GCC Heat Treating Market To Reach $1,138.3 Million By 2030

GCC Heat Treating Market Growth & Trends

The GCC heat treating market size is expected to reach USD 1,138.3 million by 2030, registering a CAGR of 3.7% from 2023 to 2030, according to a new report by Grand View Research, Inc. The market is expected to be driven by rising demand for heat treating units from numerous industrial applications, including automotive and aerospace, over the forecast period.

Significant growth in the automotive industry worldwide, along with Middle East and Africa, has fueled demand for heat treating solutions. Key economies such as UAE and Saudi Arabia are faced with high demand for affordably priced vehicles, fueled by rapid urbanization, increase in disposable income, and changing lifestyle. This rise in demand has inspired various automotive manufacturers to strengthen their manufacturing base in the region. In addition, favorable government policies have attracted significant investments from foreign players.

The steel segment is expected to lead the market on the basis of material, registering a CAGR of 2.5% over the forecast period. Robust industrial development in the Gulf Cooperation Council (GCC), owing to liberalization of industrial policies, has contributed to the demand for steel. Rising expenditure on infrastructure development projects, coupled with growth in the automotive industry in key emerging economies in MEA and around the globe, has also resulted in a significant increase in steel consumption.

Growing use of metals and allied metals in industrial applications is expected to drive the GCC heat treating market over the forecast period. Value-added features and characteristics of metals offered during the processes are expected to offer significant growth opportunities.

Based on type of fuel used, the market can be broadly categorized into fuel-fired and electrically-heated furnaces. In fuel-fired furnaces, heat is generated through the combustion of fossil fuels such as oil, coal, and natural gas. In electrical furnaces, heat is generated by passing electricity through the material or via induction. The positive shift from traditional to electrically heated furnaces has favored market growth.

Automotive was the largest application segment in terms of revenue in 2022 and is slated to account for a significant share by 2030. Increasing reach of various automotive manufacturers in Saudi Arabia, UAE, Oman, and other GCC member states has propelled demand for heat treating in the Middle East. Positive outlook of the aerospace industry is also expected to drive the market.

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GCC Heat Treating Market Report Highlights

• The steel segment held the largest market share of 60.9% in 2022. Heat-treated steel is extensively used in construction applications, including structural components, reinforcing bars (rebars), and precast elements.

• The hardening & tempering segment held the largest market share of 27.0% in 2022. Hardening and tempering are some of the most commonly used processes for steel, cast iron, and other metal alloys.

• The fuel-fired furnace segment held the largest revenue share of 53.1% in 2022. Fuel-fired furnaces are commonly used in heat treating processes to provide the necessary heat for treating materials, particularly metals.

• The automotive segment held the largest revenue share of around 31.2% in 2022. The sector is expected to be a major contributor to regional revenue growth by 2030, owing to the increasing reach of various automotive manufacturers in Saudi Arabia, UAE, Oman, and other GCC member states.

• In terms of revenue, UAE accounted for the second largest market share of 22.8% in 2022 and Yemen is expected to grow at the fastest CAGR of 5.8% over the forecast period

GCC Heat Treating Market Segmentation

Grand View Research has segmented the GCC heat treating market based on material, process, equipment, application, and country:

GCC Heat Treating Material Outlook (Revenue, USD Million, 2018 - 2030)

• Steel

• Cast Iron

• Others

GCC Heat Treating Process Outlook (Revenue, USD Million, 2018 - 2030)

• Hardening & Tempering

• Case Hardening

• Annealing

• Normalizing

• Others

GCC Heat Treating Equipment Outlook (Revenue, USD Million, 2018 - 2030)

• Fuel-fired Furnace

• Electrically Heated Furnace

• Others

GCC Heat Treating Application Outlook (Revenue, USD Million. 2018 - 2030)

• Automotive

• Aerospace

• Metalworking

• Machine

• Construction

• Others

GCC Heat Treating Country Outlook (Revenue, USD Million. 2018 - 2030)

• Gulf Cooperation Council

  • Saudi Arabia

  • UAE

  • Oman

  • Qatar

  • Bahrain

  • Kuwait

  • Yemen

List of Key Players in the GCC Heat Treating Market

• Bluewater Thermal Solutions

• American Metal Treating

• East~Lind Heat Treat, Inc.

• General Metal Heat Treating

• Shanghai University Heat-treatment Co., Ltd

• Pacific Metallurgical, Inc.

• Nabertherm GmbH

• Unitherm Engineers Limited

• SECO/WARWICK, INC. ALLE

• Triad Engineering Inc.

• Bodycote

• FTV Proclad (U.A.E.) L.L.C

• Trinity Holdings Limited

• Rawabi Holding

• Fluor Corporation

• Easa Saleh Al Gurg Group (ESAG)

• Gesellschaft für Wärmetechnik mbH