China Industrial Boiler Market Estimated to Surpass $4.5 Billion Mark by 2026

October 20 04:39 2021
China Industrial Boiler Market Estimated to Surpass $4.5 Billion Mark by 2026
China Industrial Boilers Market
Rise in Demand for Energy Efficient Boilers and Penetration of IoT in Industrial Application Driving the Growth of China Industrial Boiler Market

The China Industrial Boiler Market is estimated to surpass $4.5 billion mark by 2026 growing at an estimated CAGR of more than 6.5% during the forecast period 2021 to 2026. The growth of the demand for Industrial Boiler systems is driven mainly by increased usage of Industrial Boilers in various end-user industries. This rise can be attributed to the increase in the deployment of Industrial Boilers worldwide in the manufacturing and processing industries which is resulting in growth of both water tube boilers and fire tube boilers. In addition, new power plants are being set up to meet the growth in demand for power from the manufacturing industries, which is further increasing the demand for Industrial condensing Boilers and non-condensing boilers. According to the IEA, the Asia Pacific zone has seen an increase in primary energy usage, from 5748 million tonnes of oil equivalent in 2017 to 6185.8 million tonnes by the end of 2019. In the Asia Pacific region, the full utilisation of coal has been accomplished. The largest share of global electricity usage was owned by China in 2019, which accounted for 46.7 per cent of overall global electricity consumption in non-OECD nations. The move towards the implementation of alternate green energy sources, such as hydropower and Industrial Boiler, to meet energy scarcity and energy needs is expected to fuel demand growth in the country. Rapidly expanding industries, primarily the F&B and chemicals sectors will drive the market. Moreover, financial institutions coupled with the Chinese government have introduced initiatives to develop new industrial centers which in turn will fuel Industrial Boiler deployment.

China Industrial Boiler Market Segment Analysis – By Type

Industrial Boilers are generally categorised into Gas, Electric, Coal, Oil, Others. The demand for electricity is rising due to factors such as increasing industrialization and the increasing use of electrical equipment and machinery, along with growing economic growth. Thus, this is propelling the demand for power generation systems including Industrial Boiler systems. In addition, an increase in the addition of power plant capacity due to the building of new power plants and the reconstruction of existing ones is projected to intensify the demand. The coal segment held the highest market share in 2020. The reasons attributed to demand growth are the extensive use of fossil fuels for power production in developing countries. Easy availability and relatively low cost are some of the main factors driving demand for the coal-fired China Industrial Boiler Market. According to the IEA, coal is responsible for 40% of global power generation.

Request for Sample Report  @

Report Price: $ 4300 (Single User License)

China Industrial Boiler Market Segment Analysis – By End Use Industry

Energy and Power sector will be a major end user for Industrial Boilers in the Chinese market. The rising power plant capacity will be a major cause of this market growth. The International Energy Agency’s World Energy Investment Outlook, estimated that around USD 9.5 trillion would be spent on the construction of new power plants and in the refurbishment of existing ones across the world from 2014 to 2035. More than 30% of which is expected to be utilized for fossil-fuel based thermal power plants. Increased generation capacity is expected to be achieved mainly through thermal power plants based on fossil fuels, which act as a primary source of electricity generation in these countries. During the forecast period, the Chinese and Indian markets are expected to be among the fastest growing economies and are estimated to account for almost 70% of all the proposed addition of thermal power capacity over the same period. In order to meet economies of scale, such investments aim to lift electricity tariffs. Increased demand for the Industrial Boiler system has resulted from increasing energy prices.

China Industrial Boiler Market Drivers

Rise in Demand for Energy Efficient Boilers

Industrial Boiler manufacturers are increasingly producing energy-efficient products to reduce carbon footprint and enable energy savings for the consumers. The rise of energy-efficient appliances can be attributed to the stringent government regulations on electric home appliances and advances in technology. Newly emerging low NOx regulations are designed to thwart or reduce the harmful effects of Nitrogen Oxide (NOx) gases on the environment. This highly toxic family of reactive gases is produced when fuel is combusted at high temperatures, such as with water heaters, boilers, furnaces and even from the engines of vehicles. Because of the apparent harmful effects of NOx on the environment, a growing number of boiler manufacturers are looking to get ahead of the inevitable regulations.

Penetration of IoT in Industrial Application

Most boiler system units now offer some form of Wifi capability with the ability to control the unit from virtually anywhere through an internet connection. Customers will increasingly gain the ability to control their boiler and monitor their boiler from apps on their devices. With the emergence of automation and IoT, companies are working towards introducing smart boilers that helps boiler attendants and operators to locate potential energy losses quickly and suggests concrete measures to address them. The efficiency assistant even detects critical situations immediately and analyses the state of components based on the operating mode.

China Industrial Boiler Market Challenges

High Installation Costs

Due to the design parameters and varying levels of after-sales service, the cost of Industrial Boilers differs. In contrast to traditional Industrial Boilers, budget Industrial Boilers provide shorter lifespans, shorter warranties, and a lower level of customer service. The production of boilers with improved efficiency is the result of the use of special alloys and advanced technologies. Installation of a Industrial Boiler system requires high capital, which makes it one of the production plant’s most important expenses. The cost associated with Industrial Boiler construction is 15-20 percent of the overall cost of the boiler. Due to the high degree of technological expertise involved in the operation of Industrial Boilers and the separate construction of boiler houses in the utility zone, this cost is expected to remain the same.

China Industrial Boiler Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the China Industrial Boiler Market Bosch, GE, Alfa Laval, Doosan, Viessmann, Grundfos, A.O Smith, Harbin Electric, Miura and others are considered to be the key players of the China Industrial Boiler Market. New product innovations and contracts and agreements were the strategies most widely implemented by the top players. This was followed by mergers & acquisitions and investment & expansions. The increase in government initiatives to encourage the use of Industrial Boiler systems, such as the provision of rebates and subsidies for their purchase, also adds remarkably to the growth of this market

Acquisitions/Technology Launches/Partnerships

The International Energy Agency’s World Energy Investment Outlook, estimated that around USD 9.5 trillion would be spent on the construction of new power plants and in the refurbishment of existing ones across the world from 2014 to 2035. More than 30% of which is expected to be utilized for fossil-fuel based thermal power plants.

In June 2019, Joulon group acquired Harris Pye. Harris Pye had been acquired to primarily add capability in the Project Management Platform for the Joulon Group and will also have an impact in the majority of the Joulon platforms

Key Takeaways

High demand for electricity has been driven by industrialization and the rising use of electrical appliances and machinery, along with growing economic development in developing countries. This pattern is more pronounced in the population of the Asia Pacific zone, which is projected to hit 5.1 billion by 2050.

China has been transformed into lucrative manufacturing markets and the world’s fastest growing economies by supportive industrial development policies, low-cost raw materials, ease of availability, and cheap labour costs. This is resulting in surge in demand for electricity in industrial applications.

Increase in power plant capacity addition set to drive demand for Industrial Boilers in the energy and power sector in the medium to long term.

Related Reports:

A. Package Boilers Market

B. Industrial Boilers Market

For more Automation and Instrumentation related reports, please click here

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services.

Media Contact
Company Name: IndustryARC
Contact Person: Mr. Venkat Reddy
Email: Send Email
Phone: (+1) 970-236-3677
City: Hyderabad
Country: India