Industrial Boilers Market Size, Share, Industry Report 2031

Report Description

Industrial Boilers Market Outlook 2031

The global industrial boilers market size was USD 16 Billion in 2022 and is likely to reach USD 24.7 Billion by 2031, expanding at a CAGR of 4.8% during 2023–2031. The market is driven by the increasing industrialization in developing regions and growing demand from the food & beverages sector.

Expanding industrialization in various parts of the world to increase production and business operations is primarily driving the market. Rising consumer demand for various products, from different industries, fuels the need to intensify production levels.

An industrial boiler is a highly important device in several key industries including food & beverages, textiles, paper, and chemicals, as they are widely used for heat and power supply the manufacturing processes. Thus rising production activities globally have fueled the market of industrial boilers.

• According to the estimations published in BASF Report 2022, the production of chemicals (petrochemicals excluded) is likely to increase by 2% in 2023. This growth is slightly less than in 2022, which was 2.2%. As industrial boilers are essential during the production of chemicals, this equipment is witnessing significant demand from this industry.

Get Free Sample Report

The research report finds that the COVID-19 pandemic affected the industrial boilers market. Factors such as the closure or slowdown of operations in several industries that mainly use these devices restricted the market during the pandemic.

The hindrance occurred in global supply chain activities, owing to lockdown regulations and restrictions in logistics movements slowed the growth space of the market. The production of industrial boilers and related equipment was reduced due to the shortage of workforce and limited industrial operations. Nonetheless, the market is on a recovery path with the growing demand from different end-user industries post-pandemic normalization.

Impact of Artificial Intelligence (AI) on Industrial Boilers Market

Advances in AI technology and the rapid development of various AI-powered tools for industrial uses are expected to support the market during the projection period. AI’s predictive analytics and maintenance capabilities are likely to further improve the workings of industrial boilers. Such data-driven self-diagnosis of equipment is expected to facilitate improved control and optimization over industrial resources.

• As per a case study published in April 2023 by Tata Consulting Services (TCS), a leading IT firm worldwide, it helped Tata Chemicals Limited (TCL) in optimizing resource use and controlling price pressure with AI-powered digital twin technology. During the preliminary study, it was found that boilers used at its Mithapur production plant were consuming large quantities of fuel, which caused a loss of efficiency and yield. With digital twin technology, the historical data points were used to set points in real time, enabling controlling and boosting boilers' efficiency based on data. This helped TCL save USD 600k in costs annually.

Industrial Boilers Market Dynamics

Get Free Sample Report

Major Drivers

Rapidly expanding industrialization and strict government policies to control carbon emissions are key drivers of the market. Rise in consumer demand for different products has propelled the need to boost production.

Their demand is growing with rising production activities across the world, as the boilers are essential systems in several industries. The initiatives by various governments toward the use of renewable energy sources and biomass are furthering the adoption of modern and improved industrial boilers.

• As per a recent study published by the United Nations (UN), a major emission of greenhouse gases (GHG), worldwide, comes from the burning of fossil fuels, including, oil, coal, and gas. These are the key emitters that result in 75% of GHG emissions, and 90% of carbon dioxide (CO2) emissions. To control this, several nations and regions such as the US (20% by 2030) and the European Union (30% by 2030) have set goals to generate electricity from renewable resources. This is likely to promote the adoption of biomass boilers and technology-powered efficient boilers in the coming years.

Existing Restraints

Requirement for high initial capital investment and maintenance costs is likely to hinder the market during the forecast period. Industrial boiler purchase, installation, and maintenance costs are significantly high.

Companies are required to prepare the site and hire engineers and laborers to set up boiler operations. Operations such as inspection and maintenance are required to be regular to avoid major gaps and failures in heat generation. The cost can vary based on location and complexities in installation and maintenance operations.

Emerging Opportunities

Adoption of advanced technology-driven boilers and the use of eco-friendly boilers are expected to increase opportunities in the market. The implementation of technology-based solutions allows companies to automate the operations related to boilers, making them effective, while eliminating unnecessary use of fuels.

