Industrial Boilers Market

Updated on : October 10, 2024

Industrial Boilers Market

The global industrial boilers market was valued at USD 15.3 billion in 2022 and is projected to reach USD 19.8 billion by 2030, growing at 3.3% cagr from 2022 to 2030. Stringent government regulations to minimize carbon emissions and maximize renewable energy usage, increase power and food industry demand, and use clean technology in the chemical end-use industry drive the market. High demand for steam in various chemical, power generation, and food industries in the Asia Pacific is the key factor driving the market growth.

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Recession impact

The global economy is struggling, with growth slowly fading away and inflation increasing. In 2022-2023, the three largest economies in the world (the United States, the European Union, and China) were predicted to experience a downturn due to slow growth and high inflation. The increased supply chain constraints and oil prices due to the Russia-Ukraine war have made things even worse. This has had a negative impact on the oil and gas fired boiler market, as well as the EU's Green Deal, which aims to reduce carbon emissions by 2050 across major economies in Europe.

Industrial Boilers Market Dynamics

Driver: Rapid industrialization & stringent government policies regarding carbon neutrality to drive market growth

The rapid industrialization and stringent government regulations concerning carbon emissions from coal-fired boilers fuel the growth of the industrial biomass boilers market. The increasing demand for industrial boilers across various industry verticals and government initiatives to develop large-capacity industrial boilers are spurring market growth. Moreover, government agencies provide incentives and subsidies for renewable energy and biomass boilers in various countries. The US government has planned to produce 20% of its electricity from renewable sources by 2030, driving the market for biomass boilers in the country. The European Union aims to achieve 32% of its energy from renewable sources by 2030, increasing the demand for efficient industrial boilers.

Restraint: Significant capital investment and high installation and maintenance cost

Industrial boilers require a high capital for purchase, installation, and maintenance. The maintenance cost of these boilers is high as they require routine repair and inspection for effective operation. The installation of industrial boilers is also high as it includes expenditure for site preparation, engineering, and labor. This cost may vary based on the location and complexity of the installation, making it one of the most crucial expenditures of the manufacturing plant. The installation cost is 15–20% of the total cost of industrial boilers. Thus, these factors restrain the growth of the Industrial Boilers Industry.

Opportunity: Adoption of biomass boilers to achieve low-carbon-emissions targets

The increasing demand for renewables drives the demand for biomass boilers. The market is primarily driven by the rise in sustainable energy, increased environmental concerns, and the benefits of biofuels over conventional alternatives. Manufacturers prefer renewable energy sources such as biomass boilers as they are eco-friendly and effectively reduce emissions. Biomass boilers are carbon neutral and provide economic benefits. They use wood as the primary fuel source, a sustainable and ecofriendly option. According to EHI, 40% of the wood produced annually in Europe is used for heating purposes in European residential and nonresidential buildings.

Several government policies in developed and developing countries that aim to increase reliance on renewables to reduce carbon emissions also contribute to market growth. Regulatory frameworks and government grants incentivize industries to use renewables, which drives biomass heating companies to switch to biomass more often. For instance, Saica, a Spain-based recycling company, recently installed a biomass boiler at its paper mill in Venizelos, France. This boiler uses all the excluded materials from paper products and recycled wood to generate steam, decreasing the on-site carbon dioxide emissions by 71% annually. Natural gas consumption is estimated to reduce by 89%.

Challenge: Stringent regulations and emission control

Developed countries’ governments have formulated strict emission standards for limiting the pollutants released into the environment, affecting industrial boiler efficiency, operating cost, and market growth. According to Environmental Protection Agency (EPA), the US government has set up standards for limiting the emissions of particulate matter, sulfur dioxide, and nitrogen oxides from industrial boilers. Additionally, International Energy Agency (IEA), through its Clean Energy Technology Program, encourages the usage of technologies such as flue gas desulfurization (FGD), selective catalytic reduction (SCR), and fabric filters to minimize the emissions from industrial boilers. Furthermore, the need to improve efficiency and steam quality to meet market demand is one of the key challenges that industrial boiler manufacturers face.

Industrial Boilers Market Ecosystem

Water-tube boilers to hold significant potential in the industrial boilers market.

The Water-tube Boiler segment is the fastest-growing application type of industrial boiler. In terms of value, it is projected to register a CAGR of 3.7% between 2022 and 2030.The water-tube boilers type is the fastest growing industrial boilers market. These can work at higher temperatures and pressures without unduly increasing the wall thickness. However, fluidized-bed combustion boilers (FCB) has emerged as a viable alternative and has significant advantages over conventional firing systems and offers multiple benefits, including compact boiler design, fuel flexibility, higher combustion efficiency and reduced emission of toxic pollutants such as SOx and NOx.

Hot water boilers to be fastest growing segment in function type in industrial boilers market

The hot water boilers segment is the fastest-growing function type of industrial boiler. In terms of value, it is projected to register a CAGR of 3.8% between 2022 and 2030. Hot water boilers are used in residential, commercial, and institutional buildings. They offer high efficiency, low maintenance, and good durability.

