Steam Boiler System Market Overview, 2025-30

Steam boilers play a crucial role in providing reliable steam generation for heating, sterilization, and power applications, making them indispensable in many industrial processes. Rising demand for energy across the world is anticipated to contribute notably towards the growth of the steam boiler system market in the years ahead. The increasing need to improve the energy efficiency of power plants and the power generation process has been fueling the demand for steam boiler systems substantially. The rise in government initiatives to encourage the usage of steam boiler systems, such as providing rebates and subsidies on their purchase, is also remarkably contributing to the growth of this market.

For instance, the IEA claims that in 2023, the total spending on energy globally equaled USD 2.8 trillion, out of which USD 1.7 trillion was spent on modern energy technologies which incorporate renewables, nuclear power, low-emission fuels, and advanced grids for renewable energy. The cost of steam boilers varies because of the design parameters and varying levels of after-sales support. Budget steam boilers offer shorter lifespans, shorter warranties, and a lower level of customer support compared to the standard steam boilers. The use of special alloys and advanced technologies result in the development of boilers with improved performance.

The installation of a steam boiler system requires high capital, which makes it one of the most critical expenditures of the manufacturing plant. The cost associated with the installation of steam boilers amounts to 15-20% of the total boiler cost. This cost is expected to remain same because of the high level technical expertise involved in the operation of steam boilers and separate construction of boiler houses in the utility area. The non-condensing steam boiler market was valued at over 7.5 billion in 2024. These units are still the preferred choice in developing economies driven by their affordability and compatibility with underlying infrastructure.

According to the research report, "Global Steam Boiler System Market Overview, 2025-30," the Global Steam Boiler System market was valued at more than USD 18.56 Billion in 2024, with the CAGR of 5.41% from 2025-2030. Regulatory frameworks worldwide are tightening emissions standards, compelling manufacturers and end-users to adopt advanced emission control technologies and renewable energy integration. The installation of continuous emission monitoring systems ensures adherence to environmental laws, which has become a critical requirement for many industrial operators.

Despite these advancements, challenges remain, such as the high upfront capital investment required for state-of-the-art boilers and the shortage of skilled professionals to operate and maintain these complex systems, especially in emerging economies. In July 2022, Bosch Industriekessel introduced the ELSB series of steam boilers for residential and commercial use. The series is emission limited, more efficient, and integrates carbon-neutral technology so that green consumers can use it. In addition to industrial growth, the push towards sustainability and stricter environmental regulations in Europe and North America is another significant factor propelling the market.

Developed regions have implemented stringent standards on emissions such as NOx and CO2, pushing industries to retrofit or replace outdated boilers with advanced models that incorporate low-NOx burners, better combustion control, and enhanced heat recovery systems. For example, the European Union’s regulatory framework under the Industrial Emissions Directive mandates industries to adopt cleaner technologies, directly influencing boiler manufacturers to innovate cleaner, more efficient solutions. In 2024, ALFA LAVAL reported USD 6.3 billion in net sales and USD 7.1 billion in order intake, increasing by 7% due to strong demand.

The company has also reported a net income of USD 705.6 million, which represents an increase of 16.5% year over year, which highlights greater profit margin, operational efficiency, and business performance. Moreover, the growing adoption of cogeneration or combined heat and power (CHP) systems has stimulated demand for versatile steam boilers that can simultaneously generate steam and electricity, thereby optimizing fuel usage and reducing waste.

Market Drivers

• Growing Demand for Energy Across Industrial Sectors: One of the primary drivers for the steam boilers system market is the increasing demand for energy from industries such as chemical, food processing, paper, and power generation. Steam boilers are essential in providing the heat and steam necessary for manufacturing processes. As industrial activities ramp up globally - particularly in emerging economies like India, China, and Brazil - there is a rising need for efficient and reliable steam systems. This industrial expansion, coupled with the need for continuous power supply, is significantly boosting the demand for steam boilers across sectors.
• Emphasis on Energy Efficiency and Environmental Compliance: With growing concerns about environmental pollution and climate change, industries are under pressure to adopt cleaner and more efficient technologies. Modern steam boilers are being designed to be more energy-efficient and to comply with stringent environmental regulations, such as reduced NOx and CO2 emissions. Governments and regulatory bodies are also encouraging industries to shift toward low-emission systems, often offering incentives for energy-efficient installations. This regulatory push is driving innovation and adoption in the steam boilers market.

