Shell & Tube Heat Exchangers Market Size, Share & Trends Analysis Report By Material (Hastelloy, Titanium, Steel, Nickel & Nickel Alloys, Tantalum), By End Use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global shell and tube heat exchangers market size was valued at USD 5.68 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 6.2% from 2020 to 2027. This growth can be attributed to the rising demand for advanced modern equipment in the petrochemical, pharmaceutical, and power generation industries, providing high efficiency and corrosion resistance.

The penetration of shell and tube heat exchangers is witnessing significant growth in the oil refineries and petrochemical plants on account of their easy maintenance, robust geometry construction, and possible upgrades. Furthermore, shell and tube heat exchangers are expected to gain prominence in future owing to their enhanced resilience to high-temperature applications and the ability to provide protection against fouling.

The chemical industry is the largest manufacturing industry in the U.S. and serves both domestic and export needs. Shell and tube heat exchangers are used in the manufacturing of chemicals in industrial chemical production. Rapid expansion of the chemical industry in the country is expected to act as a major factor for steering the market growth.

The major components of the shell and tube heat exchangers include shell, tubes or tube bundles, tube sheets, and baffles. Other auxiliary components of shell and tube heat exchangers include channel covers, nozzles, flanges, rings, rods, spacers, lugs, and supporting brackets. The type of heat exchanger is determined by its application in the respective end-use industry and designed in accordance with the TEMA standards.

Rapid industrialization in the developing economies of Asia Pacific and rising investments in the manufacturing, commercial, and industrial projects have contributed to the overall growth of the heat exchangers market and eventually shell and tube heat exchangers in the region. This growth is attributed to the increased penetration of the product in various end-use industries, including power generation, petrochemicals, chemical, HVAC and refrigeration, and food and beverage.

Availability of highly-efficient and compact heat exchangers, such as plate and frame, microchannel, and welded spiral heat exchangers, is anticipated to pose a challenge to the penetration of shell and tube heat exchangers in the end-use industries, including petrochemical, chemical, HVAC and refrigeration, and food and beverage.

Material Insights

Steel dominated the market and accounted for a 30.9% share of the global revenue in 2019. The properties of steel including resistance to corrosion in chemical environments and cooling waters, high-temperature resistance to scaling and oxidation, good strength in low- and high-temperature applications, and resistance to fouling due to corrosion are expected to boost material penetration in heat exchangers.

The nickel and nickel alloys material segment is projected to register the fastest CAGR of 6.6% over the forecast period owing to rising demand from the chemical and petrochemical industries. The nickel alloy shell and tube heat exchangers are used in the tubing of steam generators in nuclear power plants, oil and gas extraction, high-temperature aircraft systems, and desalination equipment.

Titanium shell and tube heat exchangers are used in a wide range of applications in the chemical, petrochemical, power generation, and desalination plants. The characteristics of titanium, such as high resistance to stress corrosion in various liquids, including aqueous chlorides, such as seawater or brine, wet halogens and halides, and hot acidic and highly oxidizing solutions, such as nitric acid and ferric chloride, are expected to augment its demand in shell and tube heat exchangers.

Other materials used for manufacturing shell and tube heat exchangers include zirconium, copper and copper alloys, aluminum, polymers, carbon fiber, cast iron, composites, and reinforced concrete. Zirconium heat exchangers are cost-effective and require minimal maintenance. These heat exchangers are easy to install and operate, thus, making them economical to use in a wide range of applications.

End-use Insights

The chemical segment led the market and accounted for 20.2% share of the global revenue in 2019 owing to rising penetration of shell and tube heat exchangers on account of their characteristics, including easy maintenance and repair, flexible designs, and operations at high pressure. Shell and tube heat exchangers used in the chemical industry are majorly fabricated from corrosion-resistive materials, including zirconium, titanium, nickel alloys, duplex stainless steel, and austenitic stainless steel.

Shell and tube heat exchangers are used in the petrochemical industry for heat recovery process during the separation of oil from water and gas. Furthermore, these are used in petrochemical plants for various applications in the refining process, including evaporators, condensers, and coolers for gas scrubbing. Owing to their enhanced properties in a corrosive environment, shell and tube heat exchangers are expected to gain significant demand in the petrochemical industry.

Increasing awareness regarding the advantages of renewable energy sources over the conventional sources has resulted in its increased utilization, thereby driving the power generation segment. Shell and tube heat exchangers are used in hydroelectric dams as coolers to minimize the downtime of transformers, generators, and turbines. These are excellent for heat recovery applications, pre-heating, and effluent cooling applications.

Growing demand for imported and nutritious products is expected to drive the demand for efficient thermal management in the storage and transportation of food products. Rising concerns related to corrosion resistance in food processing facilities are expected to augment the demand for shell and tube heat exchangers over the forecast period.

Regional Insights

Asia Pacific dominated the market and accounted for 36.3% share of global revenue in 2019 owing to increasing investments in the chemical and petrochemical industries in the region. Furthermore, significant growth of the end-use industries, including power generation, food & beverage, HVAC & refrigeration, especially in developing economies of the region, including China, India, and Thailand, and Indonesia, is projected to drive the demand for heat exchangers.

North America held the third-largest revenue share in the market in 2019. Demand in the region is likely to be driven by increased adoption of the product in key application sectors, including chemical, petrochemical, and power generation.

Europe is projected to witness moderate growth over the forecast period. Increasing exploration and production activities in offshore areas are expected to drive the market for shell and tube heat exchangers over the forecast period. In addition, several upcoming oil and gas projects in the European region are expected to have a positive impact on market growth in the coming years.

Central and South America accounted for 7.8% share of the overall revenue in 2019. The regional market offers tremendous potential and opportunities in the field of heat exchangers. Robust presence of oil and gas reserves in Brazil, Argentina, Venezuela, and Columbia is expected to have a positive impact on market growth.

Key Companies & Market Share Insights

Manufacturers of shell and tube heat exchangers are engaged in adopting various strategies including mergers & acquisitions, new product development, diversification, and geographical expansion. These strategies aid the companies in augmenting their market presence and catering to the changing technological demand of various end-use industries.

The market is highly competitive and dependent on product development and technological advancements. Product manufacturers strive to obtain a competitive edge over their competitors by increasing the application scope of their products. Presence of local players, majorly in Asia, is expected to pose a significant threat to large global players in terms of price and quality of products, which are provided to the consumers.

Some of the prominent companies in the shell and tube heat exchangers market include:

• Alfa Laval

• HRS Heat Exchangers

• Kelvion Holding GmbH

• API Heat Transfer

• Brask, Inc.

• Koch Heat Transfer Company

• Xylem Inc

• WCR, Inc.

• Southern Heat Exchanger Corporation

• Manning and Lewis

• Mersen

• Elanco, Inc.

• Thermex

• Tinita Engineering Pvt. Ltd.

• Barriquand Technologies Thermiques

Shell & Tube Heat Exchangers Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global shell and tube heat exchangers market report on the basis of material, end use, and region:

• Material Outlook (Revenue, USD Million, 2016 - 2027)

  • Hastelloy

  • Titanium

  • Nickel & Nickel Alloys

  • Tantalum

  • Steel

    • Stainless Steel

    • Duplex Steel

    • Carbon Steel

    • Super Duplex Steel

    • Others

  • Others

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Power Generation

  • Petrochemicals

  • Chemical

  • Food & Beverages

  • HVAC & Refrigeration

  • Pulp & Paper

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa

    • Turkey

    • Nigeria