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The metal heat treatment market size is forecasts to increase by USD 17.72 billion, at a CAGR of 3.11% between 2023 and 2028. The growth rate of the market depends on several factors such as integration of metal heat treatment processes into production lines, increase in development projects in developing countries and growing demand for metal heat treatment from automotive and aerospace industries. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.
APAC emerges as the fastest-growing region in the market, the region's accelerated industrialization, coupled with significant production in the automotive and industrial machinery sectors, fuels the demand for metal heat treatment processes, contributing to overall market expansion. Notably, companies such as Advanced Heat Treat Corp. distinguish themselves by offering a wide range of metal heat treatment solutions, including UltraGlow nitriding and nitrocarburizing for various materials. Similarly, American Metal Treating Inc. specializes in neutral and case hardening of small steel parts, catering to diverse manufacturing processes. As the market thrives on technological advancements and increasing industrial requirements, these key players play a crucial role in shaping the industry landscape.
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Rapid globalization and increasing investments in the automotive sector have given rise to intense competition in the automotive sector, which has led to several organizations streamlining their processes to increase their operational efficiency. The development of cost-effective, quality products that are competitive in the international market has compelled automotive companies to increasingly adopt automation in factory operations. This has led many of those companies to integrate metal heat treatment processes into their production lines as part of their operational strategies.
As a result, automotive companies are integrating their production lines with carburizing units that have high-pressure gas quenching. These technologies enable a continuous automation system, leading to the development of high-quality products faster. Thus, the integration of heat treatment processes into production lines is expected to drive the growth of the market during the forecast period.
The high adoption of electric vehicles in Europe, the US, and APAC (mainly China and Japan) due to the regulations on carbon emissions and environmental safety encourages metal heat treatment vendors to develop new treatment processes for the sustainable metals used in electric car production. Energy Innovation: Policy and Technology LLC (Energy Innovations) has released a version update for its Energy Policy Simulator computer model. Many automakers are developing new designs and multi-featured electric vehicles. Vendors are developing environment-friendly technologies for electric vehicles to reduce their carbon footprint.
For instance, Webasto has developed a technology named Eco-Innovation, which produces electricity from solar energy. This technology can help charge the battery of electric vehicles and operate their air-conditioning system. Many countries are adopting electric vehicles, which acts as a major growth opportunity for vendors in the global market. Thus, the high investments in the R&D activities related to the development of electric vehicles and updating the existing systems are expected to promote the growth of the market during the forecast period.
A major challenge to the market is the growth of the global second-hand machine market. Several manufacturing companies have moved to APAC owing to the low-cost manufacturing in the region and the high use of second-hand machines from the US and Europe, especially in emerging economies such as China, India, and Pakistan. It has been observed that many APAC contractors and mining companies are eager to buy second-hand European construction machinery available at low prices. By using second-hand machines, contractors and rental providers can control their capital investments as these machines are available at affordable prices. .
Moreover, the growing second-hand machine market will negatively impact the demand for new industrial and construction equipment, which can limit the adoption of metal heat treatment solutions. It has been observed that many metal heat treatment equipment manufacturers for cost efficiency, such as Park, Ohio are selling second-hand metal heat treatment equipment. Also, SECO WARWICK, a global leader in the machinery industry, offers second-hand industrial furnaces. Thus, the growing global second-hand machine market will adversely affect the market during the forecast period.
The market share growth by the automotive segment will be significant during the forecast period. The automotive segment is the leading end-user segment of the market, as heat treatment processes help in determining the behavior and properties of finished parts in the manufacturing of automotive components. Heat treatment is applicable to various automotive parts, including engine components, all parts of gearboxes, axles, and drive shafts; suspension parts; steering components; and injection systems.
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The automotive segment was the largest and was valued at USD 35.42 billion in 2018. The automotive industry is expected to register a positive year-over-year growth rate during the forecast period. One of the significant factors driving the growth of the automotive industry is the increasing urbanization and the changing expenditure pattern of people worldwide, resulting in increased sales of luxury cars. Owing to the large number of vehicles produced annually, there is a large requirement for heat treatment for automotive components' mass production. Therefore, the demand for metal heat treatment equipment and services will considerably increase in the automotive sector during the forecast period.
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APAC is estimated to contribute 42% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. This is because of the strong demand from growing countries, such as China, Vietnam, Bangladesh, Japan, South Korea, and India. The increasing industrialization and the significant production of automobiles and industrial machinery are demanding metal heat treatment processes, which are driving the growth of the market. In APAC, the rapidly growing end-user industries, competitive manufacturing costs, and high economic growth rates are the main factors that support the growth of the market in end-user industries such as automotive, aerospace, and construction. These factors are also encouraging the global market players to expand their business in APAC.
In addition, the growing shipbuilding industries in China and South Korea, which account for more than 75% of the global shipbuilding industry, create demand for efficient and corrosion-resistant industrial machinery, which is driving the demand for metal heat treatment in APAC. The oil and gas industry is also growing, with an increase in the number of offshoring and nearshoring activities in countries such as China and India, which will fuel the demand for metal heat treatment (for oil and gas machinery). Japan, China, Australia, India, South Korea, Taiwan, and Singapore are the main revenue-generating countries in the market in APAC during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bluewater Thermal Solutions??????. - The company offers wide range of metal heat treatment such as hardening and tempering, carburizing heat treatment, carbonitriding, annealing stainless steel, and others.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including Advanced Heat Treat Corp., American Metal Treating Inc., Bluewater Thermal Solutions, Bodycote Plc, East Lind Heat Treat Inc., General Metal Heat Treating Inc., Metal Heat Co. Ltd., Nabertherm GmbH, NATIONAL HEAT TREAT LLC, ONEX Corp., Pacific Metallurgical Inc, Park Ohio Holdings Corp., Peters Heat Treating Inc., SECO WARWICK SA, SEI Heat Treat, Shanghai Hedinger Heat Treatment Co. Ltd., Thermex Metal Treating Ltd, TRI J Metal Heat Treating Inc., Unitherm Engineers Ltd., and Voestalpine AG
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Metal Heat Treatment Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.11% |
Market growth 2024-2028 |
USD 17.72 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.4 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Heat Treat Corp., American Metal Treating Inc., Bluewater Thermal Solutions, Bodycote Plc, East Lind Heat Treat Inc., General Metal Heat Treating Inc., Metal Heat Co. Ltd., Nabertherm GmbH, NATIONAL HEAT TREAT LLC, ONEX Corp., Pacific Metallurgical Inc, Park Ohio Holdings Corp., Peters Heat Treating Inc., SECO WARWICK SA, SEI Heat Treat, Shanghai Hedinger Heat Treatment Co. Ltd., Thermex Metal Treating Ltd, TRI J Metal Heat Treating Inc., Unitherm Engineers Ltd., and Voestalpine AG |
Market dynamics |
Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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