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London, United Kingdom, 2007/09/26 - The Iraq war in 2003 constrained oil supply, escalating oil prices. This scarcity prompted the initiation of many projects related to gas to liquid (GTL), liquified natural gas (LNG) and ethylene crackers plants, which were on hold for many years.
As a direct consequence, the demand for heat exchangers has increased significantly.
New analysis from Frost & Sullivan (powertransmission.frost.com), European Heat Exchanger Market, finds that market earned revenues of $3.5 billion in 2006.
If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the European Heat Exchanger Market, then send an e-mail to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska[.]frost.com, with your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.
“The war affected the U.S. economy, resulting in significant reductions in investment in the U.S. petrochemical sector and refineries,” note Frost & Sullivan Research Analysts Kaushik Ghosh and Debasmita Das. “This provided great opportunities for manufacturers in Europe to breach the gap in investment, as they form the core end user sectors for the heat exchangers.”
Currently, the European heat exchanger market is buoyant, growing at a rate of 10 percent annually. Sectors like chemicals, fuel processing, power generation, pulp and paper, petrochemicals and oil and gas refineries have propelled the demand for heat exchangers.
“The future of the heat exchanger market in Europe, however, lies in the plate heat exchangers,” cites Ghosh. “Their popularity is growing mainly due to the advantages they hold over shell and tube categories.”
Plate heat exchangers are compact, can be modularized in different shapes and sizes, show increased efficiency in heat transfer, incur low installation and maintenance costs and can withstand high temperature and pressure. These advantages will lead to an increased replacement of shell and tube heat exchangers by plate heat varieties in the future.
Despite the high demand, scarcity and high prices of raw materials represent a serious impediment to heat exchanger manufacturers. This, in turn, will increase their manufacturing costs, which suppliers have to transfer to end users to save their profit margins.
“Investing in exploration activities to discover new avenues for raw materials holds the key to checking raw material scarcity and its increasing price,” says Das.
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