Circulating Fluidized Bed Boilers Market Size, Share & Industry Analysis, By Type (Subcritical CFB Boiler, Supercritical CFB Boiler, and Ultra-Supercritical Boiler), By Feedstock (Coal, Pet Coke, Biomass, and Others), By End-Users (Oil & Gas, Power, Chemical, and Others), and Regional Forecast, 2024-2032

The global circulating fluidized bed boilers market size was valued at USD 915.70 million in 2023. The market is projected to grow from USD 948.79 million in 2024 to USD 1,263.89 million by 2032, exhibiting a CAGR of 3.65% during the forecast period. 

Industrialization is the process by which manufacturing industries develop in an agricultural society, where coal is one of the most important and cheapest sources of energy. With the increasing use of coal, environmental concerns have also increased. Coal combustion releases harmful gases, such as nitrogen oxides, sulfur oxides, carbon, and other harmful gases that are one of the major causes of global warming, acid rain, and environmental degradation.

Governments in many nations are investing heavily in research to solve the problem of carbon emissions. Many studies have been conducted due to growing concerns about carbon emissions caused by traditional coal-fired power plants. Circulating Fluidized Bed (CFB) boilers are mainly used for power generation, which effectively controls carbon emissions by absorbing carbon before releasing it into the environment. This technology has evolved recently due to increasing regulations on carbon emissions. The use of circulating fluidized bed boilers has grown from small industries to very large factories.

Circulating fluidized bed boilers use all types of solid fuels, from Refuse Derived Fuels (RDF) to biomass, to produce clean energy efficiently. CFB technology is mainly designed for fuel flexibility and helps reduce fossil fuel and CO2 emissions while leveraging local alternative renewable energy. High combustion efficiency, lower maintenance expenses, and reduced erosion contribute to longer life cycles for these boilers. Moreover, refined coal and advanced purification technologies are being experimented with for fuel efficiency and emission reduction.

The COVID-19 moderately impacted global circulating fluidized bed boilers market, due to its dependence on power, electricity, oil and gas, and other industries. According to the Energy and Economic Growth Survey, the oil and gas industry was one of the hardest hit industries, with an average decline of -2.8% in 2020. Additionally, more than 100 countries have shut down international borders for non-essential business activities and transportation, leading to supply and demand disruptions in the CFB boiler market.

Circulating Fluidized Bed Boilers Market Trends

Increasing Need for Assessment of Co-firing Biofuels and Coal-based Feedstock to Fuel Market Growth

Pennsylvania University is utilizing funds provided by the U.S. Department of Energy’s biomass power program, investigating the installation of a state-of-the-art CFB boiler at Penn State’s university campus for co-firing various biofuels and other wastes with coal and creating a test program to assess co-firing biofuels and coal-based feedstock.

The activities include assessing potential feedstocks at the University Park campus and surrounding region with highlights on biomass materials. This involved collecting and examining potential feedstocks assessing deposition, agglomeration, and corrosion tendencies, finding the optimum position for the boiler system through an internal site selection end-user. The activities carried out a three (CFB) circulating fluidized bed boiler design and a 15yr old boiler plant transition plan, defining the costs associated with installing the boiler system, creating a preliminary test program, finding the related costs for the trial program and discovering potential emissions credits while using the biomass CFB boiler.

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Circulating Fluidized Bed Boilers Market Growth Factors

Growing Usage of CFB Boilers in the Oil and Gas Industry to Fuel Market Growth

Circulating fluidized beds provide enhanced coal-fired energy efficiency by reducing greenhouse gas emissions. It ultimately results in high steam capacity, which in turn leads to further improved efficiency, thereby enhancing the demand for circulating fluidized bed boilers.

Circulating fluidized bed boilers are widely used for the multi-fuel combustion of biofuels and wastes. When multiple heterogeneous fuels with different calorific values are burned simultaneously, the boiler control system can be affected by a number of control challenges, especially due to consistent measuring. To meet energy production requirements while maintaining the ability to burn low-quality fuels, simultaneous combustion with fuels with high calorific value, such as gas, oil, or coal, is necessary. Therefore, the growing demand for CFB boilers in oil and gas applications is driving the growth of the circulating fluidized bed boiler market.

Clean Energy Demand and Adoption of Green Technology Promoting the Demand for CFB Boilers

Circulating fluidized bed boilers provide an efficient advancement in coal-fired power generation by significantly reducing greenhouse gas emissions. This improved exhaust control is intended to increase steam efficiency, which in turn leads to improved overall performance. As global concerns about carbon emissions increase, more and more regions and countries will look toward this innovative technology.

