Industrial Boilers Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented By Type (Fire-tube, Water-tube and Others), By Function (Hot Water and Steam), By Fuel Type (Natural Gas & Biomass, Oil and Coal), By End User (Food & Beverages, Chemical, Oil & Gas, Manufacturing and Others), By Region, Competition

Market Overview

The Global Industrial Boilers Market was valued at USD 12.49 billion in 2022 and is projected to reach USD15.03 billion during the year 2028, growing at a CAGR of 4.73% during the forecast period. The increasing demand from the chemicals, petrochemicals, and food and beverages industries is being driven by rapid industrialization and stringent government regulations on harmful emissions. This has significantly contributed to the global demand for industrial boilers. The growing adoption of industrial boilers in sectors such as chemicals, food and beverages, and mining is expected to fuel market growth in the coming years. Moreover, the rising investments in industry growth worldwide are further boosting the demand for industrial boilers.

Key Market Drivers

Industrialization and Urbanization  

With development of economies and the expansion of urban areas, there is a significant increase in the demand for energy to meet industrial, commercial, and residential needs. Industrial boilers play a vital role in providing reliable heat and steam for a wide range of applications, including manufacturing, chemical processes, district heating, and power generation. The rapid growth of industries, particularly in emerging economies, necessitates efficient and consistent heat generation for various production processes. Key sectors such as food and beverages, chemicals, petrochemicals, and textiles heavily rely on industrial boilers to facilitate their operations. Additionally, the concentration of manufacturing activities in urban centers further drives the need for efficient and localized heat generation, contributing to the demand for industrial boilers. As urbanization continues to expand globally, there is also an increasing demand for district heating systems powered by industrial boilers. These systems provide centralized heating to residential and commercial buildings, reducing individual energy consumption and promoting energy efficiency.

Energy Efficiency and Environmental Regulations  

The emphasis on energy efficiency and environmental sustainability is a significant driver shaping the Global Industrial Boilers Market. Governments and regulatory bodies worldwide are implementing stringent regulations to curb greenhouse gas emissions and reduce the environmental impact of industrial activities. As a result, industries are compelled to adopt cleaner and more energy-efficient technologies, including advanced industrial boilers. Modern industrial boilers are designed to minimize energy wastage and reduce emissions by employing technologies like low-NOx burners, flue gas recirculation, and heat recovery systems. These technologies enhance combustion efficiency, thereby lowering fuel consumption and emissions. Additionally, cogeneration systems that produce both heat and electricity from the same fuel source further contribute to energy efficiency. Industries are also increasingly embracing renewable energy sources such as biomass and biogas for fueling boilers. Biomass boilers utilize organic materials as fuel, reducing reliance on fossil fuels and lowering carbon emissions. The integration of such sustainable solutions aligns with both regulatory requirements and corporate sustainability goals.   

Industrial Upgrades and Replacement

The necessity for industrial upgrades and replacement of aging equipment acts as a significant driving force behind the Global Industrial Boilers Market. Numerous industries operate with existing boiler systems that have been in service for extended periods, often utilizing outdated technologies that are less energy-efficient and emit higher levels of pollutants. To maintain competitiveness, industries are increasingly recognizing the economic and operational advantages of upgrading to modern and efficient industrial boilers. Advanced boiler technologies offer improved combustion efficiency, minimized downtime, enhanced safety features, and compliance with evolving emissions regulations. Upgrading or replacing boilers not only enhances operational performance but also aligns with cost-saving objectives by reducing fuel consumption and maintenance requirements. Moreover, industries are realizing that investing in newer boiler technologies can yield better long-term outcomes, such as increased productivity, reduced operational risks, and improved product quality. This driver is particularly pertinent in regions where industries prioritize modernization and technological advancement to sustain their competitive edge.

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Key Market Challenges

Environmental Regulations and Emissions Reduction

With sustainability and air quality on the forefront, governments and international bodies are placing increasing emphasis on adherence to emissions standards, directly impacting boiler operations. These regulations aim to mitigate greenhouse gas emissions, particulate matter, and other pollutants emitted during combustion processes. Compliance with these regulations necessitates the adoption of cleaner combustion technologies, such as low-NOx burners, selective catalytic reduction (SCR) systems, and advanced air pollution control equipment. While these technologies enhance environmental performance, they often involve higher upfront costs. Additionally, retrofitting existing boilers to meet stringent emissions standards can pose technical complexities and financial demands. For industries operating in regions with evolving emissions regulations, staying in line with compliance requirements requires ongoing investments in technology and operational changes. This challenge calls for a delicate balance between regulatory compliance, operational efficiency, and cost management. The Global Industrial Boilers Market must navigate these complexities to ensure sustained growth while minimizing the environmental impact of industrial operations.

