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The industrial boiler market size is estimated to grow by USD 3 billion at a CAGR of 3.46% between 2023 and 2028. The market's growth is driven by several factors, including the rising popularity of boilers, which offer increased efficiency and environmental benefits compared to traditional boilers. Additionally, there is a growing demand for biomass boilers as well as condensing gas boilers, driven by the need for sustainable heating solutions. The growth in global industrial activities is also a significant driver, as industries increasingly adopt boiler technologies to meet their energy needs.
Market Forecast 2024-2028
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The industrial boiler market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The gas fired boiler segment will account for a major share of the market's growth during the forecast period. Industrial boilers use natural gas, which is an efficient and affordable fuel among all non-renewable resources in hot water applications. Natural gas is not only more efficient but also has low operating costs than other fossil fuels. Natural gas boilers produce less emissions and are cleaner than diesel boilers. These produce less polluting emissions.
The gas fired boiler segment was valued at USD 4.54 billion in 2018. Environmental concerns have led to the development of new government regulations to encourage the use of natural gas boilers. As a result, the use of these is increasing worldwide. Many suppliers operating in the market are also launching new variants of residential gas generators. Thus, these factors will drive the growth of the gas-fired boiler segment of the global industrial boiler market during the forecast period.
Based on end-user, the market has been segmented into chemicals and petrochemicals, food processing machinery, paper and pulp, power generation, and metal and mining and others. The chemicals and petrochemical segment will account for the largest share of this segment. Specialty chemicals and agrochemicals are some of the common outputs of the chemical and petrochemical industries. These products are used in the manufacture of components of automotive and consumer durables, construction materials, textiles, healthcare equipment and tools, packaging materials, and fertilizers. The substantial availability of natural gas in North America and the Middle East is increasing investment in the construction of new chemical and petrochemical facilities in these regions. As a result, these factors will increase the demand in the chemical and petrochemical industry for end users, which will drive the growth of the segment during the forecast period.
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APAC is estimated to contribute 42% to the growth by 2028. Technavio's analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Developing countries in APAC, such as China, India, Indonesia, Pakistan, Bangladesh, and Vietnam, are experiencing rapid increases in urbanization rates and disposable incomes. In addition, increased investment in modern rail, road, and trade networks has improved supply chain infrastructure. As a result, supply and demand for processed foods and beauty and personal care products is increasing in the APAC region.
Furthermore, the growing demand for consumer durables, textiles, fertilizers, housing, and automobiles is increasing the consumption of chemicals and petrochemicals, cement, steel, and finished petroleum products and driving investment into these industries. China, India, and Japan are among the largest industrial boiler markets in the region. Hence, these factors are expected to drive market growth in this region during the forecast period. Our report analyzes historical data from 2018 to 2022 to provide insights into market trends and examines the current market scenario to offer a comprehensive understanding of the market dynamics.
The market serves various sectors, such as the power, food, and chemical industry, where they play a crucial role in operations. The use of oil and gas fired boilers is common, but they can incur heavy expenses if not properly maintained, leading to damaged boiler and harmful emissions. Proper maintenance, including checking for leaks in pipes, is essential to ensure efficient and safe operation. The market serves the power, food, and chemical industries, providing essential equipment like oil and gas fired boilers. Ensuring proper maintenance is crucial to avoid damaged boilers. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Hybrid industrial boilers combine conventional fuel sources with renewable energy sources, providing a more energy-efficient and cost-effective heating solution. The trend toward replacing coal-fired power plants is driving increased demand, which boasts higher efficiency ratios than traditional boilers, potentially leading to cost savings for end users, especially in the power industry, regarding efficiency, operating costs, industrial facilities, and installation costs.
Furthermore, the implementation of government energy-saving initiatives and policies is driving the demand for hybrid boilers. The European Union (EU) has implemented policies and provided funding for renewable energy sources, resulting in increased demand. Hence, the global market is expected to witness significant growth during the forecast period.
The market is witnessing a new trend in industrial boiler system design that can support multi-fuel operations. The popularity of these systems is growing as the power generation and processing industries want to maximize the use of locally produced renewable biomass and recycled fuels. These fuels are less expensive than conventional fuels.