For instance, in June 2022, Europe signed an agreement with Babcock & Wilcox (B&W) Renewable Service A/S subsidiary worth more than USD 15 million to design and install a biomass-fired boiler and other combustion equipment for a green energy project in Europe. The 48-megawatt boiler is the first B&W-designed bubbling fluidized bed (BFB) boiler to be installed in Europe by B&W Renewable Service. It will be used to provide district heating to thousands of residents and businesses.

Moreover, In Oberkirch, Valmet will renovate an existing CFB boiler from combusting coal to biomass. This delivery will be taken over in October 2024 by Koehler. In Kehl, Valmet will provide a fuel upgrade on a Circulating Fluidized Bed boiler, and this supply will be handed over to the customer in September 2023. The increasing adoption of CFB boilers holds the possibility of driving considerable growth in the global market throughout the expected timeframe.

RESTRAINING FACTORS

High Maintenance and Installation Costs of CFB Boilers to Hamper Market Growth

The development rate of the circulating fluidized bed boilers market is reduced due to its high installation cost. Moreover, there are numerous other logistical challenges related to circulating fluidized bed boilers. The high initial costs, along with the maintenance and installation of circulating fluidized bed boilers, are hindering market growth. The estimated cost range for a CFB boiler is approximately USD 900 million to USD 1.4 billion. It is one of the biggest disadvantages of CFB boilers as their structure is very complicated, resulting in the initial investment cost being higher. However, CFB boilers are defenseless to wear and tear, which, in return, increases their maintenance cost and hampers market growth. Casting materials that are used in CFB boilers are a major threat due to particles that fall with high velocity inside the CFB boilers.

Moreover, combustion particle trajectory is transformed due to platform obstruction inside CFB boilers, which further aims to form a circulating vortex. The force applied by the air supply that moves uphill further increases the density of particles, which further increases the corrosion of the CFB boiler. This is expected to hamper market growth over the forecast period.

Circulating Fluidized Bed Boilers Market Segmentation Analysis

By Type Analysis

Subcritical CFB Boiler Segment Led the Market Due to Its Flexibility

Based on type, the market is segmented into subcritical CFB boilers, supercritical CFB boiler, and ultra-supercritical boiler.

The subcritical CFB boiler accounted for 64.43% in 2023 and is expected to dominate the market over the forecast period. These CFB boilers are highly flexible when it comes to fuel choice. They efficiently burn a wide range of fuels, such as coal, biomass, and various waste materials. This flexibility is particularly valuable as energy sources diversify and environmental regulations become stricter.

Supercritical CFB boilers operate at higher pressures and temperatures, typically above the critical point of water. They allow for improved thermodynamic efficiency. They can achieve higher net plant efficiencies, which means more electricity can be generated from the same amount of fuel compared to subcritical boilers.

Due to the exceptional efficiency of ultra-supercritical boilers, they consume less fuel per unit of electricity generated. They not only reduce fuel costs but also lower greenhouse gas emissions and environmental impact.

By Feedstock Analysis

Coal Segment Dominates the Market as It is Easily Accessible and Essential Need of the Energy Production Sector

On the basis of feedstock, the circulating fluidized bed boilers market has been segmented into coal, pet coke, biomass, and others.

Coal-fired power accounts for majority share of the market as it is extensively used in wide range of application in industries. Firstly, CFB technology offers greater fuel flexibility, enabling the combustion of a wide range of coals including low-quality and high-ash coals, thereby reducing fuel costs and enhancing operational efficiency. Additionally, the modular design and scalability of CFB boilers make them suitable for both large-scale power generation and smaller industrial applications, increasing their appeal across diverse market segments.

In regions where pet coke is readily available and economically viable, CFB boilers were designed to burn pet coke efficiently as a primary fuel or in combination with other fuels. This fuel diversification allowed for flexibility in response to changing market conditions and fuel availability.

Biomass-fired circulating fluidized bed boilers were designed to accommodate a wide range of biomass feedstocks, including wood chips, agricultural residues, energy crops, and waste materials. This flexibility allowed power plants to adapt to changing biomass availability and quality.

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By End-Users Analysis

Increased Demand for More Energy in the Oil and Gas Sector to Fuel Segment Growth

Based on end-users, the market has been segmented into oil and gas, power, chemical, and others.

The oil and gas segment holds the largest market share. It is projected to dominate over the forecast period, owing to increasing demand for CFB boilers in oil and gas applications. CFB boilers are known for their high combustion efficiency. The fluidized bed technology promotes efficient combustion by evenly mixing fuel and air, leading to better energy conversion. As a result, CFB boilers can generate more energy from a given quantity of fuel, making them attractive to oil and gas facilities looking to maximize energy production while minimizing fuel consumption.

