Replacement or Upgradation of Aging Power Infrastructure to Augur Well for the Power Plant Boiler Market
Replacement of old equipment and aging infrastructure is expected to fuel the power plant boiler market growth. Old power plant boilers need to get replaced or upgraded in order to operate smoothly with higher efficiency. This is complemented by growing need for power across various sectors, which is driving the replacement of old power plant boilers. Moreover, replacement of aging infrastructure and old power plant boilers also facilitates enhanced thermal efficiency of a power plant. International Energy Agency (IEA) estimates that approximately US$9,553 Bn would be invested on new construction or refurbishment of power plants during the 2014-2030 timeline. This stresses on the fact that higher investment on replacement, upgradation or in construction of new power plant is in the offing, which is likely to influence the market growth.
Research suggests, the power plant boiler market stood at approximately US$18 Bn in 2020 and is poised to touch a valuation of more than US$20 Bn in the next three years, surging at a pace of over 4%.
Increasing Electricity Demand to Pave Opportunities for Uptake of Power Plant Boilers
Electricity has remained an important and a much relied upon source of energy across various residential, commercial, and other industrial applications. The demand is further expected to grow at a significant rate in the coming years. According to IEA, every year global demand for electricity is expected to increase by 2.1% till 2040, which is more than twice the demand for primary energy. This is poised to result in an increased share of this source in the total energy consumption, which is likely to grow by 24% by end of 2040. Growth in industrialization is a major factor resulting in increased power consumption. With growing economy and booming process and manufacturing industries has built pressure apropos to increasing power requirement. This has laid potential opportunities for electricity generating equipment such as a power plant boiler. Power plant boiler, with the use of natural gas, coal, biomass, and petroleum produces high pressure steam using which plants are able to generate electricity. In this backdrop, with increasing electricity demand across industries, the power plant boiler market growth is likely to witness an upswell in the coming years.
To add, according to US EIA (Energy Information Administration), energy consumption across the globe is expected to increase by over 50% till 2050. This is mainly attributed towards increased consumption among regions with strong economic growth. For instance, the electricity generation in the United States, in 2018, increased by 4% and is likely to increase by more than 18% from 2021 onwards, as per EIA. Other regions such as the Middle East and Africa are also likely to reflect increase in electricity consumption, creating higher demand in the global market.
COVID-19 Impact on the Power Plant Boiler Market
With disruptions across various businesses since the COVID-19 pandemic, various industries have faced sluggish growth. The power plant boiler market being no exception faced challenges in 2020 owing to national lockdowns and factory shutdowns. Economic contractions resulted in a decrease in demand for power from several end use industries. This situation further translated into reduced investments by the utility sector to replace aging power infrastructure, alongside causing a delay in initiating various power projects. IEA estimates reflect that during lockdown condition, over 20% drop in electricity demand was observed across countries due to reductions in industrial and commercial operations. This induces a domino effect wherein the entire supply chain got impacted resulting in a decline in supply of necessary fuel sources used in electricity generation. This condition adversely impacted the market in 2020, resulting in a global slowdown across industries. However, with improving conditions post 2021, the power generation industry is expected to recoup and the market can expect a steady rise in the years to follow.
Supercritical Technology to Account for a Significant Share in the Power Plant Boiler Market
Power plant boiler with supercritical technology is expected to witness high demand in the coming years. Various industries are focusing on carrying out upgradation of their power infrastructure. This necessitates the use of supercritical power plant boilers owing to their benefits such as less fuel consumption and higher energy efficiency along with minimal carbon emissions. Increasing installations of supercritical technology in the power plant boiler space is expected to augment the growth of the market on the global front.
Asia Pacific to Remain a Potential Regional Market
Increasing investment in the power sector in the Asia Pacific region contributes to the growth of the power plant boiler market. IEA estimates that electricity demand in Southeast Asia is growing, on an average by 6% every year, which is by far the highest consumption rate. Emerging economies such as China and India are likely to remain on the forefront with regards to power generation. According to CEC (China Electricity Council), power capacity in China continues to increase at a significant rate. Likewise, EIA projects that India is poised to reflect higher energy consumption by 2050 and is likely to use more electricity as compared to the United States in the mid-2040s. Driven by growing industrialization and urbanization, the demand for power continues to remain prevalent across Asian countries, in turn paving potential growth opportunities for the market.
Power Plant Boiler Market: Competitive Landscape
Few of the key players in the power plant boiler market include GE, Babcock & Wilcox Enterprise, IHI Corporation, Dongfang Electric Corporation, Thermax and Sumitomo Heavy Industries.
Global Power Plant Boiler Market is Segmented as Below:
By Fuel Type
Key Elements Included In The Study: Global Power Plant Boiler Market
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