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The industrial boiler market size is estimated to grow at a CAGR of 3.51% between 2022 and 2027. The market size is forecast to increase by USD 2,948.87 million. The growth of the market depends on several factors such as the rising popularity of hybrid boilers, Increasing demand for biomass boilers, and growth in global industrial activities. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
This report extensively covers market segmentation by source (gas fired boiler, coal fired boiler, oil fired boiler, and others), end-user (chemicals and petrochemicals, food processing, paper and pulp, power generation, and metal and mining and others), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Industrial Boiler Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Hybrid industrial boilers combine conventional fuel sources with renewable energy sources, providing a more energy-efficient and cost-effective heating solution. The current trend of replacing coal-fired power plants increases the demand for hybrid boilers. In addition, hybrid boilers have a higher efficiency ratio than traditional boilers, which translates into potential savings for the end user.
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 for hybrid boilers. Hence, the global industrial boiler 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 of industrial boilers. These rewards are given as carbon credits or monetary incentives. This trend is observed in the European market and could boost the global industrial boiler 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 the growth of the global industrial boiler market as industries install indoor boilers to meet base load needs. Since the demand for boilers from all industries does not peak at the same time, rental companies can meet the market demand by purchasing fewer industrial boilers, which will impede the growth of the global industrial boiler market during the forecast period.
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 boilers produce less polluting emissions.
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The gas fired boiler segment was valued at USD 4,418.79 million in 2017 and continued to grow until 2021.?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 natural gas boilers is increasing worldwide. Many suppliers operating in the market are also launching new variants of natural 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, paper and pulp, power generation, and metal and mining and others. The chemicals and petrochemicals?segment will account for the largest share of this segment.?Specialty chemicals, petrochemicals, 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 rising the investment in the construction of new chemical and petrochemical facilities in these regions. As a result, these factors will increase the demand for industrial boilers in the chemical and petrochemical industry for the 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 2027. 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 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, such factors are expected to drive market growth in this region during the forecast period.
In 2020, the outbreak of COVID-19 negatively affected the growth of the regional industrial boiler market due to the implementation of lockdown restrictions across the region. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of operations in end-user industries. In addition, growing energy demand, growth in end-user industries such as food and beverage, and the digitization of suppliers' business processes will continue to drive the growth of the industrial boiler market in the region 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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Industrial Boiler Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.51% |
Market growth 2023-2027 |
USD 2,948.87 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.23 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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., 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., Thermax Ltd., and IHI Aerospace Co. Ltd. |
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 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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