The profitability quotient of industrial boiler market is projected to escalate in the coming years, augmented by the rapid industrialization across economies. Countries under the Asia Pacific and African belts have made hefty investments in improving the industrial output over the past few years, which has impelled the overall market growth. For instance, in the year 2014, manufacturing exports in Sub- Saharan Africa accounted for almost USD 100 billion.
China Industrial Boiler Market size, By Application, 2017 & 2024 (USD Million)
Increasing FDI investment in major economies is also undoubtedly complementing the business proliferation. Speaking along similar lines, U.S. industrial boiler market has been phenomenally swayed by foreign direct investments, especially in the food sector. As per reliable source, in 2015, food industry in U.S. had fetched FDI investments of around USD 78.3 billion. Driven by food processing applications which procure a major chunk of the overall industry, U.S. industrial boiler market is slated to record a revenue of USD 600 million by 2024.
If statistics are to be relied on, U.S stands as a major revenue pocket for the entire North America industrial boiler market share. Not only in the food processing industry, the nation’s chemical sector also observes huge FDI investments, a prime factor that has proliferated the overall business growth. In 2015, chemical sector in the U.S. accounted for an FDI investment of more than USD 470 billion. As per records, in 2016, U.S. had a strong pipeline of over 275 chemical production projects worth over USD 170 billion. Taking into account the humongous progression in the chemical sector, it is certain that U.S. industrial boiler market will carve a profitable path over 2018-2024. On that note, Global Market Insights Inc., forecasts that industrial boiler market size from the chemical industry would record a CAGR of 3% over 2018-2024, subject to the high demand for plastic, bulk petrochemicals, and resin across varied utility domains.
The growing trend toward deploying energy efficient heating units has undoubtedly brought a renewed dimension to the global industrial boiler market. A large number of regulatory initiatives with regards to carbon emission abatement speaks volumes and has contributed immensely in the remodeling of industrial boiler market space. It has been observed that industrial processes accounts for a major chunk of carbon footprints and GHG emissions. The European Parliament in 2015 has introduced a new regulation under the directive (EU) 2015/2193 to curb pollutant emissions from medium capacity combustion plants. As recent as in January this year, the France government has taken a pledge to cut down carbon emissions by 40% by 2030 from that recorded in 1990. Stringent government regulations such as these demand the deployment of energy efficient heating systems, and boilers being an integral component of all industrial processes certainly adds up to the overall business outlook.
Robust investments toward industrial construction along with escalating demand for energy-efficient space heating systems across major economies have enhanced global industrial boiler market outlook. For instance, the Government of Saudi Arabia and Iran together have recently signed a pact with regards to the development of three petrochemical units in the country. Expansion and upgradation of existing facilities is expected to complement industrial boiler industry. In fact, considering Saudi Arabia government encouraging initiatives toward economic diversification, privatization of state assets, and oil recovery price trends, the regional industrial boiler market will grow at a remarkable pace in the coming years, claim experts. In April 2016, the regional government had announced the Saudi Vision 2030, which mainly aims at economic restructuring through industry diversification. Since the GDP of the country is highly dependent on oil price trends, the government has set a target of increasing the participation of private players to 65% by 2030.
A recent report by Global Market Insights, Inc., claims that the overall industrial boiler industry will surpass a valuation of USD 14 billion by 2024. Incessant effort by the leading giants toward product innovation along with strong regulatory framework are expected to bring a new dimension in industrial boiler market. However, high capital investment is perceived to be one of the strong deterrents hindering the market growth. Nonetheless, growing number of governmental commencements toward the deployment of energy efficient heating units is sure to bring immense opportunities for the global industrial boiler market.