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The global heat exchanger market size was USD 16.95 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with heat exchanger witnessing a slow growth across all regions amid the pandemic. Based on our analysis, the global market exhibited a growth of 3.4% in 2020. The market is projected to grow from USD 17.32 billion in 2021 to USD 28.30 billion in 2028 at a CAGR of 7.3% during the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
It is an equipment used to manage the operating temperature of a system and manage waste heat. The equipment operates with two fluids or gas and fluids combinations which are at different temperatures and heat levels. Generally, tubes or pipes are preferred for the heat transfer between the fluids or air wherein one runs through the pipes and the other runs above the pipes. These are used for various processes such as condensation, evaporation, chillers, vaporizers, and reboilers. These form an important part of the system in air-conditioning, refrigeration, chemical processing, power generation, and automotive applications.
After Initial Lull, Market to Pick Pace with Rising Demand
The global health emergency caused by the sudden spread of the novel coronavirus or COVID-19 pandemic has had a negative impact on every industry. Industries had to suffer a significant loss in operational time owing to the imposition of strict policies such as nationwide lockdown to curb the spread of the virus. Accordingly, the outbreak of the disease has altered the demand as every sector had put down operations. The production units for these exchangers were shut down across several regions owing to restrictions posed by governments. Also, the unavailability of workers has harmed the production even after some of the restrictions were lifted. But following the pandemic the demand is expected to have a positive growth rate with increased preference to complete district energy and renewable energy targets along with the need to suffice HVAC demand. For instance, the UK Government has announced its target of sufficing 17% of UK heating needs through district heating networks by 2030.
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Increasing Adoption of Renewable Resources for Power Generation to Favor Market
The increasing adoption of renewable energy resources, such as wind and solar, is one of the leading factors driving the demand, which will eventually benefit the global heat exchanger market growth. Increased energy demand in accordance with the need to reduce greenhouse gas (GHG) emissions, is expected to drive the installation of the device. These exchangers are an important component in wind turbines and are used to transfer solar energy absorbed in solar collectors to the liquid or air used to heat water or space. Furthermore, government targets for renewable energy are an additional boost to the market as this exchanger is an important part of the renewable energy systems. For instance, in 2019, Germany announced its target of producing 20GW energy by using offshore wind power by 2030.
Increasing Adoption Across Multiple Applications to Aid Growth
In the current scenario, these exchangers are majorly used in almost every industry to balance temperatures and continue production under constrained pressure and temperatures. With the expanding industrial spaces such as refineries, production units for various products, power generation units, food manufacturing industries, district heating systems, district cooling systems, and others the scope for deployment increases. This will certainly act as a boost to the market and will bring in huge investments from companies globally.
Ability to Improve Efficiency by Capturing Waste Heat to Drive the Market Growth
All of the industries operating around the globe produce waste heat which can be trapped and used again to utilize the high temperature and high energies. This equipment is equipped with the functionality to carry out the same and therefore are in high demand across every industry vertical. Their usage ultimately yields profits to the owner as it enhances the heat usage and reduces energy cost per unit. Further, the application industries such as power plants, food and beverages industry are expanding at a healthy rate, boosting investments for such exchangers.
Rapid Growth of Industrial Sector Across Globe to Drive the Market
Heat exchangers are installed across various industries for varied applications. For example, in food and beverages industry, these are used for pasteurization and in oil and gas and power sectors, these are used for heat recovery. Apart from above usages, these are mainly used as cooling equipment across industrial sector. Coolants run through these exchangers to manage the operating temperature of the whole system. The application scope is expanding along with expansion of all above mentioned industries owing to hiked power demand and energy requirements. Owing to all the above mentioned factors, the global demand for this exchanger will rise during the forecast period.
High Maintenance Cost to Hamper Market Growth
One of the key market restraints for the market is the frequent scaling and corrosion of the devices accompanied by difficult cleaning of tubes. As this equipment have to deal with various kinds of chemicals and water types the corrosion of the internal parts is the major concern and difficulty in maintenance and replacement of any parts further adds up to the losses. These factors can hamper the growth of the market.
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Preference to Shell and Tube Heat Exchanger Over Other Types Will Drive Its Growth
Based on type, the market is segmented into shell & tube, plate & frame, air coolers, cooling towers, and others. Amongst the various types, the shell and tube heat exchanger is the most preferred across maximum application sectors. The operational characteristics such as the ability to operate at higher temperatures and pressures, easy pressure tests which help in locating any faults, very good resistance to thermal shocks, less pressure drop as compared to other types are the main factors that have driven their adoption. Plate heat exchangers are also highly deployed for cooling towers, boilers, and the food and beverages industry. Cooling towers still form an integral part of the large production units such as steel plants. With rising temperature variation across regions, air coolers are also expected to witness an increase in their adoption during the forecast period.
