Heat Exchangers Market Overview
The global heat exchangers market size is projected to cross $20.5 billion by 2020, growing at a CAGR of 6.5% during the forecast period. The increasing industrialization and advancement in technology are some of the factors driving the growth of the global market during the forecast period.
Based on type, the heat exchangers market is categorized into shell & tube, plate & frame, air-cooled and printed circuit. Shell & tube held the largest share in the global market during the historical period and it is expected to contribute more than 50% to the market by 2020. The growth of the shell & tube type segment is anticipated to increase further, due to its increasing penetration in growing industries, such as chemicals and petrochemicals.
In terms of end-user, the heat exchangers market is categorized into chemical, O&G and petrochemicals, HVAC & refrigeration, food & beverages and power. The chemical industries held the largest share in the global market during the historical period and it is expected to account for 29.2% share of the overall market for heat exchangers by 2020.
Geographically, Europe is anticipated to be the slowest growing heat exchangers market during the forecast period. The economic crisis in the region, along with the mature nature of the heat exchangers industry is the factor responsible for the sluggish growth of the European market. Moreover, the declining crude oil price has reduced the investment in oil and gas industry, which is hampering the growth of the market in Europe.
Heat Exchangers Market Dynamics
The global heat exchangers market is evolving to meet the ever-changing demands of industrial processes and the environment in which they have to work. The manufacturing companies have introduced new hybrid heat exchangers that are extremely efficient and flexible. Moreover, the low weight and compact size of these heat exchangers, as compared to the conventional ones has provided added advantages in location, which has space constraints such as offshore platforms. Thus, the introduction of new hybrid heat exchangers technology is a major trend in the market.
The global heat exchangers market is growing, due to increasing investment in chemical, HVAC, gas processing, power plant and petrochemical industry. Chemical industry is the fastest growing industry for heat exchangers, due to huge investment from Asia-Pacific. Moreover, the demand for heat exchangers from the growing HVAC industry is growing across the global market, due to improving infrastructure and standard of living. The oil & gas industry is driving the growth of the global heat exchangers market, due to the increasing number of gas processing facilities, LNG facilities, tankers, and other related infrastructure.
The increasing cost of production of heat exchangers due to the ever-increasing cost of raw materials is anticipated to hamper the growth of the global heat exchangers market during the forecast period. Frame material and core that are made up of these materials significantly increases the cost of heat exchangers. Copper, stainless steel and aluminium are the most common metals used for the construction of heat exchangers. The cost of these metals has increased significantly during the recent years. Hence, a buyer has to trade between the price and performance of heat exchanger.
Heat Exchangers Market Competitive Landscape
Some of the key companies operating in the global heat exchangers market include Kelvion Holding GmbH, Alfa Laval AB, SPX Corporation, Danfoss A/S, API Heat Transfer Inc., Xylem Inc., Hisaka Works Ltd., Guntner GmbH & Co. KG, Modine Manufacturing Company, HRS Hevac Ltd., Sondex Holdings A/S, Sierra S.p.a., and SWEP International AB.