Procurement Market Intelligence Report

Heat Treatment Services
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Heat Treatment Services Global Overview

Definition

Summary

Heat treatment services involve altering the physical and chemical properties of a material. Heat treatment processes typically have metallurgical applications and are used during the manufacturing process, but they are being increasingly outsourced. Key buyers include aerospace and automobile manufacturers and key suppliers include both small and large firms.

This Report Includes:

  • Gas Nitriding
  • Precision Carburizing
  • Endothermic Atmosphere Processing
  • Vacuum Heat Treating
  • High Pressure Vacuum Heating Treating & Straightening

Not in this Report:

  • Machining & Forming Services
  • Heat Treatment Equipment

Global Heat Treatment Services Market - Suppliers by Region

Country/Region Number of Suppliers
#1 Europe 3,646
#2 China 2,858
#3 India 2,073

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  • Canada
  • United States
  • Mexico
  • Latin America
  • South America
  • India
  • China
  • Europe
  • Africa & Middle East
  • Australi & New Zealand
  • Oceania & Southeast Asia

2

Geography Drilldown - US

Average Cost of Heat Treatment Services

United States

2026 Market Pricing
$0.15 to $XX.XX
per pound of steel

Average Price

Prices in the Heat Treatment Services market range from $0.15 to $XX.XX, depending on Process, Specifications, Volume, Location and Material Type. For example, lower prices are associated with Vacuum heat treating, Precision carburizing and Straightening, whereas higher prices are associated with High-pressure vacuum heat treating, Gas nitriding and Endothermic atmosphere processing.

Need the scoop on international price trends?

Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.

Heat Treatment Services Category Price Trends

Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Heat Treatment Services market, prices in the US have grown 10.9% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more

United States (2022-2025)

10.9%
Compound Annual Growth Rate
United States (2025-2028)

Compound Annual Growth Rate

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Wondering where prices are heading?

Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.

Cost Analysis - Total Cost of Ownership for Heat Treatment Services

Total cost of ownership is Low in the Heat Treatment Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs.

Negotiated Before

Transportation

There can be some shipping costs depending on the location of the supplier in relation to the buyer and if buyers require specialized treatment needs such as large industrial machinery parts. In addition, local suppliers might not have the necessary machinery to heat treat oddly shaped or large parcels, so buyers of this class will incur additional costs to ship products to a specialty supplier.

Customization

There may be costs associated with tailoring services to specific project needs or setting up equipment for unique processes.

Billed During

Handling

Buyers may face additional charges for special handling requirements for the transportation of metal products over long distances.

Buyer Power in Procurement Negotiations

In 2026, buyer power amounts to -1.9 in the United States. Buyer power is most positively impacted by Recent Price Trend. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more

United States

-1.9

Buyer power forecasts: your glimpse into the future

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Supply Chain Risk

The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:

1st

Tier Suppliers

  • Natural Gas Distributors
  • Coal & Natural Gas Power Providers
  • Industrial Machinery & Equipment Wholesalers
  • Structural Metal Product Manufacturers

2nd

Tier Suppliers

  • Oil Drillers & Gas Extractors
  • Metal Wholesalers
  • Iron & Steel Manufacturers

Biggest Heat Treatment Services Suppliers in the US by Revenue

The largest Heat Treatment Services vendors by revenue in the US are Accurate Steel Treating Incorporated, Heat Treating Services Corporation of America and Newton Heat Treating Co. Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more

Supplier Operational Size Headquarters Number of Employees Market Share (%) Market Share Performance (3yr trend) Total Revenue ($ million) Profit Level (%) Risk Level
Bodycote plc Global Cheshire, UK 1,001-10,000 5-10
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Bluewater Thermal Solutions Global Greenville, SC 101-250 5-10
Applied Technical Services US < 5
Accurate Steel Treating Incorporated Regional South Gate, CA 25-50 < 5
Heat Treating Services Corporation of America National Pontiac, MI 251-500 < 5
Newton Heat Treating Co. Inc. Local City of Industry, CA 25-50 < 5
Phoenix Heat Treating Inc. Regional Phoenix, AZ 25-50 < 5
Solar Atmospheres, Inc. National Souderton, PA 251-500 < 5
Varco Heat Treating Company Regional Garden Grove, CA 25-50 < 5

Looking for a list of suppliers by country?

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Profit Analysis

The average profit margin across vendors in the Heat Treatment Services market is 7.3% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more

Vendor & Supply Chain Analysis

The United States is a net importer of heat treating equipment, meaning it imports more than it exports. A large foreign presence in the market indicates that buyers have greater access to competitively priced goods from lower cost countries, but may be exposed to significant supply chain risks and poor trade relations with countries such as China.

Buyers of heat treatment services face a moderate amount of supply chain risk, which has mixed implications for buyer power. The most significant source of risk is the providers’ upstream supply of natural gas.

Average vendor risk among heat treatment service providers is low. Low bankruptcy risk benefits buyers with the probability that a supplier of choice will remain in business.

