U.S. Industrial Boiler Market Size, Share & Trends Analysis Report By Fuel (Fossil, Oil & Gas, Biomass), By Capacity, By End-use (Chemicals & Petrochemicals, Metals & Mining), And Segment Forecasts, 2020 - 2027

Report Overview

The U.S. industrial boiler market size was valued at USD 1.24 billion in 2019 and is expected to grow at a compounded annual growth rate (CAGR) of 2.8% from 2020 to 2027. The growing demand for boilers in the industrial sector including chemical and petrochemical, food and beverage, and pulp and paper is expected to drive growth over the forecast period. Rising demand for automation and control systems have urged manufacturers to start incorporating digital technologies in the industrial boilers industry. The incorporation of the Internet of Things (IoT) and advanced data analytics to manage boiler-related operations to reduce costs and improve product and service performance is expected to increase the demand for smart industrial boilers over the coming years.

The Environmental Protection Agency (EPA) has set national emission standards about air pollutants released by industrial boilers. Strict standards imposed to regulate harmful emissions to the air will result in the enhancement of existing products, which is further expected to boost the market. New and improved products are also expected to boost the adoption rate of industrial boilers over the forecast period.

The food processing sector is undergoing a period of rapid transformation in the U.S. In 2018, food and beverage production plants that converted raw agricultural materials into products for intermediate/final consumption accounted for 15% of the value of shipments from all the U.S.-based manufacturing plants. The rising demand for packaged food is expected to create a surge in the demand for industrial food boilers.

The fuel cost accounts for more than 90% of the overall cost of boilers on a lifecycle basis. According to the new air quality standards, companies have started using distillate fuels, which are much cleaner than residual grades; however, they are more expensive per gallon which has increased the life cycle costs.

Industrial boilers need to comply with their specified product standards related to designing, development, and installation. Any loopholes in the manufacturing process may lead to the rejection of the product owing to various norms imposed by regulating bodies. This can be a major challenge for industrial boilers and might hinder the product demand in the forthcoming years.

Fuel Type Insights

The oil and gas segment dominated the type of fuel used for industrial boilers and accounted for 65.1% of the overall revenue share in 2019 owing to high availability and low cost compared to other types of fuel used for industrial boilers. This segment is also widely used for industrial boilers. However, it is expected to lose its market share to biomass and non-fossil fuel segments during the forecast period.

Natural gas is the most commonly used boiler fuel in the U.S. owing to its high availability and low cost compared to others. Furthermore, the combustion of natural gas produces a low amount of greenhouse gas emission and it is considered as clean fuel compared to oil. Propane is also used as boiler fuel. Usually, propane is used when the availability of natural gas is very limited or expensive.

Fossil fuel includes natural fuels such as coal, bitumen, and tar sands. Coal is the most common fossil fuel used in boilers. Based on chemical constituents, moisture content, and impurities, it has been classified as lignite, sub-bituminous, bituminous, and anthracite. Bituminous and anthracite coals are commonly used owing to their low moisture content and higher heating value.

The non-fossil fuel type is expected to register the fastest CAGR over the forecast period, owing to their low carbon emission. The implementation of stringent regulations to curb greenhouse gas emissions is expected to have a positive impact on market growth. Furthermore, increasing technological developments to produce biofuels is projected to benefit the market over the forecast period.

Capacity Insights

The small boilers segment accounted for 38.8% of the total revenue share in 2019 and is expected to continue the dominance over the forecast period as small boilers are ideal for stand-by operations requiring small amounts of steam during off-season periods. These boilers are primarily used in the food and beverage and metal and mining industries.

Medium capacity industrial boilers are primarily used in the metals and mining, food and beverages, and paper and pulp industries for a moderate amount of steam requirements. Innovations in the food industry segments, such as meat and snack products, coupled with increasing demand for convenience food products, are expected to drive the food & beverage industry over the coming years.

Increasing demand for biodegradable and environmentally friendly packaging products, higher demand for packaging, and the expanding e-commerce sector are expected to impact the growth of the pulp and paper industry positively. Thus, the growth in the industries mentioned above is likely to drive the demand for medium capacity industrial boilers.

Large capacity boilers are used in the petroleum industry for several processes including process heating, fractionation, stripping, quenching, dilution, and pressure control. Increasing demand for large capacity boilers in the pulp and paper and chemical and petrochemical industries is anticipated to drive market growth over the forecast period.

End-use Insights

The chemical and petrochemical segment accounted for 36.6% of the overall revenue share in 2019. The need for high volume steam for several processes such as dilution, quenching, mechanical drive, fractionalization, and stripping and increasing chemicals production across the country is expected to drive the demand.

The large boilers provide steam to produce the pulp, whereas small and medium capacity boilers are used to supply start-up steam as well as for maintenance and emergency steam requirements. In some paper and pulp mills, steam from biomass boilers is combined with the steam from the recovery boiler and then transferred to steam turbines.

Boilers used in the food and beverage industry include brewing, distillation, cleaning or sterilizing equipment, cooking, drying, curing, neutralizing microbiological, or antigen threats in the food. Boilers in the food processing facilities are responsible for generating hot water for heating, power, sanitation, processing, and cooking. Large industrial boilers are used in the food and beverage industry for wet corn milling, pasteurization, and Ultra-high Temperature Processing (UHT).

The use of large boilers in the metals and mining industry is more concentrated in the integrated steel mills, where these boilers are used to provide steam for turbine-driven equipment, including machine drives and blast furnace fans, as well as for on-site power generation. However, the increasing adoption of electric ‘mini-mills’ is expected to replace the large steam users.

Key Companies & Market Share Insights

Parker Boiler is another privately-held manufacturer of boilers in the U.S. market. Its product offerings include steam, power burner steam, hot water, water wall hot water, and power burner hot water boilers. The company also offers boiler accessories and controls and technical expertise to its customers. Key product offerings of the company include recovery, package, bubbling fluidized bed, circulating fluidized bed, Stirling, and Towerpak boilers. The company has received several contracts for supplying boilers, boiler components, and refurbishment of the products for various industries in the U.S. Some of the prominent players in the U.S. industrial boiler market include:

• Babcock & Wilcox Enterprises, Inc.

• Mitsubishi Heavy Industries, Ltd.

• IHI Corporation

• Forbes Marshall

• Hurst Boiler & Welding Company, Inc.

U.S. Industrial Boiler Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the U.S. industrial boiler market report based on fuel type, capacity, and end use:

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

  • Oil & Gas

  • Fossil

  • Non-Fossil

  • Biomass

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

  • Small

  • Medium

  • Large

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Chemicals & Petrochemicals

    • Small

    • Medium

    • Large

  • Paper & Pulp

    • Small

    • Medium

    • Large

  • Food & Beverages

    • Small

    • Medium

    • Large

  • Metals & Mining

    • Small

    • Medium

    • Large

  • Others

    • Small

    • Medium

    • Large