Heat Exchangers: A Global Strategic Business Report
San Jose, California (PRWEB) November 16, 2011
Follow us on LinkedIn - Energy savings is rapidly emerging into a massive industry worldwide, and this global trend towards significantly reducing heat energy costs, and increasing energy efficiency has and will continue to witness heat exchangers emerge as the greatest beneficiary. The large installed base of aging heat exchangers will require periodic renewal and upgrading. Natural wear-and-tear of heat exchangers and modernization initiatives adopted in key end-user industries will additionally magnify the business opportunity offered by replacements. Evolution of new product designs with value added functional features and benefits will provide the sweetener required for pushing equipment replacement demand to the fore. Competition in the global heat exchangers market has, over the last few years, intensified largely as a result of the emergence of low cost Asian manufacturers. New entrants from Russia, Eastern Europe, and Asian nations such as India and China, have made remarkable in-roads into the international heat exchangers market, making prices more competitive.
Demand for heat exchangers is typically driven by growth of investments in end-use industries such as chemicals, petrochemicals, fuel processing, HVAC and refrigeration, food and beverage, power generation and energy, which in turn is a function of several macro-economic factors such as economic and population growth, consumer confidence, credit availability, capital investment, the number of new construction projects, and fuel prices. The 2007-2009 economic recession, therefore took its toll on the global Heat Exchangers market with demand witnessing marked erosion in the year 2009. The exhibited signs of distress were the result of recessionary pressures manifested in the form of reduced energy, gas & oil consumption as a result of decline in demand from major energy-consuming sectors such as manufacturing, automobiles and construction industries etc, lower capital investment activity and project delays in processing and manufacturing industries, particularly in the hydrocarbon processing and power generation industries, diminished manufacturing and commercial activity, fall in the business confidence index, bleeding corporate balance sheets, and enterprise skepticism over infrastructure/capital investments. All of these factors lowered the order intake for heat exchangers.
Especially hard hit were traditional end-user segments like the chemical food, and beverage and general manufacturing industries, which are prone to exhibit knee-jerk sensitivity to economic conditions, while in comparison, demand in oil and gas and nuclear power end-use sectors performed relatively better. For instance, in the chemical industry plant shutdowns, capacity rationalization and tightened investments sharpened the blow on new equipment orders, while in the oil and gas industry demand was partially shielded by environmental legislation, and government supported upgradation and investment projects. Commissioning and installation of new chemical facilities outside North America and Europe, additionally resulted in shifting of demand for heat exchangers from the developed to the developing markets.
Demand for heat exchangers is expected to experience healthy growth in the upcoming years as is already evident by the resurgence in growth in the year 2010 for most markets across the globe. In the upcoming years, Greenfield projects in the energy industry are especially expected to fuel demand. Demand for heat exchangers in the nuclear power sector is poised to witness the highest growth given the encouraging new power plants/reactor establishment projects in the pipeline. Future growth will also be largely supported by the growing emphasis on energy savings and the ensuing need to reduce heat energy costs, and increasing energy efficiency. Interestingly, the 2007-2009 economic recession has fuelled and sharpened the emphasis on utilization of energy saving equipment and heat exchangers remains the prime beneficiary of this trend. This scenario is especially pronounced in countries like China where the energy savings sector is particularly supported by the government’s economic stimulus plan thus sheltering the industry from the economic downturn. Environmental concerns and related legislations therefore further push the economic incentives for adopting energy efficient technologies and products. Going further technology innovations that help lower total ownership costs, increase efficiency of heat exchangers and offer competitive advantage will surely help drive market prospects for heat exchangers.
As stated by the new market research report on Heat Exchangers, Europe represents the largest regional market for heat exchangers. Asia-Pacific represents the fastest growing regional market with dollar sales from the region waxing at a CAGR of about 5.5% over the analysis period. Continued resurgence of investments in energy and petrochemical sectors in Asia will aid in spurring demand for heat exchangers in the region for use in processes in the production and refining of oil, gas, and petrochemicals. Plate and Frame Heat Exchangers market is the fastest growing product segment with dollar sales waxing at a CAGR of about 5.2% over the analysis period. Plate heat exchangers are gaining popularity due to their efficiency in terms of higher amount of heat transfer, lower installation cost, compact and small sizes that can be customized.
Major players in the marketplace include Alfa Laval AB, Tranter Inc., API Heat Transfer Inc., Xylem Inc., Chicago Bridge & Iron Company N.V., GEA Group Aktiengesellschaft, Hamon Group, Hisaka Works Ltd., Modine Manufacturing Company, Sondex A/S, SPX Corporation, Balcke-Dürr GmbH, SPX Cooling Technologies Inc., among others.
The research report titled “Heat Exchangers: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a review of noteworthy market trends, growth drivers and challenges. The report in addition also enumerates recent acquisitions, and other strategic industry activities. The report offers market estimates and projections for world Heat Exchangers market in dollar sales for the following regional markets: US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Latin America and Rest of World. The report offers demand estimates and projections for Heat Exchangers in dollar sales by the product segments - Shell and Tube Heat Exchangers, Plate and Frame Heat Exchangers (PHE) (Gasketed PHE, Welded PHE, and Brazed PHE among others), Air Coolers, Cooling Towers and Other Heat Exchangers. The report also analyzes the market by end-use sectors - Chemicals Industry; Fuel Processing; HVAC and Refrigeration; Food and Beverage; Power Generation; and Other Applications Markets.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Heat_Exchangers_Market_Report.asp
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.
Global Industry Analysts, Inc.
Web Site: http://www.StrategyR.com/