Impact of Covid-19 on the Global Waste Heat Recovery System Market
A waste heat recovery system is used to enhance the efficiency of power generation, reduce fuel consumption, and emission in the manufacturing units. The priority measures introduced by the government to shut down the manufacturing facilities have significantly affected the waste heat recovery system market. The restriction of lockdown owing to the pandemic is expected to be the major factor responsible for the declining growth of the global market. The outbreak of novel coronavirus has negatively impacted the market. The industry is set to witness significant losses in 2020. The pandemic has resulted in both the supplier's and manufacturers' activities to mobilize quickly to make short term business decisions. Recognizing the disruptions in supply chains, many cities have initiated supportive actions to help manufacturers resume operations.
The critical factor responsible for the growth of the market is the consumption of electricity. The shutdown of the power generation plants, metal manufacturing units, glass manufacturing, petroleum refining, among others owing to the COVID-19, has declined the consumption of the electricity, which is directly impacting the growth of the market. Besides, the heat exchanger is a vital component in the waste heat recovery system. Post lockdown, many major companies are expected to focus on the development of heat exchangers for transmitting the heat from the waste stream of the power cycle. The increasing adoption of the heat exchanger in the manufacturing units is expected to drive the market growth.
FIGURE: WORLD industrial sector delivered energy consumption
The delivered energy includes liquids, coal, natural gas, and renewables, which are used in combined heat and power facilities in the industrial sector. According to EIA, most of the manufacturing companies are drive-by trade. Many countries are benefited from competitive labor costs, access to the supply chain for the goods, which results in enhancing the manufacturing process. The growth in global electricity consumption is from Asia (China, with nearly 60% and India almost 80%). The demand for electricity in China is owing to industrial demand and steady economic growth. However, the spread of pandemic from China across the world is expected to broadly impact the economy of the country and slow down industrial growth, especially in the first quarter of 2020.
Source: Primary Experts, Secondary Sources and MRFR Analysis
Source: U.S. Energy Information Administration