February 29, 2024
Steam Coil Market

Steam Coil Market Driven By Increasing Demand In Food And Beverage Processing Industry

Steam coils are tubular heat exchangers that transfer heat from steam to liquids, gases, or air. They comprise of coils made of copper, stainless steel, or other corrosion-resistant materials through which steam is passed to heat the surrounding medium. Steam coils provide precise temperature control and are widely used for heating, cooking, pasteurization, sterilization, and other process heating applications in various industries such as food and beverage, pharmaceutical, chemical, and pulp and paper. In the food and beverage industry, steam coils help manufacture products ranging from baked goods, canned items, snacks, broths, and many other items by providing indirect heat transfer without contaminating the products. They facilitate processes like canning, aseptic filling, drying, evaporation, and cooking. Steam coils offer benefits such as energy efficiency, precise temperature control, fast response, safety against burns and fires, low maintenance, and longevity.

The growing demand for processed and ready-to-eat food items is spurring the food and beverage industry’s expansion worldwide. This is one of the primary drivers boosting the global steam coil market. Manufacturers are increasingly adopting steam coils for applications involving heat transfer in industries like food and beverage processing, pharmaceutical manufacturing, chemical production, and paper production.

The global Steam Coil Market is estimated to be valued at US$ 9.49 Mn in 2023 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 key trends:

One of the key trends in the steam coil market is the increasing demand for stainless steel steam coils. Stainless steel offers advantages like corrosion resistance, durability, and heat conductivity over other materials. It is well-suited for applications involving harsh chemicals and processing conditions in industries like pharmaceutical, chemical, and food and beverage. Leading manufacturers are focusing on developing advanced stainless steel steam coils with innovative designs to deliver maximum performance tailored for specialized processes. However, the higher costs associated with stainless steel coils compared to other materials may limit their adoption in some end-use sectors.

Porter’s Analysis

Threat of new entrants: The steam coil market has moderate threat of new entrants as significant capital investments are required to enter this market owing to high competition from existing players.

Bargaining power of buyers: The bargaining power of buyers is moderate given the presence of several manufacturers and availability of substitutes in the market. However, switching costs for buyers are relatively high.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are a few large suppliers of raw materials globally. However, raw materials needed to manufacture steam coils are commoditized.

Threat of new substitutes: The threat of new substitutes is moderate. New technologies like electric heating systems provide heating solutions but lack efficiency provided by steam coils.

Competitive rivalry: The market is highly competitive with presence of large established players operating globally. Competition is based on product quality, innovation, and pricing.

Key Takeaways

The Global Steam Coil Market Demand is expected to witness high growth over the forecast period.

Regional analysis: North America is projected to hold the major share of the global steam coil market during the forecast period. This is attributed to established manufacturing sector and extreme cold weather conditions necessitating use of steam coils for heating across several industries in the region. Asia Pacific is anticipated to grow at the fastest rate during the forecast period.

Key players: Key players operating in the steam coil market are Audi AG, BMW AG, Daimler AG. These players are focusing on new product launches and expansions to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it