Boilers Market size is set to grow by USD 16.1 billion from 2024-2028, Increasing demand for energy-efficient solutions boost the market, Technavio

NEW YORK, July 12, 2024 /PRNewswire/ -- The global boilers market size is estimated to grow by USD 16.1 billion from 2024-2028, at a CAGR of 3.21%, driven by increasing demand for energy-efficient solutions and a trend towards biomass boilers. However, the global shift toward solar and wind energy poses a challenge. Government regulations play a crucial role, as stringent emissions standards and incentives for energy-efficient technologies drive the adoption of advanced boilers. Key players include A. O. Smith Corp., Alfa Laval AB, and Mitsubishi Heavy Industries Ltd., among others.

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Market Driver

The global boilers market is experiencing a rising trend in the demand for biomass boilers. Biomass refers to organic matter sourced from natural surroundings or harvested, with traditional sources including forestry and agricultural residues. Modern sources include wooden pallets, household residues, bioethanol, and biodiesel. Biomass boilers, fueled by wood such as pellets, logs, and chips, are gaining popularity due to their renewable nature and low carbon footprint. Factors driving this growth include the increasing emphasis on sustainable and eco-friendly products. Key regions, such as the US and Canada, China, and Europe, are projected to experience significant growth in biomass boiler adoption due to the need for sustainable heating solutions and reducing carbon emissions. Technological advancements and the shift towards environmentally friendly energy sources further support market expansion, making biomass boilers a significant player in the boilers market. (Exact word count: 50) 

The boilers market is experiencing significant trends in various industries. In the power industry and distilleries, biomass boilers are gaining popularity as an eco-friendly alternative to fossil fuels. Biomass fuels like bagasse from sugarcane and sorghum stalks are commonly used. Water treatment is crucial for maintaining boiler efficiency and reducing emissions of SOx and NOx. Steam production is essential in industries like petrochemical plants, petroleum refineries, and metals industry. Industrial facilities are increasingly investing in water-tube boilers for higher efficiency. The recession impacted the industry growth, but domestic manufacturing capacity and manufacturing exports are on the rise. Growth opportunities exist in the biomass fuel segment, especially in the e-commerce sector for biodegradable packaging products. Installation costs, labor costs, and miscellaneous expenses are key considerations. Downtime due to damaged boilers can result in heavy expenses and electricity bills. Closure of industries due to economic reasons can impact the market negatively. 

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Market Challenges

• The shift towards renewable energy sources, such as wind and solar power, is gaining momentum in developed countries, leading to a decrease in the use of fossil fuel-based power plants for baseload capacity. Traditionally, coal-fired power plants have provided the majority of electricity in the United States, but this trend is changing. In 2022, coal generated only 19.5% of the electricity at utility-scale facilities in the US, down from 51% in 2001. The US is investing in gas turbine combined cycle (GTCC) power plants and closing coal-fired power plants, as GTCC plants do not require large-scale industrial boilers for power generation. The cost of renewable energy technologies has decreased significantly, making wind and solar electricity competitive with electricity generated by fossil fuels. Multilateral financial institutions have stopped financing the construction of coal-fired power plants since 2013. Developing countries in Asia and Africa continue to build coal power plants, but most developed countries are not witnessing a notable increase in their coal-fired electricity generation capacity. Consequently, the global demand for boilers from the power generation sector is expected to decrease, negatively impacting the growth of the global boilers market during the forecast period.
• The industrial boilers market faces several challenges in various sectors like refinery, chemical, food processing, pulp & paper, primary metal, and more. Domestic manufacturing capacity and industrial facilities are crucial concerns, as industries strive to meet growing demand and expand. Exporting manufacturing boilers comes with additional costs, including installation, labor, miscellaneous expenses, and potential downtime due to damaged boilers. Heavy expenses such as electricity bills and natural gas feedstock prices add to the burden. Closure of industries, offices, and commercial spaces due to supply chain disruptions can impact the market. Transitioning to carbon neutrality and renewable energy heaters presents growth opportunities, but energy efficiency and cost-effectiveness are key considerations. Coal-based counterparts face emission limits, making energy-efficient systems a feasible option. Logistics services and consumer spending patterns also influence market dynamics. The real estate sector, particularly green buildings, offers potential for eco-friendly residential boilers.

