1 Global Direct Fired Heater Market Insight Analysis
The global Direct Fired Heater market size is valued at USD 352.03 million in 2024, with a CAGR of 5.06% from 2024 to 2033.
Direct Fired Heater, also known as industrial furnaces, work similarly to gas grills or gas stoves. Direct-fired heaters use propane or natural gas to heat, and an open flame inside the unit heats the air-fuel mixture for rapid, high-volume heat output. Direct fired heaters are often used on construction sites, large warehouses, and outdoor locations where there is good ventilation.
Figure Global Direct Fired Heater Market Size (M USD) and CAGR (2024-2033)
2 Direct Fired Heater Market Growth Drivers and Restraints
In terms of driving factors, its own advantages are an important basis for market growth. Direct fired heaters have high thermal efficiency, direct contact between air and open flames, and fuel can be efficiently converted into heat energy, reducing fuel consumption and operating costs. Its equipment occupies a small area and can generate a lot of heat in a small space. It has a relatively simple structure, a small number of parts, low procurement and installation costs, and is relatively easy to maintain. It can also achieve precise temperature control and a long service life. Some equipment can operate without electricity, which is convenient for use in remote locations. These advantages have led to an increasing market demand for it.
The development of the oil, gas and petrochemical industries is a key driving force. As the pillar of the industrial economy, the petrochemical industry consumes a lot of energy, and the demand for reducing energy costs continues to grow. The increase in global oil and gas refining capacity, new emission reduction regulations and government initiatives, and the development of the petrochemical and specialty chemicals industries have all driven the growth of the direct fired heater market.
For example, the development of shale gas in the United States has driven the demand for related petrochemical products. The increase in ethylene production in major European countries has prompted manufacturers to surge in demand for petrochemical products. The demand for petrochemical products such as plastics and fertilizers in emerging Asian economies has soared due to the accelerated industrialization and urbanization process. These have stimulated the market demand for direct fired heaters.
Among the limiting factors, the product itself has certain defects. Direct fired heaters require good ventilation conditions during operation, otherwise the gases produced by combustion, such as carbon monoxide, may accumulate and endanger human health. When used in a closed space, exhaust gas may also cause damage to indoor items and mold. Some buildings are also not allowed to be used due to safety hazards, which to a certain extent limits its market promotion.
Technical and talent barriers also restrict the development of the industry. The direct fired heater industry has high requirements in core function design, energy saving, temperature control and automation equipment technology. During the use of downstream customers, various factors will affect the thermal field control effect. Manufacturers also need to balance energy saving and production efficiency. New entrants lack technical accumulation and find it difficult to adapt to industry competition. At the same time, the industry has a large demand for professional and technical talents, and requires talents with interdisciplinary knowledge and project experience. Enterprises with insufficient talent reserves are limited in development.
3 Technological Innovations in the Direct Fired Heater Market
Technological innovation injects vitality into market development. Leading companies in the industry focus on product quality control, actively develop industry-specific solutions, promote the formulation of product standards, and continuously expand regional markets. In terms of product research and development, companies invest resources in developing new products, exploring new materials and innovative processes to reduce costs, while focusing on sustainable development and compliance with safety regulations.
For example, Technip Energies successfully conducted a 100% hydrogen combustion test on a large vortex burner, demonstrating the potential of this technology in avoiding direct carbon dioxide emissions; Wood analyzed and adopted new burner solutions to mix large amounts of hydrogen into existing fuel systems to reduce emissions. These innovations not only help companies improve product competitiveness, but also drive the industry towards a more environmentally friendly and efficient direction.
Corporate mergers and acquisitions have an important impact on the market landscape. Some companies achieve resource integration and business expansion through mergers and acquisitions to enhance their competitiveness. For example, in 2018, Axens acquired all the shares of Heurtey Petrochem. Since 2019, Heurtey Petrochem’s furnace business and services have been operated under the brand Heurtey Petrochem Solutions. This merger integrates the resources and technologies of both parties, enhancing Heurtey Petrochem Solutions’ strength in the field of refinery heaters, enabling it to provide customers with more comprehensive and high-quality products and services, and also changing the competitive landscape of the market.
