Global Direct Fired Heater Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Direct Fired Heater Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Direct Fired Heaters, 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.

Market Overview:

The latest research study on the global Direct Fired Heater market finds that the global Direct Fired Heater market reached a value of USD 321.58 million in 2022. It’s expected that the market will achieve USD 422.27 million by 2028, exhibiting a CAGR of 4.64% during the forecast period.

Impact of Russia and Ukraine War

The Russo-Ukrainian war has disrupted global agricultural and energy supply chains, with major repercussions for the global economy. The war led to sharp rises in food, fertilizer, and energy prices, exacerbated inflationary pressures, widened the gap between rich and poor, and triggered a food crisis. The Ukrainian region also absorbs international humanitarian aid and development funding that would otherwise be used to resolve conflicts and crises in other parts of the world. The turmoil in the political environment exacerbates the instability in the economic environment. According to McKinsey's September 2022 Global Economic Conditions Survey, European respondents mainly cited rising energy and material costs due to poor operating performance. Rising wages are the biggest concern in India and North America. The war has exacerbated global economic turmoil and rising interest rates, the business environment in Russia has been challenging, with sanctions restricting payment options and rising inflation further compressing consumers' disposable income. But as Russia threatens European security, the West has strengthened its cohesion by jointly imposing sweeping economic sanctions on Russia.
For the direct-fired heater industry, the Russo-Ukraine war brought some opportunities, while increasing production costs. As the world's third-largest oil producer (and second-largest crude oil exporter) and second-largest natural gas producer (and largest exporter), Russia provides nearly one-sixth of the world's oil and gas supplies. Russia's dominance in Europe is particularly pronounced, supplying more than 20% of the continent's oil and more than 30% of its natural gas. The war has sent oil prices up sharply, raising concerns about disruptions to energy supplies. In the face of sharp rises in energy prices, major economies have raised policy rates several times to curb the surge in inflation triggered by crude oil. All while accelerating the transition to a greener, more efficient energy system. To accelerate the restoration of market balance, petrochemical exploration, and production companies are vigorously developing field automation. This may bring new demand for advanced equipment such as direct fired heaters. Overall, the Russo-Ukraine war has disrupted supply chains and realigned global trade arrangements. Direct fired heater companies need to establish good relationships with suppliers and partners to ensure supply chain security and cost control.

Own advantages

Direct fired heaters offer many advantages. First, because the air is in direct contact with an open flame, most of the fuel is converted to heat. This makes these units an almost 100% efficient option, resulting in lower fuel consumption and lower operating costs. Second, direct-fired heaters can produce more heat in a smaller enclosure than indirect burners, which translates to a smaller overall equipment footprint. Because of their relatively simple construction and low component count, direct-fired heaters are inexpensive to purchase and install, and easy to service. This means more precise temperature control and longer life expectancy than indirectly fired heaters. Additionally, direct fired heaters are easier to transport than indirect heaters and do not require plumbing. Some units do not require electricity to operate, making them ideal for remote workplaces. Therefore, as the advantages of direct-fired heaters are known to more people, the market demand for them continues to increase.

