Industrial Boilers Market Size to Rise USD 25.21 Billion By 2032

Published Date : 07 Mar 2024

The global industrial boilers market size surpassed USD 16.67 billion in 2023 and is expected to rise around USD 25.21 billion by 2032, expanding at a CAGR of 4.70% during the forecast period from 2023 to 2032.

Industrial Boilers Market Size and Growth Rate From 2023 To 2032

Market Overview

The industrial boilers market is a sizeable and expanding industry that serves various industries, including power generation, food and beverage, chemicals, oil and gas, and boiling manufacturing. These boilers generate steam for heating, cooling, and powering machinery. The market continues to experience steady growth due to the increasing demand for efficient and reliable energy systems.

The industrial boilers market categorizes boilers based on their water and heat transfer mechanisms into three segments: fire tube, water tube, and others. Fire Tube Boilers - Hot combustion gases flow through tubes inside a water-filled shell. They are Popular due to their simplicity, affordability, and suitability for moderate steam or hot water production. Fire tube boilers are Common in food and beverage, textile, and chemical industries. They have limited size, pressure capabilities, and higher emissions than water tube boilers.

Water flows through pipes enclosed by fierce flames in water tube boilers, resulting in a remarkable transformation into steam. These fantastic devices are designed for high-pressure, high-capacity performance, making them indispensable for energy-intensive industries such as power plants, refineries, and large-scale manufacturing facilities. Their environmentally friendly nature is a bonus, as they emit fewer pollutants. However, their intricate design and powerful capabilities require a higher upfront cost and skilled technicians to ensure smooth operation.

Industrial boilers are built to handle higher pressure than residential or commercial boilers, making them the prime choice for converting water into steam. Despite their popularity, the high maintenance cost is a hurdle for market growth. On the other hand, the movement towards protectionist policies by global trading economies is creating a more robust domestic manufacturing sector, and international players are presented with the opportunity to set up manufacturing and supply chains in these emerging economies.

Regional Snapshot

Europe has a stable and developed industrial base with a mature industrial boilers market, and it dominated the market in 2023. Demand for efficient and low-emission boilers is growing due to strict environmental regulations and rising energy costs. In response, condensing and biomass-fueled boiler models are gaining popularity. The region predominantly uses natural gas, coal, and biomass as fuel sources. However, there is an increasing emphasis on exploring and integrating renewable energy options like solar and geothermal energy into boiler systems.

Well-known European boiler manufacturers, such as Viessmann Group and Babcock & Wilcox Enterprises, hold a dominant market position and play a significant role in driving innovation and shaping market trends.

Asia Pacific is expected to be the fastest-growing region during the forecast period. Asia. The large population, government support, and efforts to increase energy efficiency and reduce carbon emissions in the region contribute to the growth of the industrial boilers market in Asia Pacific. China is a crucial player in the market, with government policies promoting renewable energy and energy efficiency.

Industrial Boilers Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 16.67 Billion
Projected Forecast Revenue by 2032 USD 25.21 Billion
Growth Rate from 2023 to 2032 CAGR of 4.70%
Largest Market Europe
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Market Dynamics


Rapid industrialization

In rapidly industrializing areas, the surge in factories and power plants leads to a high demand for steam. This fuels the growth of the industrial boilers market as various industries depend on boilers for crucial processes. This expansion allows manufacturers to meet specific requirements but also challenges them to prioritize sustainable practices instead of short-term solutions. The future of this market in these regions depends on achieving a balance between fueling progress and ensuring a sustainable future by adopting cleaner technologies and investing in education and training programs for the workforce.

Rising demand for the healthcare sector is expected to drive growth

Hospitals, clinics, and other medical facilities use boilers for various purposes, such as sterilizing medical instruments, heating indoor spaces, and cleaning. Governments around the world are prioritizing the improvement of healthcare infrastructure, which is leading to increased investment in the healthcare industry. The growing demand for new boiler installations and upgrades to existing ones contributes to the overall growth of the industrial boilers market.

