Power Plant Boiler Market Size, Share, and Industry Analysis, By Technology (Subcritical, Supercritical, and Ultra-supercritical), By Fuel Type (Coal, Nuclear, Gas, and Oil), By Capacity (Below 400 MW, 400-800 MW, and Above 800 MW), and Regional Forecast, 2024-2032

The global power plant boiler market was valued at USD 22.12 billion in 2023 and is projected to grow from USD 23.26  billion in 2024 to USD 36.26 billion by 2032, exhibiting a CAGR of 5.46% during the forecast period.

A boiler is significantly used in power plants to produce high pressured steam through which the plant can generate electricity. The rankine cycle is the process used to produce high pressured steam. The power plant boiler takes in energy from various fuels such as coal, natural gas, nuclear, and other pulverized fuelthat convert it into steam.

The COVID-19 pandemic has affected more than 150 countries around the world.  This pandemic has impacted several business sectors, such as railways, construction, manufacturing, oil & gas, aviation, hospitality, and others. The government in many countries had imposed nationwide lockdowns & restrictions in the wake of the pandemic and this has severely affected the economies of such nations across the globe.

Despite this optimistic outlook, the pandemic has had a substantial impact on the steam and boiler industry, particularly on maintenance. Many steam and boiler maintenance businesses have been unable to conduct services such as basic inspections and maintenance as frequently as they once did due to severe rules on social isolation and lockdowns in effect across the United States. The power sector also faced unavailability of the workforce and the investment in this sector also decreased.

According to IEA, during the lockdown period, the electricity demand decreased by more than 20% in several countries due to the low operation of the industrial and commercial sectors.

Power Plant Boiler Market Trends

Rising Demand for Electricity to Boost Market Growth

The electricity demand is rapidly increasing across the world as the power consumption in the world has increased considerably over the last few years. The economy is growing rapidly, rising population, booming manufacturing industry results in increased power consumption among various countries. The developing countries are dealing with high electricity demand due to the rising infrastructure development and expansion works. The rising electricity demand leads to the increasing capacity of power stations.

Power Plant Boiler Market Growth Factors

Increasing Industrialization and Urbanization to Propel Market Growth

Industrialization is rapidly increasing across the world and this increases the power consumption by the industrial sector. Manufacturing and process industries are widely growing in developed and developing countries. For years, American manufacturing has been a vital engine of economic innovation, growth, and efficiency and has played a vital role in raising and directing the technologies that ensure our national security. For example, in 2022, manufacturing contributed USD 2.3 trillion to US GDP, or 11.4% of total US GDP in chained 2012 dollars. Including direct and indirect value-added, manufacturing contributed about 24% of GDP. According to the Current Population Survey, US manufacturing will employ 15.2 million workers in 2022, accounting for 9.6% of all US employment. According to the NIST Manufacturing Cost Guide, manufacturing accounted for 76.6 percent of the U.S. environmental impact. The average compensation in the American industry is 6.3% higher than that in the private sector. The establishment of various other industries increases power consumption and this makes the energy sector to increaseits existing capacities. Urbanization is also increasing widely across the world. This increases the demand for the power plant boiler in the market.

Replacement of Aging Power Plants to Augment Market Growth

The replacement and upgradation of old equipment have become very much important for the smooth and efficient working of such equipment. As the boiler is considered as one of the important equipment in the power plants and its upgradation and replacement is also import for effective operation. The demand for uninterrupted power is increasing and the replacement of older power plant boilers with new and efficient boilers. This helps in increasing the thermal efficiency of power plants. The focus to upgrade  aging boilers is also increasing  globally. As per IEA, from 2014 to 2030 around USD 9,553 billion will be invested on refurbishment and new construction works for power plants. This shows that high expenditure on upgradation, replacement, and construction of power plant boilers drives power plant boiler market growth. 

RESTRAINING FACTORS

High Initial Capital Requirement May Hinder Market Growth

A boiler is one of the most widely used technology for the production of electricity in power plants. It uses different types of fuels for electricity generation. The power plants required a high initial investment for their construction. One of the most significant hidden costs of neglecting boiler maintenance is increased energy costs. Boilers that are not maintained correctly tend to become less efficient over time. This means that they require more fuel to generate the same amount of heat or power, resulting in higher energy bills for industrial operations.This is because of the high cost of equipment such as a boiler. The cost of installation of a boiler in the power plant is very high and this hinders the market development.

Power Plant Boiler Market Segmentation Analysis

By Technology Analysis

Supercritical Segment Dominated Market in 2023

Based on technology, the market is segmented into subcritical, supercritical, and ultra-supercritical. The supercritical segment dominated the market in 2023. The utilities and industrial segment in several countries are widely focusing on upgradation of power infrastructure. The upgradation works involvethe high installation of supercritical technology in power plant boilers due to its various benefits such as higher efficiency and such boilers consume less fuel along with lower carbon emissions.

The ultra-supercritical technology is likely to witness growth in the market 2024-2032. The implementation of such technology is widely increasing across the power plants. This technology works on high pressure and temperature. They have an efficiency of up to 46% in the power plants. This is likely to drive growth in the ultra-super technology segment 2024-2032

By Fuel Type Analysis

Coal Segment is Likely to Dominate the Market in 2023

Based on fuel type, the market is segmented into coal, gas, oil, and nuclear. The coal segment dominated the market in 2023.  The number of coal power plants is higher across the world as compared to other fuels due to the easy availability of coal in the surroundings. The coal is available at cheap rates and supercritical, subcritical, and other technologies boilers are majorly installed in the coal power plants.

