Industrial Boilers market to account for revenue share of 6.7 percent by 2028 

Global industrial boilers market size valued at USD 13.6 billion in 2020 is expected to expand at 5 percent CAGR from 2021 to 2028. 

Many and multiple industries such as food and beverage, petrochemical, power, and chemical use boilers. Boilers produced by steam used to carry out heating processes are transferred to the area of operation through pipes. To produce the steam, boilers use different types of fuels including oil and gas, fossil, non-fossil, and biomass. 

Overview 

Rapid industrialisation and the growing food and beverage industry are expected to drive the global market over the forecast period. High disposable income coupled with increasing population has boosted the growth of numerous industries including food and beverages and FMCG. In order to fulfill the increased demand, companies are not only expanding their existing manufacturing units but also setting up new industrial plants thereby boosting the demand for industrial boilers over the coming years. The demand is expected to rise further owing to growing investment to develop mega power projects across the globe. These vessels are widely used in chemical and petrochemical industries which account for the highest market share of industrial boilers in the application segment. 

The U.S. Environmental Protection Agency has estimated that new boiler rules are expected to prevent environmental emissions at a large scale. More than 88 percent of the major source boilers can meet emission standards via annual tune-ups, however, the remaining 12.0 percent would need refurbishing or replacement to minimise toxic emissions, which are anticipated to create opportunities for manufacturers over the forecast period. 

Application Insights 

In 2020, the chemicals and petrochemicals application segment dominated the market for industrial boilers and accounted for the largest revenue share of 34.2 percent. The segment is expected to continue its dominance over the forecast period. These boilers are designed to comply with the emission standards set by EPA. 

The steam supplied by industrial boilers in distilleries provides a consistent, mild temperature.. Low-pressure boilers are used for craft distilling due to their ability to provide sufficient energy for the process; however, high-pressure aids in reducing heat loss caused due to the long distances between the boiler and distillery equipment. Chemical manufacturers usually prefer natural gas to fire the boilers, along with the use of other chemical byproducts as fuel such as vent gases and hydrogen. Co-firing of biomass and coal boilers is frequently used in chemical plants. 

Future growth 

Rapidly growing petrochemical and chemical industries in developing economies including India and China are anticipated to boost demand for industrial boilers. The stringent laws to regulate harmful emissions in the environment will boost adoption of these systems to boost demand for industrial boilers over the coming years. 

The oil and gas segment dominated the market and accounted for the largest revenue share of 37.0 percent in 2020. The fossil fuel segment accounted for a significant market share in terms of revenue in 2020. Industrial boiler manufacturers are modifying their products to meet the national emission standards, thereby driving the market. 

Increasing demand for biodegradable and environmentally friendly packaging products, higher demand for packaging, and expanding e-commerce sector are expected to impact the growth of the pulp and paper industry positively. Thus, the growth in the industries mentioned above is likely to drive the demand for medium-capacity industrial boilers. 

Regional insights 

Europe dominated the market for industrial boilers and accounted for the largest revenue share of 34.1 percent in 2020 and the U.S. accounted for the second-largest market share in 2020. The region is expected to dominate the industry on account of several factors including rapid industrialisation coupled with growing industries including FMCG, food and beverage, and power. In Central and South America, the market is anticipated to witness a CAGR of 3.0 percent over the forecast period owing to increasing industrialisation, also the industrial boilers market is expected to account for a revenue share of 6.7 percent by 2028. 

In addition, the growing food and beverage industry is likely to boost the demand for industrial boilers in developing economies, especially Brazil. Increasing demand for environmentally friendly and biodegradable packaging products and the expanding e-commerce sector is expected to boost the market growth in the country over the coming years. 

Major Companies 

The market is governed by a large number of regional and global players. Companies such as Babcock and Wilcox, Parker Boiler, and Hurst Boiler have a strong regional presence and usually sell their products directly to the end-users. Some of the prominent players in the industrial boilers market include: Thermax Ltd., Siemens AG, Bharat Heavy Electricals Ltd., Forbes Marshall, Mitsubishi Heavy Industries, Ltd., Harbin Electric Corporation, Cheema Boilers Limited, IHI Corporation, AC Boilers, and Dongfang Electric Corporation Ltd.