Market Trends of Industrial Furnace Industry
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.
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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.
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