Precipitation Hardening Market size is poised to cross USD 4 billion by the end of 2035, growing at a CAGR of 8% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of precipitation hardening was over USD 2 billion. This growth is predicted based on the advancements in the chemical and automotive industries. As precipitation hardening is considered to be an ideal process for making durable, strong, and powerful automotive components. Thus, the rapid expansion in the global automotive industry is anticipated to fuel market growth in the forecast period. As per research, the global automotive industry is expected to reach over USD 8 trillion by the end of the forecast period, thereby increasing the global precipitation hardening market size.
Precipitation hardening is a heat treatment process undertaken on pliable materials such as aluminum, magnesium, and stainless steel to improve their mechanical strength and corrosion resistance. Thus, it is being heavily used in varied processes which include material processing and manufacturing industries. This factor is projected to propel the global precipitation hardening market growth in the upcoming years. According to the United States National Institute of Standards and Technology (NIST), the manufacturing industry in the US accounted for about ~10% of the total GDP in the year 2020. Furthermore, the tremendous rise in consumption of steel alloy and ferric alloy products is also anticipated to increase the utilization rate of precipitation hardening as it is beneficial for increasing the properties of the alloys. In addition to the aforementioned factors, the rapid expansion of the electrical & electronics sector along with the rise in demand for electronic products is estimated to bring lucrative growth opportunities for market growth.
Growth Drivers
Development in the Electronics Industry – According to research, the worldwide consumer electronics market has been steadily growing for the past few years at a rate of ~8% to become a trillion-dollar business. Precipitation hardening is very useful in the electronics industry since it enhances the durability and resistance to rust of metals and alloys used in the manufacture of various electronic devices, such as magnesium alloys. This factor is projected to propel the global precipitation hardening market in the forecast period.
Advancement in the Aerospace Industry – The global aerospace and defense industry grew by around ~3% post-pandemic to attain a sizable revenue of over USD 700 billion in 2021. This steady progress is predicted to affect the growth of the global precipitation hardening market as the heat-treated aluminum alloy is extensively employed in wing and fuselage structures.
Innovation in the Food and Beverage Industry – Stainless steel alloy that has been age-hardened is particularly useful in the food and beverage industry for packaging, keeping food items safe, and preventing contamination. As per the latest analysis, the worldwide food and beverage industry revenue is expected to grow at a rate of ~23% to acquire over USD 500 billion in the next couple of years.
Upsurge in Power Generation and Consumption – Nickel-chromium alloy is used in the manufacture of turbine blades. These turbines are further used in power generation plants. Thus, the high demand for electricity and escalation in the power consumption is projected to create a positive outlook for market growth in the next few years. Around 97 quadrillions Btu of primary energy was consumed in the US in the year 2021, as per data collected by the United States Energy Information Administration.
Growth in the Chemical Industry – Significant growth in the chemical industry is expected to drive precipitation usage rates for a variety of applications. According to research, the chemicals industry in India was expected to grow from around USD 175 billion in 2019 to attain over USD 300 billion by growing at the rate of ~9%.
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~8% |
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Base Year Market Size (2022) |
~ USD 2 Billion |
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Forecast Year Market Size (2035) |
~ USD 4 Billion |
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Regional Scope |
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End-user (Automotive, Aerospace)
The global precipitation hardening market is segmented and analyzed for demand and supply by end-user in the automotive industry, aerospace industry, and others. Out of them, the automotive industry segment is expected to grow the fastest during the forecast period owing to garnering a 34% market share by the end of 2035. The major factor that is attributed to the segment growth is the high demand for automobiles by the burgeoning population and an increasing number of vehicles manufactured across the world. Over 78 million motor vehicles were produced worldwide in the year 2021, an increase of about ~2% from the numbers in 2020. As the parts of automotive are made with steel and alloys, precipitation hardening is necessary to develop strong and robust vehicle parts. This factor is estimated to expand the size of the segment and subsequently aid in market expansion.
Material (Stainless Steel, Aluminum, Magnesium)
The global precipitation hardening market is also segmented and analyzed for demand and supply by material into stainless steel, aluminum, magnesium, and others. Out of these four segments, stainless steel is projected to hold the most significant share of the market which is equivalent to almost 39% during the forecast period. The main reason for segment growth is the high production rate of stainless steel to bridge the gap between the supply and demand from the end-use industries. The recent data reported that in 2021, global stainless steel production was more than 60 million metric tons. The demand for stainless steel is further anticipated to increase owing to the increased demand for electrical and electronics products, automobiles, aircraft, and other components which require stainless steel which in turn is anticipated to create a positive outlook for segment growth in the upcoming years.
Our in-depth analysis of the global market includes the following segments:
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By Hardening Type |
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By Material |
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By End User |
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APAC Market Statistics
The Asia Pacific precipitation hardening market, amongst the market in all the other regions, is projected to hold the largest market share of about ~35% by the end of 2035. This prediction is based on the booming automotive sector in the region. Furthermore, steady growth in other industries such as chemical, manufacturing, electronics as well as the food and beverage industries are expected to impel the regional precipitation hardening market growth. As per data collected by the International Trade Administration (ITA), China earned around USD 595 billion in the food and beverage business in 2019, around a 8% rise from 2018. In addition to other factors, the presence of major key players in the region and the high investments made by them to initiate the development of an advanced process of precipitation hardening facilitate the development of various products with steel, alloys, and other hard materials.
North American Market Forecast
The North American precipitation hardening market, amongst the market in all the other regions, is projected to hold the second largest share of about ~24% during the forecast period. The rapid expansion of the various end-use industries in the region is considered to be the primary reason for the growth of the market in the region. In addition, the high demand for automobiles by the burgeoning population and the escalation in the preference for electric mobility are also estimated to increase the utilization rate of precipitation hardening in the next few years. The surge in the investments by the major key players in the research and development activities is projected to escalate the utilization rate of precipitation hardening for varied purposes.
Europe Market Forecast
Further, the market in the European region, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The rising awareness about the benefits of precipitation hardening for various industries among the European people is anticipated to help in generating a huge sum of revenue. Other factors include the presence of high demand for products that require the precipitation hardening process which subsequently aids the development of the market in the region. Plus, the availability of facilities to perform precipitation hardening procedures is also estimated to drive market growth in the forecast period.
Bodycote Plc along with German fabricator Edelstahl-Mechanik prepared 12,800 stainless steel panels for the world’s first hydroformed facade screen using a heat treatment process called annealing to improve the electrical and mechanical properties.
Paulo Heat Treating, Metal Finishing and Brazing announced plans to increase the size of its heat treatment facility in Monterrey, Mexico, by twofold to cater to the growing demand from the automotive industry for precipitation hardening of brake components in cars and trucks.
Author Credits: Smruti Ranjan, Rajrani Baghel
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