Heat exchangers are devices that permit the transfer of heat and/or energy between two or more fluids. These devices are used depending on the desired type and the applications. Heat exchangers are essential components in steam power plants, chemical processing plants, air conditioning systems, transportation systems, and many more.
The Heat Exchanger Market was estimated at USD 16.48 billion in the year 2020, and is expected to reach USD 25.35 billion by 2027. The market is growing with a CAGR of 6.3%, in the forecast period (2017-2027).
Demand from Oil & Gas Industry:
Heat exchangers are preferred in the oil & gas industry. With the rising exploration and production activities in the Middle East, North America, and European regions, the demand for heat exchangers will also increase. Additionally, large investments by global governments and the private sector to increase the extraction of crude oil may positively impact the market. Therefore, the oil & gas industry will be a major contributor to the growth of the heat exchanger market.
Demand from the Automotive sector:
Heat exchangers are widely used in the automotive sector for various systems such as air conditioning systems, exhaust gas recirculation, radiators, and more. As the automotive market is expected to witness an upsurge in the coming years, the demand for heat exchangers will grow linearly.
The upsurge in the number of Power Generation projects:
In 2019, Japan announced the development of 22 coal-fired projects at 17 different locations. Since coal plants use heat exchangers, this project is anticipated to drive the demand for the heat exchanger market. Also, the second phase of the Shandong Shenglu Coal-fired Power plant, which will produce 4000 MW of energy, was launched in 2020. This will create numerous opportunities for market growth.
Complexity in design:
Heat exchangers that have a complex design such as the tubular type have problems such as scaling, corrosion, cleaning and maintenance. This may give rise to looking for alternatives that eliminate these issues.
Based on product type, the heat exchanger market is segmented into Shell & Tube, Plate & Frame, Air Cooled and Others. The shell and tube segment garnered over 35% of the market in terms of revenue in 2019. The segment’s dominance is a result of the soaring demand from the chemical, oil & gas, and power generation sectors.
The plate segment is projected to register a high growth rate due to the rising use of refrigerant evaporators, economizers, oil coolers, in-floor heaters, etc. Shift from the existing technology with new ones is a major challenge for the segment.
The air-cooled segment may witness a growth rate of nearly 6% from 2020 to 2026 due to the increasing adoption of these heat exchangers in the automobile, HVAC, and construction industries.
The heat exchanger market is bifurcated into the following materials – Carbon steel, Stainless steel, Nickel, and Others. Characteristics such as corrosion resistance, light-weight, high thermal conductivity, and more have made stainless steel the preferred choice. However, since the material is expensive, it is generally preferred for applications used for the long-term.
The chemical industry-led the heat exchanger market in 2019 and is anticipated to register a growth rate of nearly 6.5% over the forecast period. The significant growth of the chemical sector in the Asia – Pacific region is a major contributor to the segment’s dominance. Moreover, the widespread suitability of heat exchangers in various circuits has driven the market in the chemical industry.
The HVAC and refrigeration industries use heat exchangers for various purposes such as cooling, heating, and ventilating especially for residential and commercial use. As a result, HVAC and refrigeration are projected to emerge as the fastest-growing end-use segment.
Europe captured more than 30% of the heat exchanger market in 2019. It is estimated to register a growth rate of more than 4% over the forecast period owing to the increasing trend of basic chemical consumption in Germany, France, Italy and the U.K. The upsurge in expenditure on the HVAC industry will further fuel the market.
The growth of the heat exchanger market in the Asia – Pacific region is linearly proportional to the growth in construction activities along with the growth of the chemical and power generation industries. The rising need for energy will further boost the market in the region. The region is anticipated to register the fastest growth.
North America, owing to the increasing E&P activities and the rising need for energy for industrial applications, may witness a growth rate of nearly 5%. Events such as the Dubai Expo 2020 and the 2022 FIFA World cup in Qatar coupled with the concentrated solar projects in South Africa, Egypt and Morocco are expected to drive the heat exchanger market in the Middle East and African region.
The key players operating in the market are:
The research report analyses the ecosystem of heat exchanger market and categorizes it to forecast the revenues and analyse the trends in each of the following below mentioned market segments.
Recent Developments In Heat Exchanger Market
By Process Type
By Material Type
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.