Heat Exchanger Market Size, Share & COVID-19 Impact Analysis, By Type (Shell & Tube, Plate & Frame, Air Coolers, Cooling Towers, Others), By Application (Chemicals, Oil & Gas, Power Generation, HVAC, Automobile, Pharmaceuticals, Food & Beverages, Others), and Regional Forecast, 2022-2029

The global heat exchanger market size was valued at USD 15.94 billion in 2021. The market is projected to grow from USD 16.64 billion in 2022 to USD 27.55 billion by 2029, exhibiting a CAGR of 7.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with heat exchanger experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -5.3% in 2020 as compared to 2019.

The global market is growing owing to the rise in HVAC installation and other industrial activities. Rising renewable resources for power generation and adoption of heat exchangers across various applications will support the growth.

A heat exchanger is used to recover the wastewater heat and manage a system's operating temperature. The equipment works with two fluids or gas and fluid combinations at different temperatures and heat levels. Generally, tubes or pipes are the preferred types of heat transfer between fluids or air. 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 are essential parts of air-conditioning, refrigeration, chemical processing, power generation, and automotive applications.

COVID-19 IMPACT

Manufacturing Delays and Supply Chain Disruptions Hindered the Product Demand

The COVID-19 pandemic posed a threat to this industry. The drastic action taken to reduce the spread of the virus has created challenges in working conditions for many sectors. 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 disease outbreak has altered the demand for products as every sector has put down operations. The production units for these exchangers were shut down across several regions owing to government restrictions. Also, the unavailability of workers has harmed production even after some of the regulations were lifted. Following the pandemic, the market is expected to have a positive impact with increased preference for total district energy and renewable energy targets and the need to satisfy HVAC demand. For instance, the U.K. government has announced its target of sufficing 17% of U.K. heating needs through district heating networks by 2030.

LATEST TRENDS

Rising Focus on Decarbonization in the Cooling & Heating Sector to Propel Market Growth

Approximately 28% of global carbon dioxide (CO2) comes from building operations due to the energy used for cooling, heating, and power, a statement provided by the World Green Building Council (WGBC). The evolving modern and affordable thermal energy system is one of the most efficient solutions for reducing greenhouse gas (GHG) emissions and primary energy demand. A transition to such systems combined with energy efficiency measures can extensively mitigate CO2 emissions required to keep temperatures rising to 2-3˚C.

A heat exchanger allows for a transition from fossil fuel, significantly reducing primary energy consumption. The deployment of such systems reduces fossil fuel consumption, eventually mitigating the rising pollution threat. It is one of the established technologies to provide chilled water through an integrated system for comfort cooling in commercial spaces, education institutes, hospitals, industries, and several other applications. Cold thermal energy storage is as efficient as traditional decentralized air conditioning systems and it will help in reducing the usage of electricity during peak demand through reduced power consumption.

Growing Renewable Resources for Power Generation and Increasing Adoption across Various Applications to Aid Growth

Fossil fuels are considered the most significant fuel sources for electricity production. According to the Energy Information Administration (EIA), in the U.S., approximately 38% of natural gas was used for electricity generation in 2022, and natural gas was the source of around 33% of the U.S. electric power sector's primary energy consumption.

Moreover, about 513 million short tons (MMst) of coal was consumed in the U.S., which was equal to about 9.8% of total U.S. energy consumption in 2022 and the electric power sector held the majority of U.S. coal consumption since 1961. These fossil fuels produce GHG emissions to the environment. Therefore, the adoption of renewable resources, such as wind and solar, is growing for power generation, which is one of the leading factors that will eventually benefit the adoption product. Rising energy demand following the need to reduce greenhouse gas emissions will drive the installation of devices. Heat exchangers play a crucial role in wind turbines and transfer solar energy absorbed in solar collectors to the liquid or air used to heat water or space. In addition, the government is also targeting renewable energy installation as an additional booster to the market. For instance, Germany announced its target of producing 20 GW of energy using offshore wind power by 2030. Further, these products are primarily used in almost all industrial applications to balance temperature and continue production under constrained pressure and temperatures. The expanding industrial phases, such as refineries, production units for various products, power generation products, and district heating and cooling systems, will boost the market.

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DRIVING FACTORS

Technological Advancements Coupled with Extensive Economic Growth to Drive the Market

The growing integration of the current product line with advanced and next-generation network-based solutions for better fault detection and smooth operations will provide new potential to the industry outlook. The technology breakthroughs help monitor and diagnose problems in real-time and deliver multiple productivity benefits. Various key players of this industry are also performing research & development activities, including leading technologies, such as the Industrial Internet of Things (IIoT), to this industry. This extension can widely help reduce downtime, energy consumption, wear & tear, and efficient machine optimization and predictive maintenance of the systems.

