MCHEs have a wide range of applications in industries including power stations, chemical plants, petrochemical plants, refineries, sewage treatment, automobiles, and aerospace. According to statistical reports from the World Bank, the value additions from global manufacturing sector grew from USD 12.38 trillion in 2016 to USD 13.49 trillion in 2017. The growth in manufacturing sector is further expected to continue during the forecast period primarily due to the increase in demand for manufactured goods, globally. Asia-Pacific is expected to grow at the fastest rate during the forecast period, owing to the increase in industrial production in the countries of China and India.
Additionally, due to the reduced labor costs, multi-national companies are seeking opportunities to set-up their manufacturing base in these countries for higher profits. For instance, in December 2018, Boeing inaugurated its new factory in Zhoushan, China. The factory has been built to deliver 7,700 planes to China in the next 20 years with an estimated cost of about USD 1.2 trillion. MCHEs will have various applications in aircraft, including water heating and fuel heating prior to combustion.
Data from the European Automobile Manufacturers Association showcases the increase in demand for automobiles between 2016 and 2017. The growth is expected to further continue during the forecast period, primarily due to the increasing purchasing power of the customers, globally.
MCHEs are primarily used in automotive radiators to cool down the liquid passing through it, which is subsequently used for maintaining the engine temperature during operations. Radiators are important parts of automobiles and as the global demand for automobiles grows, the demand for MCHE market is also expected to grow, globally. Additionally, the repair and maintenance of existing automobiles is also expected to substantially raise the demand for MCHE during the forecast period.
Based on these factors, the increasing demand for MCHE in the manufacturing sector is expected to substantially impact the growth of the global microchannel heat exchanger (MCHE) market during the forecast period.
As industrial automation is growing, manufacturers are taking steps to incorporate advanced technologies to improve plant efficiency, which will have a high impact on the global microchannel heat exchanger market during the beginning of the forecast period. As environmental norms are expected to increase in the next few years and it is expected to lead to the stagnation in the growth of the industrial sector, making the impact on the global MCHE market moderate by the end of the forecast period.
