Steam Boiler Market by Type (Water-tube and Fire-tube), Fuel Type (Coal-fired, Oil-fired, Gas-fired, and Others), End-user (Chemicals, Power Generation, Oil & Gas, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Equipment and Devices

EN21128529

Pages: 170

Dec 2021

Reports Overview

Global Steam Boiler Market Analysis

The global steam boiler market size is predicted to garner $21,931.1 million in the 2021–2028 timeframe, growing from $14,774.8 million in 2020, at a healthy CAGR of 5.2%.

Market Synopsis

The growing electricity demand has fueled investment in the power generation industry. This trend has increased the demand for steam boilers, worldwide. Additionally, increasing power plant capacity addition is driving the demand for steam boilers in the global market.

However, the high installation cost is expected to restrict the market growth over the forecast period.

According to the regional analysis, the Asia-Pacific steam boiler market is anticipated to grow during the review period and generate a revenue of $8,553.1 million in 2028, with a CAGR of 5.7%, due to increasing power plant capacity addition in the region.

Steam Boiler Overview

The steam boiler is a closed container in which water is boiled to form steam. The industrial steam boiler is a system that has parallel tubes through which water passes, suspended above a furnace. Water is heated in a closed container by burning fossil fuel, coal, gas, or electricity to generate steam. These steam boilers are used for producing high-pressure steam to run steam turbines used in power generation.

Impact Analysis of COVID-19 on the Global Steam Boiler Market

The novel coronavirus pandemic has affected several industries across the globe, and the steam boiler industry is among the hardest hit. Due to complete lockdowns and fear of spreading coronavirus, many companies were working with limited workforce, affecting the growth of the steam boiler manufacturing industry. Furthermore, steam boiler manufacturers had limited orders, severely affecting the growth of the steam boiler industry.

Before the pandemic, the global market for steam boilers was expected to exceed USD 19 billion by 2025. These numbers reflect the growing demand for steam boilers in chemical, power generation, oil & gas, and sugar mills, among others, with power plants being one of the biggest end-users.

Despite this strong outlook, the pandemic has significantly impacted the growth of the steam and boiler industry. With social distancing and lockdowns in place, worldwide, many steam boiler maintenance companies have been unable to provide services such as routine inspections and maintenance.

Surging Demand for Electricity is Anticipated to Fuel the Market Growth

The global electricity demand is growing at 2.1% per year. The growing electricity demand is attributed to rapid urbanization and industrialization, especially in developing countries. Moreover, the increasing penetration of IoT and the Internet has led to an increase in demand for connected appliances and devices.

The industry 4.0 revolution has led to an increase in the adoption of cyber security, additive manufacturing, autonomous robot, system integration, and simulation, among others. These trends have driven strong electricity demand. According to the International Energy Agency (IEA), electricity’s share in total final energy consumption was 19% in 2018 and is expected to reach 24% by 2040.

To meet the growing electricity demand, countries such as China and India have increased investment in Brownfield and Greenfield expansion of power plants. As per the Carbon Brief Ltd, since 2000, the world has doubled the coal-fired power capacity to 2,045 gigawatts (GW) after explosive growth in China and India.

To know more about global steam boiler market drivers, get in touch with our analysts here.

High Cost of Installation to Restrain the Market Growth

The cost of a steam boiler varies based on the design and working mechanism, among other aspects. The large capacity high-end industrial steam boiler costs around $255 to $345 per horsepower. Furthermore, budget steam boilers have a shorter life span, shorter warranties, and lower customer service support compared to high-end steam boilers. Installation of steam boiler is a critical process and requires high capital investment. As per the analysis, the companies pay around $8000 - 9000 or 10% to 15% of the actual steam boiler cost for installing a high-end steam boiler. These factors are expected to restrain the market growth.

The Growing Chemical, Pulp & Paper, and Pharmaceutical Industries to Create Massive Investment Opportunities

The growing chemical, pulp & paper, and pharmaceutical industries are projected to provide growth opportunities for the steam boiler market over the forecast period. For an instant, India's pharmaceutical industry is among the leading producers of generic medicine and vaccines. This industry supplies 20% of generic drugs and 62% of vaccines to the global market.

According to an Economic survey, the Indian pharmaceutical market is projected to grow three times in the next decade. In 2021, India's pharmaceutical is valued at $41 billion and is expected to reach $65 billion by 2024 and $120-130 billion by 2030. Additionally, a growing number of the biopharmaceutical industry in Asia-Pacific and Europe is further expected to provide growth opportunities for the steam boiler market.

To know more about global steam boiler market opportunities, get in touch with our analysts here.

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