Research Overview

The European heat exchangers market recorded steady growth in 2019, following a period of economic downturn over the past few years. The market witnessed strong demand from end users, with a positive investment climate across key end-use industries such as chemicals and petrochemicals; heating, ventilation, and air conditioning (HVAC); and power generation. Currently, the growing shift toward renewable energy and reliable power generation is driving the need for compact and energy-efficient heat exchanger systems. However, market growth is set to be impacted by the increasing replacement of shell and tube heat exchangers with compact plate heat exchangers, limiting overall revenue growth. The commoditization of certain heat exchangers can also restrain market revenue growth.

Geographically, Germany and Italy are the major markets for heat exchangers, closely followed by the United Kingdom. However, the uncertainty surrounding Brexit will restrict new investments from end users in this region in the short term. In the long term, prioritization of low carbon footprints and improved energy efficiency will propel the demand for gasketed plate and frame heat exchangers. Moreover, renewable energy-based growth is expected to support market revenue, with replacement demands from thermal power plants.

Among end users, chemicals and petrochemicals will remain the leading revenue contributor in the European market. The need for energy efficiency and reduced carbon footprints has also increased the share of HVAC in the heat exchangers market. Heat exchanger manufacturers need to capitalize on the growing shift toward renewable energy and high- efficiency products. Market participants need to focus on integrating advanced technologies that reduce overall energy consumption while maintaining optimum operational efficiencies. Forging partnerships with Internet of Things (IoT) companies will be necessary for introducing digital and analytics-driven solutions for asset visibility and preemptive maintenance. These solutions can assist in product and service differentiation to improve customer satisfaction. Moreover, leveraging alternative manufacturing technologies such as additive manufacturing can help in lowering costs and delivering high levels of customization. There is a need for competitive and value-adding heat exchangers to restrain the commoditization of these products in the European market.