The demand for biomass boilers is steadily growing, as they are cost-efficient and reduce CO2 emission. Different governments are giving incentives and other benefits for renewable energy production and use to the companies thus, the adoption of carbon-neutral solutions is likely to boost opportunities in the market.

Scope of the Industrial Boilers Market Report

The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Industrial Boilers Market Segment Insights

Boiler Type Analysis

Based on boiler type, the industrial boilers market is divided into fire-tube and water-tube. The water-tube segment is expected to expand at a significant pace during the projection period, as they are commonly adopted in large-scale enterprises for power production, oil refining, and petrochemical procedures.

Turning water to steam is significantly fast with this boiler type, making it highly efficient in saving fuel and time. Additionally, water requirement is less for this industrial boiler type. Their durability and adaptability to shift loads further make them an attractive option for companies for industrial operations.

• Several studies have shown that water-tube boilers are more efficient than fire-tube boilers. On an average, the water-tube boiler's overall efficiency reaches 90%, while the fire-tube boiler’s overall efficiency reaches 75%. In a water-tube boiler working pressure is as high as 250 bar, while in a fire-tube boiler’s is up to 15 to 20 bar.

The fire tube segment is likely to witness considerable growth during the projection period. These boilers are cost-effective and come at 50% to 60% of the price of water-tube boilers. Their maintenance requirement is easy, as the cleaning and repair work can be carried out externally and not from inside. These advantages are likely to drive the segment in the coming years.

Fuel Type Analysis

On the basis of fuel type, the global market is segregated into coal, natural gas & biomass, oil & gas, and others. The oil & gas segment is projected to expand at a robust CAGR during the forecast period, as several industrial boilers rely on fossil fuels for firing up.

The unavailability or limited availability of other energy sources such as natural gas and renewable energy solutions, makes industries dependent on traditional oil & gas use for fueling boilers. Additionally, controlled use of these fossil fuels is easy, as the flow can be streamlined through control valves installed in the fuel line. The fuels are easily and conveniently available for industries to use, which boosts the segment.

Get Free Sample Report

Function Analysis

On the basis of function, the industrial boilers market is bifurcated into steam and hot water.
The hot water segment is expected to expand at a high pace during the forecast period. The segment is driven by the wide use of hot water boilers in commercial, institutional, and residential buildings.

These boilers typically operate with traditional fuel use. They are much larger in size than domestically used boilers. High-pressure hot water boilers are applied to take water temperature beyond 100°C, allowing significant transfer of heat for performing industrial procedures.

End-user Industry Analysis

Based on end-user industry, the market is categorized as chemicals & petrochemicals, food & beverage, power generation, paper & pulp, metal & mining, manufacturing, and others. The power generation segment due to its high usage in these industries during the projection period.

The segment is driven by the rising need for energy production to meet the growing electricity demand. High-pressure industrial boilers are essential in mechanical power and electricity generation. These boilers are used in power generation plants for producing high-pressure steam and then covert it into electricity.

The chemicals & petrochemicals segment is likely to expand at a rapid pace in the coming years, owing to the rising production and processing activities in these sectors. Production of commonly used products such as chlorine, alkali, pesticides, and fertilizers needs high-quality steam.

Growing industrialization and consumerism is driving the demand for various chemical and chemical-based products is increasing across the world, which is expected to support segment growth during the assessment period.              

Regional Outlook

In terms of region, the global industrial boilers market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to dominate the market during the projection period, due to the growing demand for industrial boilers, with the rise of industrialization.

The demand for industrial boilers is rising in major emerging economies such as, India and China, due to their high demand from the chemical and petrochemicals industry, food & beverage industry, and power production industry.

Furthermore, growing focus from several manufacturing industries to adopt renewable solutions that are emission-neutral is expected to boost the regional market. The transition from traditional fuel-based systems to natural gas-based and biomass-based boilers is driving the market in this region.

The market in Europe is projected to expand at a rapid pace during the forecast period, owing to the expansion of industries such as food & beverages and power production. Countries in Europe are speedily implementing environmental emission reduction measures, which are expected to drive the demand for biomass boilers and natural gas-based industrial boilers in the region.

Additionally, growing acceptance of automation technology from Europe-based manufacturers is likely to create opportunities in this market.

Get Free Sample Report