[212 Pages Report] The global shell & tube heat exchanger market size is projected to grow from USD 9.0 billion in 2022 to USD 11.7 billion by 2027, at a CAGR of 5.4% between 2022 and 2027. Increasing demand for shell & tube heat exchanger from emerging markets and rising demand for HVACR equipment are driving the market.
Note: e-estimated p-projected.
Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis
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The shell & tube heat exchangers demand from the developing economies of Asia Pacific including China and India is increasing, owing to rapid industrialization, raw material prices, and low-cost labor. The increasing investments in manufacturing, commercial, and industrial projects in the region have contributed to the overall expansion of the heat exchangers market. The shell & tube heat exchangers market in Asia Pacific is expected grow at a high growth rate, due to increasing demand from the chemical, HVAC, petrochemical, food & beverage, and oil & gas industries. According to the International Energy Agency (IEA), Asia Pacific accounts for more than 50% of the global petrochemical production. Further, many major manufacturers are expanding their manufacturing plants across Asia Pacific to capitalize on the opportunity in the emerging economies of the region. According to the India Brand Equity Foundation, the demand for chemicals in India is expected to expand by 9% per annum and the chemical industry is projected to contribute USD 300 billion to the country’s GDP by 2025.
According to BP statistical review of World Energy 2022, China’s nuclear power generation was 407.7 TW-hour in 2021, and natural gas production increased by 8.1% to 209.2 billion cubic meters, which will have a significant impact on the shell & tube heat exchangers market in China, as power and oil & gas industries widely utilize shell & tube heat exchangers. The food & beverage industry in Asia Pacific is also expected to grow at a high growth rate owing to the rising urbanization, growing population, and rising disposable income of the middle-class population. The growth in these end use industries will drive the shell & tube heat exchangers market.
The fluctuation in raw material prices of copper, aluminium, steel, and other metals used for the manufacturing of shell & tube heat exchangers have contributed to the overall increase in the manufacturing cost and time. Many manufactures struggle in estimating the exact manufacturing cost of equipment owing to the uncertainty in the raw material prices. The pricing of these metals is dependent on various factors such as economic conditions, exchange rates, supply conditions, mining policies, processing of the raw materials, and others. Moreover, volatility in prices may increase the customer cost of operating business, resulting in delay or cancelation of large capital projects, which affects the profitability of the manufacturers.
Due to high cost and restricted availability of quality raw materials such as ferrous and nonferrous materials, manufactures shift to cheaper materials that affect the performance and efficiency of the equipment. Such actions reduce the longevity of shell & tube heat exchangers and increase maintenance cost. The price fluctuations or increase in tariffs and shortage of materials create an adverse effect on manufacturers as they may not be able to provide competitive pricing. Manufacturers are also engaged in long-term supplier contracts that may increase their exposure to pricing fluctuations. However, to manage the risk associated with pricing fluctuation, companies closely monitor the pricing trends to slightly overcome the risk related to pricing.
A heat exchanger is a critical component in any process industry and its performance and longevity has direct impact not only on the capital cost, but also on operating costs. Breakdown maintenance is always costly; thus, regular maintenance of shell & tube heat exchangers is crucial, which can be relatively lower compared to rotating equipment such as pumps and compressors. Heat exchanger maintenance is important to ensure continuous production and system uptime for avoiding its sudden failure. The cost of prevention is normally lower than emergency repairs.
The process fluids and utility fluids in shell & tube heat exchangers generate scale and deposits due to high dissolved solid content and suspended colloidal solids that adhere to the heat transfer surface. These scale and deposits impact the heat exchange rate and leads to corrosion, erosion, scaling, or fouling in the heat exchangers. Well-planned maintenance of shell & tube heat exchangers helps companies in saving energy and reducing operational costs by up to 30%. Maintenance helps avoid pressure drops on the system, requiring less load on the pumps and other components. This helps in lowering energy consumption while increasing the heat transfer rate and operational efficiency. Regular maintenance of shell & tube heat exchangers has several other benefits, such as improved performance and efficiency, energy conservation, environment protection, and cost reductions. However, maintenance of plate type heat exchangers is much easier as compared to shell & tube. The shell & tube heat exchangers create a huge aftermarket for shell & tube heat exchangers manufactures, wherein, they can sell spare parts, such as gaskets, seals, tubes, and other components and take service contracts for cleaning and maintenance of shell & tube heat exchangers.
