Heat Treating Market

Heat Treating Market Outlook 2031

The global heat treating market size was valued at USD 103.85 Billion in 2022 and is likely to reach USD 140.31 Billion by 2031, expanding at a CAGR of 3.4 % during, 2023–2031. The rising demand from the end-use industry is expected to drive the market.

Increasing demand from the automotive industry and the rising metallurgical applications in various end-use industries are anticipated to drive the heat treating market. Vehicles require anti-corrosive, and highly durable metals to build various vehicle components. This significantly impacts the market growth as heat treatment alters the physical and mechanical properties of metals, in order to suit the requirements of various automobile applications.

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Furthermore, the rising global demand for heat-treated metals for manufacturing heat-treated electric equipment, electric gadgets, appliances, and electric networks is likely to boost market growth. For instance,

• According to the report published on December 1, 2022, global copper consumption increased by 4% in 2021 as compared to the previous year's consumption of about 23.5 million metric tons.

Heat treatment is used to improve the mechanical properties of various metals such as tensile strength, malleability, and ductility. It promotes metals with enhanced resistance against corrosion. On the industrial front, metals are treated at various temperatures to form various derivatives, by treating them at low or higher temperatures. After heating, the cooling methods cause significant changes in the original properties of these metals.

Metals such as aluminum, brass, copper, nickel, and titanium are heated, and immediately cooled at room temperature to increase their strength to attain higher ductility. Thus, the heat treatment is carried out, based on the consumer’s requirements.

The COVID-19 pandemic hampered the market, due to the temporarily ceased end-use industry operations. According to the International Organization of Motor Vehicle Manufacturers (OICA), the global automotive industry faced a major decline in profit as there was about a 16% drop in the demand for residential as well as commercial vehicles, due to the global COVID restrictions. In the second half of the pandemic, the restrictions were lifted which helped the players in the market cover the financial losses gradually.

Heat Treating Market Dynamics

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Major Drivers

Increasing demand for the heat-treated metal automotive industry drives the market. The automotive industry has a major application of heat-treated metals such as steel, magnesium, and aluminum, and different alloys. This is attributed to the altered physical properties of metals such as improved tensile strength and high durability. Furthermore, heat treating provides metal with toughness and strong resistance against continuous weather changes, which in turn drives the market.

Existing Restraints

High initial cost of heat treatment hampers the market growth. Heat treatment is expensive as it requires a set of special equipment. The process has multiple steps and demands specific handling of metals which requires skilled staff. Furthermore, sometimes the rapid cooling of metals is subject to spoiling the end result, by imbibing unexpected properties in the metals which is likely to restrain the market growth.

Emerging Opportunities

Increasing demand for new generations of electronic vehicles (EVs) is expected to create lucrative opportunities for market growth.  The automobile market has been receiving a surge in demand for electronic vehicles after the COVID-19 pandemic, which is attributed to global inflation, affecting fuel prices worldwide.

The EVs require heat-treated metals for crash-proofing and thermal proofing of the vehicles. This ensures the driver’s safety throughout the changing weather. This helps in building the credibility of the vehicle brand, which is expected to drive the market. For instance,

• According to the news published by the International Energy Agency (IEA) on April 26, 2023, the IEA’s Global Electric Vehicle Outlook reports mark the sale of about 10 million electronic cars in 2022.

Scope of Heat Treating Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Heat Treating Market Segment Insights

Material Segment Analysis

Based on the material segment, the heat treating market is divided into cast iron, steel, alloys of copper, aluminum, brass, titanium, nickel, and others. The steel segment held a major market share in 2022, owing to the increasing demand from the construction, and engineering industry worldwide. The world is facing a rise in population which is directly proportional to the rise in demand for houses, buildings, and infrastructure.

Steel plays a vital role in the construction industry, owing to its longer durability, high tensile strength, and prominent anti-corrosive properties. The versatility of the metal helps us use the metal in a variety of applications in the construction, automobile, and other industries which drives the market.

• According to a report published on July 26, 2023, global steel production has doubled in the past 15 years, as in 2021, about 58 million metric tons of steel was produced, which rose to 1.8 billion metric tons in 2022.

