U.S. Heat Exchangers Market Size, Share & Trends Analysis Report By Product (Shell & Tube, Air-Cooled), By End-use (Food & Beverage, Pulp & Paper), And Segment Forecasts, 2023 - 2030

Market Size & Trends

The U.S. heat exchangers market size was estimated at USD 2.7 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 4.4% from 2023 to 2030. The rising demand for heat transfer solutions across various end-use industries, owing to the robust industrialization growth in the U.S., is one of the driving factors of the market growth over the forecast period. To revive domestic production and industrial sector growth, the U.S. government is actively introducing various initiatives and tax exemption schemes. Such initiatives and schemes are expected to boost the participation of various manufacturers to expand their business activities across the United States. The growth of the various industries is consequently expected to drive the demand for heat exchangers over the forecast period.

In March 2023, the U.S. Office of Science & Technology Policy (OSTP) announced a proposal for the lobbies for tax breaks related to U.S.-based manufacturing. The industry is targeting subsidies and tax breaks to advance manufacturing innovation in the United States. Pharmaceutical Research and Manufacturers of America (PhRMA) asked for a 25% tax credit to compensate for the cost of building a new manufacturing facility and enhancing the existing facilities in the U.S. in March 2023.

The growth in the manufacturing industry is significantly contributing to the increasing demand for heat exchangers in the country. Heat exchangers used for efficient heat transfer are recognized as a critical factor in any industrial process, mostly in the power generation, chemical and petrochemical industry, and oil & gas production.

According to the NIST (National Institute of Standards and Technology) report in 2021, the manufacturing sector contributed USD 2.3 trillion to the U.S. GDP, amounting to 12% of the total U.S. GDP. Moreover, the government of the U.S. introduced the CHIPS Act, (Creating Helpful Incentives to Produce Semiconductors and Science) Act of 2022.

Through this act, a USD 280.0 billion investment is provided to bolster the semiconductor production capacity, facilitate R&D, and increase domestic dependence while reducing international dependence. The humidity and temperature control of the semiconductor fabrication facilities is of vital importance for which heat exchanger plays a critical role. Such developments in the industries are likely to create a positive impact on the market growth over the forecast period.

Product Insights

Based on product, the shell & tube segment held the largest market share of 35.5% in 2022. Shell & tube heat exchangers are made from a collection of tubes arranged inside a cylindrical shell with the tube axis parallel to the shell's axis. Such a type of heat exchanger offers a wider area for heat transfer among different fluids used during the operations,making them suitable for a wide range of applications.

Shell & tube heat exchangers are used in applications that require a wider temperature and pressure range between two fluids. These heat exchangers can handle a variety of fluids, including gases, liquids, and two-phase mixtures. This versatility can make them suitable for use in petrochemical, oil and gas, chemical, power generation, and HVAC applications, fueling their adoption over the forecast period.

The plate & frame segment is anticipated to grow at the fastest CAGR of 5.1% over the forecast period. Plate & frame-type heat exchangers are used in various industries such as power generation, oil & gas, food & beverage, and chemicals. This type of heat exchanger is mostly used for liquid-liquid heat exchange at low-to-medium pressure.

The plate & frame type heat exchanger offers flexibility in terms of adding or removing plates for different types of operation. There are different types, such as brazed plate heat exchangers, gasketed plate heat exchangers, welded plate heat exchangers, etc. The increasing consumption of electricity across various industries, the residential sector, as well as the commercial sector growth in power generation is driving the demand for plate & frame heat exchangers.

End-use Insights

In terms of end-use, the chemical & petrochemical segment held the largest revenue share of 23.8% in 2022, and it is anticipated to grow at the fastest CAGR of 5.3% over the forecast period. With the rapid development in the chemical and petrochemical industries with new processes and products being designed continuously, the demand for various heat exchangers is expected to increase over the forecast period.

Petrochemical products such as plastic packaging, synthetic rubber, laundry detergents, and fertilizers are the major products that are being used at large scale. The rising population and consumer spending are indirectly creating a surging demand for such petrochemical products. The rising manufacturing and processing industry of chemicals & petrochemicals is likely to drive the growth of the segment over the forecast period.

The chemical and petrochemical segment is anticipated to register the fastest CAGR of 5.3% over the forecast period. The rising demand for specialty chemicals, polymers, and plastic materials in various end-use industries is attributed to the robust demand for heat exchangers in the chemical and petrochemical industry.

The HVAC & refrigeration segment is anticipated to register the second-highest growth over the forecast period. The rising construction projects in the residential, commercial, and industrial sectors are anticipated to contribute to the increasing demand for heat exchangers used in HVAC and refrigeration of the building spaces.

Key Companies & Market Share Insights

Key companies in the U.S. market continuously adopt new business strategies, actively launch innovative and technologically advanced products, and collaborate with other players and government authorities.The key market players employ different approaches, such as mergers & acquisitions, introducing new products, and geographic expansion, to strengthen their market presence and meet the evolving technological requirements of various industries that use heat exchangers.

For instance, in March 2023, Chart Industries Inc. successfully acquired Howden, a manufacturer of rotary heat exchangers. This strategic acquisition of Howden has provided Chart Industries with access to a wider customer base. Some prominent players in the U.S. heat exchangers market include:

• Mersen

• Chart Industries

• Koch Heat Transfer Company

• SHECO Industries, Inc.

• HEATTRAN

• ALFA LAVAL

• Kelvion Holding GmbH

• Xylem

• API Heat Transfer

• Mason Manufacturing LLC

U.S. Heat Exchangers Market Report Scope

U.S. Heat Exchangers Market Report Segmentation

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

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

  • Shell & Tube

  • Air-Cooled

  • Plate & Frame

  • Others

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

  • Chemical & Petrochemical

  • Oil & Gas

  • Power Generation

  • HVAC & Refrigeration

  • Food & Beverage

  • Pulp & Paper

  • Others