Power Plant Boiler Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Pulverized Coal Tower Boiler, Circulating Fluidized Bed Boiler and Others), By Technology (Subcritical, Supercritical and Ultra-Supercritical), By Fuel Type (Gas Based, Coal Based, Oil Based and Others) and By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 26.18 Billion
CAGR (2026-2031)	6.05%
Fastest Growing Segment	Pulverized Coal Tower Boiler
Largest Market	North America
Market Size (2031)	USD 37.24 Billion

Market Overview

The Global Power Plant Boiler Market will grow from USD 26.18 Billion in 2025 to USD 37.24 Billion by 2031 at a 6.05% CAGR. A power plant boiler is a specialized pressure vessel that converts water into steam through the combustion of fuels such as coal, natural gas, or biomass to drive electricity generation turbines. The primary driver supporting this market is the escalating global necessity for reliable baseload energy to sustain rapid industrialization and urbanization in emerging economies. Furthermore, the requirement to modernize aging infrastructure for enhanced thermal efficiency ensures sustained procurement activity. According to the International Energy Agency, in 2024, global electricity demand grew by 4%, underscoring the persistent pressure on power systems to expand capacity.

However, the market encounters a significant challenge from stringent environmental regulations and carbon emission targets that discourage investment in traditional fossil-fuel-based power generation. This regulatory pressure compels utilities to shift capital expenditure toward renewable energy alternatives, thereby reducing the deployment of conventional thermal power plants. Consequently, manufacturers face increased costs associated with compliance and emission control technologies, which can impede new project development in regions prioritizing aggressive decarbonization policies.

Key Market Drivers

Rising investments in thermal power capacity constitute a primary catalyst for the global boiler market, driven by the urgent need for reliable baseload electricity in developing economies. As nations like India and China continue their industrial expansion, they are heavily capitalizing on coal-fired generation to ensure energy security and meet peak demand surges that renewable sources cannot yet fully support. This trend is evident in aggressive capacity addition targets and the revival of thermal projects. According to the Press Information Bureau, Government of India, January 2025, the government awarded 19.2 GW of new coal-based thermal capacity in 2024 to meet the nation's rising peak electricity demand. Furthermore, according to the National Bureau of Statistics of China, March 2025, the nation's installed thermal power capacity reached 1,444 GW by the end of 2024, reflecting the persistent scale of fossil-fuel reliance in these high-growth regions.

Simultaneously, the adoption of ultra-supercritical boiler technology is reshaping procurement patterns as utilities strive to comply with stricter environmental emission regulations without compromising output. Manufacturers are witnessing a distinct shift toward high-efficiency, low-emission boiler systems that operate at elevated temperatures and pressures, thereby reducing coal consumption per unit of electricity generated. This technological transition is compelling power producers to replace aging sub-critical units with advanced infrastructure. For instance, according to Business Standard, August 2025, Adani Power received a Letter of Intent to develop a 2,400 MW ultra-supercritical thermal power plant in Bihar, underscoring the industry's strategic pivot toward high-efficiency combustion technologies to mitigate carbon footprints while sustaining energy production.

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Key Market Challenges

Stringent environmental regulations and carbon emission targets constitute a formidable barrier to the growth of the global power plant boiler market. As nations commit to aggressive decarbonization pathways, power utilities are increasingly compelled to redirect capital expenditures away from traditional fossil-fuel-dependent infrastructure. This regulatory pressure effectively shortens the operational lifespan of existing thermal assets and discourages the initiation of new boiler-heavy projects, as companies seek to avoid the financial risks associated with stranded assets. Consequently, manufacturers face a tangible reduction in procurement activity for conventional boilers, with market demand shifting heavily toward renewable alternatives that do not require such combustion technologies.

This contraction in the addressable market for thermal power equipment is evidenced by recent industry data showing a decline in conventional capacity. According to the Global Energy Monitor, in 2024, the operating coal power capacity outside of China decreased by over 9 gigawatts as plant retirements accelerated beyond the rate of new commissions. This reduction in the active installed base directly hampers the boiler market by limiting opportunities for both new unit sales and large-scale modernization contracts in regions enforcing strict climate mandates.

Key Market Trends

The integration of biomass co-firing capabilities in coal boilers is emerging as a critical trend, enabling utilities to lower carbon intensity without decommissioning operational thermal assets. Power producers are increasingly retrofitting existing pulverized coal units to blend biomass pellets with fossil fuels, a strategy that leverages established infrastructure to meet renewable portfolio standards and extend the economic life of plants. This approach allows for a gradual transition to cleaner energy while mitigating the financial risks associated with stranded assets in coal-dependent regions. According to Argus Media, December 2025, in the report 'Indian coal plants raise biomass co-firing in FY2024-25', biomass consumption in the country's thermal power sector reached 1.62 million tonnes between April 2024 and March 2025, representing a fourfold increase driven by regulatory mandates to decarbonize the grid.

