Industrial Steam Generation Outlook

Opportunities: Industrial Growth in Developing Economies Drives Demand for Steam-Centric Manufacturing Solutions

Developing countries like India and Brazil are rapidly expanding their manufacturing sectors. Steam is vital to many manufacturing processes, including drying, sterilization, chemical reactions, distillation, and pasteurization.

Pulp & Paper and Chemicals Expansion: The pulp & paper and chemicals sectors are expanding significantly, propelled by rising packaging demand due to e-commerce and export opportunities. Steam is integral to these processes, supporting production scalability and meeting international market needs.

Programs such as India’s Perform, Achieve & Trade (PAT) and China’s Five-Year Plans promote industrial energy efficiency and encourage the adoption of advanced technologies and sustainable practices. In India, PAT incentivizes energy savings, while China’s Five-Year Plans set ambitious efficiency targets, influencing global industrial standards.

India’s Manufacturing Goals: Under the Make in India Initiative, India aims to increase its manufacturing sector's contribution to GDP from 17% to 25%. This goal is supported by infrastructure development, policy incentives, and a focus on skill enhancement, aiming to make India a global manufacturing powerhouse by 2030.

Challenge: Lack of Awareness, System Inefficiencies, and Compliance Gaps to Hinder Modern Steam System Adoption Among Industries

Several obstacles hinder the widespread implementation of modern steam systems across industries, particularly among small and medium enterprises (SMEs). Many industrial users lack awareness of the economic and operational advantages offered by updated systems, leading them to rely on outdated, inefficient legacy systems that increase costs and environmental impact over time.

Low Awareness Among End Users (esp. SMEs): Many industrial users, especially SMEs, are unaware of the significant economic benefits, such as reduced fuel and maintenance costs, and operational improvements, such as enhanced efficiency and reliability, which modern steam systems provide. This lack of knowledge often results in continued dependence on inefficient legacy systems, perpetuating higher operational expenses and missed opportunities for optimization.

Fragmented Vendor Ecosystem and Quality Concerns: In some developing markets, the steam industry suffers from a fragmented vendor ecosystem characterized by a lack of standardization and the prevalence of low-cost, subpar boiler vendors. This leads to the deployment of unreliable or unsafe steam systems, posing risks to operational safety and long-term performance, and discouraging investment in quality solutions.

Steam System Losses and Unmonitored Inefficiencies: Without proper insulation to retain heat, effective condensate recovery to reuse water, or precise pressure control to optimize performance, steam losses remain excessively high. These inefficiencies often go unnoticed in manual operations, where monitoring is limited, resulting in wasted energy, increased costs, and reduced system lifespan.

Compliance Pressure Without Clear Roadmap: Many industries are under pressure to meet increasing emissions and safety norms for steam usage, driven by stringent environmental regulations and workplace safety standards. However, they often lack a clear financial or technical roadmap to achieve compliance efficiently, creating a barrier to upgrading systems and adopting sustainable practices.