Microchannel Heat Exchanger Market Size, Share Report, Analysis, Trends, Growth 2032

Microchannel Heat Exchanger Industry Prospective:

The global microchannel heat exchanger market size was worth around USD 16.02 billion in 2023 and is predicted to grow to around USD 37.79 billion by 2032 with a compound annual growth rate (CAGR) of roughly 10.00% between 2024 and 2032.

Request Free Sample

Microchannel Heat Exchanger Market: Overview

Microchannel heat exchangers (MCHEs) are a type of heat exchanger. They are considered as a variant of tube and fin heat exchangers. In MCHEs, at least one fluid passes through tubes. In most cases, this fluid is water or refrigerant while air flows through connected fins in a cross-current manner. A heat exchanger is a system designed for transferring heat between a working fluid and a source. They are used in cooling and heating processes and have applications in areas such as refrigeration, space heating, power stations, air conditioning, petrochemical plants, chemical plants, natural gas processing, sewage treatment, and refineries. The most commonly used heat exchanger type is an internal combustion engine. In microchannel heat exchangers, the channel diameter is less than 1 mm. The leading industries using MCHEs extensively since ages have been the chemical processing and transportation sectors. Microchannel heat exchangers offer several technical advantages leading to their high popularity. One of the most prominent benefits is in the form of higher efficiency of heating, ventilation, and air conditioning (HVAC) systems. Additionally, MCHEs are more compact as compared to other variants thus weighing less.

Key Insights:

• As per the analysis shared by our research analyst, the global microchannel heat exchanger market is estimated to grow annually at a CAGR of around 10.00% over the forecast period (2024-2032)
• In terms of revenue, the global microchannel heat exchanger market size was valued at around USD 16.02 billion in 2023 and is projected to reach USD 37.79 billion, by 2032.
• The market is projected to grow at a significant rate due to the growing construction of new commercial and industrial centers
• Based on the phase, the single phase segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the end-user, the HVAC segment is anticipated to command the largest market share
• Based on region, REGION is projected to dominate the global market during the forecast period

Request Free Sample

Microchannel Heat Exchanger Market: Growth Drivers

Growing construction of new commercial and industrial centers will drive the market demand

The revenue streams in the global microchannel heat exchanger market are projected to be driven due to the increasing construction and development of new commercial and industrial centers. Microchannel heat exchangers have been widely used in HVAC systems as they are used for providing air conditioning, heating, and other forms of air ventilation. Commercial or industrial facilities have high power demand and microchannel heat exchangers can be helpful in supplying the desired rate of air ventilation at cost-effective prices. Microchannel heat exchangers offer higher performance efficiency since they have a higher surface area for transferring heat. Additionally, their compact sizes have made them highly popular in the modern world seeking miniaturized solutions. Another potent advantage of microchannel heat exchangers is flexibility in terms of customizing the overall design of MCHEs across parameters including flow distribution and channel geometry. The increasing investments in industrial and commercial development worldwide are expected to act in favor of higher demand for MCHEs. Companies are investing in the construction of large-scale industrial parks to accommodate the surging demand from consumer groups. In April 2024 Panattoni, a global real estate developer, initiated the construction of a new industrial park in Bedzin. The park will be spread across 87,500 sqm upon completion and the investment is a result of an increasing demand for industrial spaces in the Polish region. Such developments will act as a driving force for the higher use of MCHEs in the coming years.

Growing residential demand for air ventilating systems will promote the adoption of MCHEs

The world is witnessing a growing urbanization rate. In addition to this, the changing consumer lifestyle and higher disposable income have promoted the growing sale of air ventilation systems especially air conditioners in residential units. Extreme heat during summer seasons is a leading propeller for the air conditioner market thus also impacting the global microchannel heat exchanger market. As per market research, 24 out of 100 homes in India have air conditioning installations.

Microchannel Heat Exchanger Market: Restraints

High cost of developing MCHEs will restrict the market expansion rate

The global industry for microchannel heat exchanger will be restricted due to the high cost of developing MCHE. The industry has limited profit margins. It is also one of the most heavily regulated industries globally thus further impacting the total revenue generated. The cost of producing microchannel heat exchangers further increases due to the use of high-performance materials such as corrosion-resistant alloys as they are required for enhancing the overall durability of microchannel heat exchangers. These factors are likely to impact the final production and distribution of MCHEs.

