The growing trends of urbanization and industrialization have provided an appreciable impetus to global boiler market. Condenser and steam boiler and heat distribution systems have been garnering immense popularity lately, across numerous sectors, including the food processing, paper, and chemical refineries, subject to their increased energy efficiency. Apart from the industrial applications, global boiler industry has been penetrating the commercial as well as residential sectors such as hospitals, institutions, and corporate offices, with equal gusto.
Europe Boiler Market Size, By Capacity, 2017 & 2024 (USD Billion)
Recently, Fulton, which is one of the key giants in global boiler industry formed a study group to check the energy saving feasibility of boilers. This initiation is likely to help companies develop novel boilers with superior efficiency that will require sufficiently moderate maintenance at substantially lower costs – a move that may have a considerable impact on boiler industry. Incidentally, an assessment report by Global Market Insights, Inc., claims worldwide boiler market to have generated a revenue of USD 50 billion in 2017.
A recent news snippet claimed the Southwestern Vermont Health Care to have signed a five-year strategic contract with NG Advantage LLC, which is one of the leading providers of trucked natural gas in U.S. The contract dictates NG Advantage LLC to supply compressed natural gas to the Southwestern Vermont Medical Center, that would be requiring this natural gas for its newly installed central boiler plant. This goes to prove that hospitals and other similar avenues would find exceptional use for commercial boilers, thereby augmenting their sales. As per statistics, commercial applications accounted for over 25% of global boiler industry share in 2017. However, owing to the increasing demand for the product across various commercial sectors such as healthcare, hospitality, and offices, global boiler market size from commercial applications is set to register a CAGR of 6% over 2018-2024.
The rising investment by the governments of various countries in the healthcare sector will also have a pivotal role to play in augmenting global boiler market share over the years ahead. The Chinese government, for instance, invested USD 180 billion in healthcare sector in 2016. Speaking along the same lines, China has, in recent years, witnessed enormous growth in the industrial sectors such as chemical, food processing, and paper as well. The giants in the chemical sector such as BASF are increasingly expanding their business space across China pertaining to favorable growth opportunities.
Various regulatory organizations have taken numerous initiations to reduce the carbon content in the environment considering its hazardous impact on human health. Under the Paris agreement, which was held in 2015, nearly 200 countries committed to shift toward the adoption of cleaner energy. This is another factor that will contribute toward influencing global boiler market. Growing exploration of oil and gas across the globe, particularly in North America has led to numerous growth prospects for boiler market in the region.
Aging boilers are mainly responsible for the reduction in the energy efficiency of the power plants. Also, older boiler systems may lead to more carbon emission, thereby prompting the need for their replacement. The growing need of aging boiler replacement will thus significantly boost global boiler market size. With regards to the efficiency improvement, the European Parliament has passed the Eco-design Directive. Eco-design plays an important role in technical developments and performance enhancement of energy related products. Just last year, Germany implemented the Energy Efficiency Incentives Program to promote green energy adoption across residential sector. Apart from the Germany, U.S. Department of Energy has also implemented Energy Incentive Program, which has helped to impel U.S. boiler industry trends a great deal.
Organizations such as A.O. Smith have been investing heavily in the development of testing equipment to check the heating level of boiler – an R&D initiative that will favorably contribute toward improving boiler efficiency. Other players in global boiler market are focusing on the development of new technologically enhanced products as well. Major companies have also been concentrating on expanding the market across APAC and Africa, considering the growing need for electricity. Some other renowned names in global boiler market are Weil-McLain, Burnham Commercial, Thermax, Forbes Marshall, Bharat Heavy Electricals, Fulton, Wilcox, Parker Industrial Boiler, Hurst Boiler and Welding, and Cleaver-Brooks.
Regional governments and regulatory organizations have been depicting an exceptional earnestness to preserve environmental safety. In this regard, even boiler market companies have been striving to come up with a range of products exhibiting superior efficiency equipped. The deployment of innovative technological advancements in boiler control systems will also augment product sales, thereby carving out a profitable growth path for global boiler industry in the ensuing years.