Upgrading industrial boilers and traditional boilers

Efficient industrial boiler units are seeing increased adoption rates in numerous industries due to their safe operation and low maintenance needs. This trend is anticipated to boost product demand. Ongoing investments in the industrial sector focused on advancing heating facilities and replacing traditional boilers with higher capacity units will contribute to market demand growth. The industry will experience value appreciation as industrial infrastructure is consistently upgraded and highly efficient boiler units are widely utilized across industries.


Slow adoption of new technology

The slow adoption of modern boiler technologies in some regions is largely due to a lack of awareness about their benefits. This knowledge gap limits industrial boilers market growth by restricting the number of potential customers. Industries may be reluctant to invest in advanced boiler systems without a clear understanding of the advantages they offer, thus hindering overall market expansion.


Emerging market potential

Rapid industrialization in regions like Africa and Southeast Asia creates new markets for boiler manufacturers. Adapting product offerings to local needs and developing cost-effective models can unlock growth potential in these markets.

Renewable energy integration

Integrating renewable energy sources like biomass and solar thermal into boiler systems offers cleaner and more sustainable steam generation. - Manufacturers who adopt these technologies gain a competitive advantage and appeal to environmentally conscious customers.

Increasing demand for food and beverages and petrochemicals & chemicals

The growing use of industrial boilers in chemical, food, beverage, and mining industries is expected to boost the market. The rising population and increased disposable income drive manufacturers to build more factories to meet food, beverages, and consumer goods demand. Growing investments in various industries worldwide escalate the need for industrial boilers. The chemical industry's significant contribution to the global economy emphasizes the increased demand for boilers in this sector. The growing demand in developing countries' chemical and petrochemical industries is expected to impact market growth significantly.

Recent Developments

  • In December 2022, Bharat Heavy Electricals (BHEL) entered a Technology License Agreement with Sumitomo SHI FW of Finland to produce supercritical and subcritical Circulating Fluidized Bed Combustion (CFBC) boilers. This collaboration enables BHEL to engineer and sell CFBC boilers domestically and internationally, leveraging CFBC technology's advantages, including fuel flexibility, reduced emissions, and bio-mass co-firing capability.
  • In November 2022, Babcock & Wilcox secured a contract exceeding USD 24 million to provide advanced control technologies, two industrial package boilers, and auxiliary equipment for a petrochemical processing plant in North America. This agreement reflects B&W's expertise in delivering comprehensive solutions to enhance efficiency and reliability in industrial processes.
  • In August 2022, Thermax Babcock & Wilcox Energy Solutions is designed to provide flexibility in energy input sources. It effectively addresses the challenges associated with fuel availability, which geopolitical shifts, fluctuating fuel prices, and environmental concerns can influence. With Flex Source, organizations can seamlessly switch between various fuel sources, ensuring uninterrupted operations and resilience in their energy supply.

Key Market Players

  • 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
  • AC Boilers S.P.A

Segments Covered in the Report

By Type

  • Fire Tube
  • Water Tube
  • Others

By Function

  • Hot Water
  • Steam

By Fuel Type

  • Oil & Gas
  • Biomass
  • Fossil
  • Non-Fossil

By Boiler Horsepower

  • 10-150 BHP
  • 151-300 BHP
  • 301-600 BHP

By Technology

  • Condensing
  • Non-Condensing

By Steam Pressure

  • High Pressure Boilers
  • Medium Pressure Boilers
  • Low Pressure Boilers

By Steam Usage

  • Process Boilers
  • Utility Boilers
  • Marine Boilers

By Furnace Position

  • Externally Fired Boilers
  • Internally Fired Boilers

By Shell Axis

  • Horizontal Boilers
  • Vertical Boilers

By Tubes In Boilers

  • Multi-Tube Boilers
  • Single Boilers

By Water And Steam Circulation In Boilers

  • Forced Circulation Boilers
  • Natural Circulation Boilers

By Application

  • Paper & Pulp
  • Food & Beverages
  • Chemicals & Petrochemicals
  • Metals & Mining
  • Others

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