Shell & Tube Heat Exchangers Market Analysis Report By Material, By End Use, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global shell & tube heat exchangers market size was accounted for USD 5.68 billion in 2019. It is projected to witness a CAGR of 6.2% CAGR over the forecasted years, 2020 to 2027. The increasing need for technologically advanced equipment for efficient heat transfer across several industries is expected to drive the market growth of shell & tube heat exchangers.

Several industries like petrochemical plants, oil refineries, power generation, and pharmaceuticals require heat exchangers for enhancing their operational performance and efficiency. This can be attributed to their ease of design, construction, maintenance, operation, and up-gradation. Also, features like resilience against high temperatures and protection against fouling are expected to trigger their industrial demand across the globe.

In the U.S., the chemical industry is one of the major manufacturing industries which serves export and domestic needs. It requires more heat exchangers for chemical production. Also, rapid industrial growth across developing countries like China and India coupled with the emergence of several manufacturing facilities is anticipated to propel their market growth.

The key components in the heat exchangers include tubes, shells, baffles, sheets, and other auxiliary components. The application of the heat exchanger determines its type to be used. But, the emergence of technologically advanced and compact heat exchangers such as microchannel, welded spiral, and plate & frame is anticipated to hinder the demand for shell & tube type of heat exchangers.

Material Insights

The steel material segment held the largest share of 30.9% across the global shell and tube heat exchangers market in 2019. This can be attributed to its features like enhanced corrosion resistance in cooling waters and chemical environments, improved temperature resistance in oxidation and scaling. Also, properties like fouling resistance on account of corrosion, and more strength are expected to drive the market growth over the forecasted period.

The nickel & nickel alloys material segment is anticipated to witness the highest growth with 6.6% CAGR from 2020 to 2027. This can be associated with its surging demand across the petrochemical and chemical industries. Moreover, its usage for producing steam generator tubing across nuclear power plants, desalination equipment, aircraft systems, and gas and oil extraction systems are gaining traction across the globe.

End-use Insights

In 2019, the chemical end-use segment held the largest share of 20.2% across the global market. This can be attributed to several characteristics of heat exchangers such as ease of repair and maintenance, designing flexibility, and high-pressure operational capability. Also, the fabrication materials used for the manufacturing of heat exchangers like titanium, zirconium, duplex stainless steel, and nickel alloys are corrosion-resistive. This makes them best suit across the chemical segment, thereby boosting the market growth.

The petrochemical end-use segment is also projected to register substantial growth in the upcoming years. This can be associated with their application for separating oil from gas and water in the process of heat recovery. Moreover, their applications across other industrial processes like refining and gas scrubbing are expected to trigger their demand across the globe.

Regional Insights

In 2019, Asia Pacific accounted for the largest share of 36.3% across the global market. This can be associated with the rising investments across petrochemical and chemical industries residing across this region. Moreover, the surging number of end-use industries like food & beverage, power generation, refrigeration, and HVAC across India, China, and Thailand is further anticipated to propel the market growth.

North America accounted for the third-largest share across the global market in 2019. This growth can be associated with the rising adoption of heat exchangers in application industries like power generation, chemicals, and petrochemicals. While Europe is anticipated to register substantial growth from 2020 to 2027 on account of rising production and exploration activities across offshore areas. Moreover, upcoming projects in the oil & gas industry are expected to drive market growth across this region.

COVID-19 Impact Insights

The global shell & tube heat exchangers market has been negatively impacted on account of the COVID-19 pandemic. The stagnancy in construction activities of manufacturing facilities is expected to hinder the market growth. Also, economic uncertainty about the future is driving manufacturers to repair and maintain their operational devices rather than purchasing new ones. As the majority of the key players and raw material suppliers are located across China, their supply chain has been hindered due to restrictions on international cargo movement. Further, the imposition of lockdown across many countries has led to a shortage in the availability of skilled laborers. As the petrochemicals and industrial industries will require more time to retrieve their market positions, the market for heat exchangers is anticipated to face challenges over the post-pandemic period.

Key Companies & Market Share Insights

The key players in the market are Alfa Laval; Xylem Inc; Kelvion Holding GmbH; Elanco, Inc.; Thermex; API Heat Transfer; Brask, Inc.; and HRS Heat Exchangers. They are constantly engaged in product development and innovation to gain a competitive advantage.

Several marketing strategies like acquisitions, mergers, geographical expansion, and diversification are being undertaken by these players for widening their product portfolio. As a majority of the local players operating in this market are located across the Asia Pacific, it is expected to register a substantial threat to the key players due to enhanced quality and reduced cost prices.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2016 to 2027 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the global shell & tube heat exchangers market on the basis of material, end-use, and region:

• Material Outlook (Revenue, USD Million, 2016 - 2027)
    • Hastelloy
    • Titanium
    • Nickel & Nickel Alloys
    • Tantalum
    • Steel
        • Stainless Steel
        • Duplex Steel
        • Carbon Steel
        • Super Duplex Steel
        • Others
    • Others

• End-use Outlook (Revenue, USD Million, 2016 - 2027)
    • Power Generation
    • Petrochemicals
    • Chemical
    • Food & Beverages
    • HVAC & Refrigeration
    • Pulp & Paper
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • France
        • Italy
    • the Asia Pacific
        • China
        • India
        • Japan
    • Central & South America
        • Brazil
    • Middle East & Africa
        • UAE
        • Saudi Arabia
        • South Africa
        • Turkey
        • Nigeria