The robustly escalating demand for energy coupled with the rapidly improving economic conditions globally have led to utility boiler market registering high growth prospects lately. The ongoing push that predominantly focuses upon the expansion of power generation capabilities in developing nations to bolster their respective industrialization efforts would further be expediting the utility boiler industry trends.
Vietnam Utility Boiler Market Size, By Technology, 2017 & 2024 (USD Million)
The utility boiler market outlook is also expected to be influenced by the rising efforts to alleviate the gap in the supply and demand of electricity along with the rigorous and strict emissions policies introduced by governments across developed nations in an effort to keep carbon emissions in check. Administrative bodies have been working this through, specifically via the sale of supercritical boilers & ultra-supercritical boilers attributed to their ability to facilitate cost reductions in equipment handling & fuel utilization.
For instance, according to a 2017 working paper published by the University of Oxford giving insights on the coal-fired power stations of Europe, by the end of year 2007 the government of Germany had planned to construct over 40 Gigawatts (GW) of coal-fueled capacity scheduled to come online between 2012 & 2015. The project, though postponed to 2020 due to changing market conditions, would be building 36 GW of the total capacity by utilizing highly efficient supercritical boilers.
Unveiling global utility boiler market trends through a regional frame of reference:
The escalating demand for energy across the continent coupled with the ongoing drive by prominent nations in the region to become less taxing on nature and more environment friendly are a couple of reasons that would be responsible for the growth of the Europe utility boiler market. According to The European Power Sector in 2017 report published by European non-profit organization Sandbag Climate Campaign, the continent’s power sector would be playing a critical role in realizing the European climate targets, which aspire to cut-down on the emission rates of greenhouse gases by approximately 40% by the year 2030, as compared to the levels in 1990.
The report further mentions that with the extensive development in the continent’s economy, power demands are on the rise as electricity consumption increased 0.7% in 2017. This trend shows that Europe’s efforts to obtain efficiency are not sufficient thus calling for more restructuring in the policy. These factors are conducive for triggering significant growth in Europe utility boiler market, which would be experiencing a highly appreciable CAGR over 2018-2024.
Middle East and Africa:
The Middle East & Africa is projected to emerge as one of the most viable hotspots for the growth of the global utility boiler market. The growth is anticipated to be facilitated by extensive government efforts to boost the electricity generation capabilities of their respective nations to make the electricity grid more reliable. Moreover, robust economic growth coupled with government initiatives that aims to enhance industrial output with the intention of attracting as well as supporting large-scale power projects would also help fuel the regional utility scale boiler market trends.
According to a 2018 report regarding Coal transitions in South Africa by the University of Cape Town, the nation primarily depends on coal as a fuel source that helps generate energy. The report highlights that coal is responsible for facilitating more than 73% of the nation’s energy needs. This significant dependence on coal is expected to help the South Africa utility boiler market gain considerable momentum in MEA.
Meanwhile, according to the Middle East Power: Outlook 2035 report by Siemens, power demands in the Middle East is projected to increase by over 3% on an annual basis until 2035. The region would be requiring over 277 Gigawatts (GWs) of new capacity to be able to fulfil energy demands with gas projected to be the largest fuel source, representing around 60% in the installed capacity by 2035. Powered by these significant energy demands, it comes as no surprise that the MEA utility boiler market is likely to register an exponential growth rate over 2018-2024.
In the years to come, utility boiler industry, attributing to the availability of intense energy requirements, is forecast to chronicle its name in the global energy space as one of the most lucrative sub-verticals. As per a report by Global Market Insights, Inc., the overall utility boiler market size is projected to cross USD 60 GW in terms of volume by 2024.