Industrial Furnace Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.80 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Industrial Furnace Market Analysis
The Industrial Furnace Market was valued at USD 11.7 billion in 2022. It is expected to register a CAGR of 4.8% over the forecast period. The rise in the adoption of electric industrial furnaces and the increase in demand for higher industrial output, owing to technological advancements, is also expected to fuel the market's growth.
- Many automotive component producers utilize industrial furnaces to manufacture and heat treat metallic automotive parts used in automotive assembly. This upward trend of manufacturing lightweight metal components in the automotive industry, coupled with the growth in the production and sales of automobiles, is expected to drive market growth further.
- Further, with the increasing demand for industrial furnaces in the market, various companies have been undertaking various initiatives to strengthen their position in the market. Consistent increase in the demand for iron and steel, along with other important commodities and metals across various industries such as construction, power, manufacturing, and machinery, has been driving the Industrial Furnace Market. This represents one of the key factors propelling the market growth.
- This, in confluence with the rising adoption of numerous strategies for furnace energy conservation, productivity, and reduction of pollutant emissions, is creating a favorable market outlook. These strategies include the utilization of natural gas, improved insulation, and refractory materials. They also involve the usage of advanced burner designs, such as high velocity, regenerative and recuperative burners, along with new combustion technologies like air and fuel staging and flue gas recirculation techniques. The market is also driven by the expanding automotive and steel sector and the extensive investments in construction activities worldwide.
- Furthermore, with the growing awareness and goals of sustainable activities, various companies have been launching new and innovative products in the market with an emphasis on sustainable solutions.
- For instance, in December 2022, Encirc, a leading glass manufacturer and a Vidrala company, and Diageo, a leader in premium alcoholic drinks, entered into a partnership to create the world's first net zero glass bottles at scale by 2030. Encirc plans to build a new furnace at its Elton plant in Cheshire in line with the partnership.
- The new industrial furnace would enable the company to reduce carbon emissions by 90%, with an energy mix of green electricity and low-carbon hydrogen. Carbon capture technology is expected to capture the remaining carbon emissions by 2030. Such initiatives by the companies in the market are expected to further promote the growth of the industrial furnace market during the study period.
Industrial Furnace Market Trends
Growing Demand For Manufacturing Across Industries Is Propelling Growth
- The global industrial furnaces market has been expanding owing to various factors, including the increased usage of electric industrial furnaces and rising demand for lightweight automobiles brought on by technical improvements.
- Many manufacturers of metallic automobile parts make use of industrial furnaces in vehicle assembly manufacture and heat treat these parts in industrial furnaces. For instance, in January 2022, Volvo Car Body Components in Olofstrom, Sweden, ordered two new multilayer furnaces from AP&T for the production of press-hardened automotive components. The furnaces would be integrated into one of the existing press-hardening lines from AP&T.
- The investment would increase the company's furnace capacity, which in turn would provide the company with an opportunity to manufacture larger volumes of car components and give it greater flexibility in production along with gaining more energy-efficient process that contributes to more sustainable production. Such initiatives by the companies in the market is expected to increase the adoption of industrial furnace in the automotive industry. As a result, the rising sales of automobiles across the globe on account of inflating income levels and increasing global population are supporting the market.
- On the other hand, various other manufacturers across different industries have also been undertaking various initiatives to strengthen their manufacturing capabilities in the market. For instance, in June 2022, Vivix, a Brazilian flat glass manufacturer, announced an investment worth BRZ 1.3 billion to construct the country's largest glass manufacturing furnace. Growing such instances are expected to have a positive impact on the demand for static equipment as they are widely used in production factories.
- Similarly, in May 2022, Ipsen installed the second Turbo Treater vacuum furnace at Temprasud in Italy. The new furnace will assist them in continuing to build their business in the automotive market, with plans to expand into aerospace industry. Such trends in the market is expected to further drive the industrial furnace market.
Asia-Pacific Region Is Expected To Grow At Rapid Pace
- Owing to the expansion of the region's automotive and steel sectors, the applications and adoptions of industrial Furnace are expected to grow at a rapid rate. Also, the region's industrial furnace market is anticipated to grow because of n increase in investments in construction projects and a rise in the number of growing markets for the manufacture of mechanical and manufacturing equipment.
- For instance, in October 2022, Gasbarre Products, Inc., an industrial furnace manufacturer, invested approximately USD 5.8 million for the expansion of its existing facility on Washington Street. The company also plans to relocate its operations from Plymouth, Michigan, location to this new facility. Further, this investment in the new facility in St. Marys would allow the company to increase its manufacturing capabilities and expand its customer base in the market. Such initiatives by the company are expected to fuel the market growth of the Industrial Furnaces Market over the forecast period.
