A heat exchanger is an equipment that helps in passing of heat from any fluid such as a liquid or in the case of a gas to another fluid (i.e. a liquid or gas), with no requirement for the two fluids to come into contact with each other directly. The heat exchanger works on the principle that transfer of heat takes place in such a way that the fluid carrying the heat is not transferred. These devices are used for heating or cooling buildings and also are useful for helping the machines and engines work in an effective manner. Heat exchangers are used by machines such as air conditioners and refrigerators.
The heat exchangers market is estimated to observe a notable growth in its CAGR over the forecast period, i.e., 2020-2027. The market is anticipated to grow significantly, owing to various factors such as heat exchangers facing huge demand in the power generation industry across several regions of the globe and the HVAC mechanical systems and industrial processes observing a significant rise in energy recovery systems installation. One of the primary components of HVAC systems is the heat exchangers which is expected to witness significant demand over the next decade, especially with demand for lowering of energy bills gaining momentum mainly in commercial and residential buildings in the recent years. These factors are expected to boost the demand for heat exchangers in the coming years.
Growth Highlights based on Region during 2018-2027
The global heat exchangers market is segmented region wise into North America, Europe, Asia Pacific, Latin America and Middle East and Africa. The market in Asia Pacific is estimated to observe a significant CAGR growth of 9.24% over the forecast period. This is owing to factors such as increasing urbanization taking place across many parts of the region and a huge capital expenditure being incurred in various countries in the region. Besides, the growth of the aviation and automobile sectors has helped in bringing investments from heat exchanger manufacturers to the region. Heavy industrialization has been taking place in China over the past decade, with various HVAC industries that use heat exchangers establishing their offices in the nation. Moreover, the increasing use of cooling equipment in commercial and residential sector is expected to raise the demand for heat exchangers in the coming years. The markets in countries such as Japan and Australia who have a functional and well-established transport system and a strong manufacturing sector are all anticipated to boost the growth prospects of heat exchangers over the forecast period. On the other hand, the market in Middle East and Africa is anticipated to register a significant growth in its revenue over the forecast period, owing to growing initiatives taken up by the governments in the region for developing the manufacturing industry and improvements in economic growth observed in many parts of the region. Further, it is a major region for the oil and gas market that involves high usage of heat exchangers, in addition to the presence of several market players in HVAC-R industry mainly in countries such as Saudi Arabia. Further, factors such as the initiation of new infrastructure projects and the increasing presence of a travel and tourism industry in the region and other factors are all anticipated to boost the growth of the market in the region over the next few years. CLICK TO DOWNLOAD FREE SAMPLE
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
The heat exchangers market is segmented on the basis of type into shell and tube heat exchangers, air cooled heat exchangers, plate and frame heat exchangers and others. Shell and tube heat exchangers is predicted to occupy the highest market share over the forecast period, owing to their wide usage across several regions for a variety of purposes. Moreover, the heat exchangers have the ability to handle fluids at higher temperatures including pressures. This is driving their need in several applications such as power generation, food and beverage, petrochemicals and others.
The market is further sub-segmented into stainless steel, carbon steel, aluminium, copper & others on the basis of material. Stainless steel is predicted to gain maximum share over the forecast period, as it weighs comparatively lighter and can provide resistance from corrosion over a diverse range of pH levels. Additionally, special fluids is not necessary, as stainless steel would be able to co-exist with water that is clean and plain without any difficulty.
By End-User Industry
The market is sub-divided into further segments on the basis of end-user industry into chemical, industrial gases, petrochemical and oil and gas, HVACR, food and beverages, pulp and paper, power generation and others. The chemical segment is predicted to register the largest market share, owing to greater adoption of heat exchangers in the chemical industry, which is mainly owing to factors such as their applications in various processes that involve heating, cooling, evaporation and others. Moreover, heat exchangers also possess the capacity to resist chemical reactions that can take place frequently. This helps in completion of important processes in a safe and effective way.
By Petrochemical and Oil and Gas Industry Applications
The market is further segmented on the basis of petrochemical and oil and gas industry applications into petrochemical processing, natural gas processing, natural gas transmission, LNG processing, bitumen production and others. The petrochemical processing segment is predicted to observe a significant market share over the forecast period.
Market Drivers and Challenges
Rising Levels of Urbanization and Rapid Growth of the Industrial Sector Across Various Regions
Heat exchangers have been witnessing tremendous growth in their applications over the past few decades, as a variety of sectors have been demanding this equipment for heating and cooling of base products, including intermediate and final products, apart from their use in heat recovery. This is anticipated to raise huge demand for heat exchangers in the chemical industry. In addition, heat exchangers are an efficient option for cooling of control panels as well as electrical enclosures. This is owing to their capacity to work in an effective way that can change the dynamics of production and packaging, in addition to decreasing the use of energy by managing electrical waste heat and also able to provide thermal management consistently. All these factors are predicted to drive the growth of the market in the next few years.
Rising Number of Initiatives to Lower Carbon Footprints Across the Globe
Carbon emissions had grown at a rapid pace over the past few decades, which has played a major role in affecting the environment adversely all over the world. It has become mandatory for nations to lower the emission levels in order to protect the environment from further degradation. The costs associated with meeting such targets are a major challenge, as it is expensive for industries to meet environmental norms and standards. The shift towards sustainable sources of energy is also driving the demand for adoption of heat exchangers. Pollution has become a major problem all over the world and in order to eliminate these problems to a larger extent, heat exchangers are anticipated to play a major role in reducing the impact on environment caused by industrial processes, as heat exchangers help in lowering consumption of energy that is helping drive the increase in demand for heat exchangers in the global market. Moreover, strict fuel economy norms laid out by governments have in turn given rise to the production of advanced thermal management systems. Alternate fuel vehicles have been introduced, with OEMs striving to improve fuel efficiency in their vehicles. Thermal management in vehicles can help improve the fuel economy of a vehicle by 2-5%. All these factors are predicted to drive the growth of the market over the next decade.
Some of the barriers faced by heat exchangers in the global market are the various costs that are involved that include capital, maintenance as well as operating costs. In addition to this, there is a general lack of awareness especially in the construction sector associated with energy efficiency improvements, which can restrict the demand for centralized heating, ventilation and air conditioning in various developing and underdeveloped nations and the higher possibilities of heat exchanger equipment becoming prone to hardware failure that may include any tube leaks and vibrations. This could in turn lead to deterioration in thermal performance and higher consumption of energy. All these factors may operate as major barriers to the growth of the market over the forecast period.
Some of the affluent industry leaders in the global heat exchangers market are Danfoss A/S, Radiant Heat Exchangers, Alfa Laval, Tranter, Chart Industries, Inc., P.T. Global Metal Engineering, Dynac SDN Bhd, Universal Solution Pte Limited, United Engineering Services, LLC and Safario Group of Companies. Moreover, many other small players have been operating in the market and are actively pursuing new strategies to stay ahead in the market.
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