Moreover, the use of these fuels is also encouraged by national policies that reward efforts to reduce the environmental impact. These rewards are given as carbon credits or monetary incentives. This trend is observed in the European market and could boost the global market if the trend is adopted by other countries around the world during the forecast period.
Industries are increasingly using boiler rentals to meet the seasonal peak demand or resume production while in-house boilers are under maintenance, thus reducing capital expenditure needs and periodic maintenance costs for industries. The legally acquired entity purchased and leased boilers used in critical production processes to clients in the manufacturing, energy, chemical, oil, and gas industries.
Furthermore, the expected growth of the global boiler rental market is hindering industrial boiler market growth as industries install indoor boilers to meet base load needs. Since the demand from all industries does not peak at the same time, rental companies can meet the market demand by purchasing fewer, which will impede the growth of the global market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including:
Alfa Laval AB, Andritz AG, Babcock and Wilcox Enterprises Inc., Bharat Heavy Electricals Ltd., Byworth Boilers Ltd., Cheema Boilers Ltd., Cochran Ltd., Dongfang Electric Corp. Ltd., Forbes Marshall Pvt. Ltd., Gammon Engineers and Contractors Pvt. Ltd., Harbin Electric Corp., John Wood Group PLC, Mitsubishi Heavy Industries Ltd., Parker Boiler Co., Rentech Boilers Systems Inc., Robert Bosch GmbH, The Cleaver Brooks Co. Inc., Thermax Ltd., and IHI Aerospace Co. Ltd.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The industrial boiler market is influenced by various factors such as the need to reduce carbon emissions in the power, food, and chemical industries to mitigate their impact on the global economy and combat inflation. The market is also affected by fluctuations in oil prices, which impact the viability of oil and gas fired boilers. Initiatives like the Green Deal aim to promote the adoption of cleaner alternatives, leading to a shift away from coal-fired boilers towards renewables and biofuels. Efforts to improve emission control and enhance industrial boiler efficiency are prevalent, especially in developed countries. Despite the move towards cleaner fuels, challenges such as operating costs, installation costs, and downtime due to damaged boilers remain significant.
In addition, the developing nations, rapid industrialization and the absence of stringent laws can lead to higher CO2 emissions from coal plants and other industrial facilities. However, there is a growing awareness of the need for a positive environment and the benefits of clean fuels like hydrogen firing. The market is also influenced by factors such as labor costs, miscellaneous expenses, and the closure of industries due to environmental concerns. Overall, the industrial boiler market is evolving to meet the demand for energy efficiency and sustainability across multiple industries, including refineries, pulp & paper, and primary metal manufacturing plants.
Moreover, boiler production in industries such as food and beverage, textile, and FMCG sectors involves considerations of operating costs, fuel type, and environmental emissions. Various boiler types like water-tube boilers, hot water boilers, and oil-fired boilers cater to specific application segments in commercial spaces, industrial plants, and petrochemical refineries. Regulatory boiler rules ensure compliance with environmental emissions standards, addressing issues like deformation, stress corrosion, and welding issues such as hydrogen embrittlement. The shift toward non-fossil fuels like biomass fuel from sources such as bagasse and sugarcane supports sustainable practices in agribusiness and reduces running costs linked to electricity bills. Equipment providers and brokers play crucial roles in facilitating the adoption of energy-efficient boiler technologies, optimizing subsidies and enhancing production efficiencies across diverse industrial sectors.
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Market Scope |
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Report Coverage |
Details |
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Page number |
187 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.46% |
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Market growth 2024-2028 |
USD 3 Billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.3 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 42% |
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Key countries |
China, US, Germany, Japan, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alfa Laval AB, Andritz AG, Babcock and Wilcox Enterprises Inc., Bharat Heavy Electricals Ltd., Byworth Boilers Ltd., Cheema Boilers Ltd., Cochran Ltd., Dongfang Electric Corp. Ltd., Forbes Marshall Pvt. Ltd., Gammon Engineers and Contractors Pvt. Ltd., Harbin Electric Corp., IHI Corp., John Wood Group PLC, Mitsubishi Heavy Industries Ltd., Parker Boiler Co., Rentech Boilers Systems Inc., Robert Bosch GmbH, Siemens AG, The Cleaver Brooks Co. Inc., and Thermax Ltd. |
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Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our industrial boiler market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Source
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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