Shell & Tube Heat Exchanger Market - Forecast (2022 - 2027)

The Shell & Tube Heat Exchanger Market is forecast to reach $7.4 billion by 2027, after growing at a CAGR of 4.1% during 2022-2027. Owing to their easy maintenance, robust geometry design, and potential upgrades, shell and tube heat exchanger penetration is witnessing significant growth in oil refineries and petrochemical plants. Also, heat exchangers for shells and tubes are expected to gain popularity in the future due to their improved resistance to high-temperature applications and the ability to deliver protection against fouling. Hence, due to the rising demand for modern, new equipment in the petrochemical, pharmaceutical and power generation industries, providing high efficiency and resistance to corrosion is expected to raise the shell & tube heat exchanger industry in the forecast period.

Report Coverage

The: “Shell & Tube Heat Exchanger Market Report - Forecast (2022-2027)” covers an in-depth analysis of the following segments of the shell & tube heat exchanger market.

• By Material Type: Steel, Hastelloy, Titanium, Nickel & Nickel Alloys, Tantalum, and Others.
• By End Use: Power Generation, Petrochemical Industry, Chemical Industry, Food & Beverage Industry, HVAC & Refrigeration, Pulp & Paper Industry, and Others.
• By Geography: North America, South America, Asia Pacific, Europe, and Middle East & Africa.

Key Takeaways

• Europe dominated the market share of shell & tube heat exchangers in the area due to the large-scale demand of shell & tube heat exchangers for the chemicals industry in this region.
• Due to the continuous use of shell & tube heat exchangers for the production of various chemicals such as fertilizers and specialty chemicals worldwide, in the chemicals industry is predicted to expand dramatically over the projected era.
• Furthermore, the rise in demand for fertilizers, fibers, industrial gasses and other inorganic and organic chemicals, which will increase the demand for the manufacture of appliances, such as heat exchangers, boilers and chillers, would boost the market growth in the coming years.
• Also, due to the high resistance to extreme temperatures, fluoropolymers such as perfluoro alkoxy alkane (PFA) and fluorinated ethylene propylene (FEP) are used to produce the tubing material in the shell & tube heat exchanger market.
• Due to COVID-19 palindrome and nationwide lockdown there is a pause in the manufacturing industry due to the shortage of the supply of raw materials for the production of shell & tube heat exchangers. Thus, it is anticipated to hinder the growth of the market in the forecast period.

Shell & Tube Heat Exchanger Market Segment Analysis - By Material Type

Steel is extensively used in the shell & tube heat exchanger market. Stainless steels are iron-based alloys with a minimum chromium content of 10.5 per cent. The amount of stainless steel used for heat exchanger systems is that the industry wants to make its processes more effective and lower expensive shutdowns and to increase commodity performance. The properties of steel including corrosion resistance in chemical environments and cooling waters, high temperature resistance to scaling and oxidation, strong strength in low and high temperature applications, and corrosion-related fouling resistance are expected to improve material penetration in heat exchangers. Thus, the rising demand for steel in the shell & tube heat exchanger will drive the market growth in the forecast period.

Shell & Tube Heat Exchanger Market Segment Analysis - By End Use

The chemical industry held the largest share in the shell & tube heat exchanger market in 2019 and is projected to grow at a CAGR of 3.9% during the forecast period 2022-2027. Due to their features including simple servicing and restoration, compact construction and high-pressure operations, and the improved penetration of the shell and tube heat exchanger the market demand will rise. The heat exchangers used in the chemical industry are primarily made of corrosion-resistant materials, including zirconium, titanium, nickel alloys, stainless steel duplex and stainless steel austenitic. The chemical industry is rising at a significant rate as investments in the research and development of new chemicals such as specialty chemicals and fine chemicals are increasing. These chemicals require heat exchange equipment which fuels the demand for shells & tubes heat exchangers. Increasing demand for petrochemicals, fibers, industrial gasses, fertilizers, chlorine-alkali, and other organic and inorganic chemicals, has also led to an increased demand for production equipment such as boilers, chillers, heat exchangers, etc. worldwide. All these factors are likely to fuel the demand for shells and tubes heat exchanger market in the forecast period.

