Heat Exchanger Market

The Heat Exchanger Market is valued at USD 24.1 Bn in 2026 and is projected to reach USD 39 Bn, growing at a CAGR of 7% by 2033.

Rapidly Increasing Renewable Energy Resources Adoption for Power Generation to Fuel Growth of Heat Exchanger Market

One of the major factors driving heat exchanger market is the increasing usage of renewable energy sources such as wind, and solar. The device's installation is predicted to be driven by increased energy demand in response to the need to minimize greenhouse gas (GHG) emissions. These exchangers are used to transport solar energy absorbed in solar collectors to liquid or air that is used to heat water or space in the wind turbine. Furthermore, because this exchanger is a vital part of renewable energy systems, government mandates for renewable energy offer an additional stimulus to the market. Renewable energy accounted for 29% of worldwide electricity output in 2020, up from 27% in 2019. Renewable power output is expected to grow by more than 8% in 2021, reaching 8 300 TWh, the highest annual growth rate since the 1970s. In 2021, China alone is expected to account for about half of the global increase in renewable electricity, with the United States, the European Union, and India following closely after.

The global need for energy has been fuelled by rising populations, and rapid industrialisation. However, because of increased greenhouse gas emissions from companies, this has a negative impact on the environment. As a result, a number of businesses are using energy-efficient technologies to capture waste energy and improve process optimization by installing innovative heat recovery devices in a variety of industrial applications. During the forecast period, this is projected to contribute toward the growth of global heat exchanger market.

Advantages of Shell & Tube Heat Exchanger to Drive Heat Exchanger Market

The shell and tube segment dominates the industry, accounting for 35.8% of global revenue demand. This is due to its advantages over other types of heat exchangers, which include a lower price when compared to plate-type coolers, the ability to operate at higher temperatures and pressures, and more. Because of their ease of maintenance and compatibility with many types of seawater coolants, shell and tube heat exchangers are the favoured choice. A bundle of tubes is inserted in a cylindrical shell with the tube axis parallel to the shell axis to create shell & tube products. Floating-head type, U-tube design, and fixed tube sheet design are the three most prevalent forms of shell & tube goods. Shell and tube products are utilised in applications that need a wide temperature and pressure range, as well as the transfer of two liquids, liquids, and gases, or gases. These heat exchangers have a straightforward design and are suitable for transferring heat from steam to water, accounting for the expansion of heat exchanger market to a large extent. They do, however, necessitate big locations, which is expected to limit category expansion during the projection period. Additionally, during the projected period, the plate and frame product sector is expected to grow at a healthy CAGR.

Increased Investments and Multiple Projects under Construction to Drive Growth of Asia Pacific Heat Exchanger Market

During the projected period, the demand for heat exchangers in the Asia Pacific is expected to grow at a CAGR of 6.2 percent. The overall expansion of the heat exchanger market in the Asia Pacific has been aided by rapid industrialisation in the region's developing countries, as well as rising investments in manufacturing, commercial, and industrial projects. The increased investments in the chemical, petrochemical, and HVAC sectors are expected to drive the heat exchanger market in China. Factors such as the country's growing population and the government's attempts to improve infrastructure are likely to support the growth of the power generation and HVAC & refrigeration sectors, driving demand for these products throughout the forecast period.

The multiple power projects now under construction, Asia Pacific is expected to dominate the market during the projection period. In the first half of 2021, China's provincial governments have approved the building of 24 new coal power projects, totaling 5.2 gigawatts (GW), including three large-scale coal-fired power plants, as of August 2021. The need for heat exchangers in the country is likely to increase as a result of this factor. Additionally, The Leizhou Thermal Power Project in China has a capacity of 6,000 megawatts (MW). It began in 2015 and is scheduled to be finished in 2022. During the projected period, this project may additionally drive the heat exchanger market. Further, Units 4, 5, and 6 of the Shin Kori Nuclear Power Plant in South Korea have been added, with a total capacity of 4,200 MW. Reactor 1 was shut down in 2017, and reactors 2 and 3 were scheduled to shut down in mid-2020. Reactor 4 began construction in 2015 and was completed in 2019. Reactors 5 and 6 are currently under construction and will be completed by 2022. As a result, during the forecast period, such projects are likely to drive the Asia Pacific heat exchanger market.

Heat exchanger market growth will also be dominated by the European area after the Asia Pacific. The European Commission's rigorous regulation measures have aided in refocusing attention on technical advancement. The businesses are implementing a variety of energy-saving equipment. In addition, different vehicle businesses and other industries have boosted the market value of heat exchangers. In the North American area, rising oil and gas development operations in the United States, and Canada are likely to drive demand for these products. Furthermore, rising energy consumption in a variety of industrial and commercial sectors is expected to enhance the power and energy sectors, boosting the overall performance of heat exchanger market in the future years.

Global Heat Exchanger Market: Competitive Landscape

In 2021, in San Bonifacio, Italy, ALFA LAVAL opened a new factory to make brazed heat exchangers (BHE). The new plant will have more capacity to handle the increased demand for heat exchangers from customers. In addition, the facility offers a cutting-edge research lab for refrigerant research as well as training facilities. The company wants to expand its production capacity while also working closely with its clients. On the other hand, BOYD Corporation has opened a new production plant in Juarez, Mexico, in order to grow its North American activities. In an automated plant fuelled by renewable energy, the company will manufacture thermal systems and varied engineered materials. The quality management system will be accredited for the 40, 000 square meter facility. To serve the North American market, the expansion strategy will add capacity to build very complicated liquid cooling systems, liquid cold plates, and advanced rotary die-cutting capabilities.

Few of the players in the heat exchanger market include:

• Alfa Laval AB
• Kelvion Holding GmbH
• Danfoss A/S
• GEA Group AG
• SPX Flow, Inc.
• API Heat Transfer, Inc.
• Xylem Inc.
• Hisaka Works, Ltd.
• Johnson Controls International plc
• Mersen SA
• HRS Heat Exchangers Ltd.
• Tranter, Inc.
• SWEP International AB
• Modine Manufacturing Company
• Koch Heat Transfer Company 

The Global Heat Exchanger Market is Segmented as Below:

By Type:
• Shell & Tube Heat Exchangers
• Plate & Frame Heat Exchangers
• Air Cooled Heat Exchangers
• and Other Types

By Material:
• Metals
• Alloys & Brazing Clad Materials

By End-use Industry:
• Chemical
• Energy
• HVAC & Refrigeration
• Food & Beverage
• Power
• Pulp & Paper
• Other End-use Industries

By Region
• North America
• Europe
• Latin America
• Asia Pacific
• Middle East and Africa