Industrial Boilers Market Report Scope & Overview:

The Industrial Boilers Market Size was valued at USD 13.80 Billion in 2023 and is expected to reach USD 20.49 Billion by 2032 and grow at a CAGR of 4.52% over the forecast period 2024-2032.

The Industrial Boilers Market report presents an in-depth analysis of major industry trends, drivers of growth, challenges, and technological developments that influence the market. It identifies changing demand across industries like chemicals, food processing, and pulp & paper, analyzing changes in fuel consumption, environmental regulations, and emission regulations.  It also delves into the impact of international energy transition and decarbonization efforts. Strategic evolution, innovation pipelines, and policy effects are also discussed to enable stakeholders to make sound investment, production, and growth decisions.

The U.S. Industrial Boilers Market was worth USD 2.19 billion in 2023 and is expected to grow to USD 3.12 billion by 2032, at a CAGR of 4.05% from 2024 to 2032.The U.S. industrial boilers industry is fueled by the nation's robust manufacturing industry, growing energy efficiency requirements, and expanding investment in clean energy technologies. Top-end-use applications like food & beverage, chemicals, and pulp & paper still require high-capacity, low-emission boilers to support production and environmental objectives. More stringent EPA emissions regulations and incentives for the use of cleaner fuels are driving the transition away from coal and to natural gas and biomass-fired boilers.

Industrial Boilers Market Dynamics

Key Drivers:

• Increasing Demand for Environment-Friendly Products across Industries Drives the Industrial Boilers Market Growth.

The increasing focus on sustainable and energy-efficient industrial processes has tremendously increased the demand for environmentally friendly boiler systems. With industries looking for ways to minimize carbon footprints as well as adhere to strict emission standards, the use of low-emission boilers with cleaner fuels such as natural gas, biomass, and hybrid systems is gaining momentum. Key end-use industries, such as chemicals, food processing, and pulp & paper, are increasingly adopting greener technologies. This is in line with government policies and incentives for the adoption of clean energy, thus creating robust momentum for the industrial boilers market. Companies are also developing to provide boilers with enhanced thermal efficiency and a lower environmental footprint.

Restrain

• Government's Stringent Emission Control Regulations Create Compliance Burden and Restrain Industrial Boilers Market Growth.

Though regulations on the environment promote the adoption of efficient boilers, they also pose huge compliance issues for producers and consumers. Strict regulations imposed by agencies such as the U.S. Environmental Protection Agency (EPA) necessitate expensive upgrades or the replacement of old boiler systems. Small industries and old facilities cannot afford to meet these regulatory requirements, which may restrict their ability to invest and hinder market expansion. Furthermore, the requirement of ongoing monitoring, reporting, and installation of emission-reducing technologies increases operational expenses. Such costs can deter boiler installation or modernization, especially in emerging economies with poor financial and technical capabilities, serving as a significant market barrier.

Opportunities

• Industrialization in Emerging Economies Increases Promising Growth Opportunities for Industrial Boilers Market Players Worldwide.

Sustained industrialization in emerging economies like India, China, Brazil, and Southeast Asia provides tremendous growth opportunities for the industrial boiler market. Growing manufacturing hubs, rising power and process heating requirements, and favorable government policies towards infrastructural development are fueling demand for industrial boiler installations. These markets are experiencing active growth in industries such as chemicals, food processing, and textiles, which are highly dependent on industrial boilers. Moreover, foreign direct investments and the relocation of global production hubs to low-cost economies are further driving the demand for efficient and scalable boiler systems. Companies are accessing these markets through partnerships and localization strategies.

Challenge

• Unstable Fuel Prices and Supply Chain Volatility Challenge Cost-Effective Operation of Industrial Boilers Across Multiple Sectors.

One of the key issues confronting the industrial boilers market is fuel price volatility and global supply chain disruptions. The dependence on fuel sources like oil, natural gas, and biomass renders operating costs extremely vulnerable to market forces. Geopolitical tensions, trade restrictions, and natural disasters also affect fuel availability and transportation logistics, making procurement and planning more difficult. These uncertainties impose themselves on the budgeting and investment choices of firms, particularly small and medium-sized enterprises. Moreover, transitioning between fuels for cost control has the tendency to necessitate retrofitting equipment at an additional capital cost.

Industrial Boilers Market Segments Outlook

By Application

The chemicals & petrochemicals application dominated the Industrial Boilers Market with the highest revenue share of 31.62% in 2023, as this industry demands continuous steam and heat on a large scale in processing units. Prominent players like Cleaver-Brooks and Miura America have launched high-capacity, low-emission boilers specifically suitable for chemical processing facilities. For example, Miura's LX Series has quick steam production and modular design scalability, well-suited to petrochemical processes. Advanced boiler capital and innovation are driven by the segment's rigorous energy efficiency and safety requirements. The growth supports the segment's leadership, adding greatly to market expansion through expanded boiler installations in plants worldwide.

The Paper & Pulp segment is expected to expand at the highest CAGR of 6.32% due to growing production needs and sustainability efforts. The industry largely depends on industrial boilers for process steam and cogeneration. Organizations such as Valmet and ANDRITZ have introduced superior recovery and biomass boilers that recover more energy and lower emissions. Valmet's upgrade projects of recovery boilers in North America and Asia-Pacific are focused on enhancing thermal efficiency with compliance with environmental regulations. Increasing global consumption of paper hygiene products and packaging is fueling capacity expansions, thereby increasing demand for boilers.