The top four suppliers of heat treatment services account for less than 30.0% of market revenue, indicating low market share concentration. Low market share concentration is beneficial for buyers because it provides them with many competing suppliers to choose from.

Supplier Information

Bluewater Thermal Solutions

Bluewater Thermal Solutions is a private company operating globally in the manufacturing sector. The company's offerings include heat treatment services. Founded in 2001, the company is currently headquartered in Greenville, South Carolina, United States of America with an estimated 171 employees. Subscribe to learn more

Bodycote plc

Bodycote plc is a Global operator providing Heat Treatment Services from their headquarters in Cheshire, UK. This operator has a staff size of about 1,001-10,000 employees. According to ProcurementIQ estimates, Bodycote plc holds 5-10% of market share... Subscribe to learn more

Accurate Steel Treating Incorporated

Accurate Steel Treating Incorporated is a private company operating regionally in the manufacturing sector. The company's offerings include heat treatment services. Founded in 1962, the company is currently headquartered in South Gate, California, United States of America with an estimated 50 employees. Subscribe to learn more

Applied Technical Services

Applied Technical Services is a private company operating nationally in the mining, manufacturing and professional, scientific & technical services sectors. The company's offerings include nondestructive testing services, heat treatment services, pipeline inspection services and pipeline integrity management... Subscribe to learn more

Heat Treating Services Corporation of America

Heat Treating Services Corporation of America is a private company operating nationally in the manufacturing sector. The company's offerings include heat treatment services. Founded in 1978, the company is currently headquartered in Pontiac, Michigan, United States of America with an estimated 375 employees.... Subscribe to learn more

Industrial Steel Treating Company

Industrial Steel Treating Company is a private company operating nationally in the manufacturing sector. The company's offerings include heat treatment services. Founded in 1943, the company is currently headquartered in Jackson, Mississippi, United States of America with an estimated 75 employees. Subscribe to learn more

Newton Heat Treating Co. Inc.

Newton Heat Treating Co. Inc. is a private company operating locally in the manufacturing sector. The company's offerings include heat treatment services. Founded in 1968, the company is currently headquartered in City of Industry, California, United States of America with an estimated 32 employees. Subscribe to learn more

Phoenix Heat Treating Inc.

Phoenix Heat Treating Inc. is a private company operating regionally in the manufacturing sector. The company's offerings include heat treatment services. Founded in 1915, the company is currently headquartered in Phoenix, Arizona, United States of America with an estimated 30 employees. Subscribe to learn more

Solar Atmospheres, Inc.

Solar Atmospheres, Inc. is a private company operating nationally in the manufacturing sector. The company's offerings include heat treatment services. Founded in 1983, the company is currently headquartered in Souderton, Pennsylvania, United States of America with an estimated 375 employees. Subscribe to learn more

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Procurement Management KPIs for the Heat Treatment Services Market

Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Satisfaction (CSAT) and Defect Density. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Delivery and other factors.

KPI Level of Importance (1-5) Measurements Key Considerations
Customer Satisfaction (CSAT)

Number of positive customer responses

Number of customer responses

Customer satisfaction represents customers’ overall satisfaction with a company.

High customer satisfactions scores indicate strong customer relationships, faster complaint resolution times, and higher quality services.

Defect Density

Number of parts

Number of defective parts

The defect rate represents the percentage of parts that do not meet quality standards or require rework.

A low defect rate indicates a high level of process control and quality assurance.

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Questions to Ask During Procurement Negotiations

How can I gain leverage during negotiations?

Experience and Expertise

What procedures have you implemented to establish adequate knowledge of the latest technological developments or market changes?

What former experience do you have in heat treatment projects similar to ours?

Vendor Financial Risk

How long have you been in the business of heat treatment services?

Is your firm insured or bonded?

Customer Base

Do you have any long-term clients we can speak to as professional references? Can you describe their relationship with your company?

What is the average length of a customer relationship for your company?

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Heat Treatment Services RFP Guidelines

What should my RFP include?

Organizational Overview

Buyers should describe their organizations and explain why they are seeking heat treatment services.

Buyers need to give a description of what they are heating and how many products need treatment. This overview should give vendors enough information to quickly evaluate whether they can provide the necessary services.

Statement Of Need

Buyers should disclose the size, dimensions, and quantity of target metals they need treatment services to be performed on.

Buyers should include temperature targets and exposure times for their needed services.

Project Budget

Buyers should explicitly state the amount of the contract award.

Buyers should explain when and how many payments will be made.

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We display average pricing information, trends and market data.

Our Reports include:

  • Opportunity assessment
  • Market dynamics
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  • Price environment and market pricing
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  • Total cost of ownership
  • Cost structure benchmarks and analysis
  • Supply chain and vendors
  • Global supplier breakdown
  • Market share concentration
  • Regulation and business requirements
  • Vendor management and KPIs
  • Sourcing strategy guidance