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Heat Exchangers - Global Market Trajectory & Analytics

  • ID: 347951
  • Report
  • April 2021
  • Region: Global
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • Alfa Laval AB
  • Danfoss
  • Guntner U.S. LLC
  • HRS Heat Exchangers Ltd
  • McDermott
  • SPX FLOW, Inc.
  • MORE
With Significantly Reduced Capital Investments Floating Around, Demand for Heat Exchangers Droops by a Languid -10.5%

The global market for Heat Exchangers is expected to slump by a hurting -10.5% in the year 2020 and thereafter recover and grow to reach US$23.2 billion by the year 2027, trailing a post COVID-19 CAGR of 4.1% over the analysis period 2020 through 2027. Global economic activity is slumping with GDP growth forecast to dip as low as -4.9% in the year 2020. The manufacturing industry, which is the largest end-user of heat exchangers, is the worst affected given its complex supply chains, labor intensive processes, and interdependencies. Division of labor, modular manufacturing strategies, outsourcing to reduce costs and increase the efficiency, consistency, and quality of each operations, have made the manufacturing sector most vulnerable amid the lockdown restrictions. An indication of the grim state of affairs is the fact that global manufacturing PMI is already declining and will fall to an estimated all-time low in 2020 as compared to the 53.8 in 2019. With roots in China, the world's supply chains are facing unprecedented disruption and shutdown. Interwoven with a demand crisis, the supply chain shocks are exerting a compounded blow to manufacturing companies worldwide. A combination of all the aforementioned macro-economic issues alongside more specific factors such as suspension of the transportation and changes in demand patterns have dealt a debilitating blow to the manufacturing industry.

The falling PMI indices indicates severe contraction of manufacturing activity including new orders, production, employment, supplier deliveries, inventories, customers' inventories, commodity prices, order backlog, new export orders, and imports. Business investment confidence is tumbling amidst poor demand, falling profits, liquidity crunch and a reeling global economy. The great lockdown of 2020 has crushed the global economy and with it the manufacturing sector. The COVID-19 pandemic will have lasting long-term economic, social and political impact. As upstream, midstream and downstream sectors of manufacturing feel the ripple effect of disruption, heat exchangers also a key part of the value chain is expected to feel the heat. In response to the global shocks, the chemicals industry is forecast to witness a -14.8% decline in CAPEX in 2020, as companies reduce & postpone CAPEX plans. Oil market volatility & reduced energy demand send O&G companies into survival mode reducing the industry's CAPEX by over 18.8% in the year 2020. Lockdowns, business & office closures & a steep recession have severely impacted energy consumption, bringing out power generation as the biggest loser in this crisis. With billions of dollars in CAPEX vanishing across end-use markets, heat exchangers a part of the capital goods industry, is expected to suffer over $2 billion in revenue losses in 2020.

In the post COVID-19 period, innovative heat exchanger companies can steal opportunities offered for smart, advanced heat exchanger solutions capable of providing value via production improvements and efficiencies. Oil companies which are scrambling to be better prepared for the next price crash by breaking even at prices as low as US$45 per barrel of Brent crude. The scenario will drive demand for energy efficient heat exchangers given their ability to make an impact on profitability of oil firms as heating and cooling remains the most expensive part of oil production and processing. Other major trends in the market will include growing prominence of robotic and intelligent process automation in the era of smart factories and the ensuing rise in commercial value of AI based heat exchanger control and monitoring; focus on heat recovery and utilization of sensible and latent heat from flue gas led by the robust outlook for clean coal power and the ensuing demand for heat exchangers in coal fired power plants; stable economic growth in East Asia and South Asia and development of energy infrastructure in these regions, strong manufacturing base and growing government policy led support for upgrades and modernization. The market, especially in the developed regions will witness greater demand for equipment that complies with strict regulatory and safety norms. The undeniable productivity benefits of industrial energy efficiency measures will spur the commercial value of energy efficient heat exchangers especially in developed countries where the growing popularity of energy audits is supporting increased spending on energy efficiency technologies. In Asia-Pacific growth will be led by recovering CAPEX and OPEX investment climate in the sector; and favorable government led policies that prioritize industrial, manufacturing and process sectors for their ability to generate benefits of dynamic economies of scale, innovation/technology diffusion and spillover of a broad range of benefits for the economy and its growth

Select Competitors (Total 454 Featured):
  • Air Products and Chemicals, Inc.
  • Alfa Laval AB
  • API Heat Transfer
  • Balcke-Dürr GmbH
  • Barriquand Technologies Thermiques
  • Danfoss
  • Doosan Corporation
  • Enerquip, Inc.
