Global Industrial Furnaces Market Size USD 21.16 Billion By 2031 | CAGR of 5.3%

Introduction

An industrial furnace is a thermal inclusion used to process and treat solid and liquid raw materials at high temperatures. Industrial furnaces are utilized by manufacturers, steel production industries, mining companies, and foundries to produce metals (iron, silver, copper, and others) from their ore by combining extreme temperatures with a chemical reducing agent and decomposing the ore to separate the pure metal from the contaminated slag. The primary goals of using an industrial furnace are to utilize heat efficiently (so that losses are minimal) and to manage and control the different phases (gas, liquid, or solid) moving at different speeds and temperatures for different amounts of time so that corrosion and erosion of the refractory are minimized.

Market Dynamics

Growing Demand for Fabricated and Processed Metals in Varied End-User Industries Drives the Global Market

The rapid expansion of the automotive and construction industries in China and India has propelled the demand for a large number of sheet metals, and the sheet metal processing market in Asia-Pacific is expected to expand at a substantial CAGR over the forecast period. In addition, due to their superior strength and durability, metal and metal-manufactured products are sought after by various end-user industries, including automotive, healthcare, aviation, construction and building, and others. According to the World Steel Association, a passenger car's total body weight consists of more than 50 percent steel, and the average body weight of an SUV or other light vehicle is 3,000 pounds. The growing use of magnesium alloys for vehicle interiors is anticipated to increase the demand for fabricated metals, propelling the industrial furnaces market.

Increasing Technological Advancements Creates Tremendous Opportunities

Major market participants are already transferring their attention to innovation and technological advancements to maintain competitiveness and acquire a substantial market share. In addition, introducing new heating technologies, interactive furnace interfaces, and high-speed convection furnaces is anticipated to create market expansion opportunities. Industrialists seek to design machinery and technologies that facilitate production, reduce maintenance costs, provide production flexibility, and minimize waste and lead times.

In addition, they endeavor to reduce industrial furnaces' operating and production costs to enhance their quality. Furthermore, nations like the United States, Germany, and Japan have technologically advanced businesses, developed processing facilities, highly competent labor forces, and increased R&D initiatives. Therefore, the increase in applications and the intensification of competition motivate businesses to prioritize technological advancements to meet rising consumer demands.

Regional Analysis

Europe held the most significant global industrial furnaces market shareholder and is anticipated to exhibit a CAGR of 4.3% during the forecast period. Europe is a potential market for industrial furnaces due to its advanced infrastructure, simple access to high-end products and technology, and high discretionary income. Countries such as Germany, France, and the United Kingdom are investing more in technologically advanced industrial furnaces, which is a significant factor driving the expansion of the European market. In addition, market participants, including ANDRITZ AG and LOCHER Industrieofen, offer advanced industrial furnaces. For instance, SCHLAGER Industrieofenbau GmbH manufactures chamber furnaces for the thermal treatment of high-quality products and forging shops.

Asia-Pacific is estimated to exhibit a CAGR of 6.4% over the forecast period. Due to the presence of emerging nations, the market for industrial furnaces in the Asia-Pacific region is expected to expand rapidly. The growth of the electronics and aviation sectors is anticipated to stimulate market growth. The Asia-Pacific market for industrial furnaces is anticipated to increase significantly in value due to the rise in industrialization over the forecast period. In addition, several notable steel-making facilities are anticipated to commence construction in India and other regional nations, resulting in increased market share for industrial furnaces. For instance, in February 2018, China's Tsingshan Holding Group began construction on a cold-rolling line, which, upon completion, is anticipated to be one of India's most significant stainless steel projects.

Key Highlights

• The global industrial furnaces market size was valued at USD 12.5 billion in 2022. It is estimated to reach USD 21.16 billion by 2031, growing at a CAGR of 5.3% during the forecast period (2023–2031).
• Based on furnace type, the global industrial furnaces market is segmented into gas/fuel-operated industrial furnaces and electrically operated industrial furnaces. The gas/fuel-operated industrial furnace segment owns the highest market and is estimated to exhibit a CAGR of 4.9% during the forecast period.
• Based on the arrangement, the global industrial furnaces market is divided into the tube or clamshell type, box type, bottom-loading and car bottom furnace, top-loading furnace, and others. The box-type segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 5.31% over the forecast period.
• Based on end-user, the global industrial furnaces market is bifurcated into metals and mining, transportation, oil and gas, chemical, and others. The metals and mining segment dominates the global market and is estimated to exhibit a CAGR of 4.7% over the forecast period.
• Europe held the most significant global industrial furnaces market shareholder and is anticipated to exhibit a CAGR of 4.3% during the forecast period.

Competitive Players

Competitive Players

The key players in the global industrial furnaces market are ANDRITZ AG, Carbolite Gero Limited, Epcon Industrial Systems, LP, Gasbarre Products, Inc., International Thermal Systems LLC, Ipsen International GmbH, NUTEC Group, SECO/WARWICK S.A., Thermcraft Incorporated, and Thermal Product Solutions.

Recent Developments

Market News

• In May 2023, System Technique Industrial Furnaces, a manufacturer of industrial furnaces in Bulgaria, announced that they are investing USD 3.74 million/3.39 million euros in a new facility near the southern town of Kuklen, according to InvestBulgaria Agency (IBA).
• In June 2023, PTC collaborated with the French energy company Engie to create a digital duplicate of its industrial furnace to enhance operational sustainability.

Segmentation

Global Industrial Furnaces Market: Segmentation

By Furnace Type

• Gas/Fuel Operated Industrial Furnace
• Electrically Operated Industrial Furnace

By Arrangement

• Tube or Clamshell Type
• Box Type
• Bottom Loading and Car bottom furnace
• Top Loading Furnace
• Others

By End-User

• Metals and Mining
• Transportation
• Oil and Gas
• Chemicals
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA