Heat Exchanger Market Growth & Trends
The global heat exchanger market size is anticipated to reach USD 25.5 billion by 2027, expanding at a CAGR of 6.1%, according to a new report by Grand View Research, Inc. Growing demand for energy in HVAC and refrigeration, power generation, and chemical industries, especially in developing economies including India, Brazil, and China anticipated to complement the market.
Energy infrastructure expansion coupled with increasing demand from the power generation sector is projected to drive the market. The market is characterized by technological innovation along with a rising focus to improve efficiency standards. These factors are likely to lower total ownership costs and increase the durability and efficiency of the exchangers over the coming years.
Heat exchangers are used in the manufacturing of chemicals in the chemical industrial production. In an industrial process, the device is used for cooling, heating, and mixing a substance at a temperature. The rapid expansion of the chemical industry is expected to act as a major factor in steering market growth.
The industry rivalry is expected to be high over the forecast period owing to the presence of numerous competitors of equal size and market share. The market is fragmented in nature with many major companies. Generic strategies employed by these companies include production capacity expansion and new technology innovation.
Heat Exchanger Market Report Highlights
- The shell and tube segment accounted for the market share of 35.9% in 2019 on account of increasing demand of product in numerous end-use industries including chemical, power generation, and oil and gas
- The chemical end-use segment is expected to grow with a robust pace, registering a CAGR of 6.5% from 2020 to 2027 owing to rapid expansion in the chemical industry in Asia specifically in China and India
- In Europe, the market was valued at USD 7.34 billion in 2019 and projected to have a moderate growth over the forecast period owing to growth in the chemical industries and rise in demand of power generation
- Asia Pacific is anticipated to emerge as the fastest growing regional segment accounting for over 30.3% by 2027 owing to the increasing construction activities along with increase in chemical industries and rise in demand for energy in the region
- Key players in the market are focusing on several strategies including new product developments, expansions, partnerships, and joint ventures