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Global heat exchanger sector is expected to grow significantly

Global heat exchanger sector is expected to grow significantly



Heat exchanger sector to grow 8pc

The global heat exchanger sector is expected to grow significantly owing to its tremendous use in various industries including chemical and petrochemical

June 2018

The market size of heat exchangers is estimated to grow from $13.89 billion in 2017 to $20.65 billion by 2022, growing at a CAGR of 8.3 per cent by 2022, said a new report.

The market is driven by the rising heating ventilation air conditioning and refrigeration (HVACR) deployments, increasing power generation capacities, and rise in technological advances in heat exchangers. Asia Pacific and Middle East and Africa are estimated to witness strong growth in the next five years.

The demand across these regions is reinforced by the emerging markets, namely, China, India, and Saudi Arabia, said a new report “Heat Exchangers Market by Type (Shell & Tube, Plate & Frame, Air Cooled), Application (Chemical, Petrochemical and Oil & Gas, HVACR, Food & Beverage, Power Generation, Paper & pulp), and Region – Global Forecast to 2022”.

The global heat exchanger sector is expected to grow significantly owing to its tremendous use in various industries including chemical and petrochemical. These products are used to transfer heat from one medium to another. The media may be separated by a wall to prevent mixing of media which may harm the final product.

The product is largely used in power plants, chemical plants, natural gas processing, sewage treatment, and petroleum refineries. They can be used in aircraft applications as they improve fuel efficiency by removing heat from engine. Advanced technologies and government regulations have contributed to growth. Innovations in the product properties, such as corrosion resistance, are expected to positively impact demand over forecast period.

Rising energy and power need on account of increasing population and economic growth over the past few years is expected to open new opportunities for the product. Increasing use of the product in the shipbuilding sector is expected to positively impact demand over the next seven years.

Increasing applications of HVAC equipment in emerging economies including China and India is expected to significantly contribute to the demand over the forecast period. Rising product use in the manufacturing of energy saving devices is expected to fuel its need over the forecast period.

Increasing application scope in petroleum refinery industries in Middle East, Asia Pacific, and Latin America are expected to propel demand for heat exchanger as it aids in maintaining temperatures in oil refinery reactors. Technological development of the product by manufacturers in China and India is expected to contribute to demand.

 

SHELL & TUBE LARGEST TYPE

The market can be segmented based on their material of construction, temperature range, and type of fluids used. Shell and tube type is mainly used in marine and harsh applications while plate type is used in low temperature such as natural gas, helium, and oxygen liquefaction plants and transport industries. Tremendous application scope of plate types the food & beverage, petroleum & chemical processing and hydrocarbon processing is expected to propel the growth over the forecast period.

Shell and tube heat exchangers are the most common types of heat exchangers used globally. They are extensively used as power condensers, preheaters, oil coolers, and steam generators. They offer a relatively large ratio of heat transfer area to volume, weight, and other additional advantages making them the most commonly used heat exchanger across all industries. Increased government investments on commercial building and construction projects are driving the demand for HVACR equipment which in turn drives the demand for shell and tube heat exchangers, globally.

 

CHEMICAL DOMINATES

The chemical segment dominated the heat exchangers market having accounted for the largest share. Heat exchangers have been successfully employed for years in the chemical industry for applications such as the heating and cooling of base, intermediate, and final products. With growing demand for chemicals in the emerging economies, the market for heat exchangers is further expected to rise during this period.

 

EUROPE LEADS

Europe has been a leader for heat exchangers with respect to demand as well as production capacity. This region has the presence of most of the global leaders in heat exchanger manufacturing. It has a relatively slow growth rate as a result of its dominant market size and slow economic activity as compared to the other regions. The demand in this region is boosted mainly due to the increased replacement demand for the heat exchangers.

Europe was the largest market for the product on account of increasing production capacity. It is expected to witness significant growth owing to its application in light automobiles and motorsports. Rise in the automobile sector is expected to have a positive impact on the industry.

Asia Pacific dominated the market in past few years and is expected to grow owing to increasing government spending on infrastructure development and rising exploration activities in the oil and gas sector. Increasing need from chemicals and hydrocarbons sector will propel growth over the forecast period.

Numerous emerging manufacturers from Eastern Europe are expected to reduce import dependence on various countries which is further expected to propel demand. However, Europe growth is relatively sluggish as compared to Asia Pacific on account of slow economic activity. In addition, advancements in technologies in Asian countries will be a key driver for demand over the forecast period.

Rising environmental concerns regarding use of non-renewable energy resources are expected to further elevate market growth in countries including the US, Germany, the Netherlands, and Japan. Tremendous rise in the renewable energy sector over the past few years is expected to augment heat exchanger industry owing to various ongoing projects for improving power generation capacity.

Most active market players in the market are: Alfa Laval AB, Danfoss, Kelvion Holdings, SPX Corp, Xylem, API Heat Transfer, Gunter AG & Co, Hamon & Cie International, Hindustan Dorr-Oliver Limited, Hisaka Works Limited, HRS Heat Exchangers, Sierra, Sondex Holdings, and SWEP International.




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