Steam coil is a device that converts water into steam using electricity or fuel to ensure temperature control in various industrial and commercial processes. It comprises copper or stainless steel tubing coiled into tight circular loops and acts as a heat exchanger between steam and air or liquid surrounding the coils. Steam coils are widely utilized in heating, ventilation, and air conditioning (HVAC) systems to regulate and circulate warm air throughout buildings. They are also used in industrial processes requiring precise temperature control such as food processing, paper manufacturing, industrial drying, and pharmaceutical production.
The global Steam Coil Market is estimated to be valued at US$ 9.49 Mn in 2024 and is expected to exhibit a CAGR of 7.7% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
District heating systems offer an effective solution for supplying heat generated from a centralized plant to residential and commercial buildings through a system of insulated pipes. Steam coils play a vital role in district heating as they act as heat exchangers, transferring thermal energy from hot water or steam circulated through district heating pipes to air or another liquid medium inside buildings. With growing focus on upgrading aging infrastructure and transitioning to low-carbon energy sources, investments in district heating networks are increasing globally. This growing adoption of district heating systems provides lucrative opportunities for steam coil vendors to boost their sales and expand product portfolios catering to district heating applications.
Porter’s Analysis
Threat of new entrants: The steam coil market has high capital investment requirements to manufacture and market steam coils, acting as an entry barrier for new companies. However, the market is growing at a decent pace increasing opportunities for investment.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are numerous manufacturers for steam coils. However, coil performance and aftersales service affect buyers purchasing decisions.
Bargaining power of suppliers: Few large manufacturers control the global supply of raw materials like copper, brass and aluminum used to make steam coils. This gives them significant influence over prices.
Threat of new substitutes: Alternate heating sources like electric heating or solar heating pose competition. However, steam coils are widely used making quick substitution difficult in the short term.
Competitive rivalry: The steam coil market has numerous international and regional players competing on performance, pricing and innovation. This forces companies to invest heavily in new product development and competitive strategies to gain market share.
SWOT Analysis
Strength: Steam coils effectively transfer heat for various applications. They have high efficiency, low maintenance and flexibility for installation in small spaces.
Weakness: Initial investment required is high compared to other heating options. Retrofitting existing systems with steam coils may require structural changes incurring additional cost.
Opportunity: Growing construction industry especially in Asia Pacific creates demand for heating, ventilation and air conditioning equipment including steam coils. New product designs based on IoT increase market potential.
Threats: Stringent environmental regulations on energy usage and phase out of hydrofluorocarbons based refrigerants increases compliance cost for manufacturers. Supply chain disruptions can impact production.
Key Takeaways
The Global Steam Coil Market Growth is expected to witness high during the forecast period of 2024-2031 supported by growing construction spending and industrialization in emerging economies.
Asia Pacific dominates the market currently owing to large manufacturing and construction base in China, India and Southeast Asian countries driving demand. The region is estimated to maintain its leading position in the upcoming years as well.
Key players operating in the steam coil market are Audi AG, Viessmann, Dunham Bush, Potterton, Zhejiang DunAn Hetai Steam Trap, Knight LLC, Spirax Sarco, Thermodyne Engineering Systems, Armstrong International, and Houston Coil. Viessmann and Spirax Sarco are focusing on new product launches to consolidate their market position. For instance, in 2023 Spirax Sarco introduced smart connected steam traps for remote monitoring and predictive maintenance to optimize operations.
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