Industrial Boiler Market Size, Share, By Boiler Type (Water Tube and Fire Tube), Fuel Type (Natural Gas and Biomass, Coal, Oil, and Others), Function (Hot Water, Steam), Boiler Horsepower (Less Than 10 BHP, 10-150 BHP, 151-300 BHP, and Greater Than 301 BHP), End-Use Industry (Food, Chemical, Refineries, Primary Metal, and Others), and Region - Trends, Analysis, and Forecast till 2035

• Industrial Boiler Market size is anticipated to grow at a valuation of USD 24.4 Billion, by 2035.
• In 2024, the industrial boiler market valuation was USD 15.1 Billion.
• Industrial boiler market is expanding at a CAGR 5.0%.

An industrial boiler is a closed vessel that uses the burning of fossil fuels or other energy sources to produce heat for a variety of industrial purposes, such as heating water or creating steam under pressure. Industrial boilers offer significant advantages such as high efficiency, versatility, and durability, allowing for cost savings, diverse applications, and long-term reliability in various industrial processes. Moreover, industrial boilers provide steam, hot water, or thermal energy for diverse industrial applications, enhancing operational flexibility and productivity.

The rising global energy demand, increased industrialization, the push for cleaner energy technologies and sustainable practices, stringent environmental regulations and policies, the increasing demand from power generation sector, increased investment in power generation capacity and new industrial facilities, and the growth of certain industries, are factors driving the industrial boiler market growth.

The industrial boiler market is poised for future growth due to factors such as, rapid industrialization and economic growth, rising energy demand driven by urbanization and population growth, growing environmental concerns and stricter emission regulations, and technological advancements, particularly in renewable energy integration and efficiency.

Generative AI Impact on Industrial Boiler Market:

• Generative AI improves fuel economy, lowers pollutants, and forecasts maintenance requirements to maximize industrial boiler performance. It reduces downtime and operating expenses by enabling real-time monitoring, problem detection, and automation. AI-powered simulations enhance boiler design, increasing industrial heating process efficiency and guaranteeing increased safety, sustainability, and environmental compliance.

Key Drivers:

Rising Energy Demand Globally is Skyrocketing the Market Expansion

The requirement for efficient steam and heat generation in sectors such as manufacturing, chemicals, and electricity is growing due to the rising worldwide energy consumption, which propels the expansion of the industrial boiler market. Stricter energy efficiency laws drive improvements in high-performance, low-emission boilers, which promote market development and technical innovation, while growing industry and urbanization increase the use of boilers.

• For instance, according to the data published by Elsevier, the need for reasonably priced and dependable energy is a constant. Long-term planning, years of labor, and significant financial investment in dependable and efficient producing infrastructure are used to meet the world's energy needs. Over the past 150 years, the world's energy needs have grown at an unparalleled rate as a result of both industrialization and population expansion.

Restraints:

Environmental Pollution caused by Industrial Boilers is Hindering the Market Growth

The significant environmental effect of CO?, NO?, and particulate matter emissions is one drawback of the industrial boiler business.  Although enterprises must embrace cleaner technology due to stricter environmental requirements, obsolete boiler systems continue to be a major source of air pollution and climate change, making sustainable industrial operations difficult.

• Counterbalance Statements: Reducing environmental effect can be achieved by switching to hydrogen or biomass fuel, using carbon capture technologies, and implementing low-emission boilers. Sustainable industrial boiler operations are ensured while reducing emissions and fulfilling environmental sustainability goals through the use of AI-driven efficiency monitoring and stringent regulatory compliance.

Opportunities & Trends:

Incorporating Advanced Technologies with Industrial Boiler is Opening up Growth Opportunities in the Future

Integrating advanced technologies such as IoT (Internet of Things), AI (artificial intelligence), and smart controls into industrial boilers fuels the industrial market growth by enhancing efficiency, reducing costs, enabling predictive maintenance, and promoting sustainability, ultimately leading to increased demand for these technologically advanced systems. In addition to this, these technologies enables real-time monitoring, control, and data collection, leading to better performance optimization and predictive maintenance, allows for analysis of large datasets to identify patterns, predict failures, and optimize energy consumption, and provides automated control and optimization of boiler operations, leading to improved efficiency and reduced costs.

• For instance, in September 2023, Artificial Intelligence (AI) and machine learning (ML) are used in a variety of applications, including mainly industrial boiler optimization for efficient and clean energy production. This integration of AI with industrial boilers helps the industries in supporting decision making and prediction considering supervised learning, unsupervised learning, semi-supervised learning, and reinforcement learning.

The industrial boiler market is segmented into boiler type, fuel type, function, boiler horsepower, end-use industry, and region.

