Heat Exchanger Market Analysis Report & Growth Outlook 2030

[Research Report] The heat exchanger market size was valued at US$ 20.65 billion in 2022 and is expected to reach US$ 39.11 billion by 2030; it is likely to register a CAGR of 8.3% from 2022 to 2030.

Analyst Perspective:

A heat exchanger is a device that is generally used for heating or cooling elements, depending on customer’s needs; it is primarily employed in various process and discrete industries. The industry uses heat exchangers for cooling in order to prevent overheating of critical machinery or flammable materials. The market for heat exchangers is growing globally. The major industrial sectors driving the demand are energy, chemical, food, HVAC, and marine, among others. All major process industries across the globe use heat exchangers for several applications. Industry 4.0, rapid industrialization, and technological advancements in oil & gas industries are all boosting the growth of the market.

Heat Exchanger Market Overview:

Manufacturers operating in the heat exchanger market are launching various products for petrochemical and refinery operations. For instance, in April 2023, Aggreko—a global provider of mobile modular power, temperature control, and energy solutions—launched two new rental heat exchanger families—the Large Nodal Heat Exchanger and the Hastelloy C Cross Flow Heat Exchanger. This off-the-shelf unit offers petrochemical and refinery customers the industry's largest heat exchanger and the only one made from Hastelloy. Both products are designed to ensure the smooth operation of petrochemical plants and refineries and handle complex chemical situations by maintaining customers' production rates and improving plant processes.

Further, various manufacturers operating in the heat exchanger market are launching compact heat exchangers to deliver fewer pressure drops and higher heat transfer in a compact design. For instance, in December 2022, Conflux Technology, a heat transfer product manufacturer, launched a new product to its commercial offering—a cartridge-based heat exchanger. Conflux Technology's latest launch is essentially a 3D-printed core that can be embedded into traditionally manufactured housings to deliver fewer pressure drops and higher heat transfer in a compact design. The company is also expanding its product line of compact heat exchangers for defense, aerospace, EV, automotive, industrial, and energy use cases.

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Heat Exchanger Market: Strategic Insights

Market Size Value in	US$ 20.65 billion in 2022
Market Size Value by	US$ 39.11 billion by 2030
Growth rate	CAGR of 8.3% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Heat Exchanger Market Driver:

Use of Heat Exchangers in Oil & Gas Industry Drives Heat Exchanger Market Growth

According to the report published by the International Energy Agency (IEA) in June 2023, the global demand for oil is expected to grow by 6% from 2022 to 2028 and will reach up to 105.7 million barrels per day (mb/d) in 2028. The demand is growing due to the rising requirement for petrochemicals and the increasing need for oil in the aviation sector. In addition, the investments for the upstream segment in oil and gas exploration, extraction, and production are anticipated to reach their highest value since 2015 and are projected to grow by 11% year-on-year to US$ 528 billion in 2023, this is to benefit the heat exchanger market. In addition, the investment and expansion in the refineries is increasing due to the rise in oil and gas demand. For example, in April 2019, ExxonMobil made a huge investment in the expansion project of oil refineries within a manufacturing complex in Singapore to further enhance the competitiveness of the country’s facility. According to the Economic Times, in January 2023, Pertamina, a refinery arm of an Indonesian state energy firm, announced upgrading its old refineries and building new ones, thereby increasing its processing capacity to over 1.5 million barrels per day. Therefore, the rise in global oil demand and investment in the oil & gas industry contributes to the production of oil and gas, where heat exchangers are used to eliminate the heat generated during production. It helps maintain the rapid generation or dissipation of heat to enhance productivity in the oil & gas industry. These heat exchangers are used in various applications such as heat/oil transfer systems, fuel gas conditioning systems, cold ammonia flow control, lube oil systems, and selective catalytic reduction (SCR) units. For example, in fuel gas conditioning systems, the heat exchanger helps maintain the heat generated during the steady flow of dry, high-purity fuel and ensures system components are working in stable conditions for a long period. In the lube oil system, heat exchangers help to provide an optimal thermal environment for the smooth operation of critical components such as mixers, kettles, and electrical switchgear. Thus, with the growth in the oil & gas industry, the use of heat exchangers is increasing, which is driving the market.

Heat Exchanger Market Segmental Analysis:

Based on material, the heat exchanger market is segmented into steel, copper, and others. The steel segment held the largest share of the heat exchanger market. Steel-based heat exchangers exhibit high mechanical strength and outstanding corrosion resistance. Stainless steel has good thermal conductivity, making it an optimal choice for heat exchangers to withstand ultra-high temperatures, extreme burst pressure, and harsh environments. Steel is stronger than aluminum and copper. It maintains its mechanical strength at higher temperatures than other common metal-based heat exchangers. Thus, its high mechanical strength enhances the performance of heat exchangers and helps reduce the potential for distortion or warping over extended contact to ultra-high temperatures. All these characteristics of steel fuel the market growth for the segment.

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Heat Exchanger Market Regional Analysis:

The North America heat exchanger market size was valued at US$ 6.1 billion in 2022 and is projected to reach US$ 11.2 billion by 2030; it is expected to register a CAGR of 7.9% from 2022 to 2030. The North America heat exchanger market is segmented into the US, Canada, and Mexico. The US held the largest share of the heat exchanger market in North America in 2022. The region is adopting hydropower electricity generation as it is one of the clean sources of energy and is developing power plants to meet the growing energy demand. For instance, according to the US Department of Energy report for January 2021, the hydropower capacity increased by a net of 431 MW in 2019 since 2017. The capacity was increased from existing facilities, new facilities, and powering non-powered dams (NPDs), which resulted in a total net growth of 1,688 MW from 2010 to 2019. In addition, Mexico is planning to build many gas-fired power plants to increase the natural gas supply, including importing natural gas from the US. For instance, in November 2022, US-based New Fortress Energy announced the deal signed with the Mexican government to develop the LNG project Lakach offshore gas field in Mexico, which is expected to be completed by 2024. Thus, these plants generate the need for heat exchangers for gas drying, preheating natural gas, and liquefaction of natural gas in LNG plants. In the hydropower plant, heat exchangers minimize the downtime of turbines, generators, and transformers by reducing the heat generated. Thus, the rising establishment of hydropower plants contributes to the North America heat exchanger market growth.

Heat Exchanger Market Key Player Analysis:

Alfa Laval AB, Kelvion Holding GmbH, Danfoss AS, Xylem Inc., API Heat Transfer Inc., Chart Industries Inc, Guntner GmbH & Co KG, Larsen & Toubro Ltd, Hisaka Works Ltd, and Johnson Controls International Plc are a few of the key players operating in the heat exchanger market.

Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the heat exchanger market. A few recent key heat exchanger market developments are listed below:

• In January 2023, L&T Heavy Engineering secured orders for one of the heaviest reactors and screw plug heat exchangers for a refinery in Mexico.
• In February 2022, Johnson Controls announced that it has added and installed fully integrated, factory-built, wrap-around heat exchangers (WAHX) to its YORK Solution Indoor and Outdoor air-handling units, meeting a growing need for energy-efficient dehumidification methods in a compact footprint.