The heat exchanger market is expected to grow at a CAGR of 3% during the forecast period. Demand from water and wastewater industry, drivers.2, and drivers.3 are some of the significant factors fueling heat exchanger market growth.
Demand from water and wastewater industry
Heat exchangers are used in several other industries such as power, food and beverage, nuclear power plants, as well as paper and pulp. The power industry is one of the key elements for the economic development of any country. The residential, commercial, and industrial sectors demand an uninterrupted power supply for efficient functioning. The governments of several countries are investing in expanding their installed power capacities. For instance, Chinese companies are planning to build more than 700 new coal plants across the globe. Though the construction of new coal-based power plants will result in the higher market potential for heat exchangers, the power plants will also result in higher carbon emissions.
The food and beverage industry demands optimized heat exchangers to ensure a reliable production process, energy efficiency, and hassle-free cleaning. All these factors enable the industry to deliver safe yet competitive products. Major applications of heat exchangers in the food and beverage industry are as follows:
General heating
General cooling
Energy-efficient evaporation and condensation
Thermal solution for sterilization, aroma recovery, pasteurization, and de-aeration
The rising demand for processed food due to the improvements in economic conditions in developed economies will result in the expansion of the food and beverage industry, thereby raising the market potential for heat exchangers during the forecast period.
The impact of COVID-19 is different for various end-user industries included in this segment. For instance, the global supply chain of food and beverage from the production perspective is expected to witness disruptions, especially due to uncertainty in countries such as China, which are the primary suppliers across the world. Processing facilities and slaughterhouses could face production barriers due to lockdowns. Likewise, the automotive industry is also hugely impacted due to the COVID-19 pandemic. The sales of automobiles across the world are stagnant due to COVID-19. The rising number of COVID-19 positive cases has led to a worldwide lockdown and the shutdown of automobile stores, which resulted in a fall in the sales of automobiles, impacting the automotive industry on a huge scale. Therefore, a halt in the operations of industries such as power, food and beverage, nuclear power plants, as well as paper and pulp, is expected to hamper the growth of this segment during the forecast period.