The cast iron segment holds the dominant share of the market during the projection period, due to the rising demand for the application of metal in electrical & and pipe fittings, farm equipment, and heavy industrial machinery.  According to published data, on May 25, 2023, about 180 billion metric tons of cast iron were used in 2022 globally, where about 85 million metric tons of cast iron was used in the production of steel.

Furthermore, increasing smart city projects around the world are significantly impacting the demand for cast iron. As metals are majorly used in the manufacture of sanitary fittings, sewer pipes, manholes, cisterns, and others, it is widely used in the construction industry. Additionally, the increasing smart city projects are likely to boost segment growth, owing to the increasing requirement for an advanced sewage system.

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Process Segment Analysis

On the basis of process segment, the global market is segregated into annealing, hardening, quenching, stress relieving, and others.  The hardening process dominated the market in 2022, owing to the shorter duration of achieving the desired results from metals. The hardening method helps to toughen the tensile strength of the metal.

The metal is suspended to a sufficiently high temperature followed by sudden cooling. This strengthens the surface of the metal, thereby promoting higher durability and strength. This enables the metal to be used for heavy-duty work. Metals such as aluminum, steel, magnesium, titanium, copper, and brass are widely hardened in order to be used in the manufacture of drilling machinery, electric machinery, and other tools, and in the manufacturing of automotive parts.

Furthermore, the increasing construction and infrastructure activities worldwide are a major driving factor for the segment's growth. For instance,

• According to a report published on March 7, 2023, in 2021, about 52% of the steel produced worldwide was used by the construction industry, 12% was used by the automotive industry, and about 3% share was used by the electrical equipment and machine manufacturing industries.

The annealing segment is projected to register a high CAGR during the forecast period, owing to the rising demand for annealed metals from the manufacturing and electric equipment industries. Annealing increases the ductility of the metal and helps to reduce the hardness of metals.

The end result of the process helps alter the physical properties of metals, as the products are made into wires of various thicknesses. Due to the increased ductility, metals such as copper, brass, silver, and others are majorly annealed in order to be used in electrical equipment manufacturing and wire manufacturing. For instance,

• According to a news published in December 2022, about 23.5 million metric tons of copper was used in 2020, which later increased by 4% in 2021. Moreover, the rising demand for the electricity network and increasing demand for electricity is expected to increase the segment growth in the coming years.

Equipment Type Segment Analysis

On the basis of equipment type segment, the heat treating market is bifurcated into electrically heated furnaces and fuel-fired furnaces. The electrically heated furnaces segment is anticipated to register a robust growth rate during the forecast period, owing to the increasing demand for environment-friendly heat-treating furnaces.

Electrically heating furnaces use electricity to attain the temperature required to heat treat metal and do not lead to a direct emission. They use induction heating or resistance heating technology to create heat.

Electric furnaces are a highly efficient alternative to traditional fuel-fired ones that often cause workers and manufacturers discomfort due to heat, ash, and waste. Additionally, they require less maintenance and have a longer lifespan, which is expected to drive the segment in the coming years.

Application Segment Analysis

Based on segment, the heat treating market is divided into automotive, aerospace, metalworking, construction & engineering, and, others. The automotive segment held a major market share in 2022, owing to the increasing demand for electric vehicles worldwide.

This is attributed to a number of factors such as the rising awareness regarding environmental issues, due to excessive greenhouse emissions caused by fuel combustion. Electric vehicles are a great alternative to reducing greenhouse emissions, and total carbon footprint.

Moreover, rapid inflation and fluctuation in global fuel prices are other prominent factors that majorly alter the vehicle preferences for consumers, which drives the market. For instance,

• According to a recent report published by the International Energy Agency (IEA) on global electric vehicle (EV) outlook for 2023, the EV industry has marked an exponential growth in 2022, as the sales of electronic vehicles exceeded 10 million in 2022, out of which, 14% of EVs were cars.

The construction & engineering segment is expected to generate a major revenue share of the market, owing to the increasing construction activity worldwide. The rising global population has a significant impact on the increasing demand for construction activities in the residential, commercial, and industrial sectors.

