HEAT EXCHANGER MARKET ANALYSIS

The global heat exchanger market size was valued at USD 17,927.70 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.14% from 2023 to 2030. This is primarily driven by the growing utilization of heat exchangers for regulating indoor temperatures in residential and commercial buildings, as well as to condense, heat, and cool fluids in chemical & pharmaceutical industries. The market is also anticipated to benefit from the growing integration of HVAC systems in buildings for reducing energy consumption and pollution.

Global Heat Exchanger Market: Regional Insights

North America is expected to witness strong growth in the global heat exchanger market during the forecast period. This can be attributed to high demand for heat exchangers driven by rise in adoption of the product in major application sectors including oil & gas, chemical and petrochemical, and power generation. Moreover, due to the industrial dynamics and commodity abundance of the countries in the region, North America has strongest and largest economy. Thus, these factors are in tern expected to support growth of the region in the global heat exchanger market during the forecast period.

Asia Pacific is also expected to show significant growth in the global heat exchanger market over the forecast period, owing to increasing investment in chemical, HVAC, and petrochemical sector in China and India. Along with this increasing Petroleum, Chemicals, and Petrochemical Investment Regions (PCPIRs) projects in India are increasing, which in turn is supporting expansion of the aforementioned sectors. Thus, the demand for heat exchangers is likely to increase in this regions, which is expected to boost growth of the market.

Figure 1. Global Heat Exchanger Market Share (%), By Region

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Global Heat Exchanger Market Drivers:

Growing chemical and petrochemical industries to boost the market growth

Chemical & petrochemical industries around the world are witnessing strong growth due to expansion of domestic end-use industries. The rise in chemical demand from different end-use applications is leading increasing capital investment in chemical industry. Heat exchangers are used in chemical production process for cooling, heating, and mixing of substances. The chemical industry is rapidly expanding, which is likely to drive the demand for heat exchangers in the near future. For instance, as per the American Chemical Society, the U.S. showed 2.5% and 3% growth in the 2019 and 2020 respectively in the chemical industry. Thus, this factor is expected to boost growth of the global heat exchanger market during the forecast period.

Increasing growth of power generation industry around the world to augment the market growth

Countries such as the U.S., Russia, China, and Japan are major markets for power. These markets are focused on restructuring the operating models for adapting the structure of the renewable energy and efficient use of energy, as they install heat exchangers. Thus, there is a major shift from conventional energy usage. This in turn is expected to create demand for heat exchangers in the near future. Heat exchangers are important part of power generation plants and units, as it is needed to evaporate working fluids, condense working fluid, extract heat, and re-cool the cooling circuits, cooling of lube-oil, and to cool motor cooling water. Heat exchangers are effective, low cost, and efficient means of transferring heat. Thus, growth of power generation industry is expected to drive demand for heat exchangers, which is anticipated to augment growth of the market over the forecast period.

Global Heat Exchanger Market Opportunities:

Increasing industrialization is expected to offer growth opportunities in the global heat exchanger market during the forecast period. Asia Pacific is witnessing rapid urbanization, and along with it the investment in industrial, commercial, and manufacturing projects are increasing in the countries across this region. Due to the penetration of multiple end-use industries including petrochemicals, power generation, chemicals, HVAC & refrigeration, and food and beverage industry. This in turn is generating demand for heat exchangers. Thus, the market is likely to witness significant business opportunities in the coming future.

Rise in number of new nuclear power plant projects is also anticipated to generate growth opportunities in the global heat exchange market during the forecast period. The increasing number of nuclear power facilities will create strong demand for heat exchangers, as they majorly impact the overall effectiveness as well as power production of a nuclear power station. The expansion of heat exchanger utilized in nuclear reactors and upgradation of plants, along with proposals for new nuclear power plants are major growth prospects for the market players. Thus, this in turn will provide market players with multiple business opportunities in the global heat exchanger market.

Global Heat Exchanger Market Trends:

Increasing focus on decarbonization in the cooling & heating sector is a major trend

According to the World Green Building Council (WGBC), nearly 28% of the global CO2 emission come from construction operation, owing to the use of energy for heating, cooling, and power. To reduce this greenhouse gas emission, and demand for energy, one of the most efficient solutions is the evolving modern and low cost thermal energy system. Transitioning to such systems with energy efficiency measures can mitigate carbon dioxide emission need for keeping the temperatures increasing to 2-3 degree Celsius. The use of heat exchanger offers a transition from fossil fuel, as it reduces primary consumption of energy significantly. Thus, the demand for heat exchanger is expected to increase due to rise in focus on decarbonization in cooling and heating sector.

Increasing renewable resources for power generation and growing adoption in several applications is a growing trend

Fossil fuels are majorly used for production of electricity. As per the Energy Information Administration (EIA), in the U.S. the electricity generation process used nearly 40% natural gas in 2020m while the coal was used for nearly 19% of the electricity production in the country. Due to the GHG emission, adoption of renewable resources such as solar and wind is increasing in power generation sector. This in turn is boost the adoption of heat exchanger. And this trend is expected to continue in the global heat exchanger market during the forecast period.

