A steam boiler, often called a steam generator, is a device that generates steam by heating water. A steam boiler is an equipment or a component that uses heat from the combustion of a fuel source to heat water within a boiler, producing steam for various applications, including heating and power generation. The general efficiency of a steam boiler is between 80% to 90%. This efficiency is partially attributable to partial oxidation, radiation loss, and other thermal losses. A steam boiler's steam is utilized for power generation, industrial applications, and heating.
Rising demand for steam boilers from end-use industries is a significant factor propelling the growth of the steam boiler market. In addition, a spike in investment in the power generation industry due to increased energy demand contributes significantly to the growth of the global steam boiler market. However, a rise in investment in renewable energy power generation, rigorous government regulations regulating greenhouse gas emissions from conventional fuel sources, and a high initial cost for steam boilers hinder the market's progress. In contrast, technological developments in steam boilers for high heating efficiency and the modernization of aging infrastructure for power generation are predicted to provide growth opportunities for the top competitors in the steam boiler market. However, the implementation of stringent government regulations regarding environmental pollution from coal-based and other conventional fuel sources, as well as the rapid growth of the renewable energy sector, are the primary factors impeding the growth of the global steam boiler market in the coming years.
Developing economies such as China, India, Japan, and Brazil are driving the rise of the steam boiler market by continuously and consistently increasing their energy demand. This is because steam boilers are used as a source of power generation when energy demand is higher than usual, allowing industries to continue manufacturing and other processing activities uninterrupted. In addition, industries such as oil & gas, manufacturing, power generation, paper & pulp, and processing have witnessed a boom in demand for steam boilers due to their rapid startup, high efficiency, and dependability. This aspect is anticipated to considerably contribute to the growth of the global market over the forecast period.
In the coming years, an increase in oil and gas exploration and production, expansion projects, and other construction activities in developing and developed nations will fuel the demand for steam boilers. Numerous oil and gas sector activities, including refining, crane operation, oil well digging, on-site pre-stressed concrete building, welding operations, and heating & processing, require consistent electric power and steam. This growing demand for energy and steam can be fulfilled by a steam boiler, which significantly contributes to the expansion of the global steam boiler market.
The steam boiler industry is continuing to see enormous expansion thanks to the steady flow of technological advancements that have been made in product manufacturing over the past many decades. This is because of growing urbanization and industrialization rates, which have increased power demand. In addition, the market for steam boilers in Asia-Pacific, the Middle East, Latin America, and Europe presents growth opportunities due to rising investments in the region's new power generation infrastructure. This has resulted in a dramatic growth in the capacity for producing energy, which, in turn, increased the need for steam boilers.
North America is estimated to command the market with the largest share and a CAGR of 3.4% during the forecast period. The United States is North America's leading producer and consumer of steam boilers. Canada and Mexico are two regions with huge market potential for steam boilers. The region's rapidly developing food processing, power generation, and oil & gas industries produce a substantial need for steam boilers.
During the forecast period, the market for steam boilers is anticipated to be driven by an increase in demand from a range of industrial sectors, including the chemical, residential, manufacturing & operations, mining, and food processing industries. In addition, the increase in population and power consumption in the North American region has increased the demand for steam generators for electricity production, which will contribute to expanding the region's market over the forecast period. In addition, the increase in demand for steam boilers from heating and processing applications, such as manufacturing, commercial offices, residential users, and educational institutions, has contributed significantly to the growth of the North American steam boiler market.
Asia-Pacific is expected to hold the second-largest market share of USD 6,916 million with a CAGR of 3.9% during the forecast period. China, Japan, India, South Korea, and Australia are this region's leading market growth drivers. In addition, the population increase and economic expansion of the Asia-Pacific region stimulate the rise of the food processing, chemical, pharmaceutical, oil & gas, and healthcare industries.
In the Asia-Pacific region, the expansion of the market for steam boilers is predicted to be driven by the increase in energy demand from various manufacturing and processing industries. In addition, steam boilers are gaining popularity in the chemical, manufacturing, and other processing industries due to their durability and high operational efficiency, pushing the market for steam boilers over the projection period. Expanding production and processing facilities in Asia-Pacific nations such as China, Japan, and India, among others, are predicted to stimulate market growth in the coming years. In addition, the emergence of China and India as industrial powerhouses has increased the demand for steam boilers for heating and power generation applications in manufacturing and other processes, hence boosting the growth of the steam boiler market. Growing awareness of renewable energy sources such as solar, wind, and others are expected to restrain the market's growth over the forecast period.