The industrial boilers market is estimated to be valued at USD 17.46 Bn in 2024 and is expected to reach USD 24.15 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031. The rising demand for steam and hot water across various industries such as chemical, refinery, paper, and food processing is driving the industrial boilers market.

Market Driver - Increasing Industrialization Globally, especially in Asia Pacific

As emerging economies around the world continue on a path of rapid industrialization, the demand for industrial boilers is expected to rise substantially. Various industries require steam generation at high temperatures and pressures to efficiently carry out their production activities.

India and China already have sizable industrial boiler markets due to their large industrial bases. Other Asian nations are also aiming to strengthen their manufacturing prowess through industrialization programs. Countries in Southeast Asia like Vietnam, Indonesia, and the Philippines have evolved as global manufacturing hubs in recent times, attracting large foreign investments. Similarly, economies in South Asia such as Bangladesh and Pakistan have shown strong industrial production growth, presenting new prospects for industrial boiler suppliers.

Overall, the Asia Pacific region accounts for over half of the total new industrial capacity additions occurring worldwide currently. Industries are establishing their manufacturing plants and regularly replace old industrial boilers with more efficient newer models. This will drive solid demand gains in the industrial boilers market.

Market Driver - Government Regulations on Harmful Emissions and Environmental Sustainability Initiatives

There is a growing global momentum towards reducing industrial carbon footprints and switching to cleaner, greener energy sources. Stringent environmental norms formulated by regulatory agencies around the world are compelling industries across various sectors to overhaul their boiler operations. Legislative drivers like emission standards for particulate matter, sulfur and nitrogen oxides along with energy efficiency mandates are significantly affecting the boiler upgrade and replacement market landscape.

Many countries in Europe and North America already have well-established emission control frameworks in place. Meanwhile, stricter regulations are also being adopted in the major industrializing economies of Asia, Middle East, and Africa.

Several industrial plants are upgrading to biomass, biogas, or hybrid boilers so they can reduce dependence on fossil fuels for steam generation over the long-term. Government-led incentives and advocacy are complementing such decentralization efforts, strengthening the business case for advanced boiler technologies respecting environmental sustainability.

Market Challenge - High Initial Costs for Advanced Industrial Boilers Limiting Adoption Rate in Smaller Industries

One of the major challenges currently faced by the industrial boilers market is the high initial capital costs associated with purchasing and installing advanced boiler systems. More efficient industrial boiler technologies such as condensing boilers provide significant cost savings over the lifetime of the product through lower fuel and maintenance expenses. However, the upfront expenditure required can be prohibitive for small- and medium-sized industrial facilities with tighter capital budgets.

For smaller manufacturers and producers, tying up large funds in new capital assets is a significant risk that affects cash flow and return on investment calculations. Costs of advanced systems also mean that replacements are happening less frequently compared to older inefficient industrial boilers. OEMs will need to focus on innovative financing solutions, longer payment periods, and leasing options to increase adoption of new technologies in smaller industries.

Market Opportunity - Increasing Demand from the Chemical and Food & Beverage Industries

A major opportunity area for growth in the industrial boilers market is the rising need for steam and heat generation across key process industries. The chemical and food & beverage sectors in particular have seen increased demand that is driving industrial boiler replacement and new installation projects.

Driven by volume growth, capacity expansions, and manufacturing facility additions globally, these industries require reliable boiler systems to provide thermal energy for various production and manufacturing applications. Similarly, packaging trends such as increased consumer snacks and ready meals are fueling expansion of food manufacturing capacities around the world.

Demand for high efficiency and flexible industrial boilers tailored to their process needs is also expected to rise significantly. Leading players in the industrial boilers market are well-positioned to capitalize on this demand by offering specialized product lines.

Focus on energy efficiency and emissions control: Players like Doosan Heavy Industries, Mitsubishi Hitachi Power Systems, and Babcock & Wilcox have focused heavily on developing boiler technologies that improve energy efficiency and reduce emissions.

Leverage bundling of products and services: Major players often bundle boilers with auxiliary equipment, services and performance contracts to provide comprehensive solutions. For example, Siemens bundles its boilers with equipment like burners, controls and insulation material.

Focus on niche technologies: Players target niche areas like supercritical boilers, circulating fluidized bed boilers etc. that offer higher margins. For example, Babcock & Wilcox has leading market share in CFB boilers aided by technological edge and past experience in installations globally.