The shell & tube heat exchangers market is very capital intensive to enter and operate. Heavy investments are required in setting up sophisticated manufacturing processes. Manufacturers are required to invest huge capital in R&D to develop innovative and consumer-centric products. Consumers have specific requirements depending upon their application area. Manufacturers must address these requirements with minimal operating and production costs. Furthermore, shell & tube heat exchangers manufacturers are required to produce products as per the needs of the end consumers, which further increases the capital required. In the manufacturing of heat exchangers, the grade of materials, heat transfer rate, refrigerant charge, and other factors such as volume and durability are crucial parameters for manufacturers. Established manufacturers invest significant amount of their revenue in R&D activities. However, local manufacturers offer products at lower costs, which creates credibility issues for the bigger players and increases market competition.
The heat exchangers industry being capital-intensive in nature, many small players are discouraged from entering the business. The initial investment cost for setting up HVAC systems including shell & tube heat exchangers in end applications is very high for small players. Moreover, the existing players are more dominant in the market, which makes it difficult for the new entrants to establish high-cost manufacturing units and market their products. Thus, the high capital cost for setting up new plants affects the growth of the shell & tube heat exchanger market. Shell & tube heat exchanger:
ROLE IN ECOSYSTEM
Rio Tinto Group
Koch Heat Transfer Company
Benns Industrial Solutions
Source: Company Websites and MarketsandMarkets Analysis
The petrochemicals and oil & gas segment accounted for a share of 17.7% in terms of value, of the overall shell & tube heat exchanger market in 2021. Typical applications for shell & tube heat exchangers in the oil & gas industry include crude oil dehydration/stabilization, gas cooling and condensing, gas sweetening, gas dehydration, regasification, gas sweetening, and utility cooling. According to the International Energy Agency, by 2026, global oil consumption is projected to reach 104.1 million barrels per day which is expected to drive the demand for heat exchangers in the oil & gas industry. Furthermore, with increasing global population, the demand for energy as well as the products manufactured from oil and gas is projected to increase.
Based on material, the steel dominated the market. Shell & tube heat exchangers are made of variety of steel grades. Super duplex steel has excellent weld-ability characteristics, and strong machinability capabilities. It provides excellent resistance to corrosion by oxidation. Super duplex steel contains 25% chromium, 7% nickel and 4% molybdenum. The higher percentage of these metals gives enhanced resistance to corrosions. It is more expensive than duplex steel due to their high percentage of nickel.
Based on region, Asia Pacific is a key market to produce shell & tube heat exchanger and is projected to grow at a CAGR of 7.6% in terms of value during the forecasted period. The availability of low-cost raw materials and labour, coupled with growing industrialization, makes the region an attractive investment destination for shell & tube heat exchanger manufacturers. The rising population, urbanization, and industrialization are some of the factors that will drive the shell & tube heat exchanger market in this region.
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Major players operating in the global shell & tube heat exchanger market include Alfa Laval AB (Sweden), HRS Heat Exchangers (UK), Kelvion (Germany), Xylem (US), API Heat Transfer (US), Koch Heat Transfer (US), Thermex (UK), Manning and Lewis (US), Thermofin (Canada), and Mersen (France)
Years considered for the study
Value (USD Million/Billion), Units
Material, Application, and Region
North America, Europe, Asia Pacific, South America, and Middle East & Africa
Alfa Laval AB (Sweden), HRS Heat Exchangers (UK), Kelvion (Germany), Xylem (US), API Heat Transfer (US), Koch Heat Transfer (US), Thermex (UK), Manning and Lewis (US), Thermofin (Canada), and Mersen (France).
This research report categorizes the shell & tube heat exchanger market based on type, application, and region.
What are the factors influencing the growth of the shell & tube heat exchanger market?
The growth of this market can be attributed to growing requirement in APAC and growing industrialization.
Which are the key applications driving the shell & tube heat exchanger market?
Applications such as chemicals, petrochemical and oil & gas, HVAC & refrigeration, food & beverages, power generation, and pulp & paper are driving the demand for shell & tube heat exchanger market.
Who are the major manufacturers?
Major manufacturers include Alfa Laval AB (Sweden), HRS Heat Exchangers (UK), Kelvion (Germany), Xylem (US), API Heat Transfer (US), Koch Heat Transfer (US), Thermex (UK), Manning and Lewis (US), Thermofin (Canada), and Mersen (France), among others.
What is the biggest restraint for shell & tube heat exchanger?
The biggest restraint can be volatility in raw materials prices.
How is COVID-19 affecting the overall shell & tube heat exchanger market?
The shell & tube heat exchanger market saw a disruption in supply chain for supply of raw materials.
