SAN JOSE, Calif. — The global market for heat exchangers is projected to reach $24.3 billion by 2020, driven by recent innovations in energy efficient heat exchangers, according to a new report by Global Industry Analysts Inc.

Heat exchangers are used in a range of applications including commercial building HVAC and heating, cooling, and heat recovery in industrial plants, manufacturing facilities, and power plants. Demand in the market is driven by rapid industrialization in developing countries and increasing investments in manufacturing plant infrastructures. The highly mature global heat exchangers market is set to thrive on replacement demand coming from frequent upgrades and incremental technology improvements. The market will continue to be driven by technology innovation and development. 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. Of special interest is the emergence of micro channel heat exchangers, a new generation with potential applications in a wide range of diverse industries ranging from automotive to residential HVAC to process industries.

In the coming years, greenfield projects in the energy industry, especially in the nuclear power sector, will support demand, says the report. Demand for heat exchangers in the nuclear power sector is poised to witness the highest growth given the encouraging number of new plants 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. The growing global focus on energy efficiency against a backdrop of depleting fossil fuel resources, rising focus on green energy, and emphasis on curbing environmental pollution, is poised to benefit the market for energy efficient heat exchangers. Environmental concerns are likely to expedite the adoption of energy efficient products like compact heat exchangers and closed circuit cooling towers. The chemical industry also offers steady growth opportunities for heat exchangers in chemical processing and production applications. Stringent wastewater treatment laws, against a backdrop of rising levels of water pollution and contamination, are providing opportunities for the growth of heat exchangers in wastewater treatment plants.

Europe represents the largest market worldwide. Asia-Pacific is forecast to emerge as the fastest growing market with a compound annual growth rate (CAGR) of 8.9 percent over the analysis period. Growth in the region is led by broad economic factors such as rising income levels, rapid urbanization, strong industrialization, expanding manufacturing/industrial base, growing middle class population, favorable demographics, government focus on infrastructure development, and energy self-sufficiency, among others.

For more information on this research report, titled “Heat Exchangers: A Global Strategic Business Report,” click here.

Publication date: 5/11/2015

Want more HVAC industry news and information? Join The NEWS on Facebook, Twitter, and LinkedIn today!