Market Challenges

• High Initial Investment and Installation Costs: Installing a steam boiler system requires a significant upfront investment, which includes the cost of the boiler unit, auxiliary equipment, piping, and infrastructure modifications. For small and medium-sized enterprises (SMEs), this capital requirement can be a substantial barrier. Additionally, the costs of regular maintenance and compliance with evolving safety standards add to the financial burden, potentially slowing down market growth, particularly in cost-sensitive regions.
• Complexity in Operational Management and Skilled Labor Shortage: Operating a steam boiler system safely and efficiently requires skilled personnel with expertise in boiler operation, maintenance, and troubleshooting. However, many industries, especially in developing regions, face a shortage of such skilled labor. Inadequate training can lead to inefficient operation, higher fuel consumption, and increased safety risks. This challenge is compounded by the complexity of modern boiler systems, which incorporate automation and digital controls, demanding continuous upskilling of the workforce.

Market Trends

• Integration of Smart Technologies and IoT in Boiler Systems: A notable trend in the steam boiler market is the integration of smart technologies and the Internet of Things (IoT). These advancements allow real-time monitoring, predictive maintenance, and automated controls, improving efficiency and reducing downtime. Smart boilers equipped with sensors and analytics capabilities are becoming more common in advanced manufacturing and power plants. This digital transformation is helping operators optimize fuel usage and maintenance schedules, reducing operational costs and improving system reliability.
• Shift Toward Renewable and Biomass-Fueled Boilers: With global focus shifting toward sustainability, there is a growing trend of replacing traditional fossil-fuel-powered boilers with those that run on renewable sources, such as biomass. Biomass boilers offer a carbon-neutral energy source and are increasingly being adopted in regions with abundant agricultural or forestry waste. This trend aligns with global decarbonization goals and is supported by government incentives and carbon credit programs, making it a significant development in the boiler industry.

Hydrogen-fired and hybrid steam boiler systems are the fastest-growing segment globally due to their critical role in decarbonizing industrial heat while meeting tightening environmental regulations and energy efficiency demands.

The global shift toward low-carbon and sustainable energy sources is the primary force propelling the rapid growth of hydrogen-fired and hybrid steam boiler systems in the industrial sector. These systems address a key challenge, reducing greenhouse gas emissions from high-temperature industrial processes, which are traditionally reliant on fossil fuels like coal, oil, or natural gas. As governments and regulatory bodies worldwide implement stricter emissions standards and carbon pricing mechanisms, industries are under increasing pressure to modernize their heating infrastructure to comply with environmental targets.

Hydrogen-fired boilers provide a zero-emission solution at the point of use, especially when powered by green hydrogen produced from renewable energy sources. Hybrid systems, which combine traditional fuels with electricity or hydrogen, offer a flexible pathway for industries to transition gradually without a complete infrastructure overhaul. This adaptability is crucial for sectors where a sudden switch to fully electric systems is impractical due to high capital costs or operational complexities. Moreover, hybrid and hydrogen-fired boilers align well with national and corporate decarbonization roadmaps, making them attractive for long-term investments.

The recent advancements in hydrogen production technologies, such as electrolysis powered by solar and wind energy, have also improved the commercial viability of these systems. Furthermore, innovations in control systems and thermal integration have enhanced the efficiency and reliability of hybrid configurations, enabling seamless switching between energy sources based on availability and cost.

