Heat exchangers have become a significant part of the oil & gas industry. The adoption of heat exchangers has increased significantly since the new millennium, and this trend is set to continue in 2022. The reasons for this resurgence of interest in heat exchangers include a desire to use energy more efficiently, deal with unscrupulous manufacturers, and a requirement to reduce capital expenditure. These are the key factors behind the growth of heat exchangers in this sector.
Oil and Gas Market Trend
According to a new report by Allied Market Research, the international heat exchanger market is expected to expand at a CAGR of 6.50% from 2018 to 2022. The proliferation of renewable energy sources has driven the demand for heat exchangers.
The use of waste heat recovery systems in industrial applications is rising due to consumers’ increasing need for energy conservation and enhanced environmental awareness. Additionally, the growing demand for electricity generated through renewable sources and the rising adoption of solar power has been boosting the demand for heat exchangers across various end-use sectors, including the oil & gas industry.
In 2013, the international heat exchanger market was valued at $3.3 billion and was expected to surpass $4 billion by 2022, growing at a CAGR of 7.70% during the forecasted period. This growth can be attributed to rising adoption rates for these products in emerging economies such as the Asia Pacific and Latin America, which constitute significant markets for these products globally.
Heat Exchanger Market Size
If you’re in the oil business, you know that the heat exchanger market is critical to your operations. After all, these devices are responsible for transferring heat from one fluid to another, and they are essential for keeping your oil at the right temperature. But what you may not know is that the heat exchanger market is growing at a rapid pace.
According to a recent report, the global heat exchanger industry is expected to reach $14.8 billion by 2025, up from $9.9 billion in 2016. This growth is driven by several factors, including the increasing use of renewable energy sources, the need for more efficient cooling systems, and stricter environmental regulations.
Covid-19 Impact Analysis
As the world grapples with the ongoing Covid-19 pandemic, the oil industry has been hit quite severely. The sharp drop in demand for oil due to the pandemic has led to a corresponding decrease in prices. It has devastated the oil industry, with many companies going bankrupt and thousands of workers losing their jobs.
The Covid-19 pandemic has also had a significant impact on the environment. The sharp drop in demand for oil has led to a decrease in production, which in turn led to a reduction in emissions of greenhouse gases. It is a positive development, showing that it is possible to reduce emissions even amid a significant global crisis.
However, the long-term impacts of the Covid-19 pandemic on the oil industry are still uncertain. The reduced demand for oil may lead to a permanent decrease in production, which could seriously affect the global economy. Only time will tell how this industry will recover from this crisis.
The factors like increasing production of oil & gas, growing demand for efficient cogeneration of power, and superior equipment to ensure safety have immensely pushed up the need for heat exchangers in all major regions. The current scenario makes heat exchangers a high priority, which will help in creating numerous business opportunities for new heavy equipment manufacturers and existing market players.
