Industry & Market
Climate change and increased environmental awareness, combined with the price volatility and limited supply of fossil fuels have fostered the demand and emergence of a magnitude of clean energy solutions. Heat exchangers which improve heat utilization thereby reducing energy costs and CO2 emissions is one such green energy solution used today.
Heat exchangers were first invented in the mid 1920s to control pressure and temperature during industrial production. Later innovations in heat transfer technology led to higher heat recovery rates leading to greater savings in fuel consumption and reductions in related pollution.
Today, heat exchangers are used in a wide variety of industries ĘC chemical and petrochemical industries, fuel processing, steel production, power generation, pulp & paper, pharmaceuticals, HVAC, food and beverage processing and even in alternative energy industry.
The global market for heat transfer products is estimated at $12 billion, with plate heat exchanger units (HVAC use) accounting for approximately $2.3 billion1 of the total market. Worldwide, the chemical industry is the largest user of heat exchangers, while the fuel processing industry represents the fastest growing demand for heat exchangers. Among various types of heat exchangers, plate heat exchangers represent the fastest growing segment and Asia-Pacific region the fastest growing market2.
PHE Market in China
The market for PHE products in China was estimated at $2.49 billion in 2007. Since 2000, the demand for PHEs and PHE units, an HVAC application of the PHEs, has been growing at an annual rate of 30% and 70%, respectively. The China Heating Association predicts that the current growth rates will persist until 20103.
While the PHE market in China is dominated by large multinational companies such as Alfa Laval, SPX Corporation, Danfoss and GEA, the market in PHE Units is highly fragmented among many international and domestic firms. Smartheat has the largest market share in PHE Units in China at approximately 8%.
1. Alfa Laval 2007 Annual Report
2. Global Industry Analysts, Inc., "Heat Exchangers: A Global Strategic Business Report", 2008
3. China Heating Association