- The rise in the adoption of various state-of-the-art technologies, such as Industry 4.0 and the industrial internet of things (IIoT) has enabled the manufacturers to provide its customers with more enhanced efficiencies and automation while operating industrial furnaces. Therefore, such technologies thrive an opportunity for manufacturers of industrial furnaces, who adopt advanced technologies at an early stage. The major driver for the target market is the constant demand for steel, iron, and other essential metals and materials. Industries like automobiles, buildings & construction, metallurgy, and others contribute to the escalating demand for these metals. This growing demand results in the establishment and expansion of enterprises that supply industrial furnaces.
- Furthermore, since industrial furnaces are a vital part of major industries for the processing of various materials like oil, gases and food products, many newer and different version of the furnaces are being introduced in the market. In addition to this, expansion strategies by various companies are also stimulating the competitive environment which in turn boosts the demand for the industrial furnaces market over the forecast period.
- In April 2023, Indian steel manufacturer, Tata Steel Ltd, announced its plan to initiate trial for injecting hydrogen gas at its blast furnace in the company's flagship plant, Jamshedpur, with an aim to reduce metallurgical coke usage and cut carbon emissions. The company commenced the trial injection by using 40% of the injection systems. This would be the first time in the world that such a large quantity of hydrogen gas is being continuously injected in a blast furnace. In line with this initiative, the company aims to become net zero by 2045.
- The trial would also provide insights into operating blast furnaces with greener fuel injectants, reducing fossil fuel consumption and subsequent CO2 emissions from the blast furnace. The company has undertaken these initiatives in line with India's new set of green hydrogen consumption targets for some industries like steel, to generate demand for cleaner fuel in its quest to reach net zero by 2070. Such initiatives by the companies and government in the region is also expected to further promote the Industrial Furnace market during the forecast period.
Industrial Furnace Industry Overview
The Industrial Furnace Market is moderately concentrated, with significant players like Andritz AG, Carbolite Gero Limited, Epcon Industrial Systems LP, Gasbarre Products Inc., and International Thermal Systems LLC. Players in the market are adopting various strategies such as partnerships, mergers, collaborations, innovations, and acquisitions to enhance their product offerings and gain a sustainable competitive advantage in the market.
In February 2023, Posco, a South Korean steelmaker, announced its plans to build an electric furnace at the company's manufacturing facility in Gwangyang, South Jeolla Province, to support its low-carbon production transition. As a part of the plan, the company would invest approximately SEK 600 billion (USD 463.3 million) to build the electric furnace with an annual production capacity of 2.5 million metric tons.
In December 2022, Swiss microtechnology company Panatere, a watch component manufacturer and steel recycling business based in Saignelegier, launched its concentrating world's first industrial solar furnace. The company's new pilot model would allow it to melt green steel, aiming to produce components for the medical, watchmaking, and aeronautical sectors.
Industrial Furnace Market Leaders
Andritz AG
Carbolite Gero Limited
Epcon Industrial Systems LP
Gasbarre Products Inc.
International Thermal Systems LLC
*Disclaimer: Major Players sorted in no particular order
Industrial Furnace Market News
- April 2023: As per the European Commission, it adopted the European Climate Law, which raises the EU's target of reducing net greenhouse gas emissions by at least 55% by 2030 (from the current 40%) and legally binding climate neutrality by 2050. The Climate Law is part of the European Commission's European Green Deal, the EU's roadmap towards climate neutrality. Further, the EU's Emissions Trading System (ETS) aims to reduce the industry's carbon emissions by obliging companies to hold a permit for each tonne of CO2 being emitted.
- June 2022: As per the European Commission, the steel industry was responsible for around 5% of CO2 emissions in the EU and 7% globally. The European Commission aimed to develop and commercialize new low-CO2 technologies within 5-10 years to align with the EU's climate targets. CO2 emissions and energy use in European steel production were halved since 1960, and the sector aimed to achieve further cuts of 80-95% by 2050, compared to 1990 levels. Since the conventional Blast Furnace - Basic Oxygen Furnace production route was highly CO2-intensive (usually with a carbon footprint of 1.6-2.0 tonnes of CO2 per tonne of crude steel produced), and most EU steel mills operated close to optimum efficiency, the industry increasingly focussed on hydrogen-based steelmaking to decarbonize the sector.
