Europe Heat Exchanger Market
Europe Heat Exchanger Market by Material (Metals, Alloys, Brazing Clad Materials), Type (Shell & Tube, Plate & Frame, Air-cooled), End-Use Industry (Chemical, Energy, HVACR, Food & Beverage, Power, Pulp & Paper), and Countries - Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The Europe heat exchanger market is projected to reach USD 9.56 billion by 2030 from USD 6.95 billion in 2025, at a CAGR of 6.6% during the forecast period. The key growth drivers of the Europe heat exchanger market include stricter energy efficiency regulations, growing popularity of renewable energy systems, and the rise of industrial activities. The EU's rigorous carbon emission norms are persuading companies to implement efficient heat transfer technologies in HVAC, power generation, and manufacturing. The demand is also fueled by the rapid development of data centers, chemical processing, and food & beverage industry. Besides, investments in district heating, waste heat recovery, and transport electrification are regarded as support measures for the market. Moreover, technological improvements including compact and high-performance heat exchangers together with the upgrading of old infrastructure are other reasons that help with the steady growth of the market all over Europe.
KEY TAKEAWAYS
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By CountryGermany accounted for the largest share (25.0%) of the Europe heat exchanger market.
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By MaterialMetals accounted for the largest market share (60.3%) in 2024.
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By TypePlate & frame heat exchanger is the fastest-growing type with a CAGR of 7.4% in the market between 2025 and 2030.
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By End-use IndustryHVAC & refrigeration is the fastest-growing end-use industry segment during forecast period.
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Competitive Landscape - Key PlayersALFA LAVAL, Kelvion Holding GmbH, and Danfoss were identified as some of the star players in the Europe heat exchanger market, given their strong market share and product footprint.
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Competitive Landscape - StartupsBarriquand Heat Exchangers, FUNKEwärmetauscher Apparatebau GmbH, Sierra S.p.A., among others, have distinguished themselves among startups and SMEs by securing strong footholds in specialized niche areas.
The heat exchanger market in Europe is experiencing its major growth due to the severe environmental regulations and the EU's energy efficiency and greenhouse gas reduction strategies, which led to the need for industries to move towards the use of modern and eco-friendly thermal management solutions. A demand shift towards energy-efficient systems in HVAC, chemical processing, power generation, and district heating/cooling sectors, alongside the transition to renewable energy sources and the implementation of heat recovery technologies, are the major factors that drive market expansion.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The impact of businesses of the clients on the Europe heat exchanger market is constantly changing due to requirements that are concentrated on the areas of energy efficiency, decarbonization, and the meeting of regulations. End users, such as BASF, Shell, and TotalEnergies, are paying closer attention to high-performance heat transfer technologies, process optimization, and the dual adoption of low-carbon and digital technologies to comply with the EU's stringent climate regulations. When these priorities are imposed more rigorously, the benefits of reduced operating and energy costs, emission reductions, improved asset reliability, and higher process efficiency become apparent. This situation underscores the need for continuous innovation, the development of new materials, and the use of intelligent heat exchanger designs to support the energy transition and, at the same time, provide industrial centers in Europe with sustainable, compliant, and high-value solutions.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
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Increasing industrial automation in manufacturing sectors
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Rising adoption of district heating and cooling systems in urban areas
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High energy costs for operating large-scale industrial systems
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Limited availability of skilled technicians for installation and maintenance
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Growth in data centers requiring efficient thermal management
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Development of hybrid and combined heat-and-power (CHP) systems
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Rapid technological changes requiring frequent product upgrades
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Intense price competition among local and global manufacturers
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Increasing industrial automation in manufacturing sectors
The heat exchanger market is getting positively influenced by the increasing industrial automation in Europe's manufacturing areas, since automated processes produce a lot of heat that has to be managed very accurately so the systems can work properly. The high-tech equipment, the robots, and the non-stop production lines all need the same stable high or low temperatures respectively and that is because of the factors such as accuracy, safety, and the desire to keep the machine's downtime to a minimum. Heat exchangers are very important because they cool the machines, recover the heat that is not used, and thus, help to reduce the energy bill in the case of automated factories.
