Industrial Boilers Market Size, Share & Trends Analysis Report By Type (Fire Tube, Water Tube, Cast Iron, Combination/Hybrid), By Heat Source (Coal, Biomass, Oil & Gas, Electric, Wood Fired), By Application (Food & Beverage, Textile, Heating, Building Materials, Chemical Industry, Paper) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global industrial boilers market size was valued at USD 14.79 billion in 2022. It is projected to reach USD 22.36 billion by 2031, growing at a CAGR of 4.7% during the forecast period (2023–2021). About 60% of the waste plastic oil can be blended with diesel to run the engine successfully without any problems. Bio-oil can be easily combusted in industrial boilers, further providing an impetus to market growth.

Industrial boilers can withstand greater pressure compared to residential and commercial boilers, which is why they are extensively used to convert water into steam. However, the high maintenance cost of the boiler hampers market growth. In addition to this, global trading economies have been moving towards adopting protectionist policies, which has paved the way for a stronger domestic manufacturing sector. Moreover, this also presents significant opportunities for international players to invest in emerging economies and set up their supply chains and manufacturing facilities in these economies.

Market Dynamics

What are the primary factors driving the industrial boilers market?

Stringent Government Regulations and Increasing environmental Pollution

Plastic is extensively used across several industries for its versatility, which has raised environmental pollution across the globe. Pyrolysis is a technique of degrading solid plastic waste into useful compounds, such as bio-oil. Globally, stringent government regulations in terms of rising carbon emissions have compelled end-use industries to adopt alternatives, such as boilers. The steam produced in industrial boilers is widely used in the food and beverage, paper and pulp, and chemical industries. Rapid industrialization and rising consumer demand for alternatives drive market growth.

Upgrading Traditional Boilers with Industrial Boilers

Due to safe operations and low maintenance requirements, efficient industrial boiler units are being installed more frequently across a variety of industries, such as chemical, food processing, and pulp & paper, which will accelerate product adoption. The market demand will be positively impacted by ongoing investments in the industrial sector that are meant to advance excellent heating facilities and the rising replacement of traditional boilers with units with greater capacities. The value of the industry will increase as industrial infrastructure is continuously updated, and highly efficient boiler units are increasingly deployed across industries.

What are the main factors that will slow down the industrial boilers market?

Safety Concerns Linked with Industrial Boilers

A commercial boiler is a potential time bomb, according to boiler explosion history. When neglected, steam boilers have been known to blow up. Numerous things can cause boiler explosions. They are primarily caused by a broken pressure relief valve. Another major factor that contributes to a boiler exploding or failing catastrophically is the internal corrosion of the boilerplates. Low water levels, which can happen when the water drops below the firebox's level and causes it to heat up and occasionally burn through into the water chamber, are to blame for many boiler explosion incidents. Such explosions are frequently attributed to inadequate operator training and skipped maintenance steps. Poor maintenance of industrial boilers can lead to an explosion, which can slow down the market.

What are the future opportunities for the industrial boilers market?

Growing Demand for Food and Beverages and Chemicals & Petrochemicals

The increasing use of industrial boilers in various industries, such as chemical, food, beverage, and mining, is expected to drive market growth in the coming years. The increasing population and higher disposable income are encouraging manufacturers to build new factories to meet the demand for food and beverages, and consumer goods. Rising investments in the growth of industries around the world are driving up demand for industrial boilers. The chemical industry contributes significantly to global GDP, emphasizing the significance of increasing demand for industrial boilers in the chemicals industry. Growing demand in the chemical and petrochemical industries in developing countries is expected to have a significant impact on market growth in the near future.

Regional Analysis

The global industrial boilers market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific Dominates the Global Market

Asia Pacific region is the largest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period due to easy access to raw materials and the availability of low-cost labor. China and India are the frontrunners in regional market growth. Recently, Orangebeak Technologies Private Limited, Nagpur, organized BOILER INDIA 2020, which enables startups and leading manufacturers to introduce their products, new technologies, and new ideas for product development. In addition to this, over the last several decades, several emerging economies, such as Malaysia, Indonesia, and Thailand, among others, have been experiencing significant industrial development. Moreover, economic policies supporting foreign direct investments (FDIs) and the increasing focus on strengthening domestic industries and the manufacturing sector are likely to see industrial boilers procured in larger quantities from countries in the Asia Pacific.

Europe is expected to witness dynamic growth in the industrial boiler market during the forecast period due to a number of factors, including rapid industrialization and the expansion of the FMCG, food, beverage, and power industries. The European government has been forced to enact strict regulations regarding harmful industrial emissions as a result of rising environmental consciousness, increased awareness of carbon emissions, and increased industry focus on sustainability. This has greatly accelerated the market for industrial boilers in Europe. Additionally, as more manufacturing facilities in Europe adopt cutting-edge and creative technologies to achieve sustainability and energy efficiency, demand for industrial boilers has increased.