By Fuel

Fossil fuel dominated the Industrial Boilers Market in 2023 by commanding a dominant 32.21% market share in revenues, fueled by the widespread use of coal and oil-fired boilers across power generation and heavy industries. Even with international decarbonization objectives, fossil fuels continue to play a central role owing to infrastructure compatibility as well as substantial energy output. Key players such as GE Power and Mitsubishi Power continued to innovate fossil-fuel boiler technologies in accordance with emissions regulations. In 2023, Babcock & Wilcox introduced improved combustion control systems for coal units, enhancing efficiency. These technologies aid continuous operations in heavy energy-consuming industries, consolidating fossil fuels' dominant position in areas with lagging renewable shifts.

The Biomass segment is recording the highest growth in the Industrial Boilers Market, projected to have a CAGR of 6.31% over the forecast period. Increased focus on carbon-neutral power and high volumes of agricultural waste power this growth. Thermax and Hurst Boiler are among the companies launching biomass-fired solutions on a regular basis—Thermax launched a modular biomass boiler in 2023 for agro-processing units. On the other hand, ANDRITZ designed innovative biomass gasification systems to minimize particulate emissions. These innovations are in line with the world's sustainability objectives as well as increasing demand in the food, pulp, and textile industries. Government support and reduced lifecycle emissions make biomass more appealing as a fuel option for industrial heat.

By Boiler Type

As of 2023, the fossil segment maintained the largest revenue position of 63.66% in the market for industrial boilers due to mass application in chemical, refinery, and power-generation industries. Natural gas and coal-based fossil-fueled boilers continue to enjoy popularity due to their high efficiencies and reliability as continuous industrial running units. Various companies such as Cleaver-Brooks and General Electric introduced sophisticated high-capacity fossil fuel boilers with efficient emission control features. In 2023, Babcock & Wilcox launched advanced boiler retrofit products to aid fossil fuel systems in achieving lower NOx emissions. Fossil boilers, even amid environmental concerns, remain to cater to high industrial energy needs and continue their robust market presence.

The segment of water-tube boilers is expected to expand at the highest CAGR of 4.89% during the forecasting period due to increased demand for high-pressure, high-capacity steam production in heavy industries like petrochemicals, power, and pulp & paper. Water-tube boilers provide higher efficiency and are used for large-scale, continuous operation. Babcock & Wilcox has led this segment with its ClimateBright hydrogen-compatible boilers, while Thermax introduced high-capacity bi-drum water-tube boilers that are customized for industrial-scale power and process heat. This advancement is in accordance with worldwide decarbonization and efficiency objectives, and water-tube boilers have become a key to large industrial installations and spurred segment growth.

Industrial Boilers Market Regional Analysis

In 2023, the Asia Pacific region led the industrial boilers market, with the highest revenue share of 40.15% and the highest growth rate of 5.47%. This is due to accelerated industrialization, growing manufacturing industries, and rising energy needs in nations such as China, India, and Japan. Business entities like Thermax Limited and Mitsubishi Heavy Industries rolled out sophisticated boiler systems with better energy efficiency and reduced emissions to serve local needs. Moreover, IHI Corporation formulated intelligent boiler technologies with the implementation of IoT for real-time tracking. All these developments in association with favoring government schemes and infrastructure spending comprehensively drive the region's market expansion.

Industrial Boilers Market Key Players are:

• Parker Boiler – (TT Series Steam Boiler, WH Series Hot Water Boiler)

• Cleaver-Brooks, Inc. – (CBEX Elite Firetube Boiler, ClearFire-CE Condensing Boiler)

• Thermax Inc – (Thermomatic Oil & Gas Fired Boiler, Revomax Non-IBR Boiler)

• Weil-McLain – (Evergreen High-Efficiency Boiler, SlimFit Commercial Boiler)

• Fulton Boiler Works, Inc. – (VMP Vertical Multi-Port Boiler, Endura+ Condensing Hydronic Boiler)

• General Electric – (GE Tower Boiler System, GE Ultra-Supercritical Steam Boiler)

• Babcock & Wilcox Enterprises, Inc. – (FM Water-Tube Package Boiler, SPIG Dry Cooling System)

• BURNHAM COMMERCIAL BOILERS – (Series 4S Boiler, MPC Series Modular Packaged Boiler)

• Hurst Boiler & Welding Co, Inc. – (Scotch Marine Series 400 Boiler, Hybrid UF Waste Heat Boiler)

• Bryan Steam LLC – (CL Series Steam Boiler, RW Series Hot Water Boiler)

• Superior Boiler – (Apache 2-Pass Dryback Boiler, Mohican 4-Pass Wetback Boiler)

• Vapor Power International LLC – (Electrode Boiler, Circulating Steam Generator)

• Siemens AG – (Boiler Control BCS, SPPA-T3000 Power Plant Automation System)

• Cochran Ltd – (ST28 Series Steam Boiler, Borderer Hot Water Boiler)

• John Wood Group plc – (Boiler Life Extension Services, Waste Heat Boiler Systems)

• Vattenfall AB – (Electric Steam Boiler, Heat Recovery Boiler Systems)

Recent Trends

• September 2023 – Thermax Inc invented Revomax Plus – High-Efficiency Non-IBR Boiler Designed for small and medium enterprises, this unit delivers greater thermal efficiency and integrates emissions control technology for compliance with India’s new norms.

• August 2023 – Weil-McLain invented ECO Tec Series 2 High-Efficiency Boiler The new model features advanced controls and enhanced energy savings for residential and light commercial markets.