Plate and Frame Heat Exchanger Market

Updated on : August 22, 2024

Plate and Frame Heat Exchanger Market

The global plate and frame heat exchanger market was valued at USD 5.9 billion in 2023 and is projected to reach USD 8.1 billion by 2028, growing at 6.5% cagr from 2023 to 2028. The market is growing, and the trend is expected to continue in the long term due to high demand from HVAC and refrigeration industry and their advantages over other heat exchangers.

Attractive Opportunities in the Plate and Frame Heat Exchanger Market

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Plate and Frame Heat Exchanger Market Dynamics

Driver: Rising demand for HVACR equipment

Heat exchangers with compact design can be incorporated in HVAC systems, such as residential AC and indoor display, where size is a major constraint. The demand for commercial refrigeration and air conditioning is rapidly growing; owing to the increase in disposable income, the demand for residential air conditioning systems is rising. Moreover, urbanization and growth in domestic consumption have given a boost to the refrigeration industry. The growing use of air conditioners in residences and offices worldwide will increase the global electricity demand over the next three decades. As per the IEA, global energy demand from air conditioners is expected to triple by 2050, and new electricity capacity required will be equivalent to the combined electricity capacity of the US, the EU and Japan.

The expansion of the global commercial construction industry, along with growing modernization and urbanization in developing countries, has increased the demand for HVACR systems including the plate & frame heat exchangers. There is a rise in HVACR deployments in the growing commercial construction industry, which is fuelling the demand for heat exchangers. According to the International Energy Agency (IEA), the buildings and buildings construction sector consume about 30% of the overall energy consumption. Plate & frame heat exchangers are used for energy conservation and to reduce energy bills in the HVACR systems. The demand for low maintenance and durable plate & frame heat exchangers with unique designs and high heat transfer rates is considerably growing with the rise in demand for energy-efficient HVAC products. Therefore, the growing demand for HVACR systems is driving the Plate & Frame Heat Exchanger Industry.

Restraint: Volatility in raw material prices

The fluctuation in raw material prices of copper, aluminum, steel, and other metals used for the manufacturing of plate & frame heat exchangers has contributed to the overall increase in the manufacturing cost and time. Many manufacturers struggle in estimating the exact manufacturing cost of equipment owing to the uncertainty in the raw material prices. The pricing of these metals is dependent on various factors such as economic conditions, exchange rates, supply conditions, mining policies, processing of the raw materials, and others. Moreover, volatility in prices may increase the customer cost of operating business, resulting in delay or cancelation of large capital projects, which affects the profitability of the manufacturers.

Due to the high cost and restricted availability of quality raw materials such as ferrous and nonferrous materials, manufactures shift to cheaper materials that affect the performance and efficiency of the equipment. Such actions reduce the longevity of plate & frame heat exchangers and increase maintenance costs. The price fluctuations or increase in tariffs and shortage of materials create an adverse effect on manufacturers as they may not be able to provide competitive pricing. Manufacturers are also engaged in long-term supplier contracts that may increase their exposure to pricing fluctuations. However, to manage the risk associated with pricing fluctuation, companies closely monitor the pricing trends to slightly overcome the risk related to pricing.

Opportunity: Growing industrialization in emerging regions

The demand for plate & frame heat exchangers from developing economies of Asia Pacific including China and India is increasing, owing to rapid industrialization, raw material prices, and low-cost labour. The increasing investments in manufacturing, commercial, and industrial projects in the region have contributed to the overall expansion of the heat exchangers market. The plate & frame heat exchanger market in Asia Pacific is expected to grow at a high rate, due to increasing demand from the chemical, HVAC, petrochemical, food & beverage, and oil & gas industries. According to the International Energy Agency (IEA), Asia Pacific accounts for more than 50% of the global petrochemical production. Many major manufacturers are expanding their manufacturing plants across Asia Pacific to capitalize on the opportunity in emerging economies of the region. According to the India Brand Equity Foundation, the demand for chemicals in India is expected to expand by 9% per annum and the chemical industry is projected to contribute USD 300 billion to the country’s GDP by 2025.

The food & beverage industry in Asia Pacific is also expected to grow at a high growth rate owing to the rising urbanization, growing population, and rising disposable income of the middle-class population. The growth in these end-use industries will drive the plate & frame heat exchanger market.