These technologies not only reduce emissions but can also lower operational costs over time, especially in regions with volatile fossil fuel prices or abundant renewable energy. Industrial leaders in sectors like chemicals, food processing, textiles, and pharmaceuticals are increasingly adopting these boilers to future-proof operations and demonstrate environmental stewardship.

Electric boilers are the fastest-growing type in the global steam boiler system industry because they offer highly efficient, clean, and easily controllable steam generation that aligns perfectly with increasing electrification and stringent environmental regulations.

The rapid rise of electric boilers in the global steam boiler system industry is driven by a combination of environmental, economic, and technological factors that make them an increasingly attractive option for a wide range of industrial applications. With the global emphasis shifting towards sustainability and decarbonization, electric boilers offer a fundamentally cleaner alternative to traditional fossil fuel-fired boilers by producing steam without onsite combustion and the associated greenhouse gas emissions. This is particularly important as governments worldwide impose stricter emission regulations and industries seek to reduce their carbon footprint to comply with environmental standards and corporate sustainability goals.

Electric boilers operate with nearly 100% thermal efficiency, meaning almost all the electrical energy is converted into heat, which results in significant energy savings compared to conventional boilers where losses occur through combustion exhaust gases and heat dissipation. The absence of onsite fuel storage and combustion also leads to reduced maintenance requirements and safer operation, making electric boilers a preferred choice for industries with strict hygiene or safety standards, such as pharmaceuticals, food and beverage, and electronics manufacturing.

Additionally, electric boilers are highly flexible and quick to start up or shut down, providing precise control over steam output and enabling industries to respond rapidly to fluctuating demand or integrate with automated processes. This operational flexibility is increasingly valued in modern manufacturing environments that emphasize efficiency and lean operation.

The "Others" category - encompassing textiles, pharmaceuticals, rubber, and similar industries - is the fastest-growing end-user segment in the global steam boiler system industry due to their expanding production demands coupled with increasing reliance on efficient.

The rapid growth of the "Others" end-user segment, which includes industries such as textiles, pharmaceuticals, rubber, food processing, and chemicals, is a prominent trend in the global steam boiler system market. This surge is driven primarily by the expanding scale and complexity of manufacturing processes in these sectors, all of which heavily depend on steam for critical functions such as sterilization, drying, heating, and chemical processing. As these industries continue to grow - fueled by rising consumer demand, urbanization, and global supply chain expansion - their need for reliable and efficient steam generation intensifies.

In pharmaceuticals, for instance, steam plays an indispensable role in sterilizing equipment, ensuring hygienic conditions, and meeting stringent regulatory standards related to product safety and quality. The growth of global healthcare and increasing pharmaceutical manufacturing capacity in emerging markets are significant factors pushing demand for advanced steam boiler systems in this sector. Similarly, the textile industry requires consistent, high-quality steam for fabric processing, dyeing, and finishing operations, where precision and uniformity directly impact product quality. The expansion of textile production hubs in Asia and other regions is consequently driving boiler demand.

The rubber industry relies on steam for vulcanization and curing processes, which are essential to enhancing product durability and performance. Increased automotive and industrial rubber consumption worldwide is accelerating the adoption of robust steam systems here. Besides expanding industrial activities, these sectors are also under increasing pressure to improve energy efficiency and reduce environmental impact, driving demand for modern, clean, and efficient steam boilers.

Above 600 BHP steam boilers are the fastest-growing segment globally due to the increasing demand for large-scale, high-capacity steam generation in heavy industries driven by expanding industrialization and the need for greater operational efficiency.

The segment of steam boilers rated above 600 Boiler Horsepower (BHP) is witnessing the fastest growth in the global steam boiler system industry because heavy industries are increasingly scaling up their operations, necessitating large-capacity steam generation solutions that can meet intense and continuous process demands. Industries such as power generation, petrochemicals, refineries, pulp and paper, and large-scale manufacturing require vast amounts of steam to sustain their complex production processes, which often run 24/7.