  • Funke Wärmeaustauscher Apparatebau GMB
  • Guntner U.S. LLC
  • Hamon Group
  • Harsco Industrial Air-X-Changers
  • Hisaka Works, Ltd.
  • HRS Heat Exchangers Ltd
  • Johnson Controls
  • Kelvion
  • Koch Heat Transfer Company
  • McDermott
  • Mersen
  • SmartHeat Inc.
  • SPX Cooling Technologies, Inc.
  • SPX FLOW, Inc.
  • SWEP International AB
  • Tranter Inc.
  • Vahterus Oy
  • Xylem Inc.
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Alfa Laval AB
  • Danfoss
  • Guntner U.S. LLC
  • HRS Heat Exchangers Ltd
  • McDermott
  • SPX FLOW, Inc.
  • MORE
I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Influencer Market Insights
  • World Market Trajectories
  • COVID-19 Outbreak Poised to Dent Market Prospects in the Immediate Term
  • Prevailing Weak Global Economic Environment & Negative Tide in GDP Forecasts Strongly Discourage the Heat Exchangers Market in Short Term
  • Exhibit 1: World Economic Growth Projections (Real GDP, annual % Change) for 2019, 2020 & 2021
  • Exhibit 2: As One of the Most Closely Watched Economic Indicators, the PMI Growth Movement Keeps the Industry on the Edge With Anxious Anticipation: Global PMI Index Points for the Years 2018, 2019 & 2020
  • Exhibit 3: Business Climate Indicator in the Euro Area for the Period June 2019 to May 2020
  • Exhibit 4: Business Confidence Index (BCI) Points for 3Q 2019, 4Q 2019, 1Q 2020, & 2Q 2020
  • Heat Exchangers and Boilers to Play Crucial Role amid COVID-19 Pandemic
  • An Introduction to Heat Exchangers
  • Product Groups
  • Product Types and Segments
  • End-Use Market: A Brief Note
  • Key End-Use Industries for Heat Exchangers
  • Heat Exchangers: The Most Important & Ubiquitous Process Equipment in Industries
  • Global Heat Exchangers Market: Overview and Outlook
  • Playing Instrumental Role in Numerous Industries
  • Sophisticated Design Options for next-Generation, Eco-Friendly Heat Exchangers
  • 3D Printing Unfolds Exciting Design Opportunities for Heat Exchangers
  • Segment Overview: Growing Need for Advanced Equipment Augurs Well for Shell & Tube Heat Exchanger Market
  • Strong Demand from End-Use Verticals Enables Heat Exchanger Market to Maintain Positive Trajectory in Long Term
  • Chemical Industry Commands Major Share
  • Oil & Gas Remains Major Application Segment for Heat Exchangers
  • Regional Analysis: Europe Secures Commanding Position in Global Heat Exchanger Market
  • Exhibit 5: World Heat Exchangers Market (2020 & 2027): Percentage Breakdown of Sales for Developed and Developing Regions
  • Exhibit 6: World Heat Exchangers Market - Geographic Regions Ranked by Value CAGR for 2020-2027: China, Asia-Pacific, Latin America, Rest of World, USA, Canada, Europe, and Japan
  • Competitive Scenario
  • Exhibit 7: Leading Players in the Global Plate Heat Exchangers Market (2020): Percentage Share Breakdown of Revenues for Alfa Laval and Others
  • Exhibit 8: Leading Players in the Global Compact Heat Exchangers Market (2020): Percentage Value Breakdown by Company
  • Recent Market Activity
  • Select Global Brands
2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS
  • Sustained Focus on Energy Efficiency in Modern Industrial Environments to Rev Up Opportunities for Heat Exchangers
  • Exhibit 9: Growing Popularity of Energy Audits to Help Identify Saving Opportunities & the Resulting Increased Spending on Energy Efficiency to Benefit Demand for Energy Efficient Heat Exchangers: Global Investments in Energy Efficiency (In US$ Billion) for the Years 2016 and 2019 by Region
  • Exhibit 10: Undeniable Productivity Benefits of Industrial Energy Efficiency Measures to Spur the Commercial Value of Energy Efficient Heat Exchangers: Global Investments in Energy Efficiency (In US$ Billion) for the Years 2016 and 2019 by Industry
  • Energy Efficiency & Cost Savings Step Up Market Opportunities for Compact Heat Exchangers
  • Energy Efficiency Benefits Drive Migration from Shell & Tube to Plate Heat Exchangers
  • Despite Slowdown in Demand, Chemical Industry to Remain the Dominant Consumer of Heat Exchangers
  • Exhibit 11: Projected Stability in Capital Spending in the Chemical Industry Provides Opportunities for New and Replacement Demand for Heat Exchangers: CAPEX in the World Chemical Industry (In US$ Billion) for the Years 2018, 2021 and 2023