Restraint: High energy costs for operating large-scale industrial systems
The large-scale industrial systems' high energy costs significantly restrain the Europe heat exchanger market, as they inflate the total operational and lifecycle expenses for the end users. Despite the fact that heat exchangers are great for thermal efficiency, the energy consumption during their installation, integration, and maintenance is usually considerable in the case of energy-intensive industries such as chemicals, power generation, and metallurgy. The skyrocketing electricity and fuel prices in Europe make companies very reluctant to invest in new capital and upgrading systems, thus resulting in delayed projects or reduction of capacity expansion. Manufacturers thus look for alternatives that are low on energy which further restricts the demand for new heat exchangers in the short term.
Opportunity: Growth in data centers requiring efficient thermal management
The surging demand for data centers with efficient thermal management has become a major driver for the Europe heat exchanger market since data centers give off a lot of heat that comes from the servers and networking equipment among others. The control of the temperature is a critical factor that ensures the performance, reliability, and energy efficiency of the equipment. By cooling the systems, recovering heat, and reducing the need for conventional air-conditioning, heat exchangers help the operators to reduce both their energy consumption and operational costs. As Europe is experiencing the rapid growth of cloud computing, AI, and edge data centers, the demand for advanced, compact, and energy-efficient heat exchangers is increasing correspondingly. The adoption of innovative thermal management solutions in data center infrastructure is made more attractive due to the strict energy efficiency regulations that are in place.
Challenge: Rapid technological changes requiring frequent product upgrades
The rapid transformation of technology that requires frequent product upgrades is a big challenge for the heat exchanger market in Europe, as the manufacturers need to keep on investing in research, development, and even changing their production to be able to get the competition. Changes to the efficiency standards, introduction of new materials, and the need for advanced designs are the major factors that increase the cost of development and shorten the life cycle of the product. Customers may hold purchases for a while because they are afraid that the technology will be outdated, hence, they might prefer to wait for the next-gen solutions. Also, frequent upgrades will need a highly-skilled workforce and adaptable production which, in the case of smaller manufacturers, will be very difficult to maintain.
EUROPE HEAT EXCHANGER MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Plate & frame and shell heat exchangers for district heating, HVAC, and industrial processes | High thermal efficiency, compact design, low lifecycle cost |
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Finned and plate heat exchangers for energy, refrigeration, and process industries | Robust performance, customizable designs, high energy efficiency |
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Heat exchangers for refrigeration, heat recovery, and district energy systems | Energy savings, precise temperature control, reliable operation |
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Custom shell and tube heat exchangers for power, oil, and gas applications | High pressure tolerance, durability, application-specific design |
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Graphite heat exchangers for corrosive chemical and pharmaceutical processes | Corrosion resistance, long service life, thermal stability |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The ecosystem of the Europe heat exchanger market comprises raw materials suppliers (Outokumpu, Alleima, Aperam), manufacturers (Alfa Laval, Kelvion Holding GmbH, Danfoss), distributors (Beijer Ref AB, Vaillant Group, Dantherm Group A/S), and end users (BASF SE, Shell, TotalEnergies). Suppliers of raw materials offer stainless steel, specialty alloys, and graphite, indispensable to achieving good heat transfer and corrosion resistance. The manufacturers make and supply plate, shell-and-tube, and brazed heat exchangers for industrial, HVAC, and energy applications. The distributors are involved in managing the logistics, system integration, and after-sales support. End users use heat exchangers in chemical processing, refining, power generation, and district heating to enhance energy efficiency and process reliability.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Europe heat exchanger market, by material
Metals have the largest share of the heat exchanger market in Europe by material type, as they offer high thermal conductivity, mechanical strength, and durability. Among others, stainless steel, carbon steel, aluminum, and copper are used in the most demanding heat- and pressure-related situations in industrial, power generation, HVAC, and chemical applications. Besides, they are highly corrosion-resistant, durable, and easy to fabricate and maintain. Furthermore, the compliance of metals with the strict European safety, efficiency, and environmental standards makes them the preferred materials over other options.
