Microchannel Heat Exchanger Market Report 2026

The microchannel heat exchanger market size has grown strongly in recent years. It will grow from $15.25 billion in 2025 to $16.59 billion in 2026 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to increasing demand for energy efficient HVAC systems, growth of automotive production volumes, rising adoption of compact thermal management solutions, need for reduced refrigerant charge levels, expansion of commercial refrigeration infrastructure.

The microchannel heat exchanger market size is expected to see strong growth in the next few years. It will grow to $23.47 billion in 2030 at a compound annual growth rate (CAGR) of 9.1%. The growth in the forecast period can be attributed to increasing electric vehicle production requirements, stricter energy efficiency regulations, rising demand for advanced heat pumps, growth in data center cooling applications, technological advancements in microchannel manufacturing processes. Major trends in the forecast period include rising adoption of compact heat exchangers in HVAC systems, growing demand for high efficiency automotive cooling solutions, increased use of aluminum microchannel designs, shift toward lightweight and space saving thermal components, expansion of microchannel heat exchangers in commercial refrigeration.

The growing construction industry is expected to drive the growth of the microchannel heat exchanger market going forward. The construction sector includes processes involved in developing infrastructure and buildings across residential, commercial, and industrial projects. Expansion is fueled by urbanization and rising infrastructure demands driven by population growth and economic development. Microchannel heat exchangers are utilized in construction for efficient heating, ventilation, and air conditioning (HVAC) systems due to their compact size and superior heat transfer performance. For example, in July 2023, the Australian Bureau of Statistics reported that during the March quarter of 2023, 240,813 dwellings were under construction, up from 240,065 in 2022. Of these, 103,778 were new houses, an increase from 101,240 in 2022. Therefore, the growth of the construction industry is supporting the expansion of the microchannel heat exchanger market.

Major companies in the microchannel heat exchanger market are focusing on developing advanced products, such as compact microchannel heat exchangers, to strengthen their market position. Compact microchannel heat exchangers are designed with multiple small channels through which fluids flow, enhancing heat transfer efficiency. For instance, in February 2024, Danfoss India, an India-based technology company, launched its microchannel heat exchanger (MCHE) technology, which reduces refrigerant consumption by up to 60% and improves efficiency by 30%, supporting environmental, social, and governance (ESG) goals. The patented distribution design optimizes refrigerant flow and heat transfer, resulting in cost savings and faster installation. Its compact, lightweight design and use of sustainable materials make the MCHE suitable for residential and commercial air conditioning systems, as well as energy-efficient refrigeration equipment.

In March 2024, Nexson Group expanded its capabilities by acquiring Thermowave GmbH, a Germany-based provider of microchannel heat exchangers. This strategic move enhances Nexson Group's portfolio of heat exchangers and strengthens its market position in delivering advanced solutions for various industrial applications.

Major companies operating in the microchannel heat exchanger market are DENSO Corporation, DAIKIN INDUSTRIES Ltd, Johnson Controls plc, Danfoss Industries Pvt. Ltd., Hanon Systems, Alfa Laval, Modine Manufacturing, Greenheck Group, MAHLE GmbH, Evapco Inc., API Heat Transfer Inc., Vahterus, Thermofin, Climetal S.L., Mikros Technologies, Goldstone HVACR Inc., Sanhua Holding Group Co., Kaltra GmbH, Kangsheng Group, MSD Technologies.

North America was the largest region in the microchannel heat exchanger market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the microchannel heat exchanger market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the microchannel heat exchanger market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The microchannel heat exchanger market consists of sales of heat exchangers, cooling units, and heat recovery systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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