Focus on Energy Efficiency to Drive Global Market for Heat Exchangers, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on the Heat Exchangers markets. Global market for Heat Exchangers is projected to reach US$20.8 billion by the year 2018, primarily driven by rising energy costs and tightening of regulations related to energy efficiency & emissions. Upgrade of existing nuclear plants and proposed new nuclear reactors are also expected to benefit demand for Heat Exchangers for nuclear power plants.

Heat Exchangers: A Global Strategic Business Report

Follow us on LinkedIn – Heat exchangers are essential heat transfer devices used in all modern industrial and engineering applications ranging from automotive, aerospace, commercial building HVAC to heating, cooling, and heat recovery applications in industrial plants. A core component of all thermal systems, heat exchangers are vital and indispensable to energy conversion and utilization. The market continues to be driven by technology innovation and development. Improvements in energy efficiencies will emerge as a key differentiating factor for manufacturers to compete in the marketplace. Also poised to drive future gains are innovations that help lower total ownership costs, increase durability and efficiency of heat exchangers, and reduce vibration induced premature failures, especially in shell and tube heat exchangers. With continued technological progress, the future is forecast to witness applications of micro channel heat exchangers spread to chemical and cryogenic industries. In addition to technology innovation, demand will also be driven by rapid industrialization in developing countries and increasing investment in plant infrastructure.

The growing global focus on energy efficiency against a backdrop of rising energy costs and environmental pollution is poised to benefit the market for energy efficient heat exchangers in the upcoming years. Rising prices of coal and natural gas, shortages in domestic fuel sources, and rising cost of climate change in the form of increased carbon costs are key reasons cited for rising electricity prices worldwide. The cap on carbon dioxide emissions and the implementation of tradable permits, such as those legislated in the EU, establishes a market price for carbon thus ensuring that consumers pay the total cost of both energy generation and consumption (in the form carbon cost). The objective of most carbon cap policies is to encourage shared responsibility among utilities and the end-user and the same is benefiting the heat exchangers market. There exists increasing focus on upgrading to energy efficient heat exchangers in addition to monitoring, maintenance and timely replacements, as end-user industries are forced to adopt appropriate measures to enhance energy performance of heat exchangers in attempts to lower energy bills. And as more governments follow the EU route of charging industries for CO2 emissions, industries, especially process and manufacturing industries will have to face the energy challenge and consume less energy.

Against the backdrop of growing pressure on reducing energy consumption, compact heat exchangers (CHEs) are growing in popularity, especially in gas processing, petrochemicals, and fuel refining plants. Compact heat exchangers enable superior heat recovery and thereby better heat re-use. Heating of crude oil in oil & gas plants is the most energy intensive process and compact heat exchangers in this regard can help significantly reduce fuel consumption and operating costs while simultaneously strengthening the company’s bottomline.

Air-cooled heat exchangers, the adoption of which was hitherto limited by its higher installation and operating costs, is now forecast to witness robust growth. With water, especially cooling water for industrial purposes, becoming a scarce and expensive resource and with environmental concerns and tightening regulations over plumes emitted by cooling towers pushing up cost of operation of cooling towers, air cooled heat exchangers are now emerging into a cost effective, alternative to cooling towers. Demand for air cooled heat exchangers in Europe is especially forecast to rise given the increasing water costs/taxes and concerns over water pollution. For instance, in debt ridden countries like Portugal, Italy, Greece & Spain where financing of the water infrastructure is majorly through EU grants and central and local government debts, the austerity measures being adopted can likely limit the government’s investment, expenditure and subsidies in the water sector. Also the development, operation and maintenance cost of water infrastructure will most likely be shouldered by the taxpayer in the form of higher water bills and taxes. As the financial pressure exerted on governments bring out the true price of water, air cooled heat exchangers will offer a cost effective alternative for water-based cooling systems.

While the heat exchangers industry in other parts of the world continues its recovery from the 2007-2009 world economic recession, the market in Europe is running into a fresh set of challenges created by the ongoing debt crisis. The continued uncertainty in Europe caused by the periodic flaring up of the region’s debt crisis and the economic drag exerted by the deleveraging process underway in the region’s private, public and financial sector is overshadowing the market’s outlook in the region. With numerous factors still continuing to threaten CAPEX and OPEX in manufacturing industries in debt affected economies, sustained growth in demand for heat exchangers is currently treading the tight rope.

As stated by the new market research report on Heat Exchangers, Europe represents the largest market worldwide, while Asia-Pacific emerges as the fastest growing regional market. Growth in Asia-Pacific will be especially driven by China, given the robust economic growth and industrialization in the country. Industrial output in the country is the second largest in the world and accounts for over 49% of the country’s GDP, illustrating the country’s industrial prowess. As the world’s largest export oriented economy, industrial expansion in China has and will continue to grow robustly, at least in the short-to-medium-term, a scenario which bodes well for the heat exchangers market. While BRIC countries represent the market engine capable of driving growth in the short-to-medium term period, the continued spread of economic advancement and development to the East, will witness CIVETS emerge into a haven perfect for manufacturers seeking international expansion in the long-term. By product, Plate and Frame Heat Exchangers represents the fastest growing product segment, with dollar sales waxing at a CAGR of about 5.3% over the analysis period.

Major players in the global marketplace include Alfa Laval AB, Barriquand Technologies Thermiques, Xylem Inc., Chicago Bridge & Iron Company N.V. GEA Group Aktiengesellschaft, Hamon Group, Harsco Industrial Air-X-Changers, Hisaka Works, Ltd., Sondex, A/S, SmartHeat Inc., SPX Corporation, ThermaSys Corporation, and Vahterus Oy, among others.

The research report titled “Heat Exchangers: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for global heat exchangers market in US$ for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China and Rest of Asia-Pacific), Latin America, and Rest of World. Key end-use industries analyzed for heat exchangers include Chemicals Industry, Fuel Processing, HVAC and Refrigeration, Food and Beverage, Power Generation, and Others.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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