Challenge: BPHEs are not demountable

In most cases, the fluid flowing through the heat exchanger contains various impurities such as traces of oil, grease, dirt, chemicals, or organic deposits. These impurities can cause fouling, scaling, and clogging of the equipment, which will decrease the thermal efficiency of heat exchanger, change the pressure drop characteristics, or can even break it. It is necessary to wash and clean the heat exchanger when it is clogged. BPHEs have many benefits over other types of heat exchangers. However, as their plates are brazed together, they cannot be dismantled like traditional heat exchangers for cleaning. Therefore, the cleaning process is difficult in case of BPHEs, and most of the time, they directly need to be replaced. This acts as a restraint for the BPHEs market.

Plate and Frame Heat Exchanger Market Ecosystem

Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis

"Welded has the fastest growth for plate and frame heat exchanger market, in terms of value."

Welded plate and frame heat exchangers hold immense potential across various industries. Their compact and high-performance design makes them ideal for installations with limited space. The welded plate and frame heat exchangers offer efficient heat transfer and can handle high pressures and temperatures. These heat exchangers find wide-ranging applications in HVAC, refrigeration, oil and gas, chemical processing, and power generation sectors. Their customizable and scalable nature allows for tailoring to specific process requirements, enhancing operational flexibility. Moreover, their ease of maintenance and cleaning contributes to improved efficiency and cost-effectiveness, establishing them as a favored choice for optimizing heat transfer in diverse industrial settings.

"HVAC & Refrigeration was the largest share by application in plate and frame heat exchanger market in 2022, in terms of value."

HVAC & refrigeration account for the largest share of the market, followed by chemical, petrochemical and oil & gas, and food & beverage. The factors driving the growth in HVAC & refrigeration sectors include increasing utilization of central air conditioning systems, growing urbanization, and increasing consumer preferences for energy efficient buildings and appliances. Furthermore, the growing demand for energy and process efficiency in various industries and the increasing share of renewable sources of energy, such as solar and geothermal, are also expected to drive the market.

"Europe was the largest market for plate and frame heat exchanger in 2022, in terms of value."

Based on region, Europe is a key market to produce plate and frame heat exchangers and is projected to grow at a CAGR of 5.3% in terms of value during the forecast period. Plate & frame heat exchangers are widely adopted in the HVACR sector throughout Europe, representing the most prevalent type of heat exchanger utilized in this industry, with an anticipated increase in demand and driven by favourable conditions, Europe's chemical and petrochemical sector is projected to experience significant growth. This development presents a lucrative opportunity for the plate & frame heat exchanger market in the region.

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Plate and Frame Heat Exchanger Market Players

The key players in this market are Alfa Laval (Sweden), Danfoss (Denmark), Kelvion Holding GmbH (Germany), SPX Flow (US), XYLEM (US), API Heat Transfer (US), H. Guntner (UK) LTD. (England), Boyd Corporation (US), Johnson Controls (Ireland), and Wabtec Corporation (US). Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow.

Plate and Frame Heat Exchanger Market Report Scope

This report categorizes the global plate and frame heat exchanger market based on type, application, and region.

Based on type, the plate and frame heat exchanger market has been segmented as follows:

• Gasketed
• Welded
• Brazed
• Others

Based on application, the plate and frame heat exchanger market has been segmented as follows:

• HVAC & Refrigeration
• Chemicals
• Petrochemicals and Oil & Gas
• Power Generation
• Food & Beverages
• Pulp & Paper
• Others

Based on region, the plate and frame heat exchanger market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In February 2021 ALFA LAVAL started providing heat exchangers to Carrier under its commercial HVAC and refrigeration portfolios globally. The development of a long-term solution for reducing the environmental impact of heating and cooling equipment will be the main goal of the long-term agreement between ALFA LAVAL and Carrier.
• In September 2021 Kelvion invested USD 3.7 million in a new production facility located in Tennessee, US, as part of its expansion strategy to meet the increasing demand for heat exchangers in the data center and refrigeration industries of North America. The company's primary objective is to enhance its production capacities and optimize costs, resulting in improved customer satisfaction and advanced product technology.
• In October 2021 Kelvion invested USD 6 million in its Catoosa manufacturing facility, with a focus on producing heat exchangers specifically designed for the oil and gas industry. This strategic move is in response to the growing demand for heat exchangers in North America, highlighting Kelvion's commitment to meeting the evolving needs of its customers. The investment in the manufacturing facility is expected to enhance the company's production capacities, further reinforcing its position as a leading player in the global heat exchanger market.

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