Europe heat exchanger market, by type
Plate & frame heat exchangers have become the most rapidly growing type in the European market, mainly because of their incredible thermal efficiency, small footprint, and versatility in design. The characteristics of these heat exchangers, such as the large area and the thin plates, make them very efficient in transferring heat with the use of less energy, which is in line with Europe’s strict energy-efficiency and sustainability targets. They are also very suitable for every operation, as they can be easily installed, cleaned, and maintained, leading to lower costs across industries such as HVAC, food & beverage, and pharmaceuticals. The modular design allows for an increase and decrease in the size of the heat exchanger capacity, enabling it to adapt quickly to the market demand. Besides, the high industrialization, strict environmental laws, and a preference for systems with little or no downtime have made the plate & frame heat exchangers adoption faster than other types of heat exchangers.
Europe heat exchanger market, by end-use industry
Heat exchangers in Europe are primarily used by the chemical industry due to their reliance on large-scale heat transfer in processes such as distillation, evaporation, cooling, and heat recovery. The entire chemical manufacturing process involves harsh conditions, such as handling corrosive fluids, extreme temperatures, and complex reactions, all of which require reliable, high-performance heat exchangers. Besides, the very strict European environmental and safety regulations require chemical plants to use energy-efficient thermal management systems to reduce their nuisance to the atmosphere. Furthermore, the region’s chemical industry, which is supported by a solid infrastructure and is being continuously innovated, has also been a driving force for the investment in the advanced heat exchange equipment, which eventually leads to their increasing market share over other end-use industries.
REGION
Germany to be fastest-growing market in the Europe heat exchanger market during forecast period
Germany is a rapidly growing market in the Europe heat exchanger market due to its robust industrial base, cutting-edge engineering know-how, and major sectors, notably automotive, chemical, and manufacturing, that highly demand the products. German industries are progressively investing in energy-efficient heating and cooling systems to comply with very strict environmental and energy conservation regulations. The country’s ongoing cutting-edge research, prototype Industry 4.0 applications, and solar and wind energy policies are accelerating the market introduction of next-generation heat exchangers. Moreover, the electrification of plants and the recovery of waste heat from factories and infrastructure in Germany are growing so rapidly that the market expansion there is much faster than in any other European country.
EUROPE HEAT EXCHANGER MARKET: COMPANY EVALUATION MATRIX
Alfa Laval is considered as the star player in the Europe heat exchanger market, among others due to its reputation over the years, extensive and advanced product range, and presence in the major industries like pharmaceuticals, energy, HVAC, food processing, and marine. Furthermore, the company’s consistent investment in R&D, energy-efficient solutions, and sustainability-driven innovations supports its dominant position. On the other hand, Mersen is positioning itself as an emerging leader by leveraging its expertise in advanced materials and tailor-made heat exchangers for highly corrosive, in-demand chemical applications. The company is indeed tapping into the market growth with its focus on niche, high-performance segments and engineering excellence.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- ALFA LAVAL (Sweden)
- Kelvion Holding GmbH (Germany)
- Danfoss (Denmark)
- Exchanger Industries Limited (Canada)
- Mersen (France)
- API Heat Transfer (US)
- Johnson Controls (Ireland)
- Xylem (US)
- Wabtec Corporation (US)
- LU-VE S.p.A. (Italy)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 6.55 Billion |
| Market Forecast in 2030 (Value) | USD 9.56 Billion |
| Growth Rate | CAGR of 6.6% from 2025–2030 |
| Years Considered | 2022–2030 |
| Base Year | 2024 |
| Forecast Period | 2025–2030 |
| Units Considered | Value (USD Million/Billion), Volume (Units) |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
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| Countries Covered | Germany, France, UK, Italy, Russia, Turkey, Rest of Europe |
WHAT IS IN IT FOR YOU: EUROPE HEAT EXCHANGER MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| European Industrial OEM | Profiling EU heat exchanger suppliers by technology, PED compliance, capacity, and regional manufacturing footprint. | Optimize supplier selection, reduce procurement risk, and strengthen Europe-focused sourcing strategies. |
| EU Energy & Utilities Operator | Comparison of heat exchanger types by efficiency, emissions impact, and suitability for district heating and renewables. | Support decarbonization goals, energy efficiency improvements, and regulatory compliance across European operations. |
| European Chemical Producer | Mapping heat exchanger demand by industry, material, and country across major European manufacturing hubs. | Identify growth hotspots, guide investments, and align product strategy with Europe’s industrial demand trends. |
RECENT DEVELOPMENTS
- July 2025 : Alfa Laval launched the TS25 semi-welded heat exchanger, which is especially made to cater the needs of industries with their thermal solutions and comes equipped with excellent performance, versatility, and safety. Moreover, the TS25's compact layout produces more capacity in a lesser area.
