The global automotive heat exchanger market is projected to grow at a significant rate owing to increase in demand for automotive components in engineering industrial and commercial applications. Growing HVAC usage especially in an automotive, residential & commercial building is anticipated to drive the market.
They are extensively used in industrial oil coolers, transmission and engine coolers, chilled water systems, evaporators in refrigeration systems and condensers. These applications incur an extreme loss of energy at the time of transfer of heat. The industry is expected to witness an increase in adoption of energy saving equipment owes to rise in the cost of energy.
Increasing thermal efficiency, demand for turbocharged engines & automatic transmission, growing production of commercial & passenger vehicles, and rising requirements for automotive components are expected to be the primary factors driving demand.
Expanding industrial activities in emerging economies is a critical driver boosting the automotive heat exchanger market. Discrete and process industries in these regions are increasing manufacturing operations worldwide, which helps in promoting growth.
Environmental concerns are expected to accelerate the adoption of energy-efficient products such as closed circuit cooling towers and compact exchangers. These devices are widely used in the chemical sector in production and chemical processing applications. Strict laws against rising level of water contamination and pollution are expected to provide a growth opportunity for these devices to wastewater treatment plants.
Tube and shell heat exchangers are the most common devices. They are widely used as condensers, steam generators, and oil coolers. They offer a relatively large ratio of heat transfer to weight, volume, and other superior qualities making them the most commonly used devices in verticals such as a chemical. Rising government investments on construction projects and commercial buildings are driving the demand for HVACR equipment, which in turn is expected to boost the demand for tube and shell exchangers.
Plate and frame devices are supposed to witness significant growth owing to consistent supply of raw material including EPDM rubber, stainless steel plate & frame, nitrile rubber gasket, and chloroprene rubber. Innovations in designs are anticipated to lower the investment, maintenance cost, operating cost, and increase temperature transfer efficiency.
Plate heat exchanger has various advantages such as its ability to operate with moderately small temperature differences, less requirement of floor space, and easy cleaning. Rising investments in the petrochemical, food & beverages, chemical, industries are expected to propel the growth.
The automotive heat exchanger market is further segmented by types such as gaskets, welded, and brazed exchangers. The gasket plate is supposed to witness high growth owing to its widespread use in power plants due to the compact size and low maintenance. It is widely used for cooling, condensation, evaporation, and temperature recovery applications in the automotive and petrochemical industries.
Welded plate is anticipated to witness increased demand on account of its growing usage in industries such as petrochemical, automobile, and pharmaceuticals. Brazed plate is expected to witness significant growth owing to its increasing use in economizers, condensers, refrigerant evaporators, oil coolers, and super-coolers. Collaborations, technological development, and innovations are major strategies to increase the plate and frame market.
Major restraints to the growth include replacing the conventional technology with highly efficient counterparts and growth in complexity of exchanges, which directly affect the profit margins of the manufacturers to manufacture products at low prices.
Europe is anticipated to witness significant growth owing to recent developments in nuclear & renewable energy sectors and increased replacement demand for the heat exchangers. Manufacturers in Eastern Europe are expected to focus on regional production to reduce import dependency.
India and Japan are projected to witness significant automotive heat exchanger market demand owing to increasing industrial growth. Favorable government initiatives in these countries to develop solar and thermal energy are expected to drive consumption. Moreover, industry players are focusing on outsourcing their manufacturing facilities in countries such as China, India, and Japan owing to low-cost production and cheap labor availability.
Electric and hybrid vehicles require low-temperature exchangers along with standard exchangers for battery cooling. It is expected that major vendors are focusing on targeting the rising demand for additional heat exchangers. For instance, Mahle supplies battery cooling systems for Mercedes. Regional and small vendors are expected to provide battery-cooling solutions for hybrid vehicles.
Manufacturing companies in this industry such as GEA group and Alfa Lava are investing heavily in R&D activities to develop energy efficient heat exchangers. This trend is anticipated to contribute towards the industry growth.
Key players in this industry include Gunter GmbH & Co. KG, Alfa Laval AB, API, SPX Corporation, Danfoss A/S, SGL Carbon Technic LLC, Tranter Inc., and GEA Group.
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The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.