Industrial Boilers Market Size, Share & Trends Report

Industrial Boilers Market Size, Share & Trends Analysis Report By Application (Chemicals & Petrochemicals, Paper & Pulp, Food & Beverages), By Fuel, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Dec, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-3-68038-819-0
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 150

Report Overview

The global industrial boilers market size was valued at USD 14.3 billion in 2019 and is expected to expand at a compounded annual growth rate (CAGR) of 3.5% over the forecast period. Rising demand for clean energy in the chemical sector coupled with the surging investments towards the expansion of existing manufacturing facilities is expected to drive the market over the coming years.

China industrial boilers market size, by fuel, 2016 - 2027 (USD Million)

Expansion of existing refineries, growing replacement of conventional heating systems with energy-efficient systems, and increasing government initiatives towards the expansion of key economic sectors are anticipated to surge the demand for industrial boilers over the forecast period. In addition, stringent government norms to reduce carbon emissions are expected to further increase product demand over the next seven years.

Steel has very high tensile strength along with the ability to withstand high temperatures and pressure, which makes it durable and long-lasting. In addition, steel boiler plates can be easily welded and converted into different shapes, which make them a desirable raw material in the manufacturing process of industrial boilers. Declining steel prices are expected to reduce raw material costs, thereby boosting product demand over the forecast period.

Manufacturing of industrial boilers involves a variety of skills and unique manufacturing practices. It requires facilities for heat treatment, welding, casting, forming, metal removal, and a wide range of destructive and non-destructive testing. In the United States, boilers account for 37.0% of the total energy consumption in the industrial sector. New industrial boilers running on natural gas, coal, oil, and biomass can increase energy efficiency by 85.0%.

Industrial boiler manufacturers face a long list of supply chain challenges including increasing demand variability, intensifying global competition, the stringency of environmental regulatory compliance, increasing human and nature-based risks, and inventory proliferation. COVID-19 has created new challenges that are encouraging manufacturers to innovate their supply chain at a faster rate.

The story of emission decline has largely been one of the most important environmental goals for developed nations. As a result, governments across the globe have enacted policies to close coal plants and encourage renewable power plants over the coming years. In addition, the countries are also targeting other industrial sectors that make up a majority of emissions, thereby restricting the growth of the market for industrial boilers over the forecast period.

Fuel Insights

The oil and gas segment dominated the market for industrial boilers and accounted for the largest revenue share of 37.4% from 2020 to 2027. The primary boiler fuels used in the industrial sector are gas, oil, and coal. A wide range of fuels is used in industrial boilers to produce steam in order to carry out the manufacturing processes. Fossil fuel includes tar sands, bitumen, and coal among others; while non-fossil fuel includes wind, solar, and propane.

Natural gas is the most common type of industrial boiler fuel used as it is relatively inexpensive and readily available. Like propane, the energy density of natural gas is low in comparison to NO2 diesel and is less than half of the fuel oil energy density. Natural gas is easy to transport and burns easily, hence it is widely used in industrial settings.

Industrial boilers that operate on coal have lower capital and operational costs. However, coal produces large amounts of waste in the form of fly or bottom ash which requires treatment before releasing back to the environment. Most industrial boilers run on crushed coal, as it offers higher efficiency compared to large coal clumps.

The biofuel industrial boilers use wood as a fuel. The wood comes in the form of recycled wood, combustible plant material, corn husks, wood construction debris, wood chips, pellets, and logs. The biggest advantage of using biomass industrial boilers is that the fuel comes from a renewable source. However, biofuels are expensive and have the least energy density of all fuels.

Application Insights

The chemicals and petrochemicals segment dominated the market and accounted for the largest revenue share of 34.0% in 2019. The food, textile, and automotive industries are increasingly outfitting their facilities with a modular industrial boiler system, as all of these industries are not typically running in a non–stop fashion and it is important to have equipment that can be switched off/on as required.

Breweries also require controlled temperatures for brewing the ingredients in a particular manner to obtain the desired flavor. In order to ensure controlled temperature, the water is heated at a specific temperature with the help of steam heating. In addition, breweries need large quantities of steam at few instants and small amounts otherwise. In order to achieve this, various micro and craft breweries are shifting toward modular and small boilers for their brewing processes.

Global industrial boilers market share, by application, 2019 (%)

Despite the decrease in the number of paper mills across the globe, a significant number of companies, such as U.S. Group Verso Corporation, are investing in restructuring paper mills by incorporating new energy-efficient and pollution-reducing equipment to meet the environmental and sustainability goals. This in turn is expected to create opportunities for industrial boiler manufacturers over the forecast period.