Global Heat Exchanger Market Restraints:

Regulations that control use of fluorinate greenhouse gas in heat exchangers to impede the market growth

Fluorinated gases (F-gases) are man-made gases that are more toxic than carbon dioxide. These gases include perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), and sulfur hexafluoride (SF6). These gases are used as substitutes to substance that are ozone-depleting, as they do not cause any harm to the ozone layer. However, these gases compared to CO2 have nearly 23,000 higher effects of global warming. Thus, governments around the world have implemented regulations regarding use of fluorinated greenhouse gases in heat exchangers, which is expected to hinder growth of the global heat exchanger market during the forecast period. However, as market players are focusing on innovation of new and more environmentally-friendly products, the market is likely to witness growth in the near future.

Fluctuating prices of raw material to obstruct the market growth

Manufacturers of heat exchangers face challenges occurring due to fluctuations in cost of raw materials such as steel, aluminum, copper, and other metals. This volatility of raw material cost depends upon factors such as exchange rates, economic conditions, supply conditions that adversely impact manufacturing processes. Due to the price fluctuation, large capital projects are delayed or cancelled. Thus, this factor is expected to hinder growth of the global heat exchanger market during the forecast period.

Figure 2. Global Heat Exchanger Market (%), By Segment Type

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Global Heat Exchanger Market Segmentation:

The global heat exchanger market report is segmented into Product Type and End-Use.

Based on Product Type, the market is segmented into Plate & Frame, Shell & Tube, Air-cooled Others. Out of which, Plate & Frame is expected to dominate the global market over the forecast period and this is attributed to the growing demand for plate and frame heat exchangers. These heat exchangers are utilized mostly in general food manufacturing, beverage, dairy, and pharmaceutical industries due to their ease of cleaning and thermal control for sterilization/pasteurization. Thus, demand for these heat exchangers is increasing, which is driving growth of the market

Shell & Tube segment is also expected to witness significant growth in the near future and this is owing to the rise in adoption of shell & tube heat exchangers. These devices use downflow of feed gas through the tube, and can be used for feed gas cooling. This type of heat exchanger comprises and involves a cylinder carrying one fluid, while a smaller cylinder carries another fluid. Due to benefits of shell & tube heat exchangers, their adoption is increasing, which is likely to drive growth of this segment in the coming future.

Based on End-Use, the market is segmented into Chemical & Petrochemical, Oil & Gas, HVAC & refrigeration, Power Generation, Food & Beverage, Pulp & Paper, and Others. Out of which, Chemical & Petrochemical is expected to dominate the global market over the forecast period and this is attributed to the qualities of heat exchangers such as flexibility in design and high resilience to corrosion leading to high demand in chemical and petrochemical applications. Due to these qualities, heat exchanger can control fluids having varying amounts of solid material. Moreover, the increasing need for polymers, textiles, medical equipment, and computer equipment, and packaging is likely to drive the demand for heat exchangers in petrochemical sector.

Oil & Gas segment is also expected to witness significant growth in the near future and this is owing to the rising demand for heat exchangers due to increasing use of shale gas in energy and manufacturing sectors. The number of shale gas exploration operations is increasing due to technological developments in exploration. Thus, demand for heat exchangers is increasing in this sector, which is expected to drive growth of the segment.

Global Heat Exchanger Market: Key Developments

In December 2020, Danfoss introduced a novel series of micro plate heat exchangers that offers various benefits from its efficient Z-design technology to heat pump and chillers manufacturers, and addresses refrigerant and design changes.

In September 2021, Kelvion, global manufacturer of heat exchangers, had invested US$ 3.7 Mn for the production facility in United States. This investment was done to meet the growing demand for heat exchangers in the data center and refrigeration industries in North America.

In January 2021, Boyd Corporation, global provider of integrated thermal management and engineered material solutions, has expanded its global footprint in Mexico with a newly built facility. The expansion will provide additional capacity to manufacture Boyd’s highly complex liquid cooling systems, liquid cold plates and advanced rotary die cutting capabilities in Mexico.

Global Heat Exchanger Market: Key Companies Insights

The global heat exchanger market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global heat exchanger market are WCR, Inc., Alfa Laval, Manning and Lewis, Danfoss, Universal Coils and Heat Exchangers Industries Co. Ltd., Kelvion Holdings, Güntner Group GmbH, DFC Pressure Vessel Manufacturer Co., Ltd., Xylem, AIC Inc., API Heat Transfer, Aqua Systems, Inc., Mersen, Southern Heat Exchanger, Hisaka Works, Koch Heat Transfer Company, Chart Industries, Inc., Apparantebau GmbH,  Johnson Controls International, Funke Wärmeaustauscher, HRS Heat Exchangers Ltd., and SPX flow, Inc.

*Definition: Heat exchangers are used in a variety of processes to transfer heat from one medium (gas, liquid, or combination of both) to another. They are found in the space heating, refrigeration and air conditioning, power plants, chemical, petrochemical, petroleum refineries, natural-gas processing and sewage treatment industries.