Chemicals Segment to Dominate the Market
Based on application the market is segmented into chemicals, oil & gas, power generation, HVAC, automobile, pharmaceuticals, food & beverages, and others. The chemical industry has been the front runner in the deployment of heat exchanger as different chemicals used for different applications are manufactured at varying temperature conditions. These chemicals also require treatment at particular temperatures and humidity, which is an important part of a chemical formation. Apart from this, the oil and gas sector and power sector have also witnessed expansion with rising energy demand and therefore hold healthy growth opportunities. The HVAC industry in recent years has gained pace with rising installations at commercial and residential sectors which have ultimately driven the market growth. Similarly, the expansion of the food and beverages industry and automobile industry with rising food production and vehicle demand will open doors for this market.
Asia Pacific Heat Exchanger Market Size, 2020 (USD Billion)
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The world is witnessing superior growth in an application field that include chemical, pharmaceutical, oil & gas, power generation, power plants, automobile, food & beverages, etc. Process heating supplies thermal energy to transform materials like metal, glass, rubber, ceramics, and biomass into a variety of industrial consumer products. These are extensively used in these industries to optimize energy utilization by recovering waste heat.
Asia-Pacific stood at USD 5.67 billion in 2020 and is expected to dominate the global market in the forthcoming years. The dominance is due to rapid urbanization, rising capital expenditure, tremendous demand for products from consumers. Emerging economies such as China, India, Japan, are expected to play a major role in market growth as urban population rises with rising standard of living which will bolster the demand.
Europe is expected to experience considerable growth in the forthcoming years. This is due to its stringent environmental protection policies of European commission which state that 20% improvement in energy efficiency and 20% cut in greenhouse gas emissions is majorly focused. Thus, many European countries are adopting energy-efficient devices to arrest global warming. Also, the region is one of the largest markets for district heating in which an ample amount of waste heat is utilized to provide sustainable energy. Moreover, the presence of several automotive companies and processing industries is augmenting the demand for the product in the region.
North America is home to many established companies in the world operating in oil and gas, information and communication technology, HVAC, automobile, aviation, and aerospace, etc. High investment in technological advancements will improve working efficiencies leading to reduced energy consumption. Heat exchanger is certainly playing a key role in augmenting the performance of the system and assisting in mitigating the rising carbon emissions. The rising offshore investment, along with improving refining capacities, will drive the growth in Latin America.
In the Middle East and Africa, Gulf countries are driving the demand for devices. District cooling is widely used in UAE, Saudi Arabia, Qatar, Bahrain, etc. to soothe out the extreme heat and provide comfortable air conditioning. In the forthcoming years, Gulf countries are expected to double the installed capacity of the district energy that will contribute to the growth of the market in the forthcoming years.
Alfa Laval to Remain at Forefront with its Wide Product Offerings and Established Brand Name
As per the recently published report by Alfa Level, the company is estimated to have more than 1/4th of the share in the global market. In its industrial line, the company has numerous plate-and-frame types which can be deployed across all types of industries. The company also offers numerous options in of sizes, plate and gasket materials. The market has several small and big companies operating at regional and country level. Furthermore, the present players are aiming towards optimizing device efficiency with heavy investments in research and development. Moreover, the companies are aiming to capture a significant share in a particular region which will enhance their capability to have a bigger footprint on the global market.
An Infographic Representation of Heat Exchangers Market
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The heat exchanger market research report highlights leading regions across the world, to offer a better understanding of the user. Furthermore, the market analysis report provides insights into the latest market trends and technologies that are being deployed at a rapid pace at a global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the industry.
Value (USD Billion)
Fortune Business Insights says that the global market size was USD 16.95 billion in 2020 and is projected to reach USD 28.30 billion by 2028.
In 2020, Asia Pacific stood at USD 5.67 billion.
The market is likely to grow at a CAGR of 7.3%, exhibiting substantial growth during the forecast period (2021-2028).
The shell & tube segment is anticipated to dominate this market during the forecast period.
The growing demand for sustainable energy development to mitigate the rising GHG emission and extensive utilization of energy-efficient devices is projected to augment the growth of the market.
Alfa Laval and Kelvion holdings are some of the key players operating in the market.
Asia Pacific dominated the market in terms of share in 2020.
There are several process industries worldwide in which an extensive amount of waste heat is generated. These devices are employed to utilize waste heat for process optimization and to reduce the operational cost of the plant.
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