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The boilers market size is forecast to increase by USD 16.1 billion, at a CAGR of 3.21% between 2023 and 2028. The market is set for significant growth driven by key factors. Increasing demand for energy-efficient solutions, especially in industrial settings, is propelling the market forward. As industries worldwide continue to expand, the demand for boilers for heating and power generation purposes is also on the rise. Additionally, the growing popularity of hybrid boilers, which offer improved efficiency and reduced environmental impact, further fuels market growth. This trend reflects a shift towards sustainable energy solutions in response to environmental concerns and regulatory requirements. Our market research and growth report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
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The market encompasses the manufacturing capacity and industrial facilities that produce various types, including steam-generating and industrial boilers. This market experiences consistent growth due to increasing manufacturing exports and the demand for energy efficiency in industries such as refinery, chemical, food processing, pulp & paper, primary metal, and renewable energy heaters. Growth opportunities in the market include the adoption of natural gas and carbon neutrality initiatives. However, installation costs, labor costs, miscellaneous expenses, downtime, electricity bills, and supply chain disruptions pose challenges. Industry growth in sectors like pulp & paper, chemical, and food processing relies heavily on steam-generating boilers. The refinery industry, in particular, requires large-scale boilers for steam production and process heating. They are essential for industries aiming for energy efficiency and reducing carbon emissions. Renewable energy heaters are gaining popularity as an alternative to traditional boilers, offering energy savings and environmental benefits. In conclusion, the market is a significant contributor to industry growth, with various opportunities and challenges shaping its future.
The market is experiencing significant growth due to the increasing demand for energy-efficient solutions. This demand is driven by the need to reduce energy consumption, lower emissions, and decrease costs in both industrial and domestic applications. Energy-efficient boilers, such as condensing boilers, offer high thermal efficiency, resulting in reduced fuel consumption and emissions. Advancements in technology have made them more accessible and affordable.
Moreover, industry growth is influenced by rising concerns over environmental sustainability, government regulations, and the need for businesses and households to reduce energy costs. Key industries utilizing them include refineries, chemicals, food processing, pulp & paper, primary metal, and the petrochemical industry. Energy-efficient systems are becoming a feasible option for manufacturing activities, logistics services, offices, commercial spaces, and heating equipment. Despite installation, labor, and miscellaneous expenses, energy savings and downtime reduction offset heavy expenses such as electricity bills and potential damages. The shift towards carbon neutrality and the use of natural gas and renewable energy heaters as feedstock further expands growth opportunities.
The global industry growth, particularly industrial boilers, is driven by increasing domestic manufacturing capacity and manufacturing exports. Renewable energy heaters, such as those using steam-generating boilers, are becoming a feasible option for industries, including refineries, chemicals, metal manufacturing plants, food processing, pulp & paper, and primary metals. This shift towards renewable energy is influenced by the need for energy efficiency and carbon neutrality. Installation costs, labor costs, and miscellaneous expenses associated with it can be significant. Downtime due to damaged boilers can result in heavy expenses, including electricity bills and the potential closure of industries, offices, and commercial spaces.
Moreover, supply chain disruptions can also impact manufacturing activities and logistics services. Natural gas and various feedstocks serve as common sources. The petrochemical industry and energy-efficient systems are major consumers. Growth opportunities in this market include the increasing demand for steam-generating boilers in various industries and the transition towards renewable energy sources. Industrial boilers play a crucial role in manufacturing activities, particularly in the production of chemicals and metals. The use of coal-based counterparts is used for the replacement of traditional inefficient boilers with more energy-efficient systems to reduce costs and minimize environmental impact.
The market is shifting towards renewable energy sources, with countries such as Austria, France, New Zealand, Luxembourg, Switzerland, and the UK reducing coal usage below 10% for electricity generation by November 2017. This trend is expected to continue as industries aim for carbon neutrality. Natural gas and feedstock remain viable options for steam-generating ones in industries like refinery, chemical, food processing, pulp & paper, primary metal, and petrochemical.
However, installation, labor, and miscellaneous expenses, as well as downtime due to damaged ones, can result in heavy expenses and the potential closure of industries, offices, and commercial spaces during supply chain disruptions. Energy efficiency and the feasibility of renewable energy heaters offer growth opportunities for the industry. Manufacturing exports and logistics services are essential components of the market's growth.
The chemicals segment will account for a major share of the market's growth during the forecast period. The chemical industry is a growing market, with companies investing in high-efficiency boilers with the latest technological advancements. Also, chemical companies are continuously expanding their operations, which is expected to fuel the demand during the forecast period.