Development of oil, gas and petrochemicals industry

Oil, Gas & Petrochemicals is the largest application segment in the global direct fired heater market. Petrochemicals are an essential component of many industrial processes and form the backbone of the industrial economy. As a major industrial sector, the petrochemical industry has the characteristics of high energy consumption, and the demand for reducing energy costs continues to increase. The growth of the direct-fired heater market will be driven by the increase in oil and gas refinery capacity globally, new regulations and government initiatives to reduce emissions, and the growth of the global petrochemical and specialty chemicals industry. In terms of geographical distribution, the success of shale gas exploration and production has driven demand for petrochemical products and their derivatives in various applications such as tires, pharmaceuticals, high-tech materials, and paints across the United States. Rising ethylene production in major European countries such as Germany, France, and the United Kingdom has led to a surge in demand for petrochemicals from manufacturers to produce various industrial chemicals. The market in Asia Pacific is expected to dominate the market due to increasing demand from the consumer goods industry due to increasing industrialization and urbanization. Rapid economic expansion in emerging economies such as China, India, and other ASEAN countries has led to a surge in demand for petrochemicals such as plastics, fertilizers, packaging, clothing, electronics, medical equipment, detergents, and tires. Growing demand from the consumer goods industry is expected to drive the construction of new petrochemical complexes in the region. Oil producers in the Middle East, such as Saudi Arabia and others, are investing heavily in expanding their domestic petrochemical assets to take advantage of the region's cheap and easily available oil and gas. Furthermore, growing concerns about climate change, carbon emissions, energy usage, and energy efficiency are driving businesses to invest in the market.

Direct fired heaters are critical in the oil and gas industry for heating feedstocks, thermal fluids, process fluids, feed heating, and steam heating. These units can be designed as vertical cylindrical or box furnaces depending on the application. These devices offer offshore and onshore installation options. The current increasing need to replace outdated infrastructure, expand production, and reduce operating costs is expected to drive the adoption of oil heaters in the oil and gas industry. Stringent workplace safety regulations will accelerate the pace of installations in the oil and gas industry. The expansion of the petrochemical industry has led to the growth of the direct fired heater industry, as the use of direct fired heaters in the petrochemical and refining industry can significantly affect the safety, reliability, and economics of processing units.

Disadvantages of Direct Fired Heaters

Direct fired heaters are not perfect and have some drawbacks. While direct-fired heaters operate within safe limits set by code, proper ventilation is required to avoid the build-up of gases such as carbon monoxide as combustion products enter the airstream. When used in enclosed spaces, the exhaust fumes may endanger the health of humans or animals. Since fresh air is required to maintain proper combustion, at least 20 percent outside air must be introduced if building air is to be recirculated. Many materials can also absorb odors or moisture from direct-fired heaters, and the vapors can condense indoors and cause mold or fungal disease, as well as premature failure of metal objects (structures, ducts, wiring, etc.). Also, due to the presence of direct flames and the combustion by-products produced by direct-fired heaters, some buildings may not permit their use. Therefore, these disadvantages of direct fired heaters may result in a loss of market share.

Region Overview:

In 2022, the share of the Direct Fired Heater market in North America stood at 35.26%.

Company Overview:

The major players operating in the Direct Fired Heater market include Babcock Power, Heurtey Petrochem Solutions, Boustead International Heaters, Zeeco, UnitBirwelco, etc. Among which, Babcock Power ranked top in terms of sales and revenue in 2023.

Babcock Power

Babcock Power is a global leader providing innovative energy-related products, advanced technology, and services to the power generation, combined cycle, industrial, environmental, refinery, petrochemical, solar, biomass, and waste-to-energy industries.

Heurtey Petrochem Solutions

Heurtey Petrochem Solutions is a world leader in process furnaces for refining, petrochemicals, syngas, and hydrogen markets.

Segmentation Overview:

By type, Radiant-Convection Heater segment accounted for the largest share of market in 2022.

Application Overview:

By application, the Petrochemical segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Direct Fired Heater market covered in Chapter 3:

The G. C. Broach Company
Boustead International Heaters
Sigma Thermal
Babcock Wanson
Heurtey Petrochem Solutions
Tulsa Heaters
UnitBirwelco
Lummus Technology
Zeeco
NESS Wärmetechnik GmbH
SMDERI
Primoris Services Corporation
Babcock Power
Exotherm Corporation

In Chapter 4 and Chapter 14.2, on the basis of types, the Direct Fired Heater market from 2018 to 2029 is primarily split into:

Radiant Heater
Convection Heater
Radiant-Convection Heater

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Direct Fired Heater market from 2018 to 2029 covers:

Oil & Gas
Petrochemical
Other Industries

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)