Heat exchangers - devices that are employed for transferring heat from one fluid to another and controlling the temperature of a system - consume less energy and produce significantly less pollution as compared to conventional cooling methods. As a result, they are gaining popularity across the world.

The global heat exchanger market is projected to grow from $17.32 billion in 2021 to $28.30 billion in 2028 at a CAGR of 7.3% in forecast period 2021-2028, according to Fortune Business Insights. Heat exchangers find applications in various industries such as chemicals & petrochemical, HVAC and refrigeration, food and beverages, power generation, pulp and paper, etc. The growing demand from the chemical industry, technology innovation and rising focus on improving efficiency standards are driving the demand for heat exchangers. Asia handles more than 50% of the global sales of chemicals. Hence, rapid expansion in the chemical industry in Asia, specifically in China, is expected to act as a major driving force for the heat exchangers market.

"The demand for heat exchangers in automotive is anticipated to rise as demand for automotive components in engineering industrial and commercial applications increases for residential and commercial purposes. Growing HVAC usage, especially in automotive, residential, and commercial buildings, is expected to drive market growth," said Grand View Research (GVR) in its report.

Shell and tube heat exchanger in demand

The shell and tube heat exchanger segment, which dominates the global heat exchanger product market, accounted for 35.9% of the revenue share in 2019. The segment is predominantly characterised by a rise in the demand for heat exchangers for various applications in end-use industries such as chemical, oil and gas, and power generation.

According to GVR report, "Rising demand for efficient thermal management systems with low space requirements is expected to drive demand for plate and frame heat exchangers (PFHE) over the forecast period. The welded plate heat exchanger is expected to witness high growth on account of its growing use in various industries including automobile, pharmaceuticals, petrochemical, and paper manufacturing pertaining to performance characteristics."

The brazed plate heat exchanger is anticipated to witness significant growth in the heat exchanger market owing to its rising use in-floor heating, refrigerant evaporators, economizers, oil coolers, condensers, super-coolers, and various other industrial applications. 

The air-cooled heat exchanger is likely to witness a CAGR of 4.3% from 2020 to 2028 owing to rising in the use of air-cooled heat exchangers (ACHE) in automobiles, chemicals, and oil and gas industries. The growing demand for refrigeration and AC globally along with increased construction activity, in various countries including China, India, and some of the Middle East countries.

India's market

Factors such as rising demand for energy (due to growing population and rapid urbanization), increasing in number of chemical & food plants, boom in other industrial sectors, etc are propelling demand for heat exchangers in India. As per Allied Market Research (AMR) report, the India's heat exchangers market - valued at $454.4 million in 2018 - is expected to reach $ 890 million by 2026, registering a CAGR of 8.6% from 2019 to 2026.

The increasing adoption of heat exchangers in the installation of new power units is a big growth-inducing factor. Furthermore, the burgeoning chemical and petrochemical sectors, along with the upgradation of conventional heat exchangers with efficient and innovative variants, are driving the market. However, the coronavirus disease (COVID 19) outbreak and the imposition of lockdown restrictions resulted in temporary closures of operations at several manufacturing units last year. This severely affected the market growth. After lockdown restrictions were lifted, activities in majority of industries are gaining momentum and, thus, resulting in good recovery in demand for heat exchangers.