Simultaneously, the retrofitting and modernization of aging boiler fleets is accelerating, with a specific focus on fuel conversion projects that transition facilities from high-emission heavy fuels to natural gas. As environmental regulations tighten, operators are prioritizing the modification of combustion systems and pressure parts to accommodate cleaner-burning fuels, thereby reducing particulate matter and sulfur oxide emissions while improving overall plant flexibility. This modernization wave is essential for maintaining grid stability in markets moving away from coal and oil but requiring firm baseload capacity. According to Mitsubishi Power, November 2025, in a corporate press release, the company secured a contract to upgrade the boiler equipment at the O Mon 1 Thermal Power Plant in Vietnam, a strategic project designed to facilitate the plant's conversion from residual fuel oil to natural gas firing.

Segmental Insights

The Pulverized Coal Tower Boiler segment represents the fastest-growing category within the global power plant boiler market, driven by the increasing adoption of ultra-supercritical generation technology. Power utilities prioritize these boilers because they deliver superior thermal efficiency and accommodate high-capacity operations more effectively than conventional drum-type alternatives. This expansion is supported by compliance with strict efficiency standards outlined by entities like the International Energy Agency, which advocate for maximizing fuel utilization to mitigate environmental impact. As nations upgrade aging infrastructure to balance energy security with emission control, the demand for these efficient tower-type configurations continues to rise.

Regional Insights

North America holds a commanding position in the Global Power Plant Boiler Market, driven primarily by the strategic modernization of aging energy infrastructure. The U.S. Environmental Protection Agency enforces rigorous environmental mandates, such as strict emission limits, which compel utility providers to decommission outdated coal-fired units in favor of cleaner, high-efficiency alternatives. This regulatory framework accelerates the transition toward natural gas and biomass power generation, sustaining robust demand for compatible boiler technologies. Consequently, continuous investment in grid compliance and industrial upgrades establishes North America as a dominant market leader.

Recent Developments

• In November 2025, Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries, received a contract to upgrade existing boiler equipment at a thermal power plant in Vietnam. The project focused on a fuel conversion initiative, transitioning the plant's operation from heavy oil to natural gas firing. This modification was intended to enhance the facility's environmental performance by lowering emissions and improving energy efficiency. The company played a central role in the engineering and equipment supply required to adapt the boilers for the cleaner fuel source, supporting the region's shift toward lower-carbon energy infrastructure.
• In January 2025, Valmet agreed to supply a modernization solution for a heating plant operated by a utility provider in the Czech Republic. The extensive project involved converting two existing circulating fluidized bed boilers from coal to biomass firing and delivering a new bubbling fluidized bed boiler. This initiative was designed to support the customer's transition to renewable energy sources and significantly reduce carbon dioxide emissions. The scope of delivery also encompassed a flue gas cleaning system and modifications to existing environmental control systems to ensure compliance with strict emission standards.
• In August 2024, Bharat Heavy Electricals Limited secured a significant order worth over Rs 11,000 crore from a private energy conglomerate to establish three thermal power projects in India. The contract entailed the manufacturing and supply of key power generation equipment, specifically boilers, steam turbines, and generators, for multiple units with a high generation capacity. The state-owned engineering firm was also entrusted with the supervision of the erection and commissioning processes. These units were planned to operate using advanced supercritical technology, reflecting the company's continued dominance in the domestic thermal power equipment market.
• In April 2024, Babcock & Wilcox announced that its renewable service subsidiary had been awarded a contract valued at more than $7 million to upgrade boilers at a waste-to-energy power plant in Southeast Asia. The project scope included the enhancement of three municipal and commercial waste-fueled boilers and associated combustion equipment. This award followed a front-end engineering design study previously conducted by the company, highlighting its capability to deliver tailored improvements for renewable energy facilities. The upgrade aimed to optimize the performance and reliability of the plant's steam generation assets.

Key Market Players

• Mitsubishi Hitachi Power Systems Ltd
• Dongfang Electric Corporation Ltd
• IHI Corporation
• Doosan Heavy Industries & Construction
• Siemens AG
• Thermax Ltd.
• GE Alstom
• Babcock & Wilcox Co.
• Bharat Heavy Electricals Ltd.
• Harbin Electric Company

By Type	By Technology	By Fuel Type	By Region
Pulverized Coal Tower Boiler Circulating Fluidized Bed Boiler and Others	Subcritical Supercritical and Ultra-Supercritical	Gas Based Coal Based Oil Based and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Power Plant Boiler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Power Plant Boiler Market, By Type:

• Pulverized Coal Tower Boiler
• Circulating Fluidized Bed Boiler and Others

• Power Plant Boiler Market, By Technology:

• Subcritical
• Supercritical and Ultra-Supercritical

• Power Plant Boiler Market, By Fuel Type:

• Gas Based
• Coal Based
• Oil Based and Others

• Power Plant Boiler Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE