The Heat Exchanger Market is projected to grow significantly, reaching a value of US$ 39.11 billion by 2030, up from US$ 20.65 billion in 2022, reflecting an estimated compound annual growth rate (CAGR) of 8.3% from 2022 to 2030.
The North American Heat Exchanger market is divided into three main regions: the United States, Canada, and Mexico. It is anticipated that the United States will dominate the market share throughout the forecast period. For example, a report from the US Department of Energy in January 2021 indicated that the hydropower capacity saw a net increase of 431 MW in 2019 compared to 2017. This growth stemmed from enhancements to existing facilities, the establishment of new ones, and the activation of non-powered dams (NPDs), culminating in a total net increase of 1,688 MW from 2010 to 2019. Furthermore, Mexico is set to construct numerous gas-fired power plants to boost its natural gas supply, including plans to import natural gas from the United States. Notably, in November 2022, New Fortress Energy, a US-based company, announced a partnership with the Mexican government to develop the Lakach offshore gas field LNG project, which is expected to be completed by 2024. These developments will create a demand for heat exchangers for various applications, such as gas drying, preheating natural gas, and liquefaction processes in LNG facilities. In hydropower plants, heat exchangers play a crucial role in reducing downtime for turbines, generators, and transformers by managing the heat produced. Therefore, the increasing number of hydropower plants is a significant factor driving the growth of the heat exchanger market in North America.
North America also boasts a robust pulp and paper industry, which is expanding due to rising demand for packaging from the food and beverage sector as well as the e-commerce industry. The region is home to major producers of fiber-based packaging, pulp, and paper, including companies like International Paper Company, WestRock Company, and Verso Corporation. These companies operate on a global scale, producing various paper and packaging products to satisfy worldwide demand for items such as books, newspapers, magazines, and packaging materials. In July 2023, Mondi, a global leader in packaging and paper, announced its acquisition of the Hinton Pulp Mill in Canada from West Fraser Timber Co. Ltd for US$ 5 million. This acquisition marks the beginning of a long-term partnership with West Fraser, allowing Mondi to utilize high-quality local fiber for its packaging products. Such advancements in the pulp and paper sector will lead to increased operations in mills, thereby driving the demand for heat exchangers for applications like sewage cooling, sewage evaporation, and heating of filtered water.
The heat exchanger market is categorized by material type, including steel, copper, and other materials. The steel segment currently holds the largest market share. Steel heat exchangers are known for their high mechanical strength and excellent resistance to corrosion. Stainless steel, in particular, offers good thermal conductivity, making it an ideal choice for heat exchangers that must endure extremely high temperatures, significant burst pressures, and challenging environments. Compared to aluminum and copper, steel maintains its mechanical integrity at elevated temperatures, which enhances the performance of heat exchangers and minimizes the risk of distortion or warping under prolonged exposure to high temperatures. These attributes contribute significantly to the growth of the steel segment within the heat exchanger market.
In terms of application, the heat exchanger market is divided into several sectors, including energy, chemicals, food and beverages, HVACR, pulp and paper, and others. The energy sector holds the largest share of the heat exchanger market. In refineries, heat exchangers are essential for crude oil processing and subsequent refining stages. They are utilized in various applications, such as heat/oil transfer systems, cold ammonia flow control, fuel gas conditioning systems, lube oil systems, and selective catalytic reduction (SCR) units. For instance, in SCR units, heat exchangers are employed to reduce emissions and facilitate NOx removal, ensuring compliance with municipal industrial emission regulations. In heat/oil transfer systems, heat exchangers help dissipate excess heat generated during processes. Additionally, they capture heat from hot waste gases to generate power in power plants. Consequently, the extensive use of heat exchangers in refineries and power plants drives demand for these systems in both new and existing facilities, further propelling the heat exchanger market.
Key players in the heat exchanger market include 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, all of whom are profiled in this market analysis.
The overall size of the Heat Exchanger Market has been determined through a combination of primary and secondary research methods. Comprehensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data regarding the Heat Exchanger Market size. This approach also aids in providing an overview and forecast of the market across all segments. Additionally, numerous primary interviews have been carried out with industry stakeholders to validate the data and obtain analytical insights. This process includes discussions with industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the Heat Exchanger Market.