Emergence of greenfield projects in Asia-Pacific to help sustain long-term market growth, finds Frost & Sullivan
SANTA CLARA, California, Dec. 19, 2019 /PRNewswire/ -- While the US-China trade war and downturn in the oil and gas sector have dampened investments in the heat exchangers market, particularly in North America, the growth of the Asia-Pacific (APAC) market is providing a much-required impetus. Regional growth, along with positive economic activity and increased investments in the energy sector, are expected to drive the market from $13.67 billion in 2018 to $17.33 billion in 2024, at a compound annual growth rate (CAGR) of 4.0%.
"The adoption of advanced technological solutions such as additive manufacturing and Industrial Internet of Things (IIoT) for greater energy and operational efficiency will ensure long-term growth," said Anand Gnanamoorthy, Global Research Leader, Industrial Practice. "Significantly, the greater focus on lower total cost of ownership and a more compact footprint will drive migration toward the plate heat exchanger segments."
Frost & Sullivan's recent analysis, Global Heat Exchangers Market, Forecast to 2024, examines the key growth drivers, restraints, product segments, and end-user industries in the regions of North America, Europe, Middle East and Africa (EMEA), APAC, and the Rest of World (RoW). It covers the product segments of shell-and-tube heat exchangers, air-cooled heat exchangers, gasketed plate-and-frame heat exchangers, brazed plate heat exchangers, all-welded plate heat exchangers, and cooling tower systems. It also includes a CEO's 360-degree perspective, highlights future growth opportunities, and presents the strategic imperatives that need to be implemented to make the most of these opportunities.
For further information on this analysis, please visit: http://frost.ly/3xh
"The expansion of brownfield facilities in North America and EMEA will drive opportunities for replacement, while the emergence of greenfield projects in North America and APAC will create opportunities for new equipment sales," noted Gnanamoorthy. "While APAC and EMEA are the largest revenue generators with a combined revenue share of 68.7% in 2018, APAC and NA are the fastest-growing regions. The energy sector verticals—power generation, oil and gas, and chemicals and petrochemicals—generated 62% of the total revenue; this is likely to remain constant throughout the forecast period."
Heat exchangers vendors will find additional growth opportunities by:
- Developing new capabilities in digital technologies by partnering with IoT service providers.
- Collaborating with 3D printing companies to identify key 3D printing technologies and products.
- Assessing the feasibility of adding additive manufacturing centers to R&D or manufacturing facilities to explore and develop new capabilities in product design and manufacturing.
- Focusing on solutions such as compact plate heat exchangers that can enable significant energy savings instead of traditional shell-and-tube heat exchangers.
Global Heat Exchangers Market, Forecast to 2024 is part of Frost & Sullivan's global Industrial Automation & Process Control Growth Partnership Service program.
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Global Heat Exchangers Market, Forecast to 2024
SOURCE Frost & Sullivan