Induction Furnace Market Forecast
Global Induction Furnace Market is expected to cross USD 1.5 Billion by 2025 at a CAGR of 5.6%.
Induction furnaces offer a clean, energy-efficient, and controllable melting process and are widely employed in steel, copper, and aluminum production. Induction furnaces use convection current to achieve the melting point of these metals, thereby using less energy than other furnaces which usually fire up at higher temperature levels than those required to melt the metals.
The growing railroad industry along with a higher requirement for mining, smelting, and metal alloy machinery are factors contributing to the growth of the Induction Furnace market. Steel and copper production is shifting from traditional bases in North America and Europe to the fast-developing economies in Asia such as India, China, and Bangladesh. The setting up of new plants is also driving market growth considerably.
Induction Furnace Market USP
Energy-efficient and controllable melting.
- Rising global demand for steel and copper
- Growth of the aerospace industry
- Reduced energy consumption
- Highly controlled process
- Need for high initial investments
- Lack of refining capacity
- Coreless Induction Furnace: The largest segment, coreless induction furnace is used for metals with high melting points such as cast iron and steel. Considering the high demand for steel globally, the segment is expected to grow. Though they are vital for steel processing, coreless induction furnaces have much longer maintenance downtimes that other types of induction furnaces.
- Channel Induction Furnace: Ideal for all metals that do not have a very high melting point, channel induction furnaces use the least amount of energy and have almost no maintenance downtime. They are also used to keep already molten metals from solidifying. They offer superior reliability, easy installation, and a long service lifetime. However, they cannot be used for steel, the demand for which is considerably high across the globe. This results in a small market share for the segment.
- Others: This segment includes vertical core and indirect core induction furnaces.
By Furnace Capacity
- Up to 1 Ton: Used for small-scale operations, these are easier to clean and maintain; they consume less energy, though are not as energy-efficient as their larger counterparts.
- 1–100 Ton: The fastest-growing segment, induction furnaces with this capacity are preferred in developing countries such as Bangladesh, Indonesia, and the Philippines. Ideal for small and medium-size plants to serve domestic need, they require significantly less investments than the larger induction furnaces. The growth of allied manufacturing industries in these countries is expected to drive the growth of the segment.
- More than 100 Ton: The largest segment, induction furnaces with this capacity are used in large steel and copper plants. Though they require heavy initial investments, they offer unparalleled melting capacities and are cost-effective.
By Industry Vertical
- Steel: The largest segment to the high global demand for steel, which is used extensively in almost all manufacturing industries. China, India, and Japan are some of the largest steel producers in the world.
- Aluminum: Aluminum is used extensively in the transportation, packaging, consumer goods, and construction industries. It is more expensive than steel but offers much better corrosion resistance and is significantly lighter, making it ideal for applications that require low density and malleability.
- Copper: Due to its excellent electric conductivity, copper is used widely as an electricity conductor. The rise in demand for copper is driving the growth of the segment.
- Others: The segment covers metals such as zinc, silicon, and brass.
- North America: The North American steel market is mostly matured, thereby limiting the demand for induction furnaces for the extraction and production of the metal. A large aerospace industry is, however, creating new opportunities for growth in the region.
- Europe: Europe is a growing market for induction furnaces especially for domestic use. A growing renewable energy market is fueling the demand for copper in the region, which is driving the growth of the induction furnace market.
- Asia-Pacific: The largest and fastest-growing market for induction furnaces, Asia-Pacific is the world’s largest producer of steel, aluminum, and other metals that require the induction furnaces.
- Rest of the World: Most of the world’s copper is produced in South America, driving the growth of the induction furnace market.
Induction Furnace Market Key Players
- Electrotherm (India)
- Danieli Group (Italy)
- SMS Elotherm GmbH (Germany)
- Meltech Ltd (UK)
- Tenova SpA (Italy)
- Doshi Technologies Pvt. Ltd (India)
- IHI Machinery and Furnace Co., Ltd (Japan)
- JP Steel Plantech Co. (Japan)
- ECM Technologies (Netherlands)
- Agni Electrical Pvt. Ltd (India)
- Pees Induction Equipment’s Pvt. Ltd (India)
- Magnalenz (India)
Frequently Asked Questions (FAQ) :
By 2025, the induction furnace market can value at USD 5.6% CAGR by 2025.
The induction furnace market can value at USD 1.5 Bn by 2025.
Electrotherm (India), Meltech Ltd (UK), Danieli Group (Italy), and SMS Elotherm GmbH (Germany) are some reputed names in the induction furnace market.
The growing need for copper and steel can boost the induction furnace market growth.
The reduced need for consumption of energy can impel the APAC induction furnace market growth.