Asia Pacific Heat Tracing Market Size, Share & COVID-19 Impact, By Type (Electric and Steam), By Application (Power Temperature Maintenance, Hot Water Temperature Maintenance, Floor Heating, and Freezing Protection), By End-User (Oil & Gas, Chemical, Residential, Commercial, Food & Beverage, Pharmaceuticals, Water & Wastewater Management, Electric Utility, and Others), and Regional Forecast, 2021-2028

The Asia Pacific heat tracing market size was USD 293.30 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with heat tracing witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a substantial decline of -4.2% in 2020. The market is projected to grow from USD 308.69 million in 2021 to USD 446.32 million in 2028 at a CAGR of 5.4% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Various residential, commercial, and industrial verticals undergo heat transfer processes to achieve optimum efficiency in output operations. Besides, pertaining losses in the piping systems and vessels requiring a certain temperature may lead to excessive costs along with reduced productivity. Consequently, a heat capturing or tracing system is a collection of electrical or steam-powered thermal insulation units deployed across different applications such as power, energy, food beverages, and many others to minimize temperature deficiencies. It involves a special set of heated cables covered to the sides of the vessel or pipe to provide compulsory warmth depending upon the electricity wattage and processing fluid needs.

Constrained Investments in End-User Verticals amid COVID-19 Pandemic to Impact Market Pace

The continuous spread of COVID-19 or coronavirus infection between countries and regions at a substantial pace has impeded the financial expansion of economies. The virus originated from Wuhan, China, and reached different territories in months instigating the administrations to introduce stern measures & guidelines. Consequently, different governments had introduced policies such as industrial lockdowns, limited global trade, social distancing among individuals, remote working mandates, and many others negatively impacting the market.

However, different national governments have introduced economic boost packages to cope up with the disruptions in small and medium businesses. The financial help programs are also projected to counterbalance the investment potential across production facilities along with the end-user verticals favoring the industry outlook. For instance, as per the Department of the Treasury under the Government of Australia, the national administration announced to provide an extra AUD 41 billion during the financial year 2021-22 to support the private sector businesses affected by the pandemic. The department further concluded that the total funding under COVID-19 economic response now totals about AUD 291 billion or USD 214 billion since the starting of the pandemic.

LATEST TRENDS

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Presence of Large Heat Trailing Product Manufacturing Units to Shape Regional Industry Dynamics

Various small and large players are operating in the region to support thermally managed operations across different applications to provide freeze protection & process temperature maintenance. The availability of large-scale production plants with a significant output of numerous components is likely to favor the Asia Pacific heat tracing market size. For instance, the industry major Chromalox owns and operates a testing & manufacturing facility in Wujiang, China with a total area of 25,000 ft². The unit is capable of delivering special type self-regulating cables for constant temperature, heat trace cables, heat trace panels, skin effect systems, panels, and power controls, heater system integration, and many other key components.

Introduction of Advanced Products to Play a Vital Role in Augmenting Industry Growth

Different industry participants are continuously striving on performing organic and inorganic expansions to boost their presence. Besides, the companies are also emphasizing developing new products to expand their potential across different applications. For instance, in March 2021, Thermon launched a new range of high voltage self-regulating cables namely HTSX™ circuits to enhance its presence across the global electric heat tracing market. The 400 & 480 Vac alternatives are designed to provide more than 70% rise than the current product’s voltage rating, optimized installation & maintenance costs with 110% surge in-circuit lengths, enhanced safety, efficient deployment, and other operational benefits to new applications.

DRIVING FACTORS

Expansion of New Chemical Production Plants to Augment Demand for Heat Capturing Products

Various nations across the region have observed substantial investments to boost the chemical production capabilities favoring the demand across this market. The industry has also observed different extension plans & contracts to multiply their prevailing output volume. For example, in April 2021, a Sweden-based Nouryon along with the Indian chemicals company Atul Limited announced to start the production of monochloroacetic acid (MCA) at its unit located in Gujarat, India. The new expansion plans to have an initial capacity of 32,000 tons per annum (TPA) along with the aims to boost the output to 60,000 TPA over the near term.

Increasing Energy Demand coupled with Growing Manufacturing Capabilities to Boost Market Size

Growing energy demand to suffice the rapid population outburst has resulted in the exploration of various conventional and unconventional resources fostering the Asia Pacific heat tracing market. For instance, as per the BP Statistical Review of the World Energy published in June 2021, the total oil production across the Asia Pacific equaled about 94.96 million barrels per day (Mbpd) in 2019 growing from over 94.85 Mbpd in 2018 witnessing about 110 Mbpd annual increments. The report also stated that the total oil output across China and Australia observed a substantial increase even during the COVID-19 pandemic.

RESTRAINING FACTORS

Installation Constraints for Complex Tracing Components May Obstruct Market Pace

The overlapping of complex heat-retaining cables coupled with limitations in the installation of systems across large systems such as huge tankers and vessels may hinder the regional market outlook. Besides, disruptions in the investments across key end-user industry verticals such as oil & gas, chemicals, and many more may act as a barrier for the Asia Pacific heat tracing market growth.

SEGMENTATION

By Type Analysis

Electrically Operated Heat Trace Systems to Observe Significant Growth

Based on type, this market can be broadly bifurcated into electric and steam.

Less initial expenditure, a broad range of operating temperature ranges, remote monitoring alternatives, and lower maintenance costs, are some of the key factors complementing the adoption of electrical heat tracing systems size. Additionally, steam tracing type is also set to observe positive growth owing to their low chances of system failure, fast heating up durations, and easy usage & installation in applications already utilizing steam-generating processes.

