Induction Furnace Market Size is expected to cross USD $1.5 billion by 2025 at a CAGR of 5.6% during the forecast period 2022-2030
Induction Furnace Market Overview
Induction furnace market is expected to cross USD 1.5 Billion by 2025 at a CAGR of 5.6%.
Induction Furnace Market provide a clean, energy-efficient, and controllable melting process and are commonly used in the production of steel, copper, and aluminum. Induction furnaces use convection current to achieve the melting point of these metals, thereby utilizing less energy than other furnaces that typically fire at higher temperatures than those needed to melt the metals. Channel induction furnace is said to showcase remarkable growth rate during the forecast period due to its higher electrical efficiency than coreless induction furnaces. On contrary, among end-use industry segment, the steel segment is anticipated to see gradual market growth over the forecast period, attributed to increasing adoption of processed and refined steel across all major applications.
Induction furnace market are electric furnaces in which heat is applied by means of the induction heating of metal. They offer an energy-efficient, controllable, and clean melting process and are widely used in aluminum, steel, and copper production. Induction furnaces use convection current to reach the melting point of these metals, thus utilizing less energy than other heaters, which usually fire up at a temperature level far higher than those required to melt the metals. COVID-19 has spread all over the globe. The pandemic has dramatically impacted the aluminum market. Rising coronavirus cases have caused companies to slow down or even stop production due to disrupted supply chains and decreased demand. This scenario has led to a decline in the use of induction furnaces, which hinders the industry’s growth.
The factors propelling the market’s growth include the rising railroad sector and high requirements for smelting, mining, and metal alloy machinery. Nevertheless, as a result of the COVID-19 pandemic, most construction projects have been postponed, and travel restrictions have been imposed. The rail industry has had a dramatic impact, which, in turn, is also hindering the growth of the market for induction furnaces. Due to the growing use of induction furnaces for domestic purposes, Europe holds the largest share of the global market. In addition, the growing market for renewable energy also drives demand for copper, which in turn, is anticipated to push the growth of the induction furnaces market after the lockdown period.
The increasing railroad industry, along with a higher demand for mining, smelting, and metal alloy machinery, contributes to the growth of the induction furnace industry. Steel and copper production is shifting from conventional bases in North America and Europe to fast-growing economies in Asia like India, China, and Bangladesh. The establishment of new plants is also a significant driver of market growth.
Additionally, the higher performance characteristics of induction furnace such as fast heating speed, high production efficiency, less decarbonization and decompression, saving materials and forging die costs is highly anticipated to propel the demand for induction furnace. As an induction furnace is used to process precious metal, copper, and aluminium smelting and also, it is widely used for alloy manufacturing, thus, induction furnace is gaining huge recognition in foundries across all regions.
The key restraining factor such as high cost, need for skilled labour and complex installation process of induction furnace may hinder the global induction furnace market growth over the forecast period.
The key driving factor for the global induction furnace market is persistently developing mining and metallurgy sector, which have resulted in an increased demand for induction furnace across all major developing economies. The macroeconomic factor such as increasing industrial activities coupled with up gradation in metal processing & production and an increase in demand for refined metals in many countries is further augmenting the sales for induction furnace.
The significant rise in sales of induction furnace due to the growing concerns regarding efficient & effective operations in industrial operations is highly anticipated to drive the global Induction Furnace market. Moreover, noticeable growth in the APEJ & Middle East industrial sector and technological advancement in manufacturing of induction furnace is anticipated to create a significant opportunity for the global induction furnace market.
Looking at the latest research analysis, the Induction furnace industry can be bifurcated based on type, furnace capacity, application, and industry vertical. Out of all the segments of this market, the coreless induction furnace segment will witness tremendous growth during the forecast period as it is used for melting metals with very high melting points, and due to the rising demand for steel around the world, this segment is anticipated to register highest CAGR growth during the research period. The furnace capacity of more than 100-ton segment will be the fastest-growing segment as their demand is increasing very face among the large copper and steel plants and also it is more cost-effective and provides unmatched melting capacities.
If we look at this industry then based on type, it is categorized Coreless Induction Furnace, rollover induction furnace, Channel Induction Furnace, and others (which further has vertical core induction furnace and indirect core induction furnace).
Based on application, it has a melting, heating, and others.
Based on furnace capacity, it has up to 1 ton, more than 1 ton but less than 100 tons, and more than 100 tons.
Based on industry vertical, it has steel, copper, aluminium, zinc, and others (silicon and brass).
If we look at Induction furnace market share and other details, this industry is remarkably working in five major regions of the world that is Asia Pacific, Europe, North America, Latin America, Middle East, and Africa. During the forecast period, the Asia Pacific region will dominate this market as this region is the largest producer of aluminium, zinc, steel, and others, which further requires induction furnaces, in the world. The North American region will witness moderate growth during the period of research as this market is already matured in this region but the aerospace industry present will create some opportunities for the growth of this market in this region. The European region, on the other hand, will be witnessing noteworthy growth as the growth of the renewable energy market is boosting the demand for copper which in turn is increasing the demand for these induction furnaces in this region.
The prime players of the Induction furnace market are applying various types of strategies such as mergers, acquisitions, partnerships, collaboration, and others to boost their businesses. These steps taken by the companies are creating a competitive environment among key players present all around the world. Based on the data obtained from the Induction furnace industry analysis, the prominent players of this market are:-
Most of the prominent market companies are collaborating with the global governments of various regions that are participating in the induction furnace market amid the ongoing period that ends in 2027. The rising investments and funding will help in new product launches, and others like mergers, acquisitions, followed by the addition of innovation in the existing fields in the long run.
The Induction Furnace market report presents shift analysis that tells about the various market drivers, opportunities, restraints that are accessible in the global market. This market report also tells its readers about how this market was affected during the covid-19 period. The report also discusses how this market is been categorized into different segments, how a healthy competitive environment is evolving among the different key players of this market, and due to what factors this market will grow in different regions of the world. Lastly, this report shares some recent developments that had happened in this market in the last few years.
|CAGR||5.6% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Furnace Capacity, Industry Vertical|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||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)|
|Key Market Opportunities||New product launches and R&D Amongst major key Players|
|Key Market Drivers||
By 2025, the induction furnace market can value at USD 5.6% CAGR by 2030.
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.