The steam obtained from the boilers is used in the automotive industry for vulcanization, sterilization, and other manufacturing processes. Furthermore, these systems are also used in textile manufacturing facilities to meet the demand for steam required to heat water for finishing and dyeing processes. Boilers are also used in the pharmaceutical industry for purifying, sterilizing, and medicinal drying. These products are highly precise and have a high-temperature control potential.

Regional Insights

Europe dominated the industrial boilers market and accounted for the largest revenue share of 34.1% in 2019. The International Energy Agency estimates that over the next 10 years, 85% of the growth in the global oil production will come from the U.S. Boilers are one of the most fundamental systems of a refinery. Some refineries purchase steam to meet the steam requirements of their processes and the rest have dedicated on-site boilers in order to meet their steam needs.

In the wake of COVID-19 and the collapse in crude oil prices, investments in the chemical sector in both advanced and emerging economies have slowed down considerably. Investments, which are under the early stages of development, along with the construction of new chemical facilities in 2020 have already witnessed delays as the pandemic situation is intensifying the uncertainty in the market, thereby restricting the market growth over the coming years.

According to the American Chamber of Commerce in China, more than 40.0% of the surveyed members are either thinking or have begun to shift their production outside of China, especially to the Southeast Asian countries. As a result, the region has become the world’s fifth-largest manufacturing economy as it offers low-cost production. Vietnam, in particular, has made great strides as a manufacturing hub and the sector now accounts for 25% of the country’s GDP.

The European Union is one of the leading chemical manufacturing and exporting regions in the world. Total chemical sales in the EU was around USD 667.06 billion in 2018. The construction sector is a major buyer of chemicals and is expected to grow owing to several factors such as increasing infrastructure investments and low-interest rates. Thus, the demand for chemicals is expected to be stable in the coming years, thereby having a positive impact on market growth.

Key Companies & Market Share Insights

Increasing demand for cost and energy savings is anticipated to drive the demand for highly efficient systems over the forecast period. In addition, the aging stock of industrial boilers installed in various industries, such as chemical, paper, refining, metals, and food, is expected to drive the demand for replacement of existing systems with highly efficient large capacity products.

Strategies adopted by market participants include new product developments, partnerships, and mergers and acquisitions. For instance, in September 2019, John Zink Hamworthy Combustion (JZHC) and The Babcock and Wilcox Company signed a partnership agreement for pairing the former’s Coen burners with Babcock and Wilcox Company’s water-tube package boilers. Some of the prominent players in the industrial boilers market include:

  • Thermax Ltd.

  • Siemens AG

  • Bharat Heavy Electricals Ltd.

  • Forbes Marshall

  • Mitsubishi Heavy Industries, Ltd.

  • Harbin Electric Corporation

  • Cheema Boilers Limited

  • IHI Corporation

  • AC Boilers

  • Dongfang Electric Corporation Ltd.

Industrial Boilers Market Report Scope

Report Attribute


Market size value in 2020

USD 13.6 billion

Revenue forecast in 2027

USD 18.8 billion

Growth Rate

CAGR of 3.5% from 2020 to 2027

Base year for estimation


Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Fuel, application, region

Regional scope

North America; Europe; Asia Pacific; Central and South America; Middle East & Africa

Country scope

U.S.; Canada; Italy; Russia; France; Spain; U.K.; China; India; Japan; South Korea; Brazil; UAE; Saudi Arabia

Key companies profiled

Thermax Ltd.; Siemens AG; Bharat Heavy Electricals Ltd.; Forbes Marshall; Mitsubishi Heavy Industries, Ltd.; Harbin Electric Corporation; Cheema Boilers Limited; IHI Corporation; AC Boilers; Dongfang Electric Corporation Ltd.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global industrial boilers market report on the basis of fuel, application, and region:

  • Application Outlook (Revenue, USD Million, 2016 - 2027)

    • Chemicals & Petrochemicals

    • Paper & Pulp

    • Food & Beverages

    • Metals & Mining

    • Others

  • Fuel Outlook (Revenue, USD Million, 2016 - 2027)

    • Oil & Gas

    • Fossil

    • Non-Fossil

    • Biomass

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S

      • Canada

    • Europe

      • France

      • U.K.

      • Russia

      • Italy

      • Spain

    • Asia Pacific

      • China

      • India

      • South Korea

      • Japan

    • Middle East & Africa

      • Saudi Arabia

      • UAE

    • Central & South America

      • Brazil

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