Market Trends of North America Heat Exchanger Industry
This section covers the major market trends shaping the North America Heat Exchanger Market according to our research experts:
Power Generation to Dominate the Market
- The power generated through various sources such as coal, natural gas, oil, and nuclear are combinedly known as thermal power. Thermal Power generation mostly needed a heat exchanger at the end of the fuel-burning process to either cool down the system or to exchange heat between two systems. In 2018, approximately more than 75% of the electricity generated in North America was from thermal power.
- Out of the various sources of generating thermal power, most of the energy came from natural gas, in 2018. Natural gas contributed approximately 43% of the thermal power electricity generation, producing 1833 terawatt-hour (TWh) of electricity in 2018.
- In 2019, Charles City combined cycle power project started; it is a 1060 megawatts (MW) gas-fired power plant being developed by independent power producer C4GT in Charles City County, Virginia, United States. Commercial operations of the project are expected to start by the third quarter of 2022. The project is expected to require two huge capacity of heat exchanger provided by General Electric Company.
- In 2018, General Electric Company got to hold one of the critical components of the Norte III Power Plant, Mexico. The company's power services business is expected to provide an essential services solution that includes overseeing operations and maintenance (O&M), contractual services, and digital support for Norte III over the next 25 years, under agreements valued at more than USD 330 million.
- In 2018, BWXT Technologies, Inc was awarded a contract to design and supply thirteen super-critical heat exchangers to Bruce Power, a power generation company in Canada.
- Hence, owing to the above points, power generation is expected to dominate the North America heat exchanger market during the forecast period.
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United States to Dominate the Market
- The United States held a significant market share in 2018, and due to the increasing energy demand and consumption in the country, it is likely to dominate the North America heat exchanger market. In 2018, the total electricity generation from the power sector in the United States was 4460.8 terawatts-hour (TWh). The United States in 2018 generated 80 of the total electricity of North America.
- Bechtel is responsible for completing the construction of Vogtle Units 3 and 4 under the management of Southern Nuclear, the Southern Company subsidiary that operates the existing two units at Vogtle. Units 3 and 4 of Vogtle are the first Westinghouse AP1000 units to be built in the United States. The Vogtle Units 3 and 4 team is working to have Unit 3, and 4 are expected to be ready for commercial operation in 2021 and 2022, respectively.
- In 2019, Exxon Mobil, an oil major, announced to expand its Beaumont refinery by more than 65% or 250000 barrels per day. The expansion of the refinery was started in 2019, while it is expected to be complete in 2022. This expansion of the refinery is expected to increase its capacity to handle crude oil and thus requiring a high capacity of the heat exchangers.
- Hence, owing to the above points, the United States is expected to dominate the North America heat exchanger market during the forecast period.
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