Global Boiler Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Boiler Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Boiler Equipment Market is expected to register a CAGR of 5.1% over the forecast period (2022-2027). The increase in demand for heating equipment to keep homes warm and heat water worldwide is predicted to raise demand for boilers, which is expected to fuel market expansion during the forecast period.

Key Highlights

• The expansion of the food processing industry pushes the boiler market forward. Several government initiatives are also driving market expansion in their respective regions. For instance, the Government of India offers tax benefits to small and medium-sized food processing companies to encourage them to establish and grow their operations.
• Rising investments in various industries, such as petrochemical, in developing countries such as China and India drive up demand for boilers. The market is predicted to expand further due to increased demand for energy-efficient systems, which will complement the business growth, According to the Chemicals & Petrochemicals Manufacturers Association. The petrochemical project of Indian Oil Corporation Limited in Paradeep, Odisha, accounted for an investment of nearly USD 2.7 million as of 2021.
• The COVID-19 outbreak has impacted negatively the global boiler market. This is attributed to the halting of manufacturing activities, residential construction & maintenance activities, halt in logistics services, and decreased consumer spending on the replacement of old heating systems and. The sharp decline in the industrial and commercial business is negatively impacting the growth of the global boiler market
• One of the reasons impeding the growth of the boiler market is the rigorous regulation imposed by government agencies on emission limits. Furthermore, fluctuating raw material prices and high installation cost for the boiler appears to be a market restraint. For example, In India According to Commission for Air Quality Management (CAQM), industries cannot use bio-mass fuel over 80mg/Nm3 in boilers, and they should limit emissions to 50mg/Nm3. Such regulation imposed by government agencies will hinder market growth.

Key Market TrendsDemand for Residential Boilers to Hold a Major Market Share

• The strong growth demand from the real estate sector in the United States, Germany, India, and China is expected to drive demand for boilers in the residential segment, and Rising urbanization and a rapidly growing population in emerging nations like India, China, and Brazil are expected to drive global boiler market. For instance, According to US Census Bureau, the number of housing units in the united stated increased from 136.57 million in 2017 to 141.95 million in 2021, which is expected to drive demand for boilers
• Rising worries about the heat and pollution produced by boilers have driven governments in several countries to launch severe programs to promote the construction of green buildings and the use of eco-friendly residential boilers as a sustainable heating technology.
• For instance, UK government has launched Boiler Upgrade Scheme (BUS), The plan enables property owners to transition away from their dependency on fossil fuel systems and towards a cleaner, more efficient heating system in a cost-effective manner. The BUS provides GBP 5,000 off the cost and installation of a biomass boiler for rural households.
• To produce energy-efficient boilers, major manufacturers are focused on the development of new technologies for boiler coating that will bring benefits such as rapid heating and corrosion resistance. A.O. Smith, prominent water treatment and boiler manufacturer, is continually improving its blue diamond glass coating technique to combat sediment, scale, and residue buildup on the surface of the boiler tank. These reasons are fueling the expansion of the residential global boiler market.
• The US Department of Energy took a fantastic initiative in 2020 to regulate energy conservation rules and regulations for water heater makers and manufacturers. Residential boilers, according to DOE, should be standardized as important energy-saving devices. Every customer should be able to afford and use these boilers, both technologically and financially. The DOE has provided additional assistance to manufacturers in developing innovative boilers that will save energy and money.

Asia-Pacific Expected to Hold a Major Market Share

• The Asia Pacific is predicted to have significant growth due to growing urbanization and rising disposable income. The continued expansion of sustainable building projects and achieving zero-emission building targets will increase the boiler market in this region.
• Asia-Pacific dominated the market with the highest thermal power plants and refineries as of 2021. With the region's growing population and urbanization, the demand for energy and power is expected to rise during the forecast period.
• Apart from power plants, according to BP Statistics, the region contributes to nearly 37.3% of the global refining capacity and is expected to add to its refining capacity during the forecast period. China is the major country in the region that will contribute 18.3% of the world’s oil refining capacity in 2021. Moreover, the country is planning to make up 44% of the crude oil refining capacity in the region in 2023. This is expected to drive the demand for the market studied.
• According to The World Bank report 2021, the increase in electricity demand and the rise in gas, coal, and carbon prices have resulted in climbing energy prices in Asia, which is a primary reason for the growing interest in energy management. Adding extra power transmission or generation capacity might help to achieve efficient energy management. Energy-efficient industrial boilers are a good illustration of efficient energy management.
• Pulau Muara Besar Refinery & Petrochemical Complex with a capacity of 14 million tons per annum is expected to be commissioned in 2022. Furthermore, the Jieyang refinery is another refinery that is under construction and is likely to be commissioned during the forecast period and is expected to increase the demand for steam boilers. With several projects upcoming in power, oil, and gas refining sector, Asia-Pacific is expected to dominate the market in the forecast period.

Competitive Landscape

Top manufacturers dominate the Global boiler market, which is highly concentrated. Due to technological improvements, industry players seek to enhance their market share by developing new products and improving existing product lines.

• August 2021 - Baxi, part of the BDR Thermea Group, showcases its hydrogen boiler in the UK's first hydrogen house. Two homes in Low Thornley, near Gateshead, demonstrated the usage of hydrogen-powered equipment in a real-world situation. Baxi has invited housing providers to see their boiler in action. Baxi Heating has vowed to develop exclusively low-carbon energy-compatible products by 2025, which implies that gas boilers will be 'hydrogen-ready' and simply convertible to function with hydrogen.
• July 2021 - Kawasaki Thermal Engineering (KTE) launched high-efficiency type of once-through boilers from the "IF" and "WILLHEAT" series for the international market. The "IF series" and "WILLHEAT" boilers have a 99 percent efficiency rating and significant energy savings. The "IF series" reaches 99 percent boiler efficiency thanks to a newly constructed high-performance economizer. "WILLHEAT," a steam boiler with a heated surface of less than 10m2, also achieves a high boiler efficiency of 99 percent, and models with equivalent evaporation of 2,500 kg/h and 3,000 kg/h are newly offered.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.