Industrial Boilers Market Growth & Trends
The global industrial boilers market size is anticipated to reach USD 18.8 billion by 2027, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 3.5% from 2020 to 2027. 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 product demand over the forecast period.
The International Energy Agency estimates that over the next 10 years, 85.0% 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.
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, which is expected to boost the market growth over the coming years.
Southeast Asia has become the world’s fifth-largest manufacturing economy as it offers low-cost production, thereby attracting a wide range of investors. Vietnam has made great strides as a manufacturing hub and the sector now accounts for 25% of the country’s GDP. An increase in the construction of new manufacturing sites in Southeast Asia is expected to create opportunities for industrial boiler manufacturers over the forecast period.
Industrial Boilers Market Report Highlights
- In terms of value, the oil and gas segment is anticipated to reach USD 7.8 billion by 2027, on account of its low energy density, low costs, and ease of availability
- Industrial boilers running on fossil fuels are expected to lose their market share as they emit a high amount of natural gases including carbon monoxide
- The demand for industrial boilers in the chemicals and petrochemicals industry is on the rise, owing to the increase in investments in the Southeast Asian countries. As a result, the segment is expected to witness a CAGR of 3.6% over the forecast period
- In Europe, the market accounted for the largest revenue share in 2019 and is anticipated to witness a CAGR of 3.4% over the forecast period on account of the stringent government norms to reduce carbon emissions in countries such as Germany, the U.K., Italy, and France
- Companies in the market are establishing their manufacturing facilities in countries such as China, India, Vietnam, and Malaysia in order cater to the growing product demand in the region as well as cut down the production and logistics costs