The global crude heater market is estimated to exhibit growth at a CAGR of around 4% to 5% during the forecast period 2022-2032. Increasing introduction of novel flameless combustion emission less techniques to counter the implementation of stringent government regulations is anticipated to augment the growth in the market.
Crude heaters are considered to be a crucial element of the refinery industry. These heating systems are used to heat the crude oil before the first stage of compression. They are increasingly being installed in oil & gas refineries as they assist in reducing the viscosity of crude oils by preheating them to generate easy flow.
In order to ensure efficient and well-maintained operations in the oil and gas industry, reliable, advanced, and durable industrial heating equipments, such as crude heaters, are deployed in the refining and production facilities. Demand for crude heaters is rising at a rapid pace, owing to the increasing adoption across oil & gas refineries for improving the fluidity of crude oil and better separation properties. This is projected to drive the growth in the crude heaters market.
Stringent regulations laid down by the government are creating numerous challenges for the manufacturers in the crude heater marker. To counter these challenges, market players are increasingly focusing on the development and launch of novel flameless combustion techniques for crude heaters.
For instance, Great Southern Technologies announced launching novel flameless heater technology that enhances efficiency (91%-LHV), decreases carbon dioxide emission by 10% to 20% and reduces fuel consumption. Such developments in the technologies are estimated to accelerate the demand for crude heaters in the market.
Which are Some Prominent Drivers Spearheading Crude Heater Market Growth?
With rapid surge in trend of industrialization and increasing usage of oil and petroleum derivatives such as gasoline, diesel, liquefied petroleum gas (LPG), and others, the consumption for crude oil has bolstered across the globe.
For instance, according to a report by the International Energy Agency, the demand for crude oil worldwide increased to 99.7 million barrels per day in the year 2019, in comparison to the 99.3 million barrels per day in 2018. Thus, governments in numerous countries are aiming at increasing their crude oil production to cater to the growing demand for crude oil.
According to the India Brand Equity Foundation, the Government of India announced investing nearly US$ 2.86 billion for drilling more than 120 exploration wells to double the production of oil & gas in the country by 2022. As crude heaters are extensively used in the oil & gas refineries and production facilities for better separation of crude oil and improving fluidity, such initiatives for increasing production of crude oil are projected to fuel the demand in the global market.
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What are the Challenges Faced by the Crude Heater Market?
Due to the rising environmental concerns pertaining to greenhouse gasses and volatile organic compounds (VOCs) emission, government and various other regulatory organizations are implementing numerous stringent regulations for declining the production of crude oil products. For instance, European Union announced laying regulatory Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) regulations addressing the production and use of substances such as process oil.
In addition to this, surging trend of electrification, ban on the sales of new diesel cars, and increasing inclination towards adopting electric vehicles has resulted in declining the demand for crude oil products, which is in turn, hindering the sales of crude oil sales in the market.
Why is Asia Pacific Excluding Japan Emerging as an Opportunistic Crude Heater Market?
Future Market Insights states that Asia Pacific excluding Japan is expected to register the fastest growth in the global crude heater market from 2022 to 2032.
Demand for crude oil derivatives is rapidly increasing, owing to the expanding automotive industry and growing trend of industrialization and urbanization across Asia Pacific. Citing this trend, leading industry players are investing in expanding their production capacity and increasing refining efficiency to capitalize on the existing opportunity.
For instance, Bharat Petroleum Corporation Ltd, an Indian petroleum refineries company announced investing over 13.66 Bn to improve refining efficiency, enhance petrochemical capacity, and increase their petroleum derivatives production over a period of five years. A multiplicity of such developments is estimated to spur the sales of crude heaters in the Asia Pacific excluding Japan market.
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How is North America Contributing to the Growth of the Crude Heater Market?
As per FMI, North America is anticipated to account for a significant share in the global crude heater market over the forecast period 2022-2032.
A swift rise in sales of automotive vehicles is being witnessed across North America, resulting in propelling the demand for crude oil products. Thus, numerous industry players are aiming at launching new crude oil refineries to meet the surging demand.
For instance, in 2019, Targa Resources Corporation, a U.S.-based oil & gas company announced launching its new petroleum refinery at Channelview, Texas with refining capacity of 35,000 barrels per day. As crude heaters are increasingly used in oil & gas refineries, such developments across the U.S. and Canada are projected to augment the demand in the North America market.
Market Competition
Some of the leading players in the crude heaters market are American Heating Company, Inc., Thermotech Systems Ltd., Pirobloc, S.A., Garcem Engineers, Exotherm Corporation, Chromalox, Inc., C. Broach Company, and Amec Foster Wheeler.
The market for crude heaters is highly competitive, due to large number of participants and increasing adoption of strategies such as collaboration, agreement, and partnership to strengthen the market share.
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Report Scope
Report Attribute
Details
Growth Rate
CAGR of 4% to 5% from 2022 to 2032
Base Year for Estimation
2021
Historical Data
2015-2020
Forecast Period
2022-2032
Quantitative Units
Revenue in USD Billion, Volume in Kilotons and CAGR from 2022-2032
Report Coverage
Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Segments Covered
Capacity
Combustion
Region
Countries Covered
North America
Latin America
Western Europe
Eastern Europe
APEJ
Japan
Middle East and Africa
Key Companies Profiled
American Heating Company, Inc.
Thermotech Systems Ltd.
Pirobloc, S.A.
Garcem Engineers
Exotherm Corporation
Chromalox, Inc.
C. Broach Company
Amec Foster Wheeler
Customization
Available Upon Request
Key Segments Profiled in the Crude Heater Market Survey
By Capacity:
Less than 50,000 Barrels Per Day
50,001 to 100,000 Barrels Per Day
100,001 to 250,000 Barrels Per Day
Above 250,000 Barrels Per Day
By Combustion:
Flame Combustion Crude Heaters
Flameless Combustion Crude Heater
By Region:
North America
Latin America
Western Europe
Eastern Europe
APEJ
Japan
Middle East and Africa
Frequently Asked Questions
What is the projected size of the global crude heater market by 2032?
FMI projects the global crude heater market to expand at 4% to 5% value CAGR by 2032
Which region is forecast to be the most lucrative for crude heater market growth?
The market for crude heater is dominated by Asia Pacific excluding Japan, and this trend is projected to continue in the foreseeable future.
Which are the prominent crude heater manufacturers?
American Heating Company, Inc., Thermotech Systems Ltd., Pirobloc, S.A., Garcem Engineers, Exotherm Corporation, Chromalox, Inc., C. Broach Company, and Amec Foster Wheeler are some prominent crude heater manufacturers