Technological innovation and corporate mergers and acquisitions interact with each other. Technological innovation prompts companies to acquire new technologies and talents through mergers and acquisitions, accelerating the application and promotion of innovative results; while corporate mergers and acquisitions provide more sufficient funds, broader resources and larger markets for technological innovation, promoting the sustainable development of technological innovation. For example, after the acquisition, Heurtey Petrochem Solutions may use Axens’ resources to increase investment in technology research and development, promote product innovation, and further consolidate its position in the market.
4 Global Direct Fired Heater Market Size by Type
Radiant Heaters are designed to transfer heat directly from a warm surface to nearby objects or people. They are commonly used in applications where rapid and intense heat is required. In 2024, the market value for Radiant Heaters is forecasted to be $70.84 million. This type of heater is particularly popular in industrial settings where high-temperature processes are needed. The growth in the Radiant Heaters market is driven by their efficiency and ability to provide direct heat transfer, which is essential in many industrial processes. Radiant Heaters are expected to maintain a significant share of the market due to their unique advantages in specific applications.
Convection Heaters, on the other hand, rely on the circulation of warm air or gas to transfer heat. These heaters are known for their ability to provide consistent and even heating environments. In 2024, the market value for Convection Heaters is projected to be $66.09 million. Convection Heaters are widely used in industries where uniform heat distribution is crucial, such as in petrochemical plants and oil refineries. The growth in this segment is attributed to the increasing demand for efficient and reliable heating solutions that can maintain consistent temperatures over large areas. Convection Heaters are particularly favored for their ability to reduce stress on the coils and provide a stable heat output.
Radiant-Convection Heaters combine the benefits of both radiant and convection heating methods. These heaters use a combination of bare and finned tubes to achieve high efficiency and even heat distribution. In 2024, the market value for Radiant-Convection Heaters is expected to be $215.09 million. This type of heater is highly efficient and versatile, making it suitable for a wide range of industrial applications. Radiant-Convection Heaters are particularly popular in the oil and gas industry, where they are used for heating feedstocks, thermal fluids, and process fluids. The growth in this segment is driven by the increasing demand for energy-efficient and environmentally friendly heating solutions. Radiant-Convection Heaters are also favored for their ability to reduce emissions and improve overall process efficiency.
Table Global Direct Fired Heater Market Size by Type in 2024
Type | Market Size (M USD) 2024 |
|---|---|
Radiant Heater | 70.84 |
Convection Heater | 66.09 |
Radiant-Convection Heater | 215.09 |
5 Global Direct Fired Heater Market Size by Application
In the oil and gas sector, direct fired heaters play a crucial role. In 2024, the market revenue for this application is projected to be 140.59 million US dollars. This sector heavily relies on direct fired heaters for processes such as heating crude oil, gas treatment, and maintaining the flow of hydrocarbons in pipelines. With the continuous exploration and production activities in the oil and gas industry, especially in regions with emerging hydrocarbon reserves, the demand for direct fired heaters is expected to remain robust. These heaters are essential for ensuring the efficient operation of oil refineries and gas processing plants, where precise temperature control is vital for various chemical reactions and separation processes.
The petrochemical industry is another major consumer of direct fired heaters. In 2024, its market revenue is forecasted to be 152.44 million US dollars. Petrochemical plants use direct fired heaters in a wide range of processes, including steam generation for chemical synthesis, heating of feedstocks for polymerization reactions, and providing heat for distillation columns. As the global demand for petrochemical products such as plastics, synthetic fibers, and rubber continues to grow due to increasing industrialization and consumer demand, the need for direct fired heaters in this sector will also expand. New petrochemical projects, especially in Asia – where economies are rapidly industrializing – are driving the growth of the direct fired heater market within the petrochemical application.
Table Global Direct Fired Heater Market Size by Application in 2024
Application | Market Size (M USD) 2024 |
|---|---|
Oil & Gas | 140.59 |
Petrochemical | 152.44 |
Other Industries | 59.00 |
6 Global Direct Fired Heater Market Size by Region
In 2024, North America is projected to lead the global Direct Fired Heater market with a significant market size of $94.72 million. This region has consistently shown a robust growth trend, reflecting the strong industrial base and the increasing demand for energy-efficient heating solutions in sectors like oil and gas, petrochemicals, and others. The growth in North America is also attributed to the presence of major players in the Direct Fired Heater industry, such as Babcock Power and Heurtey Petrochem Solutions, which contribute significantly to the market’s value.
