KEY INDUSTRY INSIGHTS

Global energy consumption increased by nearly twice owing to robust economic development and extensive cooling and heat needs in various parts of the world. Electricity demand is growing immensely which is responsible for approximately half of the growth in energy needs. To produce such a great amount of power boilers are deployed across the world to meet the increasing demand.

Boilers are the century-old developed technology and over the decades it has been transformed the power industry. The versatility of the boiler is its flexibility over a broad variety of fuel which is dominating the overall energy industry. Now a day’s biomass is extensively used as an alternative to traditional fuel source. Thus, the boiler is able to produce the required amount of electricity and in forthcoming years the demand for energy is expected to increase rapidly due to industrialization and urbanization.

Power plant boiler is segmented on the basis of type, technology, and heat source. Pulverized coal tower boiler and circulating fluidized bed boiler are predominantly used in power plants. On the basis of technology, the power plant boilers are categorized as subcritical, supercritical and ultra-supercritical. The power plant boiler can be run by various fuel sources as per the demand. Most commonly used heat sources are oil, natural gas, coal, and biomass.

Boilers are one of the most developed technology to generate electricity and they are massively adopted across the world that expected to drive the power plant boiler market. Till date, there is no precise alternative to the boiler to generate an extensive amount of electricity. The boiler generates superior quality of heat which enhances the overall operational efficiency of the system that is most crucial for peak electricity demand which is expected to increase the demand for power plant boiler.

The traditional boilers burn conventional energy sources such as coal, hydrocarbons that emits excessive poisonous gases like hydrocarbon (HC), NOx, greenhouse gases causing the rise in earth temperature and environment degradation obstructing the growth of the power plant boiler market. Also, technological advancement has increased the adoption of renewable energy sources which restraining the power plant boiler market growth.

· Middle East & Africa (South Africa, GCC and Rest of the Middle East & Africa)

Regional Analysis

The global power plant boiler market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The consumption of electricity in North America is very high due to growing economies and the USA is the major consumer of electricity. Ongoing technological advancements have eased the human being’s life that includes smartphone, TV, AC, computer, and so on which require electricity for its operation. Also, the extreme weather condition has steadily increased the demand for HVAC. Therefore, the electricity consumption rate is intensifying which would expand the power plant boiler market in North America. Europe is expected to increase its investment in the deployment of power plants that forecasted the growth of the power plant boilers. India and China have extensive reserves of coal that exhibited the increasing investment in power plant to meet the growing demand for energy. The Asia Pacific is the fastest-growing region owing to tremendous economic development that anticipating the demand for electricity which increases the growth of the power plant boiler market. The MEA is falling back as there is a lack of infrastructural development causing inability to provide full access to electricity. Thus, the government agency is tying up with private companies and international fraternity to develop the grid infrastructure in order to improve electrification.

Key Industry Developments

In May 2019, Andritz is pleased to announce that it received an order from Hitachi Zosen Corporation to deliver a power fluid circulating fluidized bed boiler for Tokushima Tsuda biomass power plant in Japan. The projected is expected to be operational by 2023.

In January 2019, NTPC is willing to invest INR 10,300 crore in greenfield thermal and solar power plant in UP. This will include 1600MW thermal unit worth INR 9,000 crore and two solar plants of 225MW and 25MW capacity with combined worth INR 1,300 crore.

In July 2018, General Electric has received an order from Bharat Heavy Electricals Limited (BHEL) to provide twin boiler equipment. BHEL is executing EPC contract for the expansion of its supercritical thermal power station at Patratu of 2400MW. As a part of this activity, GE received an order worth $72.4 million.