By Boiler Type:

On the basis of boiler type, the market is bifurcated into water tube and fire tube. The fire tube boilers are projected to influence the industrial boiler market share. This is due to its compact design, higher efficiency in operation, and suitability for various industrial applications, especially those with limited space.

The water tube boilers are the segment which is anticipated to grow with the fastest growth rate. This is due to its ability to generate high-pressure steam and its suitability for applications such as power generation, petrochemical plants, and food processing, where high steam output is required.

By Fuel Type:

By fuel type the market is sub-segmented into natural gas and biomass, coal, oil, and others. The natural gas and biomass segment is attributed to rule over the market. This is due to the increasing use of natural gas-powered industrial boilers in various industries, and the growing trend of replacing coal with renewable fuels such as biomass. In addition to this, the natural gas and biomass are efficient and sustainable, further contributing to the segment’s growth.

The coal fuel type is the second most dominating segment of the industrial boiler market size. This is due to its widespread availability and lower costs as compared to the other fuel types.  

By Function:

According to function, the market is branched into hot water and steam. The steam boilers are expected to dominate the industrial boiler market. This is due to its versatility in power generation, process heating, and various industrial applications. Additionally, the longstanding use and proven reliability of steam boilers have led to its widespread adoption across various industrial applications.

The hot water boilers are the fastest growing segment in the target market. This is due to its suitability for low-temperature heating and applications such as building heating and hot water production, which is common in various industries.

By Boiler Horsepower:

Based on boiler horsepower, the market is divided into less than 10 BHP, 10-150 BHP, 151-300 BHP, and greater than 301 BHP. The 10-150 BHP segment holds the largest industrial boiler market share. This is due to its widespread use across various end-use industries, offering a balance of cost-effectiveness, and efficiency. These boilers are suitable for a wide array of applications, making it a versatile choice for many industries.

By End-Use Industry:

Dependent on end-use industry, the market is classified into food, chemical, refineries, primary metal, and others. The chemical industry is leading the target market as it relies heavily on boilers for generating the high-quality steam and thermal energy needed for various chemical processes and manufacturing, including petrochemicals, fertilizers, and more. Moreover, waste heat is frequently produced by the chemical industry during a variety of operations. This heat is captured and reused by industrial boilers, especially waste heat recovery boilers, which improve overall energy efficiency and lower operating costs.

Regional Insights:

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific: This is the region which is leading the industrial boiler market share with an estimated share of 37.9%. This is due to this region’s rapid industrialization leading to surge the demand for industrial boilers, presence of major manufacturing hubs in this region, its growing energy needs fueled by industrialization and population growth, favorable government initiatives, a shift toward cleaner fuels, and a growing demand from the end-use industries in this region to fuel the demand for industrial boilers.

• China Industrial Boiler Market Insights:

The Chinese industrial boiler market is the ruling market in this region, in the recent years. This dominance is driven by various factors, such as, its substantial industrial base, presence of large number of coal-fired and thermal power plants, encouragement by the Chinese government to utilize biomass to reduce environmental pollution, and rapid industrialization and growth of industries such as petrochemicals in this country. The availability of cheap factors of production and favorable government policies are also attracting manufacturers to expand.

Europe: This is the region where the industrial boiler market is anticipated to grow with the highest CAGR during the forecast period. This is due to this region’s rapid industrialization and economic growth, particularly in sectors such as food and beverages, stringent environmental regulations that drive demand for energy-efficient and sustainable solutions, innovation in boiler technology, including the development of high-efficiency boilers and renewable energy, and favorable government initiatives.

• Germany Industrial Boiler Market Insights:

The industrial boiler market in Germany is growing significantly in the recent years, during the forecast period. This growth is attributed to factors such as, the country’s robust energy efficiency policies, significant investments in sustainable heating solutions, and a rising focus on using biomass as an energy source. Furthermore, this country is supported by a national energy policy, and is anticipated to grow, influenced by urbanization and stringent emission regulations.

North America: The region experiencing subsequent amount of growth in the recent years, during the forecast period is North America. This is due to this region’s established industrial base with significant activities in manufacturing, chemicals, petrochemicals, and food processing, the adoption of advanced boiler technologies by this region, stringent environmental policies in countries such as United States and Canada, and a growing emphasis on energy conservation.

• U.S. Industrial Boiler Market Insights:

The U.S. industrial boiler market is growing rapidly, in the recent years, during the forecast period. This is due to this country’s large and diverse industrial base, including, manufacturing, power generation, food processing, and chemical industries. In addition to this, the U.S. industries consume a substantial number of industrial boilers annually, reflecting the high demand for these systems, and the initiatives of the U.S. government to promote renewable energy and efficiency is helping the market grow in this country.