- March 2025 : ALFA LAVAL acquired Fives Cryogenics, a Fives Group business unit, for USD 884 million. Fives Cryogenics, which is based in France, is known as a world leader in cryogenic heat transfer and pump technologies. This strategic decision helped in the doubling and tripling of Alfa's portfolio of gas liquefaction heat transfer and pump products.
- October 2024 : Wieland acquired Onda S.p.A., a reliable Italy-based producer of advanced heat exchangers, thereby reinforcing its position in the rapidly growing heat exchanger and data center cooling markets. Onda, being a recognized leader in HVAC&R equipment, has two manufacturing plants in Mussolente (Italy) and one in each of Lonigo (Italy), Kangasala (Finland), and Delaware, Ohio (US). The merger not only strengthened the existing shell-and-tube heat exchanger capabilities of Wieland but also enriched its portfolio of products with brazed plate, plate-and-frame, as well as air heat exchangers, like dry coolers and air condensers.
Table of Contents
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Methodology
The study involved four major activities for estimating the current size of the global heat exchanger market. Exhaustive secondary research was conducted to collect information on the market, the peer product market, and the parent product group market. The next step was to validate these findings, assumptions, and sizes with industry experts across the value chain of heat exchanger through primary research. Both the top-down and bottom-up approaches were employed to estimate the overall size of the heat exchanger market. After that, market breakdown and data triangulation procedures were used to determine the size of different segments and subsegments of the market.
Secondary Research
In the secondary research process, various secondary sources such as Hoovers, Factiva, Bloomberg BusinessWeek, and Dun & Bradstreet were referred, to identify and collect information for this study on the heat exchanger market. These secondary sources included annual reports, press releases & investor presentations of companies; white papers; certified publications; articles by recognized authors; regulatory bodies, trade directories, and databases.
Primary Research
The heat exchanger market comprises several stakeholders in the supply chain, which include raw material suppliers, equipment suppliers, distributors, end-product manufacturers, buyers, and regulatory organizations. Various primary sources from the supply and demand sides of the markets have been interviewed to obtain qualitative and quantitative information. The primary participants from the demand side include key opinion leaders, executives, vice presidents, and CEOs of companies in the heat exchnager market. Primary sources from the supply side include associations and institutions involved in the heat exchanger market, key opinion leaders, and processing players.
Market Size Estimation
The bottom-up and top-down approaches have been used to estimate the heat exchanger market by type, material, end-use industry, and region. The research methodology used to calculate the market size includes the following steps:
- The key players in the industry and markets were identified through extensive secondary research.
- In terms of value, the industry’s supply chain and market size were determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included studying reports, reviews, and newsletters of top market players and extensive interviews with leaders such as directors and marketing executives to obtain opinions.
Data Triangulation
After arriving at the overall size of the heat exchanger market from the estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Market Definition
A heat exchanger is a device designed to efficiently transfer thermal energy from one fluid (liquid or gas) to another, without mixing the two. These fluids can be separated by a solid wall or may be in direct contact, depending on the exchanger’s design. Heat exchangers are essential in processes where heating or cooling is required, enabling energy recovery, temperature regulation, and process optimization across diverse industries.
Stakeholders
- Heat Exchanger Manufacturers
- Raw Material Suppliers
- Equipment Suppliers
- Regulatory Bodies and Government Agencies
- Distributors and Suppliers
- End-use Industries
- Associations and Industrial Bodies
Report Objectives
- To define, describe, and forecast the size of the heat exchanger market in terms of value and volume
- To provide detailed information regarding the key factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To forecast the market size based on type, material, end-use industry, and region
- To forecast the market size for the five main regions—North America, Europe, Asia Pacific (APAC), South America, and the Middle East & Africa (MEA),—along with their key countries
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the total market
- To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for the market leaders
- To strategically profile leading players and comprehensively analyze their key developments such as new product launches, expansions, and deals in the heat exchanger market
- To strategically profile key players and comprehensively analyze their market shares and core competencies
- To study the impact of AI/Gen AI on the market under study, along with the macroeconomic outlook
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Growth opportunities and latent adjacency in Europe Heat Exchanger Market