Rapidly increasing power plants along with rising application of heat exchanger across several industry verticals such as chemicals, oil and gas, automotive, food and beverage among others are prominent factors driving the growth of the Heat Exchanger Market.
The Heat Exchanger Market was estimated at USD 16.48 billion in the year 2020, and is expected to reach USD 25.35 billion by 2027. The market is growing with a CAGR of 6.3%, during the forecast period (2017-2027).
The rapidly increasing power production combined with growing adoption of renewable resources, such as solar and wind are the major factors driving the heat exchanger market growth. Increasing energy demand and the rising awareness to reduce the greenhouse gas emissions, is expected to bloom the heat exchanger market. According to Global Energy Year Book 2021, in 2020, the share of solar and wind in the global power mix increased by 1.2 pts, as renewable power generation witnessed a high growth accounting to over 20% for solar and more than 12% for wind energy. In addition, offshore wind power generation rose by 16%, majorly driven by a surge of wind power production in countries including China, Germany, Belgium and UK. These four nations accounted approximately 20 GW of offshore wind capacity during the period of 2016-2020. Heat exchangers are a crucial component in wind turbines and are helpful in transferring solar energy that is absorbed in solar collectors to the air or liquid that is used to heat water. Thus, the equipment fulfils various purposes in the power plants such as waste heat recovery, recuperation and intercooling. Thereby, rising production and consumption of power is expected to increase the demand for heat exchanger in the power plants.
Moreover, favourable government targets for the adoption of renewable energy generation are further expected to increase the heat exchanger industry growth. For instance, in June 2019, New York government rose its overall renewable portfolio standards (RPS) target to 100% of electricity sales from a clean energy generation by the year 2040, along with an interim target of 70% renewable generation by 2030. In 2019, Germany government announced its target of producing 20G energy by utilizing offshore wind power by the year 2030. Therefore, the growth in the renewable energy power plants is the most prominent factor contributing to the increase in the heat exchanger market.
Furthermore, rising adoption of heat exchangers across multiple applications has also contributed to the heat exchanger market demand. Several industries across the globe produce waste heat that can be trapped and used again to utilize high energies and high temperatures. Heat exchangers help to carry out the same function and is thereby used across various industry verticals. For instance, in the food and beverage industry, heat exchangers are utilized to eliminate or reduce microbials making products safe for consumption and to help in preventing spoilage. Tube and shell heat exchangers are widely used as steam generators, condensers, and oil coolers in the automotive industry. In chemical industries, heat exchangers are the basic heat transfer equipment and have a wide range of applications due to varying temperature requirements of streams in the chemical process. Owing to such wide application of heat exchangers across various industries, the growth in these industries is expected to propel the heat exchanger market demand.
Heat Exchanger Market by Region Outlook (Revenue, USD Billion, 2017-2027)
Based on region, Asia-Pacific is expected to be the fastest growing region in the heat exchanger industry during the forecast period. This share is mainly attributed to the growing power generation in the region. According to the International Energy Agency (IEA), Asia-Pacific region is the highest consumer of electricity in all forms, such as renewable energy sources and fossil fuels. China is the global leader in electricity production from renewable energy sources, with more than double production from the second-ranking nation, the United States. By the end of 2019, China had a total capacity of 790 GW of renewable power, mainly from solar, hydroelectric and wind power. As per the data released by Global Energy Year Book 2021, in 2020, Power generation in China grew by 3.7% with an 18% growth in renewable power generation. In addition, favorable government targets for the installation of renewable energy capacity is further expected to increase the heat exchange market growth. For instance, in 2015, the Government of India announced its target for installing 175 GW cumulative renewable power capacity by 2022. The country further targets to increase the total renewable energy capacity to 450 GW by 2030.
Apart from this, installation of non-renewable power capacity is also expected to increase the heat exchanger market growth in the region. For instance, Japan, in 2019, announced the installation of 22 coal-fired power projects at 17 different locations. Leizhou Thermal Power Project in China which is likely to get completed in 2022 has a power generation capacity of 6,000 megawatts (MW). The Patratu Super Thermal Power Project in India, will have the production capacity of 4000 megawatts (MW) of power and is expected to be completed in 2022. As, all these power generation plants have a high application of heat exchanger, the growth in such projects is expected to bloom the heat exchanger market.
The Heat Exchanger Industry Segmentation:
Heat Exchanger Market Product Type Outlook (Revenue, USD Billion, 2017-2027)
Heat Exchanger Market Material Type Outlook (Revenue, USD Billion, 2017-2027)
Heat Exchanger Market End-Use Industry Outlook (Revenue, USD Billion, 2017-2027)
Key Findings:
Company Profiles and Competitive Intelligence
The key players operating in the heat exchanger market are:
Recent News In Heat Exchanger Market Industry:
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