Shell & Tube Heat Exchanger Market Segment Analysis - Geography

Europe held the largest share with 32.3% in the shell & tube heat exchanger market. This growth is due to increased product penetration in various end-use industries, including power generation, petrochemicals, plastics, HVAC, and refrigeration, as well as food and beverages. Due to the rapidly increasing industrial infrastructure attracting many global players in the chemical industry, government initiatives in developing countries such as the United Kingdom and Germany have attracted strong growth from the chemical industry. The chemical industry is Germany's largest manufacturing sector and serves both domestic and export needs. The heat exchangers for shells and tubes are used in the manufacture of chemical products in industrial chemical production. Germany led the way for shell & tube heat exchangers in the last 2-3 years due to the growing way for chemicals. The European Council of Chemical Industry expects the European Union chemical production to decrease by 1 per cent in 2019 relative to 2018, according to Cefic Facts & Figures. For the year 2020, chemical production is expected to stay on the same level as 2019. Due to COVID-19 palindrome and nationwide lockdown, the overall Europe chemical production was slightly negative in the first half of 2019.

Shell & Tube Heat Exchanger Market Drivers

Rapidly growing demand of shell & tube heat exchanger from pulp & paper

Compared with the refining industry, the pulp & paper manufacturing industry uses large amounts of heat in their processes, typically in the mid and low temperature range. The pulp and paper industries use a great deal of energy in their different drying processes. The drying process is important and as a result, the air heat exchanger shell & tube must be durable and also highly successful in order to reduce the energy bills of the facility. A pressurized water reactor uses a steam generator, a U-tube heat exchanger, to transform the reactor vessel's thermal conductivity into vapor. By reusing waste heat, the paper industry can still make savings on its energy consumption. However, most industrial waste heat temperature is however too low to be reused. The industrial pulp & paper process is consequently very energy-intensive. This industry aims for heat pumps to lift the temperature to greater levels. Thus, the use of shell & tube heat exchanger for various applications in the pulp & paper industry will drive the market in the forecast period.

Increasing use of shell & tube heat exchanger in the food and beverage industry

Shell & Tube heat exchangers help optimize production, maximize raw materials and reduce energy consumption, waste and emissions. Shell & Tube heat exchangers treat very delicate and viscous products that are capable of pumping at high pressure without destroying food particles. In the food and beverage industry, it is used at ideal temperatures in ovens, cookers, food processing & preheating, milk pasteurization, beer cooling and pasteurization, refrigeration or chilling of the final product. Also, shell & tube heat exchangers make products safe for consumption and extend shelf life by preventing the growth of harmful microbes. Thus, the increasing use of shell & tube heat exchanger in the food & beverage sector will drive the market in the projected period.

Shell & Tube Heat Exchanger Market Challenges

Maintenance difficulties in shell & tube heat exchanger

Cleaning and maintenance are problematic, as a tube cooler requires sufficient leeway to one side to expel the tube nest. An exchange of shells and tubes consists of a number of tubes mounted inside a cylindrical shell Is difficult to clean. Failure to keep all tubes clean may result in flow termination in time, which may result in leaks and ruptures in the tubes. For major changes in pressures and/or thermal efficiency, exchangers prone to fouling should be controlled. While heat exchanger fouling may result from a variety of mechanisms, it is usually one that predominates over time, and increases. The tube surfaces are returned to a nearly bare metal state each time the tube deposits, sedimentation, biofouling, and obstructions are removed. This restarts the heat exchanger's lifecycle as the protective oxides reconstruct themselves quickly to create a passive cleaned tube.

Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the shell & tube heat exchanger market. In 2019, the market of shell & tube heat exchanger has been consolidated by the top five players accounting for xx% of the share. Major players in the shell & tube heat exchanger market are Kelvion Holdings GmbH, Alfa Laval AB, HRS Heat Exchangers, Brask Inc., Koch Heat Transfer Company, Thermax Limited, SPX Corporation, API Heat Transfer Inc., and Southern Heat Exchanger Corporation among others.

Acquisitions/Technology Launches

• In May 2019, Alfa Laval established a manufacturing plant for the production of brazed plate heat exchangers in the USA. This manufacturing plant will cater for North America's increasing demand for heat exchangers. It also provides rapid response time and reduced lead times for its US customer base, which will help the company increase its revenues from the North America region.
• In January 2019, Kelvion Holdings GmbH, launched exhausts gas heat exchangers, compact and ideal for industrial installations and power stations.

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