat Chrysler Automobiles N.V., and Suzuki Motor Corporation have announced their investment plans in production plants located in the western part of the country. As a result, the market in this region is expected to expand at a CAGR of 8.0% over the forecast period.

India Heat Treating Market Share Insights

The industry in India is characterized by intense competition on account of the presence of multiple large, medium, and small players. Key market players include Unitherm Engineers Limited, Bohler High Performance Metals Pvt. Ltd, HighTemp Furnaces Limited, Metals India, SECO/WARWICK Allied Pvt. Ltd, Wesman Engineering Company Pvt. Ltd, and THERELEK Engineers Pvt. Ltd.

The industry is dynamic in nature as players engage in extensive research and development of newer, innovative, and green technologies for furnaces and services. Majority of the companies have adopted various types of software such as SCADA for minimizing operational risks, identifying faulty equipment, monitoring production data, and processing details for improvement of overall operational efficiency and legal compliance.

Report Scope

Attributes

Details

Base year for estimation

2016

Actual estimates/Historical data

2012 - 2015

Forecast period

2017 - 2027

Market representation

Revenue in USD Million & CAGR from 2017 to 2027

Regional scope

South India, West India, North India, Central India, East India, and North East India

Report coverage

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

15% free customization scope (equivalent to 5 analyst working days)

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Segments covered in the report:

This report forecasts revenue growth at 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 India heat treatment/treating market by material, process, equipment, application, and region.

  • Material Outlook (Revenue, USD Million; 2012 - 2027)

    • Steel

    • Cast Iron

    • Others

  • Process Outlook (Revenue, USD Million; 2012 - 2027)

    • Hardening & tempering

    • Case hardening

    • Annealing

    • Normalizing

    • Others

  • Equipment Outlook (Revenue, USD Million; 2012 - 2027)

    • Fuel-fired furnace

    • Electrically heated furnace

    • Others

  • Application Outlook (Revenue, USD Million; 2012 - 2027)

    • Automotive

    • Aerospace

    • Metalworking

    • Others

  • Region Outlook (Revenue, USD Million; 2012 - 2027)

    • South India

    • West India

    • North India

    • Central India

    • East India

    • North East India

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