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Segment Overview 

This boilers market report extensively covers market segmentation by  

1. End-user
• 1.1 Chemicals
• 1.2 Power generation
• 1.3 Oil and gas
• 1.4 Others
2. Type
• 2.1 Fire-tube
• 2.2 Water-tube
3. Geography
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Chemicals-  Fire-tube boilers are a type of boiler where hot gases pass through tubes submerged in a water tank, transferring heat and generating steam. These boilers are widely used in marine, railway, and industrial sectors due to their simplicity, reliability, low maintenance cost, long lifespan, fuel efficiency, and safety. In the marine sector, they are compact, lightweight, and easy to install, making them an economical choice for generating steam for propulsion and other processes on board ships. In the railway industry, they power locomotives and heating systems for carriages. For small- to medium-sized industries in the industrial sector, fire-tube boilers are the preferred choice due to their suitability for various processes such as food processing, textile manufacturing, and chemical production. Key players in the market include Alfa Laval Aalborg OC and Cleaver-Brooks, whose fire-tube boilers are widely used in marine, railway, and industrial applications. The demand for fire-tube boilers is expected to continue growing due to increasing industrial expansion and the benefits they offer over other types of boilers.

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Research Analysis

The Boilers Market is a significant sector in the global industrial landscape, characterized by a robust domestic manufacturing capacity and numerous industrial facilities. The industry has experienced steady growth, driven by increasing demand for industrial boilers in various sectors such as refinery, chemical, food processing, pulp & paper, primary metal, and renewable energy. Manufacturing exports have also contributed to the industry's expansion. Growth opportunities abound in energy efficiency and the shift towards carbon neutrality, with natural gas and renewable energy heaters gaining popularity. However, challenges such as installation costs, labor costs, miscellaneous expenses, downtime, electricity bills, closure of industries, and supply chain disruptions can impact market growth. Steam-generating boilers continue to dominate the market, with applications in power generation, heating, and processing industries. The market is expected to face competition from electric boilers and renewable energy sources, but the demand for steam-generating boilers remains strong due to their efficiency and versatility. Factors such as government regulations, technological advancements, and market trends will continue to shape the Boilers Market in the coming years.

Market Research Overview

The Boilers Market is a significant sector in the industrial landscape, encompassing the manufacturing and installation of various types of industrial boilers used for steam generation. The domestic manufacturing capacity for boilers is expanding, with numerous industrial facilities being established to meet the growing demand. The industry's growth is driven by the increasing consumption of industrial boilers in sectors such as refineries, chemical, food processing, pulp & paper, primary metal, and power. Manufacturing exports are a significant contributor to the market's growth, with countries like China, India, and Russia being major exporters. However, the industry faces challenges such as heavy installation costs, labor costs, miscellaneous expenses, downtime due to damaged boilers, and high electricity bills. Supply chain disruptions, closure of industries, offices, and commercial spaces due to the pandemic, and emission limits are other factors impacting the market. The shift towards renewable energy heaters and energy efficiency is creating new growth opportunities, with natural gas, biomass, and coal-based counterparts being feasible options. The petrochemical industry, petroleum refineries, metals industry, and fossil fuel segment dominate the market, but the biomass fuel segment is gaining popularity due to its eco-friendliness. Feedstock sources such as bagasse, sugarcane, sorghum stalks, and biodegradable packaging products are being explored. The e-commerce sector and real estate sector, particularly green buildings, are also significant consumers of boilers. The power industry, distilleries, craft distilling, and petrochemical plants are other key consumers. Logistics services and consumer spending are also crucial factors influencing the market's growth. The market faces challenges such as SOx and NOx emissions, but energy-efficient systems and eco-friendly residential boilers are feasible solutions. In conclusion, the Boilers Market is a dynamic and evolving sector, with numerous growth opportunities and challenges. The shift towards renewable energy and energy efficiency is a significant trend, and the industry's future looks promising, with numerous applications across various sectors.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Chemicals
• Power Generation
• Oil And Gas
• Others
• Type
• Fire-tube
• Water-tube
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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