As industrialization accelerates, especially in emerging economies, these sectors are expanding their facilities or building new plants with higher capacity boilers to improve productivity and handle greater workloads efficiently. Larger boilers offer economies of scale, enabling industries to produce more steam with relatively lower fuel consumption per unit of output compared to multiple smaller boilers. This leads to improved overall thermal efficiency and reduced operating costs, critical for maintaining competitiveness amid fluctuating energy prices and tightening environmental regulations.

Furthermore, large-capacity boilers are increasingly favored for their ability to integrate advanced emission control technologies, such as flue gas desulfurization and selective catalytic reduction, helping industries comply with stringent air quality standards. The shift towards more automated, digitally monitored boiler systems also favors higher horsepower units, as they are often equipped with sophisticated controls and monitoring equipment that optimize performance and safety at scale. Additionally, many industries are consolidating their steam generation infrastructure to reduce footprint and maintenance complexity, which boosts demand for high-capacity units that can serve multiple production lines or processes simultaneously.

The Asia Pacific region is the fastest-growing market in the global steam boiler system industry due to its rapid industrialization, expanding manufacturing base, and increasing demand for energy-efficient and environmentally friendly boiler technologies.

The Asia Pacific region’s rapid industrial growth is the primary driver behind its dominance and fastest expansion in the global steam boiler system industry. Countries like China, India, Japan, and South Korea are undergoing significant industrial transformations, with a strong emphasis on manufacturing, power generation, and infrastructure development. This surge in industrial activities requires substantial amounts of steam for various processes, including power plants, chemical manufacturing, textiles, and food processing, leading to increased demand for steam boilers.

Additionally, governments in these countries are focusing heavily on energy efficiency and environmental sustainability to meet global standards and reduce pollution levels, prompting the adoption of advanced, eco-friendly steam boiler systems. Investments in upgrading existing infrastructure and deploying new plants that utilize high-efficiency boilers have surged, further accelerating the market. The region's large population and urbanization also play a vital role, as growing urban centers demand reliable energy sources to support commercial and residential heating and power needs.

Moreover, technological advancements and innovation driven by regional manufacturers contribute to the availability of cost-effective and efficient boiler solutions tailored to the specific requirements of local industries. These factors, combined with government incentives, favorable policies, and increasing foreign direct investment, create a conducive environment for the steam boiler market to flourish.

• In March 2025, Aggreko added high efficiency, low-emission units to the European steam boiler fleet in response to growing needs from the chemical and process industries. The new additions encompass 2T/hr and 5.5T/hr steam generator systems for containerized units utilizing proprietary Spiral Coil technology, yielding greater than 99.5 percent dry saturated steam.
• In May 2024, Miura Co. Acquired Cleaver-Brooks as well as other boiler manufacturers and solution providers were quite competently integrated. This, along with their experience and involvement, will permit us to continue offering unmatched service and sustainable boiler room solutions.
• In February 2023, Weil-McLain launched its DOE compliant 2023 commercial boilers which synergized efficiency and compliance. The newly designed LGB Steam Series 3 and 88 Water Series 3 Steam Type Boilers were equipped with outstanding steam generating capabilities of 1,000,000 and 1.5 million BTU's respectively and enhanced for improved dependability and long operational life.
• In January 2023, Clayton Industries Implemented 600-horsepower E Series boilers at its corrugation plant alongside customized steam solutions. Supporting custom steam solutions, the E Series has fired steam generators and fully modulated automatic controls, modeled from 150-2,000 BHP. It’s the company’s goal to increase its presence in the region that drove this change.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Steam Boiler Systems Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Fuel Type

• Coal-Fired
• Oil-Fired
• Gas-Fired
• Biomass-Fired
• Electric
• Others(Hydrogen-Fired,Hybrid)

By Boiler Type

• Fire-Tube Boilers
• Water-Tube Boilers
• Electric Boilers

By Horsepower

• 10-150 BHP
• 151-300 BHP
• 301-600 BHP
• Above 600 BHP

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.