As Manufacturing, Production Companies & Utilities Prepare to Survive the Challenging Global Economy Currently Beset With Moderation, Innovative Heat Exchangers Will Witness Strong Opportunities for Growth

The global market for Heat Exchangers is forecast to reach US$26.1 billion by 2024 supported by opportunities for growth despite the challenges posed by the hugely mixed market expectations. The biggest challenge to industries and markets across the world is the global economic scenario. Global GDP recovery has plateaued, a trend that seems unlikely to recede in the coming years. The recovery in growth witnessed in 2015, 2016 and 2017 largely as a result of the temporary stimulus extended to the U.S. economy in the form of temporary tax cuts is now gradually being withdrawn as the federal government. Also, trade tensions highlighted by tit-for-tat tariffs imposed by the U.S. and China are additionally wielding a derogative influence on growth, business confidence and investments. Global GDP which recorded a 3.7% growth will remain flat and unchanged for the next couple of years. The year 2018 is expected to close with a 3.7% growth, while year 2019 will also witness an unchanged 3.7% growth. Few of the reasons cited for the projected stagnation in growth is rising political uncertainties; unfavorable trade policy and increased trade frictions which will result in broad-based stress to growth; instability in emerging markets which still remain vulnerable to external shocks and non-economic factors such as terrorism, disease outbreaks, and domestic conflicts; high fiscal and financial risk with global debt continuing to remain high; uncertainty cast by the global ramifications of policy changes and ideologies of the new Trump administration in the U.S.; political uncertainties and geopolitical threats in Asia, the Middle East and Africa.

The heat exchangers market, under this scenario, offers ample growth opportunities for companies with winning culture anchored to innovation, even as recovery in global GDP plateaus at 3.7% through 2019. The weakening PMI through the 12 months of 2018 is keeping the industry on the edge with anxious anticipation. As stakeholders hold their breath and watch manufacturing output prepare for a dip in 3 of the world’s largest economies in the year 2019, innovative heat exchanger companies can steal opportunities offered for smart, advanced heat exchanger solutions capable of providing value via production improvements and efficiencies. For instance, while wild oil prices are expected to bring the pain back to the oil and gas industry, the less than desirable business climate doubles the emphasis on productivity and capital efficiency. Oil companies are scrambling to be better prepared for the next price crash by breaking even at prices as low as US$50 per barrel of Brent crude. The scenario will drive demand for energy efficient heat exchangers given their ability to make an impact on profitability of oil firms as heating and cooling remains the most expensive part of oil production and processing.

Other major trends in the market include growing prominence of robotic and intelligent process automation in the era of smart factories and the ensuing rise in commercial value of AI based heat exchanger control and monitoring; focus on heat recovery and utilization of sensible and latent heat from flue gas led by the robust outlook for clean coal power and the ensuing demand for heat exchangers in coal fired power plants; stable economic growth in East Asia and South Asia and development of energy infrastructure in these regions, strong manufacturing base and growing government policy led support for upgrades and modernization. The market, especially in the developed regions will witness greater demand for equipment that complies with strict regulatory and safety norms. The undeniable productivity benefits of industrial energy efficiency measures will spur the commercial value of energy efficient heat exchangers especially in developed countries where the growing popularity of energy audits is supporting increased spending on energy efficiency technologies. Europe represents the largest market worldwide.

As stated by the new market research report on Heat Exchangers, Asia-Pacific ranks as the fastest growing market with a CAGR of 6.5% over the analysis period led by factors such as positive CAPEX and OPEX investment climate in the sector; and favorable government led policies that prioritize industrial, manufacturing and process sectors for their ability to generate benefits of dynamic economies of scale, innovation/technology diffusion and spillover of a broad range of benefits for the economy and its growth.

Major players in the market include Air Products and Chemicals, Inc., Alfa Laval AB, Tranter Inc., API Heat Transfer, Balcke-Dürr GmbH, Barriquand Technologies Thermiques, Danfoss, Doosan Corporation, Enerquip, Inc., FUNKE WÄRMEAUSTAUSCHER APPARATEBAU GMB, Guntner U.S. LLC, Hamon Group, Harsco Industrial Air-X-Changers, Hisaka Works, Ltd, HRS Heat Exchangers Ltd, Johnson Controls, Kelvion, Koch Heat Transfer Company, McDermott, Mersen, SmartHeat Inc., SPX Cooling Technologies, Inc., SPX FLOW, Inc., SWEP International AB, Vahterus Oy, and Xylem Inc. among others.

The research report titled “Heat Exchangers – Market Analysis, Trends, and Forecasts” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the U.S., Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China and Rest of Asia-Pacific), Latin America and Rest of World. Product segments analyzed in the report include Shell & Tube Heat Exchangers, Plate Heat Exchangers (Gasketed PHE, Welded PHE, Brazed PHE and Other PHE), Air Coolers, Cooling Towers and Others. End-use sectors analyzed in the report include Chemicals, Oil & Gas, HVAC & Refrigeration, Food & Beverage, Power Generation and Others.

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