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The chemicals segment was valued at USD 31.70 billion in 2018. Boilers play a significant role in the chemical industry, providing the high-temperature steam required for chemical reactions, distillation, and drying processes. In the chemical industry, the manufacturing processes require tight temperature controls and specific steam conditions. As a result, they are the primary source of heating and hot water for the chemical industry, and their performance is critical to the plan's success and sustainability.
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APAC is estimated to contribute 38% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The APAC market is experiencing substantial growth due to the expanding power generation, oil and gas, and other industries. The region's growing economies and industrialization have resulted in increased energy demand, making it a crucial element in various industrial processes. Population growth and urbanization, particularly in India and China, have further fueled energy consumption. India's energy demand is projected to reach 11% of the global total during the forecast period, up from 5% in February 2023. They are essential for industries such as power generation, distilleries, petrochemical plants, petroleum refineries, and the metals industry.
Further, the fossil fuel segment dominates the market, but the biomass fuel segment is gaining traction due to emission limits and the push for eco-friendly solutions. Biomass fuels, such as bagasse, sugarcane, and sorghum stalks, are used in biomass boilers and water-tube boilers. The real estate sector and green buildings are also driving demand for eco-friendly residential boilers. The e-commerce sector's growth is contributing to the market as well. However, the recession's impact and emission regulations may challenge market growth. The market is segmented by steam capacity, pipes, and fuel type, including SOx and NOx emissions.
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 key companies, including:
Alfa Laval AB, Ariston Holding NV, ATTSU Termica S.L, Babcock Wanson, Bryan Steam LLC, Clayton Industries, Danstoker AS, Ferroli Spa, General Electric Co., Hurst Boiler and Welding Co. Inc., Lennox International Inc., Mestek Inc., Mitsubishi Heavy Industries Ltd., Robert Bosch GmbH, SPX Technologies Inc., The Cleaver Brooks Co. Inc., The Fulton Companies, Vaillant GmbH, and Viessmann Climate Solutions SE
Technavio market forecast the 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 market growth analysis research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is a significant sector in the industrial industry, with manufacturing units across the globe relying on boilers for their energy needs. They are essential components in power generation, heating, and various industrial processes. The market is driven by the increasing demand for energy and power, particularly in developing economies. Manufacturers are focusing on innovation and technology to improve the efficiency and performance of boilers. The use of advanced materials and energy-efficient technologies is gaining popularity in the market. Additionally, the growing trend towards renewable energy sources is expected to impact the boilers market in the coming years. The market is highly competitive, with key players including Industrionals, Doosan, MAN Diesel & Turbo, and Kawasaki Heavy Industries.
Moreover, consequently, such companies are investing in research and development to expand their product offerings and gain a competitive edge. They are available in various types, including fire-tube boilers, water-tube boilers, and electric boilers. The choice of type depends on the specific application and energy requirements. The market is expected to grow at a steady pace in the coming years, driven by the increasing demand for energy and power in various industries. In conclusion, the market is a dynamic and growing sector driven by the increasing demand for energy and power. Manufacturers are focusing on innovation and technology to improve the efficiency and performance of these while also addressing the growing trend towards renewable energy sources. The market is highly competitive, with key players investing in research and development to expand their product offerings and gain a competitive edge.
Further, boilers are essential components in the chemical industry, supplying high-temperature steam for production processes and distillation. Industrial facilities in this sector rely heavily on these for energy, with manufacturing exports depending on their efficient operation. Growth opportunities exist in the market for industrial boilers, despite installation and labor costs, as well as miscellaneous expenses and potential downtime from damaged boilers. Hefty expenses include electricity bills and closure costs for industries, offices, and commercial spaces due to supply chain disruptions. Boilers' carbon neutrality and use of natural gas, feedstock, and steam-generating technology impact industry growth. Energy efficiency and renewable energy heaters are feasible options for chemical, refinery, petrochemical, food processing, pulp & paper, primary metal, and manufacturing plants. Energy-efficient systems are crucial for manufacturing activities, logistics services, and consumer spending in the industry.
Industry Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.21% |
Market growth 2024-2028 |
USD 16.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.09 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 38% |
Key countries |
China, US, Germany, Japan, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A. O. Smith Corp., Alfa Laval AB, Ariston Holding NV, ATTSU Termica S.L, Babcock Wanson, Bryan Steam LLC, Clayton Industries, Danstoker AS, Ferroli Spa, General Electric Co., Hurst Boiler and Welding Co. Inc., Lennox International Inc., Mestek Inc., Mitsubishi Heavy Industries Ltd., Robert Bosch GmbH, SPX Technologies Inc., The Cleaver Brooks Co. Inc., The Fulton Companies, Vaillant GmbH, and Viessmann Climate Solutions SE |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market 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 End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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