Market Challenges And Opportunities

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 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.