CFB boilers can be started up quickly and are capable of efficiently following load variations. This rapid response is essential for power plants to adjust their electricity output rapidly in response to fluctuations in electricity demand or grid requirements. They are characterized by large fuel adaptability, efficient combustion, and enhanced load regulation performance, which makes them suitable for the energy & power sector. Thus, the power sector is expected to be the second most dominating segment over the forecast period.

REGIONAL INSIGHTS

The market has been divided into five key regions: North America, Latin America, Europe, the Middle East and Africa, and Asia Pacific. Among these Asia Pacific is the dominating region with major market share.

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In Asia Pacific, countries such as India and China have witnessed significant growth in the CFB boiler market. Rapid industrialization, urbanization, and a growing demand for electricity have driven the need for efficient and environmentally friendly power generation technologies. CFB boilers in this region have been employed to burn a variety of fuels, such as coal, biomass, and waste materials. This fuel flexibility allows countries to optimize their energy mix while meeting environmental goals.

In North America, there has been a growing emphasis on reducing carbon emissions and transitioning toward cleaner and more sustainable energy sources. This factor has led to various initiatives, tax incentives, and regulatory frameworks that encourages the adoption of CFB technology, particularly in states and provinces with ambitious renewable energy targets. Many states and provinces in North America have set renewable energy goals and targets, including the use of biomass and other renewable fuels for power generation. North America accounts for 28.06% of the total market share. The initiatives to reduce greenhouse gas emissions have led to increased interest in biomass-fired CFB boilers.

In Europe, owing to preventing dangerous climate change most countries are working hard to cut its greenhouse gas emission from industries. Government incentives and policies play a significant role in the CFB boiler market in Europe.

In Latin America, the upgradation of the conventional power generation plant has been in progress to curb carbon emission. These are the factors expected to bolster global circulating fluidized bed boilers market growth.

KEY INDUSTRY PLAYERS

Leading Companies Focus on Developing New Product Development and Expanding their Product Capabilities

The global CFB boilers market is highly fragmented, with large and some medium-scale regional players delivering a wide range of products at local and country levels across the value chain. Numerous companies are actively operating across different countries to cater to the specific demands of customers. Sumitomo Corporation is expected to account for a significant share of the market owing to its extensive product portfolio and strong brand value. Moreover, the company is also focused on enhancing its sales, distribution, and marketing channels through partnerships with different local associates to fortify its product reach across the globe.

Additionally, other key participants operating in the industry include Mitsubishi Heavy Industry Ltd., Alstom, Valmet, and ANDRITZ, among others, leading in providing circulating fluidized bed boilers across different verticals.

LIST OF TOP CIRCULATING FLUIDIZED BED BOILERS COMPANIES:

• Sumitomo Corporation (Japan)


• Babcock & Wilcox Enterprises (U.S.)


• General Electric (U.S.)


• ANDRITZ (Austria)


• Hyundai Heavy Industry Co (South Korea)


• Mitsubishi Heavy Industries (Japan)


• Thermax (India)


• Valmet (Finland)


• Industrial Boilers America (U.S.)


• Alstom (France)

KEY INDUSTRY DEVELOPMENTS:

• May 2023 - Valmet provided its advanced CFB boiler technology and in-depth support to Shanying International Holdings Co., Ltd. to minimize pulping and papermaking waste, such as sludge and scum and turning it into a resource by making them harmless and reduction in their quantity.


• December 2022- BHEL (Bharat Heavy Electricals Ltd.) entered into a long-term TLA (Technology License Agreement) with the Sumitomo SHI FW for the CFBC boilers. The agreement covered the design, engineering, production, commissioning, and sale of subcritical as well as supercritical CFBC boilers in India and international territories except for select countries.


• August 2022 - Thermax introduced a multi-fuel boiler solution, FlexiSource, for industrial users who are seeking to shift from the conventional portfolio to green solutions. FlexiSource is capable of running on 14 various types of fuels and uses coal as backup fuel.


• February 2022- ANDRITZ announced that the 52.7-MW PowerFluid circulating fluidized bed boiler will be a part of the biomass power plant in Hiroshima, Fukuyama. The boiler will be incorporated into a biomass-fired power generation facility that will power wood chips, wood pellets, and palm kernel shells.


• January 2022- Babcock & Wilcox announced that it had awarded a contract worth more than USD 11 Million for its B&W Renewable segment. According to the contract, the company will design, produce, supply, and install boiler equipment for a biomass boiler in Canada.


• May 2021- Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries, received a turnkey order for a 50-megawatt (M.W.) class woody biomass-fired power plant handling engineering, procurement, and construction (EPC). According to the order, the company will supply steam turbines and circulating fluidized boilers.

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