  • Exhibit 12: World Chemical Industry Revenues (in %) by Segment for the Year 2021
  • Critical Role of Heat Exchangers in the Power Generation/Utilities Sector Augurs Well
  • Continued Dominance of Coal & Move to Clean Coal Technologies to Drive the Importance of Heat Exchangers in Enabling Plant Efficiency & Emission Reduction
  • Exhibit 13: Focus on Heat Recovery & Utilization of Sensible and Latent Heat from Flue Gas to Drive the Value of Heat Exchangers in Coal Fired Power Plants Against the Backdrop of Robust Outlook for Clean Coal Power: Global Thermal Power Generated from Coal (In Billion Kilowatt-hours) by Region for the Years 2018 and 2024
  • Focus on Renewable Energy: A Double Win for Heat Exchangers in the Energy Sector
  • Exhibit 14: Targets for Electricity Production from Renewable Energy Sources in Select Countries
  • Exhibit 15: Leading Countries with Renewable Energy as % of total Energy
  • Exhibit 16: Robust Outlook for Renewables to Echo Downstream Into the Heat Exchangers Market: World Renewable Energy Production (In Billion Kilowatt Hours) by Energy Source for the Years 2017, 2020, 2030 and 2040
  • Expected Revival of Nuclear Energy to Drive Opportunities in the Heat Exchangers Market
  • Exhibit 17: With Over 500 Operational & Under Construction Nuclear Reactors, Demand for Heat Exchangers in Nuclear Power Plants is Poised for Growth in the Medium to Long Term Period: Global Number of Nuclear Reactors in Operation & Under Construction (In Units) by Geographic Region for the Year 2018
  • Wild Oil Prices Bring the Pain Back to the O&G Industry But Spurs the Emphasis on Productivity, Capital Efficiency & Ability to Break-Even at the Lowest Price
  • Exhibit 18: As Oil Companies Scramble to be Better Prepared for the Next Price Crash, Innovative Heat Exchangers Capable of Providing Value Via Production Improvements & Efficiencies Will be the Only Ones to Gain in the Volatile Market Environment: Global Prices of Brent Crude (In US$ Per Barrel) for the Years 2012 through 2021
  • Structural Shocks & the Ensuing Permanent Break in Oil Prices to Push Demand for Underwater Heat Exchangers Further Beyond 2020
  • Medley of Factors Dole Out Challenges & Opportunities in Equal Measure for the Global Oil Refining Market
  • Exhibit 19: With Growth Skewed Towards Alternative Liquid Fuels, Oil Refineries Face a High Risk Exposure as the Oil Shake Up Marks the Transition Towards a Low Carbon Economy: Global Liquid Fuel Cumulative Demand Growth (In ‘000 Barrels per Day) by Type for the Years 2018, 2021 & 2023
  • Healthy Market for Processed Food to Benefit Demand for Heat Exchangers in the Food Processing Sector
  • Exhibit 20: As the Hidden Workhorses of Heating and Cooling in the Food & Beverage Industry, Demand for Heat Exchangers Benefits from the Growing Demand for Packaged Food: World Retail Market for Food & Beverages (in US$ Trillion) for the Years 2019 & 2023
  • Stringent Wastewater Treatment Laws Provide Fertile Ground for Heat Exchanger Sales
  • Exhibit 21: Growing Industrial Effluent Discharge Coupled With the Massive Water Reuse Opportunity Provided by the Emerging Circular Economy Offers Lucrative Opportunities for Heat Exchangers in the Wastewater Treatment Industry: Volume of Industrial Wastewater Generated in the U.S & Europe (In 000 m3 (Cubic Meters)) for the Year 2018
  • Shortage of Freshwater Spurs Land Based Use of Seawater Heat Exchangers
  • Exhibit 22: Declining Freshwater Availability Throws the Technology Focus on Seawater Heat Exchangers: Per Capita Availability of Water in Select Countries (In '000 m3) for Years 1975, 2000 & 2025
  • Water Shortages to Drive Demand for Air Coolers
  • Heat Exchangers Find Increased Acceptance in Marine Industry
  • Heat Exchangers Remain Critical Elements of Modern Data Centers
  • Mining Industry Trends Continue to Discourage Heat Exchangers Market
  • Exhibit 23: Labor Presents the Most Significant Downside Risk for the Mining Industry in the Form of Increased Production Costs: Production Cost Breakdown of Mining Projects (In %) for the Year 2020