Industrial Boiler Market Report Scope:

Attribute	Details
Market Size 2025	USD 15.6 Billion
Projected Market Size 2035	USD 24.4 Billion
CAGR Growth Rate	5.0% (2025-2035)
Base year for estimation	2024
Forecast period	2025 – 2035
Market representation	Revenue in USD Billion & CAGR from 2025 to 2035
Regional scope	North America - U.S. and Canada Europe – Germany, U.K., France, Russia, Italy, Spain, Netherlands, and Rest of Europe Asia Pacific – China, India, Japan, Australia, Indonesia, Malaysia, South Korea, and Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, and Rest of Latin America Middle East & Africa – GCC, Israel, South Africa, and Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segmentation:

By Boiler Type:

• Water Tube
• Fire Tube

By Fuel Type:

• Natural Gas and Biomass
• Coal
• Oil
• Others

By Function:

• Hot Water
• Steam

By Boiler Horsepower:

• Less Than 10 BHP
• 10-150 BHP
• 151-300 BHP
• Greater Than 301 BHP

By End-Use Industry:

• Food
• Chemical
• Refineries
• Primary Metal
• Others

 By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The prominent players operating in the industrial boiler market include, Thermax Limited, IBL, SITSON INDIA LTD., and others. These key players are adopting strategies, such as, focusing on high-efficiency boilers, integrating smart technologies, focusing on sustainability, and developing modular and flexible systems, for driving industrial boiler market growth.

Industrial Boiler Market Companies:

• Thermax Limited
• IBL
• SITSON INDIA LTD.
• Forbes Marshall
• ALFA LAVAL
• Babcock & Wilcox Enterprises, Inc.
• Bosch Industriekessel GmbH
• Cleaver-Brooks
• Hurst Boiler & Welding Co, Inc.
• IHI Corporation
• Miura America Co., LTD.
• ZHENGZHOU BOILER(GROUP) CO.,LTD.
• Siemens
• GE Vernova
• MITSUBISHI HEAVY INDUSTRIES, LTD.

View an Additional List of Companies in the Industrial Boiler Market

• In September 2024, Thermax, a prominent supplier of energy and environmental solutions, had introduced a number of products, such as the thermic fluid heater Greenbloc, the biograte industrial boiler Greenpac, and a universal biograte combustion technology.  In addition, Thermax unveiled Thermeon 2.0, a low-range industrial boiler for small businesses that runs on solid fuel. The largest exhibition on innovative boiler technology in India, Boiler India 2024, featured these goods.
• In September 2024, Babcock Wanson, a specialist in industrial process heating equipment and solutions, had introduced the LV-Pack low-voltage industrial electric boiler, which had a design pressure of up to 18 barg and steam outputs ranging from 600 kg/h to 8400 kg/h.  The LV-Pack was introduced to help meet European requirements for energy optimization and reduction of greenhouse gas emissions. These industrial boilers were specifically designed to provide maximum efficiency, over 99%, as all incoming electrical energy was converted into thermal energy with zero CO2 and NOx emissions.
• In May 2024, leading manufacturer of high-efficiency boilers and water heaters, Lochinvar, had announced the release of its LECTRUS Light Commercial Electric Boiler.  Customers benefited from this cutting-edge technology's adaptability as it helpec the industry as a whole to make the switch to electrification and decarbonization. This device was the first electric boiler that Lochinvar had designed and produced exclusively, adding to the company's line of environmentally friendly water heating options.
• In June 2023, the company, AtmosZero, which was working to decarbonize process steam, had officially come out of stealth mode to transform the steam manufacturing process with its electric industrial boiler that emits no carbon. A collaboration with manufacturing giant Danfoss for AtmosZero's initial pilot project with New Belgium Brewing was also announced as part of the presentation.
• In June 2023, Alfa Laval's methanol-capable systems were contributing significantly to the maritime industry's shift to carbon-neutral green methanol. By introducing methanol-fired Aalborg industrial boiler systems, which provided remarkable fuel flexibility and could accommodate a variety of fuel types, including methanol, the business had broadened its offering of alternative fuel options. Being the first methanol boiler to be put on a ship, this development represented a major turning point in the maritime sector.

Analyst View:

Increased demand from the power generation sector, increased investment in power generation capacity and new industrial facilities, the push for cleaner energy technologies and sustainable practices, increased industrialization, the rise of specific industries, and strict environmental regulations and policies are all factors driving industrial boiler market growth. The target market is expected to grow in the future due to rapid economic and industrialization, increased energy demand brought on by population growth and urbanization, tighter emission regulations and growing environmental concerns, and technological advancements, especially in the integration and efficiency of renewable energy.

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Company Name	Thermax Limited
Headquarter	Pune, India
CEO	Mr. Ashish Bhandari
Employee Count (2024)	10,001+ Employees