Heat Exchanger Market Size, Share & Trends Analysis Report By Product (Plate & Frame (Brazed, Gasketed, Welded), Shell & Tube, Air Cooled), By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global heat exchanger market size was estimated at USD 17.58 billion in 2022 and is expected to expand at a compounded annual growth rate (CAGR) of 5.1% from 2023 to 2030. The rising focus on efficient thermal management in various industries, including oil & gas, power generation, chemical & petrochemical, food & beverage, and HVAC & refrigeration, is expected to drive the demand for heat exchangers over the forecast period. Rising demand from the chemical industry coupled with increasing technological advancements and a growing focus on improving efficiency standards is expected to drive the market’s growth over the coming years. Most processes in petrochemical facilities involve high pressure and temperature, thus, necessitating the optimization of heat transfer and the enhancement of energy savings, which, in turn, is likely to boost the demand for energy-efficient heat exchangers.

The U.S. dominated the North America heat exchanger market in 2022, owing to high electricity demand, industrialization, and investments in renewable power generation in the country. Rising investments by oil & gas companies in exploration & production activities in the U.S. are expected to boost the demand for these products in the oil & gas industry.

Significant power markets such as China, the U.S., India, Russia, and Japan are restructuring their operating models to adopt the structure of renewable energy and efficient utilization of energy by installing heat exchangers and shifting from traditional energy use. This is expected to drive the demand for heat exchangers over the forecast period.

Technological advancements such as tube inserts in heat exchangers are expected to complement the market growth. Furthermore, ongoing technological improvements to improve energy efficiency, total life cycle cost, durability, and compactness of heat exchangers are expected to drive the industry growth over the forecast period.

The manufacturers of these products face a long list of difficult supply chain challenges, including increasing demand variability, intense global competition, more environmental compliance regulations, increasing human- and nature-based risks, and inventory proliferation. The COVID-19 pandemic has created new challenges, which are compelling manufacturers to innovate their supply chains at a faster speed.

Product Insights

The shell & tube segment led the industry and accounted for 35.7% of the global revenue demand in 2022. Shell & tube products are built from a bundle of tubes placed in a cylindrical shell with the tube axis parallel to that of the shell. The three most common types of shell & tube products are floating-head type, U-tube design, and fixed tube sheet design.

Shell & tube products are used in applications that require a wide temperature and pressure range as well as transfer between two liquids, between liquids & gases, or between two gases. These exchangers have a simple structure and are ideal for heat transfer from steam to water. However, they require large spaces, which is anticipated to hinder the segment’s growth over the forecast period.

The plate & frame product segment is expected to grow at a CAGR of 5.6% over the forecast period. Plate-type exchangers are built of plates either having some form of corrugation or smoothness. These products are classified as brazed, welded, or gasketed depending on the leak tightness required. Plate & frame products are typically used for liquid-liquid exchange at low to medium pressures.

Air-cooled products, also known as air coolers, comprise various components such as a tube bundle, an air-pumping device such as a blower or an axial flow fan, and a support structure. These products are used in petrochemical plants, refineries, compressor stations, gas-treating plants, power plants, and other facilities. Air-cooled products can be installed either vertically, horizontally, or at a sloped angle.

End-use Insights

Chemical & petrochemical led the market and accounted for 22.7% of the global revenue demand in 2022. Heat exchangers are used in the chemical processing industry (CPI) on account of their properties, such as design flexibility and high corrosion resistance. Their properties provide them with the ability to handle fluids having varying levels of solids.

The rising demand for fertilizers, plastics, packaging, digital devices, medical equipment, and clothing is likely to boost the petrochemical industry's growth. Furthermore, the penetration of petrochemical products in modern energy systems, such as wind turbine blades, solar panels, and electric vehicle parts, is anticipated to drive the industry’s growth. Thus, the above factors are, in turn, likely to drive the demand for these products in the chemical & petrochemical industry.

The heat exchanger demand in the oil & gas end-use industry is anticipated to witness growth at a CAGR of 4.7% over the forecast period. Increasing utilization of shale gas in the energy and manufacturing industries, along with growing shale gas exploration activities due to technological advancements in exploration, is expected to boost the demand for heat exchangers. Furthermore, the rising number of oil & gas projects across various economies is likely to drive industrial growth.

Heat exchangers form an essential part of HVAC systems. Increasing awareness regarding energy conservation and reducing energy bills is expected to augment the demand for heat exchangers in the HVAC industry. The products are used in the heat recovery process involving steam, water, air, and refrigerants. Surging demand for efficient heat recovery systems offering high corrosion resistance is anticipated to propel the product demand.

Regional Insights

Europe led the market and accounted for 31.9% of the global revenue share in 2022. Rising public and private infrastructure investments are anticipated to drive the demand for these products in the HVAC & refrigeration industry. Moreover, increasing demand from several end-use industries for heat exchangers that offer greater durability, enhanced efficiency, and less fouling is expected to drive growth over the forecast period.

Rising oil & gas exploration activities in the U.S. and Canada are expected to drive the demand for these products in North America. Moreover, increasing energy demand in various industrial and commercial sectors is likely to boost the power and energy sectors, thereby positively impacting the overall market for heat exchangers over the coming years.

The Asia Pacific heat exchanger demand is likely to grow at a CAGR of 6.2% over the forecast period. Rapid industrialization in the developing economies of Asia Pacific coupled with rising investments in manufacturing, commercial, and industrial projects has contributed to the overall growth of the regional market.

The heat exchangers market in China is anticipated to be driven by growing investments in the chemical, petrochemical, and HVAC sectors. Factors such as the burgeoning population and the government's efforts to enhance the country's infrastructure are expected to favor the growth of power generation and HVAC & refrigeration sectors, thereby driving the demand for these products over the forecast period.

Key Companies & Market Share Insights

The global heat exchangers industry is characterized by the presence of multinational as well as regional players that are engaged in designing, manufacturing, and distributing these products. Product manufacturers strive to obtain a competitive edge over their competitors by increasing the application scope of their products.

Strategies adopted by manufacturers include new product development, diversification, mergers & acquisitions, and geographical expansion. These strategies aid the companies in expanding their market penetration and catering to the changing technological demand across various end-use industries. Some prominent players in the global heat exchanger market include:

• Alfa Laval

• Kelvion Holding GmbH

• Danfoss

• API Heat Transfer

• Xylem Inc.

• HRS Heat Exchangers

• Hisaka Works, Ltd.

• Koch Heat Transfer Company

Heat Exchanger Market Report Scope

Global Heat Exchanger Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global heat exchanger market report based on product, end-use, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Plate & Frame Heat Exchanger

    • Brazed Plate & Frame Heat Exchanger

    • Gasketed Plate & Frame Heat Exchanger

    • Welded Plate & Frame Heat Exchanger

    • Others

  • Shell & Tube Heat Exchanger

  • Air-Cooled Heat Exchanger

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Chemical & Petrochemical

  • Oil & Gas

  • HVAC & Refrigeration

  • Power Generation

  • Food & Beverage

  • Pulp & Paper

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • UAE