  • Innovations in Cooling Tower Design and Technology Crucial to Future Market Growth
  • Supportive Innovative Technologies of Heat Exchangers
  • Artificial Intelligence (AI) Makes Its Revolutionary Presence Felt in the Heat Exchangers Market
  • Exhibit 24: Growing Prominence of Robotic & Intelligent Process Automation in the Era of Smart Factories to Drive the Commercial Value of AI Based Heat Exchanger Control & Monitoring: Global Spending on Robotic Process Automation & Intelligent Process Automation (In US$ Million) for the Years 2016, 2018, 2020 and 2022
  • Next-generation Factory Assembled Cooling Towers to Positively Impact Bottom Line of HVAC and Industrial Processes
  • Advancements in Plume Abatement Technologies and Drift Eliminators Address Environmental Concerns and Drive Healthy Demand
  • New Design and Material Innovations Increase Cooling Efficiency
  • Innovation in Heat Exchanger Flow Patterns, Fins & Grooves Infuse Vigor in the Market
  • R&D Focus on Material Science Helps Leverage Benefits of Newer Raw Materials
  • Select Innovations
  • Focus on Intelligent Maintenance & Continuous Monitoring of Heat Exchangers Drives Opportunities for Replacement Demand
  • A Note on Industry Standards and Codes
  • Duct Cleaning and Air Conditioning Do Not Affect COVID-19 Transmission
  • Issues & Challenges
  • F-Gas Regulations
  • Low Awareness about Benefits of Building Energy Efficiency
  • Pricing and Distribution
  • Pricing Behavior by Product Segment
  • Steel as Raw Material Dominates
  • Pricing Behavior by End-Use Segment
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS
  • UNITED STATES
  • COVID-19 Pandemic Impacts Cold Insulation Market
  • Increased Awareness to Spur Demand for Energy Efficient Heat Exchangers
  • Shale Gas Revolution: A Fundamental Driver of Growth in the Use of Heat Exchangers in Liquefaction Plants
  • Exhibit 25: Annual Production of Shale Gas (In Trillion Cubic Feet) in the United States (2015, 2016, 2017, 2020, 2030, 2040 & 2050): A Measure of Addressable Opportunity for Exchangers in Heat Recovery Applications in Shale Gas Processing
  • Wet Cooling Towers Dominate the Cooling Tower Market
  • Opportunities Exist for New Entrants in HVAC&R Heat Exchangers Market
  • CANADA
  • JAPAN
  • CHINA
  • Market Overview
  • Although Weakening, China to Remain a Dominant Market for Heat Exchangers in the Medium to Long Term Period
  • Exhibit 26: China’s Current Dominant Hold on Global Manufacturing Output & Its Central Role in World Trade Makes the Country a Major Market for Heat Exchangers in Asia: % Breakdown of Global Manufacturing Output by Region for the Years 1990, 2013, 2017 & 2025
  • Shell & Tube Heat Exchanger Segment to Post Solid Growth
  • Governmental Initiatives to Drive Growth
  • Rising Focus on Energy Saving, Environment Friendly Technology
  • Aalborg CSP Resumes Production of Heat Exchangers in China After COVID-19 Lockdown
  • EUROPE
  • Shell and Tube Heat Exchangers: Brief Note
  • Plate Heat Exchangers
  • Air Coolers
  • Cooling Towers
  • Analysis by End-Use Segment
  • Chemicals Industry
  • Oil & Gas
  • HVAC and Refrigeration
  • Other Applications
  • Regulatory Environment
  • FRANCE
  • GERMANY
  • ITALY
  • UNITED KINGDOM
  • SPAIN
  • RUSSIA
  • REST OF EUROPE
  • ASIA-PACIFIC
  • Market Overview
  • AUSTRALIA
  • INDIA
  • SOUTH KOREA
  • REST OF ASIA-PACIFIC
  • LATIN AMERICA
  • REST OF WORLD
IV. COMPETITION
  • Total Companies Profiled: 454
Note: Product cover images may vary from those shown
  • Air Products and Chemicals, Inc.
  • Alfa Laval AB
  • API Heat Transfer
  • Balcke-Dürr GmbH
  • Barriquand Technologies Thermiques
  • Danfoss
  • Doosan Corporation
  • Enerquip, Inc.
  • Funke Wärmeaustauscher Apparatebau GMB
  • Guntner U.S. LLC
  • Hamon Group
  • Harsco Industrial Air-X-Changers
  • Hisaka Works, Ltd.
  • HRS Heat Exchangers Ltd
  • Johnson Controls
  • Kelvion
  • Koch Heat Transfer Company
  • McDermott
  • Mersen
  • SmartHeat Inc.
  • SPX Cooling Technologies, Inc.
  • SPX FLOW, Inc.
  • SWEP International AB
  • Tranter Inc.
  • Vahterus Oy
  • Xylem Inc.
Note: Product cover images may vary from those shown
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