Steam Boiler System Market

The global steam boiler system market is projected to reach USD 21.63 billion by 2023 at a CAGR of 4.13% from an estimated USD 17.66 billion in 2018.The growth of the steam boiler system market is mainly driven by the increased usage of steam boilers across various end-user industries such as power generation, oil & gas, chemical, process industries, and metal and mining. The chemical industry is expected to grow at the highest CAGR in Asia Pacific because of large investments during the forecast period.

The years considered for the study are as follows:

• Base Year: 2017
• Estimated Year: 2018
• Projected Year: 2023
• Forecast Period: 2018–2023

The base year considered for company profiles is 2017. Whenever information was unavailable for the base year, the prior year has been considered.

Objectives of the Study

• To define and segment the steam boiler system market with respect to component, type, fuel, end-user, and region
• To provide detailed information about the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
• To strategically analyze the market with respect to individual growth trends, future expansions, and contributions to the market
• To analyze market opportunities for stakeholders and details of a competitive landscape for market leaders
• To forecast the growth of the market with respect to the major regions (Asia Pacific, Europe, North America, Middle East, South America, and Africa)
• To strategically profile key players and comprehensively analyze their market rankings and core competencies
• To analyze competitive strategies such as new product development, mergers & acquisitions, expansions & investments, partnership & collaboration, and contracts & agreements in the market

Research Methodology

This research study involved the use of extensive secondary sources, directories, journals on power generation technologies, and other related rental markets; newsletters and databases such as Hoover’s, Bloomberg, Businessweek, and Factiva to identify and collect information useful for a technical, market-oriented, and commercial study of the global steam boiler system market. The primary sources include several industry experts from the core and related industries, vendors, preferred suppliers, technology developers, alliances, and organizations related to all the segments of this industry’s value chain.  The research methodology has been explained below.

• Study of annual revenues and market developments of major players providing steam boiler system
• Analysis of the major end-users of the steam boiler system
• Assessment of future trends and growth of the market on the basis of investments in key end-user segments such as power generation utilities, oil & gas, chemical, primary metals, and process industry
• Study of contracts & developments related to the steam boiler system market by key players across different regions
• Finalization of the overall market sizes by triangulating the supply-side data, which includes product developments, supply chains, and annual revenues of companies manufacturing steam boiler system across the globe  

After arriving at the overall market size, the steam boiler market was split into several segments and subsegments. The figure given below illustrates the breakdown of primary interviews conducted during the research study on the basis of company type, designation, and region.

To know about the assumptions considered for the study, download the pdf brochure

Major players operating in the steam boiler system market include Bosch (Germany), GE (US), Alfa Laval (Sweden), Thermax (India), Cochran (UK), Viessmann (Germany), and Doosan (South Korea).

Target Audience:

• Steam boiler manufacturers
• Central and state utilities and the private players involved in power generation
• Distributors and suppliers
• Government and research organizations
• Industry, energy, and environmental associations
• Investment banks
• Manufacturing technology providers
• Manufacturing and processing industries

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Scope of the Report

:

By Component

• Boiler
• Economizer
• Superheater
• Air Preheater
• Feed Pump

By Type

• Water tube Boiler
• Fire tube Boiler

By Fuel

• Coal-fired Steam Boiler
• Gas-fired Steam Boiler
• Biomass-fired Steam Boiler
• Oil-fired Steam Boiler
• Electric Steam Boiler

By End-User

• Power Generation
• Oil & Gas
• Chemical
• Process Industry
• Primary Metals

By Region

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

Available Customizations:

With the given market data, MarketsandMarkets offers customizations as per the client’s specific needs. The following customization options are available for this report:

Company Information

Detailed analyses and profiling of additional market players (up to five)

Drivers

Rapid increase in the demand for electricity

Industrialization and the increasing use of electrical appliances and machinery along with the growing economic activities in the developing countries has driven strong demand for electricity. This trend is more pronounced in the Asia Pacific, which is expected to reach 5.1 billion, in population by 2050. The urban population will account for more than 60% of the total population. Also, supportive industrial growth policies, low-cost raw materials, ease of availability, and cheap labor cost has turned China and India into attractive industrial markets and fastest growing economies in the world.

Increase in power plant capacity addition

The International Energy Agency’s World Energy Investment Outlook 2014, estimated that around USD 9.5 trillion would be spent on the construction of new power plants and in the refurbishment of existing ones across the world from 2014 to 2035. More than 30% of which is expected to be utilized for fossil-fuel based thermal power plants. An increase in generation capacity is expected to be achieved primarily through fossil-fuel based thermal power plants, which serve as a primary source for generation of electricity in these countries. The Chinese and Indian markets are projected to be among the fastest-growing economies during the forecast period and are estimated to account for nearly 70% of all the proposed thermal power capacity addition during the same period. Such investments tend to increase the electricity tariff to reach economies of scale. The surging prices of energy have resulted in increased demand for the steam boiler system.

Restraints

Focus on renewable energy sources for power generation

Global investment in the renewable energy has increased by 5% from 2014 and reached an all-time highest of USD 288 billion in 2015. China alone contributed more than 30% of this investment, followed by the US. These investments are likely to go up in the coming years directly impacting the growth of the thermal and nuclear power plants and restraining the steam boiler system growth. In August 2015, the US Environmental Protection Agency released clean power plan regulations, when related to a 2005 baseline, these focused on a reduction of 32% in the power sector carbon emissions by 2030. As far as the renewable electricity mandates are concerned, these are the laws that require utilities to produce a certain percentage of power from the renewable energy resources.

High installation cost

The cost of steam boilers varies because of the design parameters and varying levels of after-sales support. Budget steam boilers offer shorter lifespans, shorter warranties, and a lower level of customer support compared to the standard steam boilers. The use of special alloys and advanced technologies result in the development of boilers with improved performance. The installation of a steam boiler system requires high capital, which makes it one of the most critical expenditures of the manufacturing plant. The cost associated with the installation of steam boilers amounts to 15-20% of the total boiler cost. This cost is expected to remain same because of the high level technical expertise involved in the operation of steam boilers and separate construction of boiler houses in the utility area.

Competitive Landscape

Contracts & Agreements

Source: Company Websites and Press Releases

New Product Developments

Source: Company Websites and Press Releases

The global steam boiler system market is projected to reach a market size of USD 21.63 billion by 2023, at a CAGR of 4.13%, from an estimated USD 17.66 billion in 2018. This growth can be attributed to the increase in the use of steam boilers in manufacturing and process industry globally. Moreover, to support the rise in demand for power from manufacturing industries new power plants are being setup which is further increasing the demand for steam boiler system.

The report segments the steam boiler system market, by component, into boiler, economizer, superheater, air preheater, and feed pump. The boiler segment is expected to hold the largest market share by 2023. Increase in demand for power from the developing countries and large investments for capacity addition are likely to drive the demand for steam boilers.

The steam boiler system market, by type, is segmented into water-tube boiler and fire-tube boiler. The water-tube boiler segment is expected to be the largest market for the steam boiler system by 2023. Water-tube boilers provide higher efficiency and can produce high-temperature steam suitable for power generation utilities. Increase in capacity addition to meet the rise in demand for power would drive the water-tube boiler segment during the forecast period.

Coal is one of the major fuels used in the steam boiler system market. According to the IEA, coal fuels 40% of global electricity production. Moreover, it is the most widely used fossil fuel for power generation in the developing countries. Easy availability and relatively lower cost are some of the major factors driving the coal-fired steam boilers market.

Chemical is expected to hold the highest CAGR during the forecast period in the end-user segment.  The Asia Pacific is anticipated to lead the chemical, by end-user segment, for the steam boiler system market. Capacity expansion coupled with the higher consumer purchasing power is likely to drive the demand for chemicals.

In this report, the steam boiler system market has been analyzed with respect to 5 regions, namely, North America, Europe, South America, the Asia Pacific, the Middle East, and Africa. The steam boiler system market in the Asia Pacific is estimated to be the largest market from 2018 to 2023. Countries such as China, India, and Japan are heavily investing in the power capacity addition, which would positively impact the market. Also, massive investments in the manufacturing industry are significant factors that would propel the growth of the market. For instance, as per the Asian Development Bank, the region will need an investment of USD 26 trillion from 2016 to 2030 or USD 1.7 trillion per year to maintain its growth momentum and respond to climate change.

Focus on renewable energy sources for power generation and high installation costs could act as restraints for the steam boiler system market. The leading players in the steam boiler system market include Bosch (Germany), GE (US), Alfa Laval (Sweden), Thermax (India), Cochran (UK), Viessmann (Germany), and Doosan (South Korea). New product developments and contracts & agreements were the most commonly adopted strategies by the top players. This was followed by mergers & acquisitions and investments & expansions.

Opportunities

Rise in the demand for compact design of the steam boiler

Utility space is the major cause of concern for plant installations and existing plant expansions. In process industries, components such as boiler, economizer, super-heater, and air preheater should have a compact design for optimum space utilization. With capacity installations, the existing floor space becomes limited for utility machines. The need to ensure space utilization has contributed to a high demand of steam boilers that have compact designs and are fuel-efficient. Boiler manufacturers are focused on promoting steam boilers that are customized for different process requirements in various industries such as power generation, oil & gas, chemical and process industries.

Aging power generation Infrastructure

Developed countries such as the US, Canada, UK, and Germany have aging power infrastructure with low-efficiency levels and high carbon emissions. These old power plants are scheduled to retire soon. However, plant extension and replacement plans, as well as to increase the scope for new and refurbished boilers, measures for upgradation are in place. The International Energy Agency’s World Energy Investment Outlook 2014, estimated that around USD 9.5 trillion would be spent cumulatively on the construction of new power plants and in the refurbishment of the existing ones across the world from 2014 to 2035, with 30% of the amount being used for fossil-fueled power plants. Such increasing investment toward the thermal power capacity, construction, and upgradation of power plants will boost the market for the steam boiler system market.

Challenges

Strict emission standards

The governments of developed countries worldwide have formulated strict emission standards for boilers, which, in turn, is projected to affect the growth of the steam boiler system market. Steam boiler system utilizes fuel to generate steam, which results in the release of pollutants into the atmosphere. Emission standards are formulated to limit the emission of air pollutants such as sulfur dioxide, soot, nitrogen oxide, and mercury and its compounds. Manufacturers of steam boilers find it challenging to comply with these stringent emission standards, owing to the high R&D investments involved in designing eco-friendly boilers.

Boiler efficiency and steam quality

The steam quality plays a significant role in assessing the boiler performance and its efficiency. Inefficient boilers lead to higher fuel consumption and more harmful gas emission that increases the cost of power generation. Inadequate steam and water separation can cause boiler deposits, corrosion, erosion, or foreign object damage (FOD), thereby, leading to equipment failure. Boiler efficiency is measured as the ratio of steam energy generated to the amount of combustion energy required to generate the steam. Presently, the maximum efficiency of a thermal boiler is around 42 to 45% which is only applicable for ultra-supercritical technology. The need to improve efficiency and steam quality to meet the market demand is one of the key challenges faced by the steam boiler system manufacturers.

Investments & Expansions

Source: Company Websites and Press Releases

Mergers & Acquisitions

Source: Company Websites and Press Releases

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