Different metals are heat-treated and are used in the manufacturing of construction applications such as infrastructure of a building, roads, smart highways, electric networks, structural frameworks, and others. Furthermore, the increasing number of smart city projects demand advanced infrastructure, which is expected to create lucrative opportunities for the market in the coming years.

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Regional Outlook

In terms of region, the global heat treating market is classified as Asia Pacific, North America, Latin America, Europe, and the Middle East & and Africa. Asia Pacific dominated the market in 2022, due to various factors. The region consists of countries such as India, and China, which possess the highest populations in the world. These countries have a majority of consumers driving the demand for the automotive and construction industry.

Furthermore, according to data published on 19 June 2023, iron and steel-based products manufactured in India are of high value among the export of base metals, and the manufacturers earned about USD 13 billion in the fiscal year 2023.

Countries such as China, India, and Australia are major producers of metals such as iron, aluminum, copper, zinc, and other ferrous metals, which attracts a majority of manufacturers in the countries for producing the pure metals. Furthermore, the increasing globalization and the strengthening of international relations between residing countries and the West have boosted the import and export of metals as raw materials and their products.

North America is expected to dominate the market during the projection period, due to the increasing technological advancements in aerospace, maritime, and defense engineering. technology. Developed economies such as the US, Canada, and Mexico are global leaders in engineering, automotive, and aerospace technology. This directly impacts large-scale industrial applications of metals such as iron, steel, copper, nickel, and other alloys. For instance,

• According to a report published on January 5, 2023, at the global level the US consumed about 98 million metric tons of steel in 2021, and marked an increased demand for the same in 2022, by 15 million metric tons. Further, the report states that the US produced about 22 million metric tons of pig iron in 2022.

Furthermore, increasing technological advancements in defense technology and space missions drive the market in the region. This is attributed to the rise in manufacturing activity of advanced weapons, defense vehicles, submarines, and aircraft that are made out of anticorrosive properties and use sturdy metals to get maximum tensile strength. For instance,

• According to data published on September 20, 2023, the US is a prime exporter of weapons and firearms in the world, which manufactured about 13.8 million firearms in 2021.

Furthermore, with the increasing demand for strengthening national security, governments are mainly focused on inducting newer and more advanced aircraft, submarines, naval vessels, and other equipment for direct and indirect combat, which is likely to boost the market in the coming years.

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Segments

The heat treating market has been segmented on the basis of

Material

• Cast Iron
• Steel
• Alloys of Copper
• Aluminum
• Brass
• Titanium
• Nickel
• Others

Process

• Annealing
• Hardening
• Quenching
• Stress Relieving
• Others

Equipment Type

• Electrically Heated Furnaces
• Fuel-Fired Furnaces
• Arc Furnaces

Application

• Automotive
• Aerospace
• Metalworking
• Construction & Engineering
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• American Metal Treating
• Bluewater Thermal Solutions
• Carbolite Gero GmbH & Co. KG
• East-Lind Heat Treat Inc.
• General Metal Heat Treating, Inc.
• Pacific Metallurgical, Inc.
• Shanghai Heng Precision Electrical Equipment Co., Ltd.
• Solar Atmospheres
• Triad Engineering Inc.
• Unitherm Engineers Limited

Competitive Landscape

Key players competing in the global heat treating market are American Metal Treating; Bluewater Thermal Solutions; Carbolite Gero GmbH & Co. KG; East-Lind Heat Treat Inc.; General Metal Heat Treating, Inc.; Pacific Metallurgical, Inc.; Shanghai Heng Precision Electrical Equipment Co., Ltd.; Solar Atmospheres; Triad Engineering Inc.; Unitherm Engineers Limited.

These companies adopted development several development strategies such as mergers, acquisitions, product launches, collaboration, partnerships, and production expansion, to get an edge over the competitors. For instance,

• On July 5, 2023, Solar Atmospheres commissioned a new metal brazing facility which has 6 dedicated vacuum furnaces, that consist of a unique all-metal zone. The facility is expected to attain superior stainless steel to copper brazing with gold and silver filler metal.