ASEAN Heat Exchanger Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The ASEAN heat exchanger market is expected to register a CAGR of greater than 3.3% during the forecast period. The COVID-19 pandemic has already cast its shadow on various industries, with the heat exchanger market being no exception. One important aspect of the industry that has been impacted was maintenance. With strict orders on social distancing and lockdowns in place throughout the ASEAN countries, many steam and boiler maintenance businesses, including heat exchangers, have been unable to provide services such as routine inspections and maintenance as regularly as they once did. Factors such as increasing industrialization in emerging ASEAN countries, low maintenance cost, and soaring demand for space heating and cooling applications are expected to drive the heat exchanger market in ASEAN region during the forecast period. However, an increase in renewable energy, which rarely requires a heat exchanger, is expected to have a negative impact on the market studied.

Key Highlights

• Shell and Tube heat exchangers are expected to witness significant growth during the forecast period, owing to the multiple associated benefits when compared to other construction types. They are most commonly used heat exchangers for industrial applications.
• Technological advancements and upgradations are likely to create immense opportunities for the heat exchanger market in ASEAN region soon.
• Indonesia is expected to witness significant demand during the forecast period, owing to the plans of increasing power generation capacity in the coming years.

Key Market Trends

Shell and Tube Heat Exchangers Expected to Witness Significant Growth

• Shell and tube heat exchangers consists of a shell and many tubes placed inside it, where one fluid runs through the shell and another fluid runs through the tube to transfer heat. These type of heat exchangers are most commonly used in oil refineries and other large scale pharmaceutical & chemical industries.
• Their ability to transfer heat at very high temperature, less servicing requirement and, low maintenance features make it more preferable over other counterparts. In addition, they are also capable of operating in wide range of fluids.
• These heat exchangers are manufactured at very low costs and offer effective & robust construction. They are ideal and flexible for wide range of applications where constant maintenance and servicing is required. Also, they are resistant to thermal shocks and have no dimensional limits, thus, creating positive business outlook for shell and tube heat exchangers.
• Some common types of shell and tube heat exchangers used in different industries, are direct contact heat exchangers, co-current (Parallel) flow heat exchangers, and recuperators and regenerative heat exchangers.
• The high pressure and temperature along with long-distance heat transfer causes significant wear and tear, which results in regular maintenance and periodic replacement of shell and tube heat exchangers. Therefore, replacement of shell and tube heat exchangers is likely to play a key role in growing the ASEAN heat exchangers market during the forecast period.
• Therefore, based on the above-mentioned factors, shell and tube heat exchangers are expected to witness significant growth in ASEAN heat exchangers market during the forecast period.

Indonesia is Expected to Witness Significant Demand

• Mounting energy demand across Indonesia is expected to increase the power generation installed capacity, in turn, driving the deployment of heat exchangers over the forecast timeframe. Thermal power is mostly generated from various sources such as natural gas, coal, oil, and others, which requires a heat exchanger to transfer the heat between two systems.
• According to the International Energy Agency (IEA), ASEAN is one of the few regions of the world where coal-fired generation has been expanding, with close to 20 GW of new coal-fired generating capacity under construction, mostly in Indonesia (a major coal producer), Vietnam and the Philippines. Significantly more capacity is at the pre-construction stage, but some plans are being reconsidered and greater emphasis is being placed on natural gas as well as the expansion of renewables.
• Indonesia is expected to become the fourth-largest economy in the world by 2040. Coal dominates the Indonesian power mix, supplying around 65% of its electricity in 2020, with natural gas and oil together accounting for around 20% of the supply, with the remainder from renewables, mostly hydro and geothermal. Moreover, ongoing shift towards cleaner energy fuels coupled with boom in the natural gas production across the country institutes a favorable business scenario for the heat exchanger market.
• Furthermore, projects such as withering and drying of Indonesian tea leaves using heat pipe heat exchanger (HPHE) by utilizing low-temperature geothermal energy (in R&D stage, as of 2021) is expected to create immense opportunities in the ASEAN heat exchanger market during the forecast period.
• Therefore, based on the above-mentioned factors, Indonesia is expected to witness significant demand in ASEAN heat exchanger market during the forecast period.

Competitive Landscape

The ASEAN heat exchanger market is fragmented. Some of the major players include Alfa Laval AB, General Electric Company, Danfoss AB, Xylem Inc., and Kelvion Holding GmbH.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support