- Several projects announced across Europe aim to replace existing steel production processes with new steel plants based on the direct reduction of iron using hydrogen. The REPowerEU plan highlights that around 30% of the primary steel production in the EU is expected to be decarbonized by 2030 using renewable hydrogen. Such initiatives by government bodies across the globe are expected to fuel further the adoption of sustainable solutions by industrial furnace manufacturers globally.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research Approach And Key Respondents
2.4 Data Triangulation And Insight Generation
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of COVID-19 On the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Radidly Growing Manufacturing Industry Propels Growth
5.2 Market Challenges
5.2.1 High Maintenance Cost Could Hamper The Market
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Gas/Fuel Roller Hearth Furnace
6.1.2 Electric Roller Hearth Furnace
6.1.3 Other Types (Hydrogen Fueled Furnance and Solar Furnace)
6.2 By Arrangement / Format
6.2.1 Box Furnace/Chamber Furnace/Muffle Furnace
6.2.2 Tube/Clam shell Furnace
6.2.3 Bottom Loading/Car Bottom Loading Furnace
6.2.4 Top Loading Furnace
6.2.5 Other Arrangements/Formats (Vaccum Furnace, Heat Treatment Furnace, Atmosphere Furnaces, Others)
6.3 By End-user Industry
6.3.1 Chemicals
6.3.2 Metal & Mining
6.3.3 Manufacturing (Automotive Manufacturers, Construction Machinery Manufacturers, Aircraft-Related Manufacturers, Others)
6.3.4 Other End-user Industries
6.4 By Geography
6.4.1 North America
6.4.2 Europe
6.4.3 Asia-Pacific
6.4.4 Middle East and Africa
6.4.5 Latin America
7. COMPETITIVE LANDSCAPE
7.1 Andritz AG
7.2 Carbolite Gero Limited
7.3 Epcon Industrial Systems LP
7.4 Gasbarre Products Inc.
7.5 International Thermal Systems LLC
7.6 Ipsen International GmbH
7.7 Nutec Group (Nutec Bickley)
7.8 Seco/Warwick S.A.
7.9 Thermcraft Incorporated
8. MARKET OUTLOOK
8.1 INVESTMENT ANALAYSIS
8.2 FUTURE OF THE MARKET
Industrial Furnace Industry Segmentation
An industrial furnace is used for the heat treatment of metals/glass and other materials for tempering, annealing, carburizing, and pre-treatment for forging and shaping. An industrial furnace's basic function includes superheating materials to extreme temperatures using a variety of formats and fuels.
Industrial Furnace Market is segmented by Type (Gas/Fuel Roller Hearth Furnace and Electric Roller Hearth Furnace), By Arrangement (Box Furnace/Chamber Furnace/Muffle Furnace, Tube/Clam Shell Furnace, Bottom Loading/Car Bottom Loading Furnace, Top Loading Furnace, and Others (Vaccum Furnace, Heat Treatment Furnace, Atmosphere Furnaces, Others)), By End-user Industry (Chemicals, Metal & Mining, Manufacturing (Automotive Manufacturers, Construction Machinery Manufacturers, Aircraft-Related Manufacturers, and Other End-user Industries), and By Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America)
| By Type | |
| Gas/Fuel Roller Hearth Furnace | |
| Electric Roller Hearth Furnace | |
| Other Types (Hydrogen Fueled Furnance and Solar Furnace) |
| By Arrangement / Format | |
| Box Furnace/Chamber Furnace/Muffle Furnace | |
| Tube/Clam shell Furnace | |
| Bottom Loading/Car Bottom Loading Furnace | |
| Top Loading Furnace | |
| Other Arrangements/Formats (Vaccum Furnace, Heat Treatment Furnace, Atmosphere Furnaces, Others) |
| By End-user Industry | |
| Chemicals | |
| Metal & Mining | |
| Manufacturing (Automotive Manufacturers, Construction Machinery Manufacturers, Aircraft-Related Manufacturers, Others) | |
| Other End-user Industries |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Middle East and Africa | |
| Latin America |
Frequently Asked Questions
What is the current Industrial Furnace Market size?
The Industrial Furnace Market is projected to register a CAGR of 4.80% during the forecast period (2024-2029)
Who are the key players in Industrial Furnace Market?
Andritz AG, Carbolite Gero Limited, Epcon Industrial Systems LP, Gasbarre Products Inc. and International Thermal Systems LLC are the major companies operating in the Industrial Furnace Market.
Which is the fastest growing region in Industrial Furnace Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Industrial Furnace Market?
In 2024, the North America accounts for the largest market share in Industrial Furnace Market.
What years does this Industrial Furnace Market cover?
The report covers the Industrial Furnace Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Industrial Furnace Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Industrial Furnace Industry Report
Statistics for the 2024 Industrial Furnace market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Industrial Furnace analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
