Global Heat Exchanger Market By Product (Shell and Tube Heat Exchanger, Plate and Frame Heat Exchanger, Air-Cooled Heat Exchanger, and Others), By Material Of Construction (Stainless Steel, Copper, Aluminum, Others), By End-User (Chemical and Petrochemical, Oil and Gas, HVAC and Refrigeration, Power Generation, Food and Beverage, Pulp and Paper, and Other), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The global heat exchanger market size is expected to surge at a CAGR of 6% in the assessment period from 2023 to 2032. The market value is projected to increase from USD 17.4 Billion in 2022 to USD 30.7 Billion by 2032.

Over the forecast period, Heat exchanger demand will grow due to an increasing emphasis on thermal management across numerous industries such as oil & gas, power generation, chemical, petrochemical, food beverages, HVAC & refrigeration, and oil & gasoline. The market for chemical machinery and equipment is expected to expand due to rising demand, technological advancements, and an increasing focus on efficiency standards.

Petrochemical plants frequently experience extreme temperatures and pressure, necessitating optimization of heat transfer to increase energy savings while decreasing operating costs. Due to the U.S.’s high electricity demand, industrialization, and expenditures in renewable energy production, it dominated the North American heat exchanger market in 2022.

The Oil and gas industry is anticipated to increase in demand for these products due to increased investments from oil & gas companies into exploration and production activities in the U.S. The market will expand due to technological advancements like tube inserts for heat exchangers. These advancements will continue improving energy efficiency, total lifetime cost, durability, and compactness of heat exchanging units.

Key Takeaways

• Market Size: The global heat exchanger market size is expected to grow at a compound annual growth rate (CAGR) of 6% from 2023 to 2032.
  
• Market Trend: Heat exchangers in power generation sectors have seen an unprecedented spike in popularity amid growing interest in renewable sources of energy.
• Product Analysis: As of 2022, shell and tube products made up 35.7% of total revenue demand in terms of revenue demand.
• End User Analysis: Chemical and petrochemical Industries were at the forefront of market success, contributing 22.7% of worldwide revenue demand by 2022.
• Drivers: Rising energy costs and Increasing demand for renewable energy
• Restraints: High upfront cost of heat exchangers and Complex manufacturing process
• Opportunities: Growing demand for heat exchangers in developing countries
  and Increasing adoption of energy-efficient heat exchangers
• Challenges: Fluctuating raw material prices and Competition from low-cost manufacturers
• Regional Analysis: By 2022, Europe will hold a 31.9% market share globally for electronic payments services.
• Key Players Analysis: Alfa Laval AB, Kelvion Holding GmbH, Danfoss, API Heat Transfer Inc., Xylem Inc., HRS Heat Exchangers Ltd., Hisaka Works, Ltd., Koch Heat Transfer Company, GEA Group AG, SWEP International AB, Thermax Limited, Tranter, Inc., Other Key Players

Product Analysis

In 2022, the shell & tube segment dominated the market, accounting for 35.7% of the total revenue demand. A shell & tube product is made from a bundle or tubes that are placed inside a cylindrical shell. The tube axis is parallel to the shells.

There are three main types of shell and tube products including U-tube design, fixed-tube sheet design, and floating-head design. Shell and tube products can be used for applications that require high temperatures & pressures.

They also transfer between liquids, liquids & gas. The plate and frame segment grew at a CAGR of 5.6% during the forecast period. The plates used to make plate-type exchangers are available with corrugation & smoothness. Air-cooled products are made up of a tube bundle, an air-pumping device like a fan, axial flow, or blower.

Material of Construction Analysis

The heat exchanger market was dominated by the steel segment. Owing to its durability and strength as well as resistance to corrosion, stainless steel is ideal for heat exchanger contraction. Mild steel and stainless are the most popular steel grades. It has many benefits like its corrosion resistance at a range of pH levels and its lightweight & high thermal conduction.

It can also be utilized with normal clean water, without needing to use special fluids. It is a bit expensive, but the characteristics above make it an excellent choice for long-term use.

End-User Analysis

The market was led by chemical & petrochemicals, which accounted for 22.7% of global revenue demand in 2022. Because of their design flexibility and corrosion resistance, heat exchangers are widely used in the chemical processing sector. They can handle fluids with different levels of solids owing to their properties.

The demand for heat exchangers will increase at a CAGR of 4.7% in the oil and gas industry over the forecast period. Heat exchanger demand will increase owing to the increased use of shale for manufacturing and energy as well as the technological advancements in exploration which are anticipated to increase shale exploration. Industrial growth will also be driven by the rising number of oil and gas projects in different nations.

