Market Dynamics
Printed Circuit Heat Exchangers (PCHEs) are manufactured using a solid-state joining process called diffusion bonding. They are highly compact and robust as compared to other popular heat exchangers, i.e. shell and tube. Heat exchangers are systems used in the upstream hydrocarbon processing, petrochemical, and refining industries, and in Floating Production Storage and Offloading (FPSO) floating vessels as well as for Floating Liquefied Natural Gas (FLNG) operations. Increasing energy prices and a rise in offshore oil production and refineries are the key factors driving the demand for printed circuit heat exchangers globally. According to a study conducted by the International Energy Agency in 2014, oil and gas contribute an approx. 56.6% share in global power consumption. Thus, industries engaged in the oil and gas sector are focusing on measures that would help minimize power consumption and associated costs through efficient heat recovery systems.
Regional Analysis
Geographically, the global market has been segmented into North America, Europe, Asia Pacific, and Latin America (LATAM), and the Middle East and Africa (MEA).
North America is projected to witness dynamic growth in the printed circuit heat exchangers market on account of the rising demand from key application industries such as chemical, petrochemical, and oil and gas. Besides, the region is home to notable oil and gas industries and the Gulf of Mexico, an oceanic basin in North America. Favorable government initiatives and undertakings are also expected foster market growth. For instance, in March 2019, the U.S. Department of Energy’s Advanced Research Projects Agency-Energy (ARPA-E) announced awards worth USD 36 million for 18 projects as part of the High Intensity Thermal Exchange through the Materials and Manufacturing Processes (HITEMMP) program. The initiation of such projects propels the global market growth in the region.
Europe is expected to experience significant growth in the printed circuit heat exchanger market during the forecast period, 2019–2026. This can be attributed to stringent government regulations, coupled with the extensive utilization of PCHEs in refineries and chemical industries.
MEA is pegged to register a substantial growth rate in the printed circuit heat exchanger market on account of the emphasis on increasing domestic gas production. For instance, in December 2017, Alfa Laval was awarded a USD 6.5-million contract to supply Alfa Laval compact heat exchangers to a refinery in the Middle East. Additionally, several noteworthy gas producers in the Middle East are focusing on replacing Brazed Aluminum Heat Exchangers (BAHEs) with PCHEs. Such instances are expected to escalate the printed circuit heat exchanger market growth during the forecast period, 2019–2026.
Asia-Pacific is projected to experience accelerated growth in the printed circuit heat exchangers market due to industrialization in the presence of giant economies such as China and India. Several Asian countries are channelizing efforts to lay a solid base for the heat exchanger market and anticipated to provide ample opportunities for the printed circuit heat exchanger market. For instance, in 2015, Heatric was awarded a contract to supply seven PCHEs to the Bergading Central Processing Platform (CPP) in the North Malay Basin, Malaysia.
LATAM is expected to observe a considerable growth rate in the printed circuit heat exchanger market, with national oil and gas companies in the region looking to reinvigorate their network of oil refineries in an attempt to minimize the import of diesel and oil derivatives.
Segmental Analysis
By material, the stainless steel segment is expected to hold a strong market share in the global printed heat exchangers market during the forecast period, 2019–2026. PCHEs are generally made up of 300 series stainless-steel. Stainless steel, with its innate properties, offers a wide range of benefits that make it ideal for PCHEs, such as the ability to operate effectively in both extreme hot and cold temperatures without being damaged. The fact that stainless steel enables the manufacturing of PCHEs capable of working with heavy industrial machinery that produces a substantial amount of heat drives the growth of the stainless-steel segment in the market.
The petrochemical segment is projected to register the highest CAGR in the global market. Petrochemical plants produce volatile hydrocarbon samples with temperatures exceeding 500°F (260°C), which necessitates cooling, whereas other fuels such as diesel may need to be heated before being sent to a diesel generator. According to the International Energy Agency (IEA), the petrochemical sector is set to account for more than a third of the growth in world oil demand by 2030 and nearly half the growth by 2050, adding nearly 7 million oil barrels a day. Thus, with increasing demand for petrochemicals, several international and national oil and gas companies are making substantial investments to set up new production facilities. This scenario is slated to create ample opportunities for printed circuit heat exchangers in the petrochemical sector.