Microchannel Heat Exchanger Market: Opportunities

Growing focus on integrating MCHE technology and renewable energy holds higher growth possibilities

The global microchannel heat exchanger market will generate high growth opportunities due to the increasing focus on integrating MCHE technology and renewable energy. One of the prominent contenders in the clean energy sector is solar power as MCHE can be easily integrated with systems generating solar energy. The higher surface area of microchannel heat exchangers will allow extensive absorption and conversion of solar power. The rising concerns over the depletion of natural resources as well as the impact of excessive use of non-renewable energy on the environment have encouraged higher investments towards the development and deployment of clean energy solutions. Environmental agencies and governments are encouraging the adoption of solar panels across residential, commercial, and industrial centers. In March 2023, the European Union approved a new law that mandates solar installations across commercial and residential buildings by 2030. Additionally, government subsidies and financial assistance to renewable energy adopters will encourage the use of microchannel heat exchangers in the energy industry.

Growing demand for electric vehicles (EVs) in the automotive industry may trigger higher market growth

Electric vehicles have enjoyed considerable demand in the last few years. The growing uncertainty over the continuous supply of conventional fuel as well as the changing pricing of these energy sources has led to increased interest over the adoption of EVs across public and private sectors. Microchannel heat exchangers are used in automobiles for air ventilation, cooling, and heating. Moreover, their small size allows MCHEs to be easily integrated into automotive and deliver high performance. As per market projections, India is likely to achieve the mark of selling one crore units by 2030 thus opening new growth avenues for the global microchannel heat exchanger market.

Microchannel Heat Exchanger Market: Challenges

High competition from other ways of heat exchange may challenge the market expansion rate

The global industry for microchannel heat exchanger may be challenged by the high competition MCHE faces from other heat transfer technologies namely plate and tube-and-fin solutions. Moreover, the complexities associated with the long-term maintenance of microchannel heat exchangers that are part of complex and intricate technologies may further add to the limited growth in the industry.

Microchannel Heat Exchanger Market: Segmentation

The global microchannel heat exchanger market is segmented based on phase, type, end-user, and region.

Based on the phase, the global market segments are double phase and single phase. In 2023, the highest demand was witnessed in the single phase segment since they have a higher demand for HVAC solutions. They are used in equipment such as dry coolers, free cooling systems, and air conditioners. The most common medium used in single phase MCHEs is glycol mixtures or water. Most heat exchangers can last for over 15 years.

Based on type, the global microchannel heat exchanger industry is divided into air handling units, heat pumps, fan coil units, chillers, and others.

Based on the end-user, the global market divisions are food processing, HVAC, power, refrigerated transport, and others. In 2023, the highest revenue was generated in the HVAC segment. The growing demand for heating, ventilating, and air cooling systems globally across commercial and residential applications resulted in higher segmental demand. In 2023, the global HVAC market was valued at over USD 75 billion.

Microchannel Heat Exchanger Market Report Scope

Microchannel Heat Exchanger Market: Regional Analysis

Asia-Pacific to lead the market growth rate during the projection period

The global microchannel heat exchanger market will be led by Asia-Pacific. China, India, and Japan are expected to emerge as the leading regional market growth contributors driven by the presence of extensive manufacturing sectors in each economy. China is one of the leading nations in terms of MCHE production. As per the latest reports, China has doubled its investment in the manufacturing sector. The region plans to spend over USD 1 billion to promote the domestic growth of the regional manufacturing industry. In addition to this, India is also emerging as one of the world’s prominent countries in terms of the production of high-grade microchannel heat exchangers. India has registered large-scale investments across automotive, transportation, power, and other sectors that are some of the most influential drivers of microchannel heat exchangers. The Indian automotive industry will invest USD 7 billion by 2028 to promote domestic production of advanced automotive components. The surging demand for air coolers and ventilators across Asian countries will further work in the favor of the regional market. North America is projected to generate significant revenue in the coming years. The US and Canada are seeking solutions that can improve energy efficiency across sectors. Additionally, North America is flourishing in terms of renewable energy solutions thus contributing to the regional market revenue.

Microchannel Heat Exchanger Market: Competitive Analysis

The global microchannel heat exchanger market is led by players like:

• Johnson Controls
• Greenheck Group
• Danfoss Group
• Sanhua Holding Group
• MAHLE GmbH
• Vahterus
• United Technologies Corporation
• Hanon Systems
• Modine Manufacturing Company
• Kaltra Innovativtechnik GmbH
• Hyspan Precision Products
• Thermofin
• Kangsheng Group
• Alfa Laval
• Evapco Inc.

The global microchannel heat exchanger market is segmented as follows:

By Phase

• Double Phase
• Single Phase

By Type

• Air Handling Units
• Heat Pumps
• Fan Coil Units
• Chillers

By End-User

• Food Processing
• HVAC
• Power
• Refrigerated Transport

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa