Industrial Boilers Market by Fuel (Natural Gas, Coal, Oil), Boiler (Fire-Tube, Water Tube), Function (Hot Water, Steam), Boiler Horsepower (10-150 BHP, 151-300 BHP, 301-600 BHP), End-Use Industry, And Region - Global Forecast to 2030
Updated on : March 17, 2023
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 a cagr 3.3% 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 boiler market.
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)
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- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
|
Report Metric |
Details |
|
Years considered for the study |
2018–2030 |
|
Base year |
2021 |
|
Forecast Period |
2022–2030 |
|
Units considered |
Value (USD Million/USD Billion), Volume (‘000 Units) |
|
Segments |
By fuel type, By boiler type, By function type, By boiler horsepower, By end use, and By Region |
|
Regions |
North America, Asia Pacific, Europe, South America, and the Middle East & Africa |
|
Companies |
Babcock & Wilcox Enterprises INC (US), Siemens AG (Germany), John Wood Group PLC (UK), Dongfang Electric Corporation Limited (DEC LTD) (China), Mitsubishi Power (Japan), Thermax Limited (India), Sofinter Group (Italy), Bharat Heavy Electricals Limited (BHEL) (India), Harbin Electric Company Limited (China), IHI Corporation (Japan), Alfa Laval AB (Sweden), Andritz AG (Austria), Robert Bosch GMBH (Germany), Cleaver Brooks Inc. (US), and Byworth Boilers Limited (UK). Total 25 major players covered |
This research report categorizes the Industrial boilers market is segmented by fuel type, boiler type, function type, boiler horsepower, end use, and By Region.
Based on fuel type:
- Natural gas
- Oil
- Coal
- Others (biomass, nuclear)
Based on function type:
- Steam
- Hot water
Based on boiler type:
- Fire-tube
- Water-tube
- Others
Based on boiler horsepower:
- 10-150 BHP
- 151-300 BHP
- 301-600 BHP
- Above 600 BHP
Based on boiler horsepower:
- 10-150 BHP
- 151-300 BHP
- 301-600 BHP
- Above 600 BHP
Based on end use industry:
- Chemicals & Petrochemicals
- Metal & mining
- Food
- Paper & pulp
- Power generation
- Others
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):
What is the current size of the global Industrial Boilers market?
The global market size of industrial boilers is projected to grow from USD 15.3 billion in 2022 to USD 19.8 billion by 2030, at a CAGR of 3.3% during the forecast period.
What are the factors influencing the growth of Industrial Boilers market?
The growth of this market can be attributed to growth of chemicals & petrochemicals industry.
What is the biggest restraint for Industrial Boilers?
Stringent regulation towards fossil fuel-based boilers is major restraining factor for the growth of the market.
Who are the major manufacturers?
Major manufacturers include includes Babcock & Wilcox Enterprises INC (US), Siemens AG (Germany), Dongfang Electric Corporation Limited (DEC LTD) (China), John Wood Group PLC (UK), Mitsubishi Power (Japan).
2 RESEARCH METHODOLOGY (Page No. - 40)
The study involved four major activities to estimate the current market size of industrial boilers market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of segments and sub-segments.
Secondary Research
In the secondary research process, various secondary sources such as Factiva, Zauba, Hoovers, and Bloomberg BusinessWeek were referred to for identifying and collecting information for this study. These secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, regulations form agencies such as European Heating Boilers Association, Industrial & commercial heating equipment, and others.
Primary Research
Extensive primary research has been conducted after acquiring an understanding of the industrial boilers market scenario through secondary research. Several primary interviews have been conducted with market experts from both the demand- (Industrial boilers manufacturers) and supply-side (end-product manufacturers, buyers, and distributors) players across four major regions, namely, North America, Europe, Asia Pacific, Middle East & Africa, and South America. Approximately 70% and 30% of primary interviews have been conducted from the demand and supply side, respectively. Primary data has been collected through questionnaires, emails, and telephonic interviews. In the canvassing of primaries, various departments within organizations, such as sales, operations, and administration, were covered to provide a holistic viewpoint in our report. After interacting with industry experts, brief sessions were conducted with experienced independent consultants to reinforce the findings from our primaries. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report. Following is the breakdown of primary respondents:
Notes: Companies are classified based on their revenue–Tier 1 = >USD 1 billion, Tier 2 = USD 500 million– USD 1 billion, and Tier 3 = < USD 500 million.
Other designations include sales representatives, production heads, and technicians.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation:
Both the top-down and bottom-up approaches were used to estimate and validate the total size of industrial boilers market. These methods were also used extensively to estimate the size of various sub-segments in the market. The research methodology used to estimate the market size included the following:
- The key players in the industry and markets were identified through extensive secondary research.
- The industry’s supply chain and market size, in terms of value, were determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
Global Industrial Boilers Market Size: Bottom-Up Approach
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Data Triangulation:
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Report Objectives:
- To analyse and forecast the Industrial boilers market size, terms of value, and volume.
- To provide detailed information about the key factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market
- To define, describe, and forecast the market by fuel type, boiler type, function type, boiler horsepower, by end use, and by region.
- To forecast the size of the market with respect to five regions, namely, Asia Pacific, Europe, North America, South America, and the Middle East & Africa, along with their countries
- To strategically analyze micro markets with respect to individual growth trends, future prospects, and their contribution to the overall market
- To analyze the opportunities in the market for stakeholders and provide a competitive landscape for the market leaders
- To analyze competitive developments such as new product launch, merger & acquisition, and investment & expansion in the market
- To strategically profile the key players and comprehensively analyze their revenue and core competencies.
Available Customizations:
MarketsandMarkets offers customizations according to the specific needs of the companies with the given market data. The following customization options are available for the Industrial boilers market report:
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company.
Regional Analysis
- A further breakdown of the Industrial boilers market, by segments
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Industrial Boilers Market