What will be the growth prospects of the shell & tube heat exchanger market?
Growing industrialization in emerging regions and rising demand for HVAC equipment are driving the market. .
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
TABLE OF CONTENT
1.1 OBJECTIVES OF THE STUDY
1.2 MARKET DEFINITION
1.3 SCOPE OF THE STUDY
1.3.1 MARKET SEGMENTATION
1.3.2 REGIONS COVERED
1.3.3 YEARS CONSIDERED FOR THE STUDY
1.6 UNITS CONSIDERED
1.7 INCLUSIONS & EXCLUSIONS
1.8 SUMMARY OF CHANGES
2 RESEARCH METHODOLOGY
2.1 RESEARCH DATA
2.1.1 SECONDARY DATA
18.104.22.168 List of major secondary sources
22.214.171.124 Key data from secondary sources
2.1.2 PRIMARY DATA
126.96.36.199 Key data from primary sources
188.8.131.52 Primary interviews – Demand and Supply-side
184.108.40.206 Key industry insights
220.127.116.11 Breakdown of primary interviews
2.2 MARKET SIZE ESTIMATION
2.2.1 TOP-DOWN APPROACH
18.104.22.168 Approach for arriving at market size using top-down analysis
2.2.2 BOTTOM-UP APPROACH
22.214.171.124 Approach for arriving at market size using bottom-up analysis
2.3 FORECAST GROWTH ESTIMATION
2.4 DATA TRIANGULATION
2.5 FACTOR ANALYSIS
2.7 LIMITATIONS & RISKS ASSOCIATED WITH THE SHELL & TUBE HEAT EXCHANGERS MARKET
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
4.1 SHELL & TUBE HEAT EXCHANGERS MARKET, BY MATERIAL
4.2 SHELL & TUBE HEAT EXCHANGERS MARKET, BY APPLICATION
4.3 SHELL & TUBE HEAT EXCHANGERS MARKET GROWTH RATE, BY COUNTRY
5 MARKET OVERVIEW
5.2 MARKET DYNAMICS
6 INDUSTRY TRENDS
6.2 VALUE CHAIN ANALYSIS
6.2.1 RAW MATERIAL SUPPLIERS
6.2.4 END CONSUMERS
6.3 PORTER’S FIVE FORCES ANALYSIS
6.3.1 THREAT OF SUBSTITUTES
6.3.2 BARGAINING POWER OF BUYERS
6.3.3 THREAT OF NEW ENTRANTS
6.3.4 BARGAINING POWER OF SUPPLIERS
6.3.5 INTENSITY OF COMPETITIVE RIVALRY
6.4 PATENT ANALYSIS
6.5 AVERAGE SELLING PRICE TRENDS
6.5.1 BASED ON TYPE
6.5.2 BASED ON SUPPLIERS (KEY PLAYERS)
6.5.3 BASED ON REGION
6.6 ECOSYSTEM/ MARKET MAPPING
6.7 TECHNOLOGY TRENDS
6.8 RAW MATERIAL ANALYSIS
6.9 REGULATION AND TARIFFS ANALYSIS
6.9.1 REGULATORY BODIES, GOVERNMENT AGENCIES AND OTHER ORGANIZATIONS
6.10 TRADE ANALYSIS (EXPORT/IMPORT)
6.11 MACROECONOMIC INDICATORS
6.12 TRENDS/DISRUPTIONS IMPACTING CUSTOMER’S BUSINESS
6.13 KEY CONFERENCES AND EVENTS
6.14 KEY STAKEHOLDERS AND BUYING CRITERIA
6.14.1 KEY STAKEHOLDER IN BUYING PROCESS
6.14.2 BUYING CRITERIA
6.15 CASE STUDY ANALYSIS
7 SHELL & TUBE HEAT EXCHANGERS MARKET, BY FLOW TYPE
7.2 PARALLEL FLOW
7.3 COUNTER FLOW
7.4 CROSS FLOW
8 SHELL & TUBE HEAT EXCHANGERS MARKET, BY MATERIAL
8.3 NICKEL & NICKEL ALLOYS
9 SHELL & TUBE HEAT EXCHANGERS MARKET, BY APPLICATION
9.3 PETROCHEMICAL AND OILD & GAS
9.4 HVAC & REFRIGERATION
9.5 FOOD & BEVERAGES
9.6 POWER GENERATION
9.7 PULP & PAPER
10 SHELL & TUBE HEAT EXCHANGERS MARKET, BY REGION
10.2 ASIA PACIFIC
10.2.4 SOUTH KOREA
10.2.5 REST OF ASIA PACIFIC
10.3 NORTH AMERICA
10.4.7 REST OF EUROPE
10.5 MIDDLE-EAST & AFRICA
10.5.1 SAUDI ARABIA
10.5.2 SOUTH AFRICA
10.5.4 REST OF MEA
10.6 SOUTH AMERICA
10.6.3 REST OF SOUTH AMERICA
11 COMPETITIVE LANDSCAPES
11.2 STRATEGIES ADOPTED BY KEY PLAYERS
11.3 MARKET SHARE ANALYSIS
11.3.1 RANKING OF KEY MARKET PLAYERS
11.3.2 MARKET SHARE OF KEY PLAYERS, 2020
11.4 REVENUE ANALYSIS OF TOP PLAYERS
11.5 MARKET EVALUATION MATRIX
11.6 COMPANY EVALUATION MATRIX
11.6.2 EMERGING LEADERS
11.7 COMPETITIVE BENCHMARKING
11.8 COMPANY FOOTPRINT
11.9 COMPANY APPLICATION FOOTPRINT
11.10 COMPANY REGION FOOTPRINT