Another technological advancement for heat exchangers is renewable energy, which is seeing rapid development in biofuel technology. For instance, there are more than 204 active biofuel projects in North America valued at over $35 billion alone, with other projects under progress for the forecast period. Given the essential role of Heat exchangers in the prevention of greenhouse gas emissions and the reduction of the overall environmental impact of industrial processes, investors believe that this is an exciting industry and that there is real potential in the trends that are driving future growth.

The global economy has attained new heights in the last couple of decades due to population explosion, rising income, and buyer’s power. The extensive growth in the economy results in growing business across the world, followed by increasing commercialization. With increasing trade and commerce, the rising demand for comfort cooling and heating is also growing, providing positive growth to the market.

Rapid Growth of the Industrial Sector in Emerging Economies to Support Market Growth

Heat exchangers are critical components for various industries. For instance, in the food and beverages industry, the equipment is installed for pasteurization, and in the oil & gas and power sectors, it is used to recover heat. Apart from earlier usage, these are majorly used as cooling equipment across the industrial sector. Coolants run through these exchangers to manage the operating temperature of the whole system. The growing oil & gas application scope for the product is expanding with the development of all the industries mentioned above, owing to hiked power demand and energy requirements. Due to the above factors, the global market will rise during the forecast period.

For instance, in January 2022, China's industrial production has grown 7.5%, as the market is recovering from the COVID-19 pandemic. The Made in China 2025 plan, which the Chinese government initiated, aims toward transforming a low manufacturing country to a high-end manufacturing country. Additionally, according to IEA’s latest report on Energy Efficiency 2022, Global investments in energy efficiency, such as building renovations, infrastructure, public transport and electric car infrastructure, has reached USD 560 billion in 2022, with a 16% increase compared to 2021.

RESTRAINING FACTORS

Installation, Operational, and Maintenance Overheads to Hinder Market Growth

Heat exchangers are suitable for ample commercial space, industrial, hospitals, educational institutes, and others. These systems are not feasible for smaller capacities, especially residential, as economies of scale are difficult to overcome. Market barriers to more significant deployment remain, encompassing a lack of awareness about technology applications, multiple benefits, and savings, especially in Africa and Latin America. High initial investment requires installation, which is one of the most significant restraints of the market. However, the manufacturing cost of these products will decrease as technology advances.

Modern plate heat exchangers use pressed plates, which are less expensive than the welded plates used on previous models. Pressed plates are also more resistant to corrosion and chemical reactions that weaken the product and require frequent replacement. System leaks and pressure drops are two potential disadvantages of the product type. Leaks in the heat transfer process are difficult to prevent and repair. Many exchangers have to be dismantled entirely to fix a leak. Likewise, a pressure drop across a plate heat exchanger requires each plate to be checked for faults. These processes require high operation and maintenance costs, which are anticipated to hinder the market growth.

SEGMENTATION

By Type Analysis

Shell & Tube Segment to Dominate Owing to Rising Preference for Shell and Tube over Other Types 

The market is segmented into shell & tube, plate & frame, air coolers, cooling towers, and others. The shell & tube segment is most preferred across maximum application sectors. Their characteristics of managing fluids at high temperature and pressure make them suitable for various applications such as chemical plants, petrochemical, oil & gas, and power sectors. Plate these exchangers are also highly deployed and widely adopted in the food industry as they have multiple plates inside the frame, reducing or eliminating microbial, thereby making the product safe for consumption.

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By Application Analysis

Chemicals Segment to Dominate the Market Owing to Growth of the Chemical Manufacturing Industry in Asia Pacific

Based on application, the market is segmented into chemicals, oil & gas, power generation, HVAC, automobile, pharmaceuticals, food & beverages, and others. The chemicals segment led the market, owing to significant growth in chemical industries. These products used in the chemical industry during the manufacturing process include solvent condensation, hydrocarbons cooling, and reactor heating and cooling. Apart from this, in the oil and gas sector, they are widely used in cracking units and natural gas liquefaction during the refining process. The HVAC industry has also gained momentum in recent years with rising installations in commercial and residential sectors, thereby driving the market. These products assist in cooling and heating homes and buildings and improving the efficiency of machines and engines. Furthermore, the growing automotive and food & beverage industry is also propelling the growth of these types of products.

