Demand for industrial furnaces in Europe grew steadily in 2023, attaining a value of USD 2,882.9 million. It is projected to witness a 4.3% Y-o-Y growth in 2024, reaching USD 3,014.6 million in the same year. It is set to record a CAGR of 5.2% from 2024 to 2034, achieving a size of USD 5,004.1 million by 2034.
The ability of industrial furnaces to generate and maintain very hot temperatures for several industrial processes like warming, melting, annealing, forging, and heat treatment is set to boost sales. These furnaces are anticipated to be used to turn raw materials into finished products or change their physical or chemical properties by controlled heat-up and cool-down cycles.
Demand is also being driven by the revival of Europe’s manufacturing industry, need to comply with strict environmental regulations, and rising demands for durable industrial components. These factors are further fostering sales of energy-efficient furnaces across Europe.
| Attributes | Description |
|---|---|
| Estimated Europe Industrial Furnace Industry Size (2024E) | USD 3,014.6 million |
| Projected Europe Industrial Furnace Industry Value (2034F) | USD 5,004.1 million |
| Value-based CAGR (2024 to 2034) | 5.2% |
It is predicted that the automotive manufacturing sector will account for over 22% of total demand by 2024. Europe recently manufactured about 16.5 million units of passenger cars. This shows a growth rate of 4.2% compared to the previous year, which indicates that there has been a robust recovery and expansion in the industry.
The expansion exhibits that superior-quality production procedures based on precision must be followed to produce high-performance materials. EVs are also necessitating technologically unique furnaces useful in operations like heat treatment, forging, and metalworking. Europe leads in terms of technological innovation in areas, such as the development of unique materials and EVs through companies like Volkswagen, BMW, and Daimler Benz, who have dominated this segment.
Industrial furnace demand is estimated to rise 1.7 times from its current value by 2034. This growth is underpinned by developments in furnace technology, increased manufacturing investments, and adoption of green energy approaches in industrial operations. Europe’s mature industrial base, especially in Germany, Italy, and France implies that there will always be a need for furnaces with a view to pushing innovation and complying with environmental regulations.
Germany dominates the industry as it has a strong industrial base and high-quality requirements. In 2023, the country produced about 3.5 million vehicles, which showed an increase of around 6.1% Y-o-Y.
In addition to steel and machinery companies, automakers contribute significantly to the growing demand in the country. Local companies are known for their innovative practices and technological breakthroughs. They are investing heavily in research and development activities to come up with high-efficiency, energy-saving, and environmentally compatible furnace technologies.
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The table below presents a comparative assessment of the variations in CAGRs over six months for the base year (2023) and current year (2024) for the Europe industrial furnace industry. This analysis reveals crucial shifts in performance and indicates revenue realization patterns, thereby providing stakeholders with a better vision of the growth trajectory over the year.
The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December. In the first half (H1) of 2023 to 2033, the business is predicted to surge at a CAGR of 4.9%, followed by a higher growth rate of 5.3% in the second half (H2) of the same period.
| Particular | Value CAGR |
|---|---|
| H1 | 4.9% (2023 to 2033) |
| H2 | 5.3% (2023 to 2033) |
| H1 | 5.1% (2024 to 2034) |
| H2 | 5.4% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to dip slightly to 5.1% in the first half and relatively grow to 5.4% in the second half. In the first half (H1), the industry witnessed an increase of 20 BPS while in the second half (H2), there was a slight surge of 10 BPS.
Demand for Energy-efficient Electric Arc Furnaces Skyrockets in Europe
There is a fast-growing demand for energy-efficient furnaces across Europe. This is mainly driven by the need to address climate change and comply with strict environmental policies. In most parts of the region, manufacturers are increasingly shifting their preference from high-energy-consuming furnaces to low-energy-consuming ones while maintaining superior production efficiency.
In 2023, steel production in Europe was about 150 million metric tons, which was down by 3.8% Y-o-Y from 2022. This drop led to the rising emphasis on efficiency and sustainability in the sector, with electric arc furnaces (EAFs) being significant in optimizing production processes that need to adhere to strict ecological regulations.
The use of energy-efficient furnaces, such as EAFs enables industries to not only save on costs but also to meet their environmental obligations. The steel manufacturing industry is investing in modern EAFs as conventional blast furnaces consume high energy. These EAFs not only help reduce energy consumption but also decrease greenhouse gas emissions, thereby making these highly preferable.
