The Steam Coil Market is estimated to be valued at US$ 8.23 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Steam coils are devices used for heating purposes in industrial applications. They find wide usage in heating or humidifying air in industrial settings like HVAC systems and manufacturing units. Steam coils offer advantages like precise temperature control, minimal space requirement, and ability to withstand high pressures and temperatures. They are a crucial part of industrial heating requirements.
Market key trends:
One of the major trends contributing to the growth of Steam Coil Market Size is increasing automation across industries. Many industries are automating their processes which require steam for applications like sterilization, melting, and disinfection. This is increasing the demand for steam coils compatible with automation equipment. Programmable logic controllers help achieve precise temperature and humidity control automatically. This is driving the need for sturdier and more durable steam coils that can integrate with automated industrial machinery. Various industries are automating their steam-based processes to improve efficiency and yield, thereby propelling the steam coil market forward.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as steam coil manufacturing requires significant investment in machinery, skilled labor, and technical know-how. However, low entry barriers in some regional markets can increase competition.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of substitute products and undifferentiated nature of steam coils. Buyers can negotiate on price easily.
Bargaining power of suppliers: Since steam coils require basic raw materials that are freely available, bargaining power of suppliers is low.
Threat of new substitutes: Alternatives like electric heating systems pose moderate threat of substitution. However, steam coils continue to be preferred for large industrial applications requiring precision heating.
Competitive rivalry: Intense competition exists among existing players.
SWOT Analysis
Strength: Steam coils offer precise temperature control and uniform heating required for industrial processes. Their durability and energy efficiency also provide long term benefits.
Weakness: High initial investments and maintenance costs of steam coils. Vulnerability to fluctuations in raw material prices.
Opportunity: Growing demand from industries like food processing, chemical production where steam coils aptly serve heating requirements. Rising investments in manufacturing sector of emerging economies.
Threats: Stringent regulations towards energy efficiency and pollution may impact sales. Substitutes capturing market share.
Key Takeaways
The global Steam Coil Market is expected to witness high growth, exhibiting CAGR of 5.5% over the forecast period, due to increasing investments in manufacturing sector across developing nations in Asia Pacific and Middle East & Africa. The growing need for precise and energy efficient industrial heating will contribute to the demand.
Regionally, the Asia Pacific steam coil market is anticipated to emerge as the fastest growing as well as largest market during the forecast period. Countries like China, India are witnessing rapid industrialization which requires steam coils for various manufacturing processes.
Key players operating in the steam coil market are Thermax Limited, Armstrong International Inc., Stork Thermeq B.V., Alfa Laval AB, and Kelvion Holding GmbH. These players are focusing on expanding their geographical presence and ramping up production capacities to leverage lucrative growth opportunities.
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