Oil fired boilers segment in fuel type to register moderate growth during the forecast period.

Oil-fired industrial boilers mostly use diesel or furnace oil as the burning fuel source to produce heat energy. It is a popular choice in countries with limited access to natural gas. It works similarly to a gas boiler and can achieve the same efficiency. The major difference between oil and gas-fired boilers is the transportation of gas to the burner, requiring a gas train comprising gas regulators that regulate pressure and strainers to remove dirt from gas. No such valves are required in oil-fired boilers.

301-600 segment in boiler horsepower to register highest CAGR during the forecast period.

Mid- to large-sized industrial boilers range from 301 BHP to 600 BHP. They can operate efficiently at high pressure and temperature. These boilers are installed for their high quality and quantity of steam used in manufacturing and operational activities. They also generate power from the thermal energy produced, which is used to run the plants. Rising demand for high-pressure and high-temperature steam output for production and operational activities is projected to drive the growth of the 301–600 BHP segment during the forecast period.

Power Generation end-use industry to register highest CAGR during the forecast period.

The power generation segment is the fastest-growing end-user segment of industrial boilers. It is projected to register a CAGR of 4.2% between 2022 and 2030, in terms of value. The major factor driving this segment’s demand for industrial boilers is the requirement for high-pressure and high-temperature steam in electricity production. The boiler design is crucial in the power industry as it directly relates to the power plants’ efficiency. Better and advanced design means a lower fuel requirement, lower costs, and lower emission of pollutants.

Asia Pacific to register highest CAGR during the forecast period.

Asia Pacific is projected to be the fastest-growing industrial boilers market in terms of value, growing at a CAGR of 4.1% during the forecast period. The booming petrochemical and chemical industries in developing economies, particularly India and China, are expected to increase the demand for industrial boilers in the coming years. Key manufacturers in the Asia Pacific, in the region are trying to reduce environmental impact by switching to gas boilers. These machines are five times more efficient than traditional coal plants, resulting in a 65% reduction in CO2 emissions. Further cuts can be made by using clean fuels such as hydrogen, already used in some plants. These companies are committed to achieving 100% hydrogen firing by 2025. Switching to gas-based boilers may revolutionize the power supply in the Asia Pacific. Many countries, such as Vietnam and Indonesia, still invest in new coal plants to keep up with growing demand. However, natural gas, which produces emissions, will be a valuable transitional fuel for the coming years, as evidenced by numerous regional underdevelopment gas infrastructure projects.

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Industrial Boilers Market Players

Major players operating in the Industrial Boilers market includes Babcock & Wilcox Enterprises INC (US), Siemens AG (Germany), Dongfang Electric Corporation Limited (DEC LTD) (China), John Wood Group PLC (UK), Mitsubishi Power (Japan), Sofinter Group (Italy), Thermax Limited (India), Bharat Heavy Electricals Limited (BHEL) (India), IHI Corporation (Japan), Harbin Electric Company Limited (China), Alfa Laval AB (Sweden), Andritz AG (Austria), Cleaver Brooks Inc. (US), Robert Bosch GMBH (Germany) and Byworth Boilers Limited (UK)

Read More: Industrial Boilers Companies

Industrial Boilers Market Report Scope

This research report categorizes the industrial boilers market is segmented by fuel type, boiler type, function type, boiler horsepower, end use, and By Region.

Industrial Boilers Market based on fuel type:

• Natural gas
• Oil
• Coal
• Others (biomass, nuclear)

Industrial Boilers Market based on function type:

• Steam
• Hot water

Industrial Boilers Market based on boiler type:

• Fire-tube
• Water-tube
• Others

Industrial Boilers Market based on boiler horsepower:

• 10-150 BHP
• 151-300 BHP
• 301-600 BHP
• Above 600 BHP

Industrial Boilers Market based on boiler horsepower:

• 10-150 BHP
• 151-300 BHP
• 301-600 BHP
• Above 600 BHP

Industrial Boilers Market based on end use industry:

• Chemicals & Petrochemicals
• Metal & mining
• Food
• Paper & pulp
• Power generation
• Others

Industrial Boilers Market based on the region:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In January 2023, Babcock & Wilcox Enterprises, Inc. partnered with Fidelis, an energy transition company driving decarbonization through infrastructure development and investments in renewable fuels and low or negative-carbon-intensity products, intending to produce clean, zero-carbon-intensity hydrogen.
• In December 2022, joint venture took place between Mitsubishi Heavy Industries, the parent company of Mitsubishi Power, and Mitsubishi Electric to strengthen their footprints in the power generation segment.
• In December 2022, the agreement between Bharat Heavy Electricals Limited (BHEL) and Sumitomo SHI FW, will strengthen BHEL’S capabilities in catering to power plant requirements and meeting the emission norms. It enhances the sales and manufacturing of subcritical and supercritical boilers in India.
• In July 2022, Bosch introduced an electric steam boiler for sustainable steam and heat supply. It is 100% electric and fully carbon neutral. The output ranges from 350 to 7500 kilograms of steam per hour

Frequently Asked Questions (FAQ):

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