Europe is anticipated to hold a substantial share of the market in 2024, with a projected market size of $71.87 million. The region’s growth is driven by the need for efficient heating solutions in the petrochemical and refining industries, as well as the push towards sustainable energy practices. Despite facing challenges such as the aftermath of the COVID-19 pandemic and the Russia-Ukraine conflict, Europe’s market is expected to recover and grow, supported by investments in new technologies and the drive towards carbon neutrality.
China is projected to have a notable market size of $52.28 million in 2024. The growth in China’s Direct Fired Heater market is influenced by the country’s rapid industrialization and the increasing demand for heating solutions in various industries, including petrochemicals and oil refining. China’s commitment to improving energy efficiency and reducing emissions is also driving the demand for advanced Direct Fired Heaters. The market in China is expected to grow as the country continues to invest in infrastructure and industrial development.
Figure Global Direct Fired Heater Market Size (M USD) by Region in 2024
7 Global Direct Fired Heater Market Analysis by Major Players
Babcock Power
Company Profile: Babcock Power is a leading provider of innovative energy-related products, advanced technology, and services to various industries including power generation, combined cycle, industrial, environmental, refinery, petrochemical, solar, biomass, and waste-to-energy sectors. Established in 2001 and headquartered in the USA, Babcock Power has a significant presence mainly in North America and Asia.
Business Overview: Babcock Power Inc. is composed of strategically assembled business units that collectively serve the energy needs of the steam generation and processing industries. Each unit brings specialized technology, extensive experience, and integrated knowledge to provide comprehensive solutions to customers.
Product Offered: Babcock Power offers a range of direct-fired process heaters, including Thermal Fluid Heaters, Regeneration of Gas Heaters, Natural Gas Heaters, Refinery Heaters/Furnaces, Steam Superheaters, and Process Gas Heaters. They are known for their state-of-the-art design tools and capabilities in detailed thermal-hydraulic design and analysis.
2023 Summary: In 2023, Babcock Power reported a revenue of $54.22 million with a gross margin of 33.33%, indicating strong financial performance and market presence.
Heurtey Petrochem Solutions
Company Profile: Heurtey Petrochem Solutions, established in 1953 and headquartered in France, is a world leader in process furnaces for refining, petrochemicals, syngas, and hydrogen markets. They provide comprehensive offerings including design and manufacturing of Process Furnaces and Waste heat recovery units, along with process feasibility studies and other services.
Business Overview: Heurtey Petrochem Solutions was acquired by Axens in 2018 and has been operating under the Heurtey Petrochem Solutions brand since 2019. They are recognized for their expertise in designing and manufacturing process furnaces tailored to client specifications with over 60 years of global experience.
Product Offered: The company specializes in refining furnaces for technologies such as Crude Distillation, Vacuum Distillation, Catalytic Reforming, Isomerization, Catalytic Cracking, Hydrodesulfurization, Hydrotreating, Hydrocracking, Delayed Coking, Visbreaking, Bitumen, Hot Oil Heaters, Steam Superheaters, Gas Regeneration Heaters, Reboilers, Charge Heaters, Start-up Heaters, CO Boilers, and more.
2023 Summary: Heurtey Petrochem Solutions reported a revenue of $52.08 million with a gross margin of 33.55% in 2023, showcasing their solid position in the industry.
Boustead International Heaters
Company Profile: Boustead International Heaters, founded in 1997 and headquartered in the UK, operates mainly in the UK, USA, Malaysia, and Singapore. They are known for their skills and experience in thermal process design, project management, supply chain management, and logistics.
Business Overview: BIH has supplied over 1,000 bespoke units of specialist critical equipment to major industry participants globally. They design equipment to international standards such as API 560 or ISO13705 and are certified to various ISO standards as well as PED and EN1090.
Product Offered: BIH specializes in designing, engineering, supplying, and manufacturing direct-fired heater systems for the downstream oil, gas, and petrochemical industries. They provide high-integrity solutions for applications including Reboiling Process, Titanium Dioxide, Solvent Deasphalting, Steam Methane Reforming, Dehydrogenation, Propane Propylene, LAB Gas to Liquids, Naphtha Reforming, Hydrodesulfurization, Isomerization, Thermal Cracking, LNG, and more.
2023 Summary: In 2023, Boustead International Heaters reported a revenue of $26.47 million with a gross margin of 31.55%, reflecting their significant contribution to the direct-fired heater market.