Key Market Segments

Based on Product

• Shell & Tube Heat Exchanger
• Plate & Frame Heat Exchanger
• Brazed Plate & Frame Heat Exchanger
• Gasketed Plate & Frame Heat Exchanger
• Welded Plate and frame Heat Exchanger
• Others
• Air-Cooled Heat Exchanger
• Other Products

Based on the Material of Construction

• Stainless Steel
• Copper
• Aluminum
• Other Materials

Based on End-User

• Chemical & Petrochemical
• Oil & Gas
• HVAC & Refrigeration
• Power Generation
• Food & Beverage
• Pulp & Paper
• Other End-Users

Driving Factor

The market will be driven by the increasing industrialization of developing countries.

According to the enormous development taking place in APAC nations like China and India, it is anticipated that the market for heat-exchanging equipment will increase. The reasons for this include rising raw material prices as well as the cheap cost of labor. The low cost of labor and rising prices for raw materials are too responsible.

The success of regional industrial, commercial, and manufacturing projects has contributed to the overall growth of global heat exchangers. The demand for heat exchangers is increasing owing to raised demand from the chemical & HVACR sector as well as government initiatives in India and Japan for developing thermal & solar energy. The heat exchangers market will also benefit from the anticipated rise in demand for petrochemical products.

Restraining Factors

Impact of fluctuating raw material prices on heat exchanger manufacturers

Heat exchanger manufacturers can be affected by the volatility of raw materials prices, such as steel, aluminum, and copper. The volatility of raw material prices affects manufacturers owing to many factors like economic conditions & exchange rates.

Price fluctuations may cause delays or cancellations in large capital projects, which could negatively impact the growth of heat exchangers. Pricing trends are closely monitored to manage price fluctuations risk and minimize their impact on pricing.

Opportunity

Growing nuclear power plants to drive the heat exchangers market

The overall efficiency and output of a nuclear power station’s nuclear power plants are affected by heat exchangers. Heat exchanger manufacturers have key opportunities in the market for new projects & increased use of heat exchanging units in nuclear reactors.

There is a lot of growth opportunity in the heat exchanger market across many industries, including chemical, petrochemical, and HVAC. Heat exchangers are essential components of many industrial processes because they can transfer heat between fluids and gases.

Trends

Rising Demand for Energy-Efficient Solutions: The demand for energy-efficient solutions is growing. With an increasing focus on energy efficiency, sustainability, and various industries there is the fastest need for heat exchangers that are energy-efficient. Heat exchangers that are more efficient, use less energy, & emit less carbon dioxide have been developed by manufacturers.

Adoption of compact heat exchangers: Compact heat exchangers are becoming more famous because of their lighter weight, smaller footprint & better performance. These heat exchangers have huge heat transfer rates & reduced fouling when compared to traditional heat exchangers.

Heat Exchanger Market Growth: Development of Advanced Materials. The market is expected to grow due to the development of advanced materials, such as superalloys, ceramic composites, and graphene. These products have improved heat transfer properties and higher strength when compared to traditional materials.

Regional Analysis

In 2022, Europe will dominate the global market with a share of 31.9%. The public & private sectors will continue to invest in infrastructure, which will drive the need for these products. During the predicted period there will be a growing demand from different end-use industries for heat exchangers that are more durable, efficient, & have less fouling. North America will see a high demand for these products due to increased oil and natural gas exploration in the U.S. & Canada.

The market for heat exchangers will benefit from the growing energy requirement in various commercial and industrial segments. Asia Pacific’s heat exchanger market will grow by 6.2% over the forecast period. This market growth has been driven by the faster industrialization of Asia Pacific’s developing nations and increasing investments in industrial and commercial projects. China’s heat exchanger market will be driven by the growth of investment in the HVAC, chemical, and petrochemical industries.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

Global heat exchangers are characterized by both regional and multinational players who are involved in the design, manufacture, distribution, and maintenance of these products. Manufacturers of products strive to gain a competitive advantage over their competition by expanding the use scope of their products. Mergers and acquisitions, geographic expansion, and new product development are all strategies that manufacturers use to expand their product lines.

These strategies help companies expand their market penetration and cater to changing technological demands across different end-use industries. Alfa Laval offers a comprehensive selection of heat exchangers used across numerous industries.

Market Key Players

• Alfa Laval AB
• Kelvion Holding GmbH
• Danfoss A/S
• API Heat Transfer Inc.
• Xylem Inc.
• HRS Heat Exchangers Ltd.
• Hisaka Works, Ltd.
• Koch Heat Transfer Company
• GEA Group AG
• SWEP International AB
• Thermax Limited
• Tranter, Inc.
• Other Key Players

Recent Developments

• September 2023 – HLE Glascoat, a key player in chemical technology solutions, announced that it had acquired a 70% controlling interest in the Heat Exchanger business of Kinam Engineering Industries. This strategic acquisition was set to take place in two phases.
• June 2023 – Danfoss reportedly expanded its heat exchanger production capacity in response to demand for heat pumps, chillers, and district energy.
• April 2023 – Aggreko, the world’s leading provider of mobile modular power, energy solutions, and temperature control, announced the launch of two new rental heat exchanger fleets: the Large Node Heat Exchanger and the Hastelloy-C Crossflow Heat Exchanger.

Report Scope