Transition to Sustainable Energy Sources     

The shift towards sustainable energy sources presents a significant challenge for the Global Industrial Boilers Market. As the world moves towards a low-carbon economy, industries face mounting pressure to reduce reliance on fossil fuels and embrace cleaner alternatives. The integration of renewable energy sources like biomass, biogas, and hydrogen is crucial for emissions reduction, but it also brings about challenges related to fuel availability, compatibility, and technology adaptation. For example, biomass boilers require a consistent supply of biomass feedstock, which may face competition from other sectors such as bioenergy and agriculture. Hydrogen boilers hold promise as a clean energy solution, but further development is needed for the production, storage, and distribution of hydrogen to become a viable option for industrial boilers. Adapting industrial boilers to accommodate sustainable fuels often entails technical modifications and potentially higher investment costs. Ensuring a smooth transition to these fuels while maintaining operational efficiency poses a considerable challenge. The market must prioritize research and development to create robust and cost-effective boiler technologies that are compatible with a range of sustainable energy sources.

Key Market Trends

Adoption of Smart and Connected Boiler Technologies  

As industries strive for operational efficiency, minimized downtime, and improved safety, the integration of digital solutions and Internet of Things (IoT) capabilities into industrial boilers is gaining traction. Modern industrial boilers are equipped with sensors that continuously monitor parameters like temperature, pressure, fuel consumption, and emissions. These sensors provide real-time data for analysis, enabling the identification of patterns, anomalies, and potential issues. Advanced data analytics tools facilitate predictive maintenance, allowing for scheduled maintenance activities before breakdowns occur. IoT-enabled boilers offer remote monitoring and control via cloud-based platforms, enabling operators and maintenance teams to access data and diagnostics from anywhere for swift decision-making and troubleshooting. Remote control capabilities also enhance safety by reducing the need for physical presence near the boiler. Connected boiler technologies enable precise control of combustion processes, optimizing fuel usage and energy efficiency. Automated adjustments based on real-time data contribute to reduced energy consumption and operating costs.

Segmental Insights

Type Insights

Water-tube segment is expected to dominate the market during the forecast period. Water tube boilers are widely recognized for their superior efficiency compared to fire tube boilers. The segregation of hot gases and water in separate tubes minimizes heat loss, resulting in enhanced overall thermal efficiency. With their design, water tube boilers can rapidly generate steam, making them suitable for applications that require immediate steam supply, such as power generation and industrial processes. They are extensively utilized in power plants, including both conventional coal-fired and modern combined cycle power plants. Their efficiency and ability to handle high-pressure steam make them essential components in electricity generation. Industries involved in chemical production and manufacturing benefit greatly from the flexibility and rapid steam generation capabilities provided by water tube boilers.

Function Insights

Hot Water segment is expected to dominate the market during the forecast period. Hot water boilers are meticulously engineered to precisely heat water to specific temperatures, catering to a diverse range of industrial processes and heating applications. Distinguished from steam boilers, hot water boilers harness the energy to directly warm water, which is then circulated for space heating, domestic use, or process heating. The hot water sector encompasses a broad spectrum of industries and applications, encompassing building space heating, industrial processes, sanitation, and more. District heating systems frequently rely on hot water boilers, efficiently distributing hot water to multiple structures for space heating and domestic needs. The food and beverage industry heavily relies on hot water for an array of critical processes, including cooking, pasteurization, and sanitation. By integrating advanced controls, monitoring systems, and automation technologies, the efficiency and performance of hot water boilers can be significantly enhanced.

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Regional Insights

Europe is expected to dominate the market during the forecast period. Europe is renowned for its rigorous emission standards and stringent environmental regulations. Policies such as the European Union's Industrial Emissions Directive (IED) establish strict limits on emissions from industrial installations, including boilers. This drives the demand for cleaner and more efficient boiler technologies. Furthermore, the European Union has set ambitious energy efficiency targets, encouraging industries to embrace technologies that reduce energy consumption. High-efficiency boilers play a crucial role in meeting these targets while also minimizing operational costs. Europe is actively integrating renewable energy sources into its energy mix, with biomass boilers emerging as a prominent renewable alternative to traditional fossil fuel boilers. Moreover, Europe is at the forefront of adopting digital technologies for industrial processes. Smart boilers equipped with sensors, IoT connectivity, and data analytics enable real-time monitoring, predictive maintenance, and optimized performance.

Recent Developments

• In January 2023, Babcock & Wilcox Enterprises, Inc. entered into a partnership with Fidelis, an energy transition company driving decarbonization through infrastructure development and investments in renewable fuels and low or negative-carbon-intensity products. The objective of this collaboration is to produce clean, zero-carbon-intensity hydrogen.
• In December 2022, a joint venture was established between Mitsubishi Heavy Industries, the parent company of Mitsubishi Power, and Mitsubishi Electric to reinforce their presence in the power generation segment.
• In December 2022, an agreement was reached between Bharat Heavy Electricals Limited (BHEL) and Sumitomo SHI FW, which will enhance BHEL's capabilities in meeting power plant requirements and complying with emission norms. This agreement will further bolster 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. This innovative solution is fully electric and completely carbon neutral, with an output ranging from 350 to 7500 kilograms of steam per hour.

Key Market Players

• Mitsubishi Heavy Industries Marine Machinery & Equipment Co. Ltd.
• General Electric Company
• Harbin Power Equipment Co. Ltd.
• IHI Corporation
• Babcock & Wilcox Co.
• Thermax Ltd.
• Doosan Heavy Industries & Construction
• Dongfang Electric Corporation Ltd.
• Bharat Heavy Electricals Ltd.
• Robert Bosch GMBH