11.10.1 STRENGTH OF PRODUCT PORTFOLIO
11.10.2 BUSINESS STRATEGY EXCELLENCE
11.11 STARTUPS AND SMALL AND MEDIUM-SIZED ENTERPRISES (SMES) EVALUATION MATRIX
11.11.1 PROGRESSIVE COMPANY
11.11.2 RESPONSIVE COMPANIES
11.11.3 STARTING BLOCKS
11.12 COMPETITIVE SCENARIO
11.12.1 NEW PRODUCT LAUNCHES
11.12.3 OTHER DEVELOPMENTS
12 COMPANY PROFILES
((Business Overview, Financials*, Products Offered, Scorecard of Product Offering, Scorecard of Business Strategy, and Recent Developments)
12.1 ALFA LAVAL AB
12.1.1 BUSINESS OVERVIEW
12.1.2 PRODUCTS OFFERED
12.1.3 RECENT DEVELOPMENTS
12.1.4 MNM VIEW
126.96.36.199 Key strengths/right to win
188.8.131.52 Strategic choices made
184.108.40.206 Weaknesses and competitive threats
12.2 HRS HEAT EXCHANGERS
12.5 API HEAT TRANSFER
12.6 KOCH HEAT TRANSFER
12.7 MANNINNG & LEWIS
12.11 OTHER COMPANIES
12.11.2 BRASK INC.
12.11.5 FBM HUDSON ITALIANA
12.11.7 GEA POWER COOLING SYSTEM INC.
12.11.8 KENNEDY TANK & MANUFACTURING
12.11.9 KM GROUP
12.11.10 MASON MANUFACTURING
12.11.11 MEZZO TECHNOLOGIES
12.11.12 SOUTHERN HEAT EXCHANGERS
12.11.13 TINITA ENGG.
12.11.14 UNITED HEAT EXCHANGERS
12.11.15 WCR INC.
*Details might not be captured in case of unlisted companies.
The study involved four major activities in estimating the current size of the shell & tube heat exchanger market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, the market breakdown and data triangulation methods were used to estimate the size of the segments and subsegments of the overall market.
This research report involves extensive secondary sources, directories, and databases, such as Bloomberg, BusinessWeek, Factiva, BP statistics, and World Bank, to identify and collect information useful for the technical, market-oriented, and commercial study of the shell & tube heat exchanger market. The secondary sources included annual reports, press releases & investor presentations of companies, white papers, and certified publications.
The shell & tube heat exchanger market comprises several stakeholders, such as raw material suppliers, manufacturers, distributors, buyers, and regulatory organizations. The demand side of this market is characterized by component manufacturers. The supply side included industry experts, such as CEOs, vice presidents, marketing directors, technology and innovation directors, and related key executives from various companies and organizations operating in the market. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information.
Following is the breakdown of primary respondents:
Notes: Companies are classified based on their revenue–Tier 1 = > USD 1 billion, Tier 2 = USD 500 million– USD 1 billion, and Tier 3 = < USD 500 million.
Other designations include sales representatives, production heads, and technicians.
To know about the assumptions considered for the study, download the pdf brochure
The top-down approach was used to estimate and validate the size of the various submarkets for shell & tube heat exchanger for each region. The research methodology used to estimate the market size included the following steps:
After arriving at the overall market size—using the estimation processes explained above— shell & tube heat exchanger market was split into several segments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment. The data was triangulated by studying several factors and trends from both the demand and supply sides.
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