By Application Analysis

Hot Water Temperature Maintenance Application is Backed by Expanding Residential & Commercial Infrastructure

Based on application, the market can be primarily divided into power temperature maintenance, hot water temperature maintenance, floor heating, and freezing protection.

The rapid expansion in the rate of urbanization across different regional nations is projected to positively contribute to the establishment of new residential & commercial facilities in turn augmenting the hot water temperature maintenance segment size. Furthermore, power temperature maintenance is favored by the continuous need for maintaining temperature across different types of power plants to meet the desired efficiency and output.

The long-standing presence of the freezing protection technology along with the rising demand from numerous industrial verticals with energy-efficiency initiatives to boost the segment outlook. Besides, the floor heating application division is set to observe significant growth owing to the development of new technologies to upkeep heat distribution throughout establishments with energy-efficient equipment.

By End-User Analysis

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Oil & Gas Industry to Hold Leading Position over Forecast Period

Based on end-user, this market can be primarily categorized into oil & gas, chemical, residential, commercial, food & beverage, pharmaceuticals, water & wastewater management, electric utility, and others.

The increasing integration of natural gas and LNG generating & processing unit facilities along with favorable expansion plans by the regional hydrocarbon companies are among the key factors propelling the oil & gas segment landscape. The commercial segment growth is supported by the growing demand to power numerous heavy appliances across new structures coupled with the setup of advanced heat & power systems.

Paradigm modifications in the livelihood conditions, the rapid urbanization rate, the growing rate of social diversification, and the rising consumption of fast & packaged foods are some of the key factors augmenting the food & beverage end-user demand. Additionally, the chemicals segment is also projected to observe substantial growth owing to the rising construction of large-scale processing industries to produce intermediate & final products for utilization by end-users as well as other industries.

REGIONAL INSIGHTS

The market has been analyzed geographically across six key countries including China, India, Japan, Australia, Southeast Asia, and the Rest of Asia Pacific. China's heat tracing market was estimated at USD 118.02 million in 2020 and is likely to hold the dominating position throughout the forecast period. The introduction of new expansion plans across manufacturing facilities, growing hydrocarbon exploration & production activities, and rapidly increasing energy demand, are some of the key factors contributing to the nation’s growth prospects.

Furthermore, India is also projected to observe significant CAGR during the forecast period owing to the expanding chemical production & processing operations, transforming residential & commercial infrastructure, boosting food & beverage industries, and many other parameters. For instance, in October 2020, PepsiCo India declared to increase its investments across the company’s greenfield plants to around USD 113.5 million to cater to the increasing food, snacks, and beverages demand in the country.

Additionally, the growing development of chemical plants, the setup of new food & beverage and pharmaceutical facilities, and transforming wastewater treatment facilities are some of the key factors propelling the Japanese market value. For example, in March 2021, JCR Pharmaceuticals Co unveiled its plans to construct a new manufacturing plant to produce ingredients utilized across the vaccines for the COVID-19 virus. The step is projected to be in line with the company, Daiichi Sankyo Co, and its other partner’s plan to produce and supply inoculations across Japan.

KEY INDUSTRY PLAYERS

Thermon is Striving to Launch New Products to Enhance its Position across Industry

The market has observed a considerable number of global and regional participants offering a diverse range of products and solutions shaping the regional competitive landscape. The market players are continuously adopting different strategies such as collaboration activities and the introduction of new products to fortify their presence.

Thermon, a U.S.-based industrial heating solutions provider, is emphasizing expanding its portfolio to include safe, reliable, and customized offerings for numerous verticals. For example, in March 2020, the company introduced its advanced ultra-high temperature self-regulating electric heat trace solution called USX. The technology enables elevated constant working and exposure temperatures of up to 240 °C with optimized safety & easy installation across high-temperature applications, among other features.

LIST OF KEY COMPANIES PROFILED:

• Thermon, Inc. (U.S.)


• Kerone (India)


• Lloyd Insulations (India) Limited (India)


• Korea EHT (South Korea)


• nVent (U.S.)


• Chromalox (U.S.)


• Parker Hannifin (U.S.)


• eltherm group (Germany)


• Spirax Sarco (U.K.)


• BARTEC Safe.t Technology (Germany)


• Emerson (U.S.)


• Straight Line Industrial Services, Inc. (U.S.)


• Heaton Engineering Pvt. Ltd. (India)


• ATP Thermtech Pvt. Ltd. (India)


• Heat Trace Engineering (Australia)


• Wuhu Jiahong Co., Ltd. (China)


• Bellis Australia Pty. Ltd. (Australia)


• Danfoss (Denmark)

KEY INDUSTRY DEVELOPMENTS:

• August 2021 – nVent launched a new range of advanced heat entrapment controllers under the name of RAYCHEM 460 and RAYCHEM 465 to facilitate optimized fire protection and other critical heat-retaining uses.


• February 2020 – Thermon presented the new software solution called TraceNet Sync to minimize the deployment and decommissioning time & labor along with providing optimized digital synchronization and safeguard panel configuration.

REPORT COVERAGE

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The Asia pacific heat tracing market research report offers an in-depth analysis of the industry. It further provides details on the adoption of heat retaining systems across several countries. Information on trends, drivers, opportunities, threats, and restraints of the market can further help stakeholders to gain valuable insights into the market. The report offers a detailed competitive landscape by presenting information on key players, along with their company profiles, strategies, in the market.

Report Scope & Segmentation