REGIONAL INSIGHTS

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Asia Pacific accounted for the largest heat exchanger market share. The region has emerging economies, such as China, India, and Japan, which are expected to witness a major role in market growth due to rising population, rising capital expenditure, ever-increasing urbanization, and growing living standards. Furthermore, the expansion of chemical industries in the region is a key factor driving the market.

Europe is expected to experience substantial growth in the forthcoming years. The region has established manufacturing, industrial, and automotive sectors. The region aims toward zero-emission regulations for residential and commercial buildings, and focusing on less carbon-intensive processes, thereby driving the market growth. In addition, the European government's stringent e environmental protection policies state that a 20% improvement in energy efficiency and a 20% cut in greenhouse gas emissions are majorly focused. Thus, many European countries are adopting energy-efficient devices to arrest global warming.

In North America, the U.S. and Canada hold a potential market. The growing adoption of light vehicles and hybrid vehicles in the region has boosted the automobile sector, creating a massive opportunity for heat exchangers. Furthermore, the area is the hub for many established companies operating in oil and gas, HVAC, automobile aviation, aerospace, and others. The rising investment in the oil and gas industry, especially offshore investment, and improving refining capacities will drive the market in the Latin America region.

In the Middle East & Africa, Gulf countries are witnessing a surge in demand for such devices. District cooling is widely used in the UAE, Saudi Arabia, Qatar, Bahrain, and others for extreme heat relief and to provide comfortable air conditioning. In the forthcoming years, Gulf countries are expected to double the installed capacity of the district energy, which will contribute to the heat exchanger market growth in the coming years.

KEY INDUSTRY PLAYERS

Alfa Laval Offers a Wide Range of Products to Enhance its Brand Name

Alfa Laval has a broad range of heat exchangers used across all industries. Over the last 90 years, the company has been developing plate heat exchangers technology. The market has several small and big corporations operating at regional and country levels, providing the product of different sizes and shapes. In addition, significant corporations aim to optimize device efficiency with heavy investments in research and development. Moreover, the companies aim to capture a substantial share in a particular region, enhancing their capability to have a bigger footprint on the global market.

LIST OF KEY COMPANIES PROFILED:

• Alfa Laval (Sweden)


• Kelvion Holding Gmbh (Germany)


• GEA Group (Germany)


• Danfoss (Denmark)


• SWEP International AB (Sweden)


• Thermax Limited (India)


• API Heat Transfer (U.S.)


• Tranter, Inc. (U.S.)


• Mersen (France)


• Linde Engineering (U.K.)


• Air Products (U.S.)


• HISAKA WORKS, LTD. (Thailand)

KEY INDUSTRY DEVELOPMENTS:

• March 2022 - Alfa Laval, a leader in crucial heat transfer technology, separation, and fluid handling, launched a gasket plate heat exchanger promising to impact many applications. The TS45 is the world’s most modern exchanger, providing flexibility and performance.


• March 2022 - Vacuum Process Engineering (VPE), a thermal engineering and manufacturing company, has been awarded a contract by General Electric to manufacture a 14 MW fuel gas performance Printed Circuit Heat Exchanger (PCHE). It will be part of GE advanced 7HA.02 gas turbine technology, which will provide approximately 500 MW to the South Korean national grid, as well as steam for district heating for over 100,000 citizens of South Korea.


• January 2022 - SWEP International AB has introduced an FTW250AS Brazed Plate Heat Exchanger (BPHE), the first BPHE based on the company’s novel hypertwain technology. The BPHE will be used in reversible chillers and heat pumps. Hypertwain features an integrated Suction Gas Heat Exchanger (iSGHX) that improves the evaporator performance.


• May 2021 - Alfa Laval has developed a fully stainless steel AlfaNovaTW 66 heat exchanger, creating new possibilities for domestic and safer tap water systems with high capacities. The AlfaNovaTW optimizes specifically to provide safe and reliable performance in tap water duties.


• April 2021 – The Danfoss Group, a Danish multinational company, introduced a microchannel heat exchanger, which is the first in the world and has a novel optimized version that can be used for low-GWP and low-density refrigerants. It will provide a proper balance between internal refrigerant pressure drop and maximum heat rejection.

REPORT COVERAGE

The global heat exchanger market research report highlights leading regions worldwide to better understanding to the user. Furthermore, the research report provides insights into the latest industry trends and analyzes technologies being deployed at a rapid pace globally. It further highlights some growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the industry.

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Report Scope & Segmentation