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Global Heat Exchangers Market to Reach $14 Billion by 2015

Energy savings is rapidly emerging into a massive industry worldwide, and this global trend towards significantly reducing heat energy costs, and increasing energy efficiency has and will continue to witness heat exchangers emerge as the greatest beneficiary.

The large installed base of aging heat exchangers will require periodic renewal and upgrading. Natural wear-and-tear of heat exchangers and modernization initiatives adopted in key end-user industries will additionally magnify the business opportunity offered by replacements.

Evolution of new product designs with value added functional features and benefits will provide the sweetener required for pushing equipment replacement demand to the fore. Competition in the global heat exchangers market has, over the last few years, intensified largely as a result of the emergence of low cost Asian manufacturers.

New entrants from Russia, Eastern Europe, and South East Asian nations such as India, and China have made remarkable in-roads into the international heat exchangers market, making prices more competitive.

And, as vendors are willing to accept tighter margins in favor of higher volume orders, pricing will be the core competitive factor in the marketplace. Such aggressive pricing strategies have forced major providers to reduce their prices, and operate on thin margins.

The situation has been exacerbated by tough economic climate, which has induced cash-strapped end users to place a greater emphasis on cost rather than quality while buying new products.

As stated in the new market research report, North America and Europe collectively account for more than 50% share of the global Heat Exchangers market. Demand sensitivity for heat exchangers varies across end-use sectors with demand in traditional end-use segments like the chemical industry prone to exhibit knee-jerk sensitivity to economic conditions, while demand in end-user industries such as in oil and gas, and nuclear power tend to display more resilience to unfavorable economic conditions.

Given the significant investments in energy and petrochemical sectors, these industries have displayed remarkable resilience, especially in the developing markets. The market for Heat Exchangers in HVAC and Refrigeration Industry in the Asia-Pacific is forecast to reach US$271.13 million by the year 2015, growing at a fastest CAGR of 5.96% during the analysis period.

Interestingly, the ongoing global economic recession has fuelled, and sharpened the emphasis on utilisation of energy saving equipment, and heat exchangers is once again the prime beneficiary of this trend.

This scenario is especially pronounced in countries like China where the energy savings sector is particularly supported by the government’s economic stimulus plan thus sheltering the industry from the economic downturn.

Environmental concerns, and related legislations therefore further push the economic incentives for adopting energy efficient technologies and products. Growth rates in emerging nations are encouraging, although coming from a much smaller base due to low penetration rate.

The market for Plate and Frame Heat Exchangers in Latin America is forecast to reach US$283.5 million by the year 2015, growing at a CAGR of 6.95% during the analysis period.

Additionally, healthy demand for heat exchangers for nuclear power plants, keeping in view the growing focus on nuclear power as a alternative for conventional energy, is expected to contribute to new growth. With a number of new nuclear reactors expected to be constructed and commissioned worldwide, strong growth opportunities exist in this space.

Key players in this marketplace include Alfa Laval AB, Americans Precision Industries Heat Transfer, Balcke-Dürr, Bell & Gossett, GEA Group Aktiengesellschaft, Hamon Group, Hisaka Works, Modine Manufacturing Company, Sondex A/S, SPX Cooling Technologies, SPX Corporation, Tranter, among others.

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