The Boiler Market: Global and Local

The global industrial boilers market was valued at US$ 15.31 billion in 2022 and is expected to reach over US$ 23.5 billion by 2030, poised to grow at a noteworthy CAGR of 5.5% from 2022 to 2030.

• By product, the water-tube boiler segment has accounted 72% revenue share in 2022.
• The water-tube boiler segment is expected to grow at a CAGR of 5.2% from 2022 to 2030.
• The fire-tube segment is growing at a CAGR of around 4.4% through 2022 to 2030.
• By technology, the non-condensing industrial boilers market is anticipated to grow at a CAGR of 4.8% till 2030.

The boiler market in India is growing fast at a CAGR (Compounded Annual Growth Rate) of 24.53%, courtesy the ever-increasing energy requirement of the nation. The thermal power sector, i.e. – coal and gas-based generation are the key drivers of this growth of Indian boiler market. Other than them, it’s the biomass power plants which drive the small segment boiler market.

The phenomenal growth of the boiler market of the nation is the result of some key driving factors which are

• Growing demand: The electrical energy demand for FY 2021–22 is expected to be at least 191 TWh, with a peak electric demand of 298 GW.
• Foreign participation
• Moving towards advanced technology: The indigenous players are setting up or expanding their super-critical boiler manufacturing capacity. On the ultra-super-critical technology section a pilot project is under consideration with the collaboration of IGCAR (Indira Gandhi Centre for Atomic Research), BHEL (Bharat Heavy Electricals Ltd.) and NTPC (National Thermal Power Corporation). Construction of the plant is expected to commence by 2018.
• Large opportunity size for: Green field projects during 12th & 13th FYP. Brown field projects in the form of renovation & modernisation, will create a big opportunity size, considering the aging power plants of India.
• Attractive Policy Support: 100% FDI (Foreign Direct Investment) is permitted. Significant numbers of SEZ (Special Economic Zone) have been approved. Import duties on Chinese equipment.
• Increasing FDI inflow: The FDI inflows to the segment grew at a CAGR of 28.5% amounting USD 3 billion during FY 2012-13.

Industry Challenges

The power project developers in India usually face lots of problem due to the complex paper works, which requires 100 plus clearances from different agencies to set up a power plant.

In addition the availability of raw material, ie- coal & gas for the operations of these power plants have been a concern.

Besides these, the equipment manufacturers in India face problem associated with the availability of some key raw materials.

New Technologies

Today’s industrial companies are moving more of their manufacturing operations into automation and robotics — with new facilities and production lines designed to maximize space, as well as to reduce production time and labor costs. Newly emerging low NOx regulations are designed to reduce the harmful effects of Nitrogen Oxide (NOx) gases on the environment.

The Industrial Internet of Things (IIoT) has impacted virtually every industry around the world and the boiler industry is no exception. Many boilers now offer some form of Wi-Fi capability with the ability to control the unit from virtually anywhere through an internet connection. Companies will increasingly gain the ability to control and monitor their boiler from apps on their devices. 

Remote monitoring provides an opportunity for users to be in control of their boiler 24 hours a day, even if they are not physically on-site. This technology has evolved over the years and today remote monitoring can be accomplished using any internet connected device.

New boilers will be built to a new 'hydrogen-ready' standard, which means they'll work with natural gas but can also be easily modified to run on 100% hydrogen. According to some industry estimates, these boilers should be available from 2023-2025