North America is expected to witness significant growth in the industrial boiler market during the forecast period. The growth is attributed to the existence of manufacturers in the region. The market in North America is expanding as a result of rising demand for industrial boilers in the commercial, agricultural, and industrial sectors. In the United States, the food processing industry is going through a time of rapid change. It's anticipated that the demand for industrial food boilers will increase as packaged food demand rises.

The LAMEA region is expected to witness moderate growth in the global industrial boiler market during the forecast period because of the growing industrialization. Additionally, the expanding food and beverage sector is probably going to increase demand for industrial boilers in emerging markets, particularly Brazil. Three M701JAC gas turbines total have been shipped by Mitsubishi Power, a division of Mitsubishi Heavy Industries, Ltd. (MHI), from its Takasago Machinery Works in Hyogo Prefecture to the Fujairah F3 power plant in the United Arab Emirates. The facility, which will be the largest natural gas-fired gas turbine combined cycle (GTCC) facility in the UAE, will employ an effective combined cycle technology unique to the region and will contribute to the power grid of the Gulf countries. 

Segmental Analysis

The global industrial boilers market is segmented by type, heat source, and application.

Based on type, the global industrial boilers market is bifurcated into fire tube, water tube, cast iron, and combination/hybrid.

The water tube segment is the highest contributor to the market and is expected to grow at a highest CAGR during the forecast period due to the rise in demand for water tube boilers in the global paper & pulp, chemical & petrochemical, and food processing industries. The main factor promoting the growth of water tube boilers across industries is their characteristics, like low carbon emissions and higher thermal efficiency.

The fire tube segment is expected to grow at a significant rate. The ease of installation and use of fire-tube boilers is a benefit. They are frequently used in small installations to power factory operations and heat buildings. Steam locomotives also employ fire-tube boilers.

Based on the heat source, the global industrial boilers market is bifurcated into coal, biomass, oil & gas, electric, wood-fired, and electric.

The oil & gas segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. Both oil and natural gas boilers are very effective because their furnace temperatures are in the 1200–1300 ºC range. The rate of radiation heat transfer to the surrounding water will increase with the furnace temperature. Operating efficiently is made possible by the high combustion volume, large water and steam holding capacity, and superior design features.

The biomass segment is expected to grow at a significant rate. Biomass steam boiler is designed to convert the chemical energy present in solid fuels into thermal energy for a variety of purposes, including the generation of electricity and heat for industrial processes. These boilers consist of a heat exchange body that the combustion gases circulate between and through which energy is transferred to the water, turning it into steam as it does so.

Based on application, the global industrial boilers market is bifurcated into food & beverage, textile, heating, building materials, chemical industry, and paper.

The chemical industry segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period due to the growing need for high-quality steam to produce chemicals like petrochemicals, alkali and chlorine, synthetic rubber, industrial gases, synthetic organic fibers, and agricultural chemicals. The most profitable markets for energy consumption in the chemical industry are emerging nations like India and China, which are fueling the expansion of the industrial boilers market in the chemical sector.

The paper segment is expected to grow at a significant rate. The pulp and paper industry is anticipated to grow positively as a result of rising demand for packaging products that are biodegradable and environmentally friendly, greater demand for packaging, and the growing e-commerce market.

Impact of covid-19

Since the outbreak of the Covid-19 pandemic, the logistics companies have been on the front line with fully-stocked warehouses and ongoing trade. However, the global supply chain disruption due to the lockdown imposed in the majority of the world further narrowed down the merchandise trade growth in the said logistics segment. But one thing which was notably remarkable in this Covid outbreak was the immense growth of the e-Commerce sector which introduced the consumers to digital business models and smart and safe logistics parameters. There has been a significant rise in the instant or same-day delivery patterns in online purchases with the increase in Covid-19 cases worldwide. Consumers feel safe ordering things online and getting them delivered to their doorstep without visiting a crowded place. In the meantime, follow the Covid guidelines given by the governing authorities.

Some reports say that the e-Commerce sales have grown by 30% in the first and second quadrant of 2020, during which the Covid outbreak was humongous. The said period saw a significant rise in daily parcels globally which reached 9 million parcels a day from 5.3 million parcels a day in the pre-pandemic times. The only positive thing the covid-19 pandemic did was to the e-Commerce industry. They generated a lot of revenue through the online selling portals and gained the consumers' trust by delivering their goods safely to their doorstep.

The global market of last mile delivery has seen a noteworthy increase in revenue with a sudden rise in delivery services during the pandemic. Many key players in the industry are planning to improvise and connect to more customers through safe and efficient delivery services. Even after the Covid-19 outbreak, the online sales and e-Commerce platforms are expected to keep their rising momentum in the global last mile delivery market growth with the increase in the online shopping trends and safe and sound fast delivery options.

Recent Developments

• In January 2022, JERA and Mitsubishi Heavy Industries initiated a pilot project to develop a novel technology to increase the co-firing rate of ammonia in coal-fired boilers.
• In March 2022, Mitsubishi Power received an order for 2 H-25 gas turbines from Uzbekistan for district heating purposes.