GCC Heat Treating Market Worth $935.7 Million By 2025 | CAGR: 2.4%

The GCC heat treating market size is projected to reach USD 935.7 million by 2025, at a CAGR of 2.4% by 2025, according to a new report of 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 2018 and is slated to account for a significant share by 2025. 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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www.grandviewresearch.com/industry-analysis/gcc-heat-treating-market

Further key findings from the report suggest:

• The Saudi Arabia market is expected to register a CAGR of 1.31% over the forecast period owing to increased focus on tourism and rise in government spending on aerospace, military, and defense industries, among others
• The UAE market is expected to reach USD 128.00 million by 2025. Constant restructuring in corporate operations, shift toward non-oil activities, and other macroeconomic factors are expected to propel market growth
• The Qatar market was valued at USD 72.03 million in 2018. Heavy investments in LNG, development of the hydrocarbon sector, and other such strategic moves have resulted in rapid economic and market growth.