Power Plant Boiler Market

Power Plant Boiler Market Size (2023-2028):

The Global Power Plant Boiler Market was worth US$ 20.14 billion by 2022 and is projected to reach a valuation of US$ 26.73 billion by 2028, and is predicted to register a CAGR of 5.00% between 2023-2028.

Market Overview:

Increasing demand for electricity and an increase in the adoption of supercritical and ultra-supercritical boiler technologies to enhance efficiency are expected to drive the power plant boiler market. A power plant boiler is a sort of mechanical equipment that produces steam by heating water and utilizes it to generate energy. The boiler is incorporated into a furnace that burns fossil fuels and creates heat which gets transferred to water to make steam. Over the years, the efficiency of those boilers has increased significantly, with some systems having a fuel-to-steam efficiency as high as 90%

Market Drivers:

Power plant boilers use various fuels like coal, gas, petroleum, and biomass/wastes to supply high-pressure steam in order that plants can generate electricity. Electricity is the fastest-growing source of energy demand. Developed countries still consume huge amounts of energy, thus increasing the demand in developing countries.

Market Restraints:

A power plant may be a complex facility and requires high investments in engineering, procurement, construction (EPC) or turnkey services, and technology. Construction costs for brand-spanking new power plants are widely dependent on the kind of electricity generation technology it's harnessing. Additionally, post-construction phases, like maintenance, and installation of technology, also require considerable capital investment. Furthermore, stringent environmental regulations and, therefore, the high cost of technology utilized in supporting power plants impact the ultimate construction cost.

The cost of power plant boilers varies considerably because of design parameters and ranging levels of after-sales support. These parameters include operating pressure, operating temperature, sort of firing, and efficiency desired. The necessity for top pressure and heat increases the value of the boiler. The installation of power station boilers also requires huge capital. Additionally, the system used for coal firing or gas firing within the boiler also influences the value of the boiler.

Market Opportunities:

Boilers are essential equipment for power plants. The replacement and upgrade of old equipment provide a beautiful opportunity for several power producers. The rising demand for reliable power delivery by replacing older boilers with newer advanced, efficient boilers helps in boosting the thermal efficiency of power plants. Many companies specialize in offering advanced boiler upgrades for coal- and gas-fuelled power plants, which may contribute to their multiple fuel flexibility and reduce the potential impact of CO2 emissions. Developed countries like the US, Canada, the UK, and Germany have aging power infrastructures with low-efficiency levels and high carbon emissions. Continuous investments are happening in these countries to enhance the facility generation capacity. Consistent with the IEA, approximately USD 9,553 billion would be spent cumulatively on the development of the latest power plants and, therefore, the refurbishment of the prevailing ones across the planet from 2019 to 2035, with 30% of the amount being used for fossil-fuelled power plants. Such high investments in construction and aging upgrading infrastructure offer a lucrative opportunity for the power plant boiler market during the forecast period.

Market Recent Developments:

• In February, General Electric signed a contract with Hitachi Zosen Corporation. Under the contract, General Electric will offer a turbine generator, CFB boiler, and air quality control system to the Kamisu Biomass Power Generation plant in Japan.

POWER PLANT BOILER MARKET REPORT COVERAGE:

Market Segmentation

Power Plant Boiler Market - By Type:

• Pulverized Coal Towers, 
• CFB, 
• Others

Pulverized Coal towers segment is expected to dominate the power plant boiler market. Advancements boost the development of this segment in supercritical and ultra-supercritical technologies to upgrade to aging power plant boilers to increase efficiency.

Power Plant Boiler Market - By Technology:

• Subcritical
• Supercritical
• Ultra-supercritical

The supercritical segment held the largest share of the power plant boiler market. The prime focus on developing power infrastructure and the rise in implementation of supercritical technology over subcritical are boosting the segment of supercritical technology in the power plant boiler market. Moreover, the efficiency of a supercritical boiler is better as it consumes less fuel than a subcritical boiler to generate the same amount of heat energy.

Power Plant Boiler Market - By Fuel Capacity:

• Coal
• Gas
• Oil

Coal is the major source of fuel type used for power generation and roughly accounts for 40% of worldwide energy generation. The utilization of coal is probably going to extend within the coming years despite concerns over high carbon emissions. Governments across the planet are trying to find various alternatives to limit pollution caused thanks to coal by adopting efficient technologies. Thus, it's required that the industry and government embrace new technologies to make sure the usage of coal is a cleaner source of energy within the coming years.

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The Asia Pacific is probably going to dominate the global power plant boiler market. The region is predicted to grow from 51.4% in 2020 to 55.0% by 2026. Currently, Asia Pacific is experiencing enormous demand for merchandise and is witnessing growth potential as power consumption within the region grows exponentially. Rapid urbanization within the region may be a key driver for growth. India and China are likely to watch the very best growth within the urban population. For example, as per the UN report, China and India were the highest two countries in terms of population. In India, about 33% of the entire population of 1.3 billion resides in urban areas. These factors are expected to spice up product demand over the forecast period. The increasing urban population, including the rising strain on the present power capacity, is predicted to fuel the power plant boiler market over the forecast period.

Impact of the COVID-19 Pandemic on the Power Plant Boilers Market:

COVID-19 has slowed the expansion of the facility industry currently. This is often primarily because more and more countries resort to nationwide lockdowns to stop further spikes in the spreading of the disease. This slowdown is especially because of economic contractions, which have resulted in the reduction of power demand from various end-user industries. With the decrease in power demand, it's estimated that there would be very negligible investments from the utilities for replacing aging power infrastructure; additionally, major power projects are expected to be halted or delayed. As an example, in India, about 40% of the electricity demand is generated from industrial and commercial establishments and accounts for a better percentage of sales revenue. Furthermore, according to the IEA, electricity demand has fallen by over 20% during times of full lockdown in several countries due to reductions in commercial and industrial operations. Also, the demand for various fuel sources, like coal, gas, and nuclear power, that generate electricity dropped during the amount of lockdown.

Furthermore, the spread of COVID-19 will probably have an adverse effect on the manufacturers of power station boilers, thanks to the worldwide shutdown and issues along the availability chain. The worth of procuring raw materials is additionally expected to extend because of the shortage of supply, which ultimately will cause delays so as closures. For example, Siemens witnessed a pointy fall in demand from China, Germany, and Italy, where the impact of COVID-19 is high.

Market Key Players:

Key Players operating in the power plant boilers market are

1. Siemens
2. IHI Corporation
3. Babcock & Wilcox Enterprise (US)
4. Dongfang Electric Corporation (China)
5. Doosan Heavy Industries & Construction (Korea)
6. General Electric (US) 
7. Mitsubishi Hitachi Power Systems (Japan)
8. John wood Group
9. Bharat Heavy Electrical Limited 
10. Thermax, Andritz Group
11. Sumitomo Heavy Industries
12. Valmet
13. Harbin Electric