The gas segment is estimated to foresee growth during the projected period. The construction of gas power plants is widely increasing in the market across the world as the exploration and production activities for natural gas arerising globally. The governments across many countries are also largely supporting the installation of gas-based boilers for power generation. This drives the market.

By Capacity Analysis

400-800 MW Segment Dominated the Market in 2023

Based on capacity, the market is segmented into below 400 MW, 400-800 MW, and above 800 MW. The 400-800 MW segment is estimated dominated the market in 2023. The demand for such boilers is majorly increasing in the power plants. Power plant boiler is majorly used for stable and reliable baseloads. The investment in advancing the power plant technologies is also increasing widely. This drives growth in the 400-800 MW segment.

The below 400 MW segment is anticipated to witness growth in the market. The installation of such boilers is widely increasing due to the increasing installation of small-scale power plants across industrial and utility segments. This drives growth in the market.

REGIONAL INSIGHTS

Geographically, the global market has been analyzed across five key regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

The Asia Pacific region is estimated to dominate the global market 2024-2032 as the region stood at 15.33 billion in 2023. Rapid urbanization and industrialization across the region increase the electricity demand. The population is also increasing widely in this region and the penetration of electronic gadgets is also rising across various countries including Thailand, Indonesia, Australia, South Korea, Japan, India, and China. The investment in the power sector is also high in Asia Pacific and the upgradation and refurbishment of the boiler are also implemented.

The Middle East & Africa region is likely to witness significant growth from 2024 to 2032. The demand for uninterrupted power supply is widely increasing across this region. The investment in power generation and power plant construction is widely increasing. Industrialization is also rising and the development of public infrastructure is also increasing which drives growth in the power plant boiler market.

Europe is likely to grow at a significant pace from 2024 to 2032 owing to constantly expansion inits electricity generation capacity due to growing demand for uninterrupted power supply. The technological advancements along with increasing research and development activities also bolsters the boiler manufacturing industry. Thus, increases theinstallation of gas-fired power plants in this region.

North America is expected to register significant growth from 2024 to 2032. The region is currently experiencing high power consumption and high demand for energy management. This increases the power capacity generation which further increases the demand for the boilers. Industrialization is also rapidly increasing which drives growth in North America.

The Latin America region is estimated to foresee growth from 2024 to 2032. The demand for power supply is widely increasing within the region which increases the need to expand electricity generation capacities in the region. The rising number of power plants increases the installation of boilers in this region.

List of Key Companies in Power Plant Boiler Market

Key Players Increasing Their Concentration on New Contracts and Product Portfolio 

The global market is fragmented owing to the presence of a large number of companies in developed and developing countries. Currently, Babcock & Wilcox Enterprise, Mitsubishi Hitachi Power Systems, Siemens, Doosan Heavy Industries & Construction, and General Electricare leading the market. These companies are expanding their reach and focusing on securing new contracts. For instance,

LIST OF KEY COMPANIES PROFILED:

• General Electric  (U.S.)


• Babcock & Wilcox Enterprise (U.S.)


• Mitsubishi Hitachi Power Systems (Japan)


• Siemens AG (Germany)


• Doosan Heavy Industries & Construction (South Korea)


• Dongfang Electric Corporation (China)


• IHI Corporation (Japan)


• John Wood Group (U.K.)


• Bharat Heavy Electrical Limited (India)


• Thermax (India)


• Andritz Group (Austria)


• Sumitomo Heavy Industries (Japan)

KEY INDUSTRY DEVELOPMENTS:

• In February 2024, Mitsubishi Power received an order for one system of core equipment for a high-efficiency power generation facility, including a state-of-the-art M701JAC gas turbine, for the third facility planned to be built at the Navoi Power Plantby JSC Thermal Power Plants, the state electric power corporation of the Republic of Uzbekistan.


• In October 2023, Babcock & Wilcox Enterprises announced that its Canadian subsidiary, Babcock & Wilcox Canada Corp, has been awarded a multi-year utility plant maintenance contract from Newfoundland and Labrador Hydro for its Holyrood Thermal Generating Station in Newfoundland, Canada, valued at nearly USD 11 million with customer options for additional work.


• In October 2023, Mitsubishi Heavy Industries, Ltd. power solutions brand Mitsubishi Power completed the installation of the second of four M701JAC units for a natural gas power plant project in Rayong Province, Thailand. The operation started on 1 October 2023 and followed the commissioning of the first unit at the end of March.


• In August 2023, GE announced the successful start of commercial operations for JERA’s 1.5GW  Futtsu Power Plant Group 4, located in China, Japan, powered by three GE 9HA.01 gas turbines. The 5.6 GW facility is comprised of four groups, is one of Japan's largest and most acute power generation facilities, and is Japan’s major LNG terminal, which obtains over 11 million tons of LNG annually.


• In February 2021, B&W announced that its B&W thermal segment had won a contract worth USD 15 million for the design and supply of two package boilers and its related equipment for a desalination plant. This boiler will be a gas-fired boilers and produce steam for a municipal facility that will serve residents and businesses. 

REPORT COVERAGE

The global power plant boiler market research report contains a complete industry analysis and focuses on major elements such as leading companies, fuel type, capacity, and product leading technology. Apart from that, the study provides insights into market trends and highlights important industry advancements. In addition to the aforementioned reasons, the research includes a number of drivers that have contributed to the advancement of the market in recent years.

REPORT SCOPE & SEGMENTATION