June 22, 2024

The Heat Exchanger Market Is Primed For Growth Through Iot Integration

The heat exchanger market plays a critical role in various processes across industries like chemical, petrochemical, oil & gas, power generation, HVACR, food & beverage and others. Heat exchangers help in regulating temperature of materials, avoid wastage of energy and increase efficiency of production processes. The global heat exchanger market is estimated to be valued at US$ 21714.26 Bn in 2024 and is expected to exhibit a CAGR of 22% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the heat exchanger market include Alfa Laval, Kelvion Holding GmbH, Danfoss A/S, SPX FLOW, DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD, API Heat Transfer, Hindustan Dorr-Oliver Limited, IHI Corporation, SPX Corporation, Xylem Inc., Hisaka Works Ltd., Thermal Dynamics Corporation Private Limited.

The growing demand for heat exchangers across industries like oil & gas, chemical, power, HVACR is expected to drive the market growth during the forecast period. Stringent regulations regarding energy efficiency and rising focus towards reducing carbon footprints will further propel the heat exchanger industry.

Major players in the heat exchanger market are focusing on expanding their global footprint by entering untapped markets in Asia Pacific, Middle East, and South America. Acquisitions and partnerships are helping companies to consolidate their product portfolios and distribution networks across different geographies.

Market Key Trends

Integration of IoT and connectivity functionalities is emerging as a prominent trend in heat exchanger market. Leading manufacturers are developing smart and intelligent heat exchangers with embedded sensors to monitor parameters like temperature, pressure, vibration and fluid flow. IoT enabled units can transmit real-time data to control rooms for predictive maintenance and performance tracking. This allows remote monitoring and diagnosis of heat exchangers to optimize operations while reducing downtime. Ongoing digitalization of industrial infrastructure is expected to drive further adoption of IoT integrated heat exchangers during the forecast period.

Porter’s Analysis

Threat of new entrants: The heat exchanger size industry requires high initial investment and R&D costs which make it difficult for new companies to enter the market. Established players have established supply chains and customer base.

Bargaining power of buyers: Buyers have moderate bargaining power given the availability of substitutes and differentiation in products. However, switching costs are low.

Bargaining power of suppliers: A few large multinational suppliers exist for raw materials like metals used in manufacturing heat exchangers. This gives them some control over prices.

Threat of new substitutes: Substitutes include plate heat exchangers and spiral heat exchangers. Technology advancement can increase substitute threats.

Competitive rivalry: The heat exchanger market comprises large global players competing on performance, reliability and pricing.

Geographical Regions
Asia Pacific accounts for the largest share of the heat exchanger market, valued at over US$ 90 Bn in 2024 due to large manufacturing sector. China dominates followed by India and Japan.

North America is the fastest growing region for heat exchanger market projected to grow at a CAGR of 24% during forecast period. Presence of major process industries and HVAC sector drives demand. The US accounts for majority of regional market

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it