Expand geographically: Players like Mitsubishi, Doosan and Johnston have expanded globally through strategic acquisitions, partner associations and by establishing local manufacturing and service centers.

Insights, By Type: Increased Adoption of Energy Efficient Technologies

In terms of type, water tube contributes 72.5% share of the industrial boilers market in 2024. This is owning to consistent growth in demand for energy efficient industrial boilers across various process industries. Water tube boilers offer higher thermal efficiency compared to fire tube boilers due to their design of multiple smaller diameter water tubes surrounded by hot flue gases.

With growing environmental regulations on carbon emissions, industries are increasingly adopting energy efficient technologies to reduce energy consumption and operational costs. Water tube boilers meet this need well as they can achieve efficiencies as high as 95% compared to just 80-85% for fire tube boilers.

The design also makes water tube boilers suitable for applications requiring high steam pressure and high steam and water temperatures compared to fire tube boilers. This wide applicability along with the efficiency benefits has been a major driver for the leading share of water tube boilers in the industrial boilers market.

Insights, By Application: Growing Demand from Chemical Manufacturing Drives Adoption in Chemicals & Petrochemicals Segment

In terms of application, the chemicals & petrochemicals segment contributes 35% share of the industrial boilers market in 2024. This is due to the robust growth of the chemical manufacturing industry globally. Industrial boilers are extensively used in the production of various chemicals, polymers, fertilizers, and petroleum products for different heating applications.

Rapid industrialization coupled with rising consumerism has significantly boosted the demand for a wide variety of chemicals from sectors like construction, automotive, pharmaceuticals, agriculture, and more. This has provided a strong impetus to global chemical production.

With the expansion of manufacturing capacities, there is a growing need for process heating equipment like boilers. The chemicals & petrochemicals industry consumes a major portion of energy globally. Industrial boilers are critical for achieving process heating efficiently and meeting stringent energy regulations. These factors have made the segment highly lucrative for industrial boilers market players.

Insights, By Fuel Type: Increased Reliance on Oil and Natural Gas Drive Growth in Oil & Gas Fuel Type Segment

In terms of fuel type, the oil & gas segment dominates the industrial boilers market. This is due to rising preference for oil and natural gas as reliable and effective fuel sources. Various industries have shown higher inclination towards oil and natural gas boilers as they offer cost-effective operation and easier availability of fuel in most regions.

Growing natural gas reserves across regions have encouraged industries to invest in gas-fired boilers. Oil and natural gas based boilers are highly suitable for large thermal power and cement plants requiring uninterrupted process heating. Implementation of oil and gas based district heating systems has further stimulated sales. The adoption of oil and gas as sustainable fuel alternatives for boiler is projected to drive ongoing demand in this segment in the industrial boilers market.

• Asia Pacific holds the largest share in the industrial boilers market, accounting for 41.91% share in 2023.
• Chemical & Petrochemical industry held a 35% share in the industrial boilers market in 2023, driven by the demand for high-quality steam in the production of various chemicals.
• Bosch Industriekessel GmbH is known to provide water boilers up to 38 MW for large food & beverage companies like Coca-Cola, Nestle, and Daimler, showcasing the importance of boilers in the industrial sector.
• The Asia Pacific region is a major driver of the industrial boilers market, thanks to rapid industrialization and the increasing demand from food & beverage, textiles, and consumer goods industries. China's and India's growing manufacturing sectors are key contributors to the region's market dominance. The growing focus on energy efficiency and sustainability in Europe is fostering new opportunities in the region. Additionally, government regulations on harmful emissions are driving the demand for cleaner and more efficient industrial boilers.

The major players operating in the industrial boilers market include AMEC Foster Wheeler PLC, Siemens AG, Thermax Limited, Harbin Electric Corporation, Bharat Heavy Electricals Limited, General Electric Company, Dongfang Electric Corporation Ltd., Babcock & Wilcox Enterprises, Inc., IHI Corporation, and AC Boilers S.P.A.

• In December 2017, Mitsubishi Heavy Industries Marine Machinery & Equipment Co. received an order for 200 boilers from China for business development, showcasing their expanding market presence.

• By Type
  • Water Tube
  • Fire Tube
• By Application
  • Chemicals & Petrochemicals
  • Food & Beverages
  • Paper & Pulp
  • Metals & Mining
  • Others
• By Fuel Type
  • Oil & Gas
  • Biomass
  • Fossil
  • Non-Fossil
• By Technology
  • Condensing
  • Non-Condensing