Increasing Demand for Heat Treatment from Automakers Creates Opportunities
Ongoing expansion of the automotive industry in Europe, especially owing to the rising demand for electric vehicles (EVs), is set to boost industrial furnace sales. Increased production of EVs in countries, such as Germany and France is leading to a high demand for special-purpose furnaces.
Such types of furnaces are significant for heat treatment during the production of battery cells, electric motors, and lightweight aluminum parts. Due to this factor, cutting-edge furnaces are being developed to accommodate the needs of these kinds of vehicles.
In 2023, for instance, Stellantis N.V. launched an electric vehicle battery plant in Italy. This fact implies that the automobile industry is committed to scaling up EV production, which is raising demand for modern industrial furnaces. These types of furnaces are necessary as they help ensure the proper functioning and safety of EV components.
Focus on Decarbonization and Green Manufacturing Tactics is a Key Trend
A significant trend is the shift toward decarbonization and green manufacturing, propelled by the European Union's (EU) Green Deal and other stringent emissions targets. Industries across Europe are increasingly adopting eco-friendly industrial furnaces that reduce carbon emissions. This trend includes the transition from traditional fossil-fuel-powered furnaces to more sustainable options, such as electric and hydrogen-based furnaces.
In 2024, Tenova, a leading furnace manufacturer, introduced a new hydrogen-based furnace technology specifically designed for the steel industry. This technology allows steel producers to replace natural gas with hydrogen.
It further helps in significantly reducing carbon dioxide emissions during the steelmaking process. Such innovations are gaining traction as industries seek to align with EU sustainability goals, making decarbonization a central focus of industrial furnace development and adoption across various fields, including metallurgy, automotive, and chemical processing.
Increasing Demand for Customization in Industrial Furnaces to Bolster Sales
Demand for customized furnaces is increasing in Europe as companies try to meet specific production requirements, especially in a few specialized industries such as aerospace, automotive, and electronics. These industries employ exact material characteristics and process specifications that necessitate tailor-made furnaces. Moreover, the demand for flexible and scalable furnaces is set to skyrocket in the region.
Manufacturing companies need equipment that can be easily modified or expanded according to changes in product specifications or fluctuations in production volume. This enables efficient operations and quick response to the demands, thereby improving productivity and competitiveness. Hence, suppliers are increasingly focused on developing versatile furnaces that are adaptable to changing needs, further supporting the dynamic production environments of current industries.
Principal Consultant
The industry witnessed a CAGR of 2.3% between 2019 and 2023. Total revenue reached about USD 2,882.9 million in 2023. During the forecast period, sales are projected to fetch a CAGR of 5.2%.
The historical period was marked by a relatively slow growth trajectory due to several factors, including technological stagnation, economic disruptions, and supply chain challenges exacerbated by the COVID-19 pandemic. Additionally, regulatory changes and environmental concerns led to increased costs and complexities in implementing unique furnace technologies. The industry further faced challenges from alternative technologies and shifting industrial needs, which constrained expansion.
Looking ahead to 2024 to 2034, the Europe industrial furnace industry is projected to witness a steady CAGR of 5.2%. This anticipated growth is pushed by several converging factors. The ongoing demand for energy-efficient and environmentally compliant solutions is projected to boost the adoption of cutting-edge industrial furnace technologies.
Increased investments in infrastructure projects and manufacturing sectors are also set to drive demand, as industries look to modernize their equipment for improved performance and low operational costs. Moreover, technological innovations in furnace design and materials are anticipated to enhance efficiency and competitiveness, contributing to a highly dynamic and rapidly growing landscape.
Tier 1 companies include leaders with annual revenues exceeding USD 80 million. These companies are currently capturing a significant share of 20% to 25%. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. The firms provide a wide range of products and utilize the latest technology to meet regulatory standards.
Prominent companies within Tier 1 include Ispen, Danieli Group, SECO/WARWICK Group, Ebner Industrieofenbau GmbH, and Nabertherm.
Tier 2 companies encompass most of the mid-sized enterprises operating within the regional sphere and catering to specialized needs with revenues between USD 30 and 80 million. These businesses are notably focused on meeting Tier 1 demands and are hence categorized within the Tier 2 segment.
Tier 2 players such as ECM Technologies, Lindberg/MPH, Heatmasters Group, and BMI Fours Industriels are considered in this study. They are projected to account for 35 to 40% of the overall share.
Tier 3 includes most of the small-scale companies operating at the local level and serving niche areas. These have revenue below USD 30 million. These companies are notably oriented toward fulfilling local demands and are consequently classified within the Tier 3 segment.
They are small-scale players and have limited geographical reach. Manufacturers in the segment include BOREL Swiss and Furnace Engineering Pty Ltd. They are set to hold 30 to 35% of the total share.
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The table below shows the estimated CAGRs of the significant countries in Europe. Italy, France, and Spain are set to record high CAGRs of 5.9%, 5.6%, and 5.4%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| Italy | 5.9% |
| France | 5.6% |
| Spain | 5.4% |
| Germany | 5.1% |
| United Kingdom | 4.7% |
| Russia | 4.1% |
Germany is poised to exhibit a CAGR of 5.1% during the assessment period. It is projected to attain a value of USD 829.2 million by 2034.
Germany's industrial furnace industry is expanding due to its prominent position as a global leader in the field of iron and steel. In 2022, the country exported iron and steel worth USD 36.9 billion, making it the second most prominent exporter of these products worldwide and the eighth most exported product in the country. This strong export performance underscores the significant role of Germany's industrial sector, which drives demand for cutting-edge industrial furnaces.
The country's focus on technological innovations and Industry 4.0, including smart and automated furnace systems, further supports growth. Additionally, Germany's commitment to high-tech manufacturing and energy efficiency enhances the need for modern furnaces across its diverse industrial base.
Italy's industrial furnace industry is set to rise due to its robust manufacturing sector and significant infrastructure projects. The country has a strong presence in automotive, aerospace, and metal processing industries, all of which rely heavily on unique industrial furnaces. Italy's automotive industry is constantly investing in new manufacturing facilities and technologies, boosting demand for high-performance furnaces.
In 2023, Ferrari, for instance, broadened its production line in Maranello, and Fiat Chrysler announced plans for a new facility in Turin. Additionally, significant infrastructure projects, such as the modernization of Italy’s industrial zones to support cutting-edge manufacturing technologies, are underway. These recent expansions and upgrades are contributing to the increased need for efficient furnace systems, further boosting growth.
Sales of industrial furnaces in Italy are projected to soar at a CAGR of around 5.9% during the assessment period. The total value in the country is anticipated to reach USD 668.7 million by 2034.
The United Kingdom is projected to reach USD 646.3 million by 2034. Over the assessment period, the country is set to rise at 4.7% CAGR.
Industrial furnace demand is experiencing considerable growth in the United Kingdom due to a strong focus on sustainable manufacturing practices and significant industrial upgrades. The country’s government prioritizes reduced carbon emissions and better energy efficiency across industries.
In order to achieve “Net Zero” by 2050, there will likely be a rising need for more efficient and environmentally friendly new generation of furnaces that comply with regulations.
Recent initiatives include investments by international companies in modernizing steel production facilities across the country. It includes Tata Steel’s plan to implement unique, energy-efficient furnace technologies at its Port Talbot plant.
Demand for state-of-the-art industrial furnaces has also increased due to the adoption of green manufacturing approaches by vehicle manufacturers and metal processors among others. These initiatives are helping to develop clean technologies that are more efficient, thereby promoting the growth of the country.
The section explains the growth trajectories of the two leading segments. In terms of material type, the brick-lined furnace segment is projected to lead and generate a share of around 47.3% in 2024. Based on control, the programmable control furnaces segment is likely to hold a share of 72% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Brick-lined Furnaces (Material Type) |
|---|---|
| Value Share (2024) | 47.3% |
In 2024, brick-lined furnaces are projected to dominate, generating a significant share of around 47.3%. This dominance is primarily due to their superior durability and thermal insulation properties, which are important for high-temperature industrial processes.
Brick-lined furnaces are mainly favored in industries like steel and metal processing, where these are required to withstand extreme heat while maintaining structural integrity over long periods. Their ability to reduce energy consumption by retaining heat more efficiently compared to other furnace types also makes them a preferred choice.
The furnaces efficiently retain heat, reducing energy consumption and offering long-lasting performance, which lowers maintenance costs. Their robust construction allows them to withstand extreme conditions, ensuring reliability and longevity. Their relatively low maintenance requirements and long lifespan further contribute to their widespread use, securing their leading position in Europe.
| Segment | Programmable Control Furnaces (Control) |
|---|---|
| Value Share (2024) | 72% |
In 2024, programmable control furnaces are estimated to dominate, commanding a 72% share in Europe. This growth is primarily pushed by the rising demand for precision and automation in industrial processes.
Programmable control furnaces offer cutting-edge temperature management and customizable settings, allowing for consistent and high-quality production across several industries, including automotive, aerospace, and metal processing. Their ability to integrate seamlessly with modern industrial systems enhances efficiency, reduces operational costs, and supports the push toward smart manufacturing.
The furnaces are increasingly favored for their adaptability to specific production needs, making them a key component in optimizing manufacturing operations. These are set to be exponentially utilized in bolstering industrial automation, making them an attractive investment for companies looking to stay competitive in a rapidly evolving landscape.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries across Europe. It analyzes innovations in manufacturing and identifies the latest trends poised to push new applications.
A few key players in the regional industrial furnace industry are actively enhancing capabilities and resources to cater to the growing demand across diverse applications. Leading companies also leverage partnership and joint venture strategies to co-develop innovative products and bolster their resource base.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies.
Start-ups are likely to emerge through 2034, thereby making it highly competitive. Key companies are investing in continuous research to produce new solutions and increase their production capacity.
Industry Updates
A few key material types included in the study are brick-lined furnaces, ceramic fiber-lined furnaces, and metal-lined furnaces.
800’C to 999’C and 1000’C to 1200’C are the two maximum temperature segments.
Two processes included in the study are batch furnaces and continuous furnaces.
Gas burner-operated and electrically operated are the key operation segments.
Manual control furnaces and Programmable control furnaces are the main control segments.
A few significant applications are automotive manufacturing, aerospace, metalworking, steel and iron production, glass manufacturing, chemicals, electronics, and others.
Countries considered in the study include Germany, France, Spain, Italy, the United Kingdom, Belgium, the Netherlands, Luxembourg, Russia, and the rest of Europe.
It was valued at USD 2,882.9 million in 2023.
It is set to reach USD 3,014.6 million in 2024.
Demand is anticipated to rise at 5.2% CAGR through 2034.
It is projected to reach USD 5,004.1 million by 2034.
The automotive manufacturing segment is projected to lead by 2034.
Electrical and fired furnaces are mainly used.
Natural gas, wood, and coal are extensively used.
The three types of furnaces are natural gas, oil, and electric.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Industrial Furnaces Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Market Analysis 2019 to 2023 and Forecast 2024 to 2034 7. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Material Type 7.1. Brick-Lined Furnaces 7.2. Ceramic Fiber-Lined Furnaces 7.3. Metal-Lined Furnaces 8. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Maximum Temperature 8.1. 800’C to 999’C 8.2. 1000’C to 1200’C 9. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Process 9.1. Batch Furnaces 9.2. Continuous Furnaces 10. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Operation 10.1. Gas Burner Operated 10.2. Electrically Operated 11. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Control 11.1. Manual Control Furnaces 11.2. Programmable Control Furnaces 12. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 12.1. Automotive Manufacturing 12.2. Aerospace 12.3. Metalworking 12.4. Steel and Iron Production 12.5. Glass Manufacturing 12.6. Chemicals 12.7. Electronics 12.8. Others 13. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 13.1. Germany 13.2. France 13.3. Spain 13.4. Italy 13.5. UK 13.6. Belgium 13.7. Netherland 13.8. Luxembourg 13.9. Russia 13.10. Rest of Europe 14. Germany Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. France Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Spain Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Italy Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. UK Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 19. Belgium Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 20. Netherland Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 21. Luxembourg Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 22. Russia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 23. Rest of Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 24. Sales Forecast 2024 to 2034 by Material Type, Maximum Temperature, Process, Operation, Control, and Application for 30 Countries 25. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 26. Company Profile 26.1. Danieli Group 26.2. Ebner Industrieofenbau GmbH 26.3. Nabertherm 26.4. Grieve Corporation 26.5. Ipsen International 26.6. CM Furnaces Inc 26.7. BTU International 26.8. BOREL Swiss 26.9. Lindberg/MPH 26.10. ECM Technologies 26.11. Despatch Industries 26.12. Furnace Engineering Pty Ltd 26.13. Heatmasters Group 26.14. BMI Fours Industriels 26.15. NUTEC Bickley 26.16. SECO/WARWICK Group 26.17. Wellman Furnaces
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Industrial Furnace Industry Analysis in Europe
