Global Energy Demand Boosts Power Plant Boiler Market to $31.1 Billion by 2031
New York, Wednesday, 9 July 2025.
The power plant boiler market is projected to grow at a 5.1% CAGR, reaching $31.1 billion by 2031, driven by rising energy demand, aging infrastructure, and efficiency advancements.
Driving Factors for Market Growth
The global power plant boiler market is on track to reach $31.1 billion by 2031. This significant growth is driven largely by the escalating demand for energy across the globe, an imperative need to replace aging infrastructure, and advancements in energy efficiency technologies. The market, valued at $19.0 billion in 2021, is projected to grow at a compound annual growth rate (CAGR) of 5.1% from 2022 to 2031 [1].
Technological Innovations and Environmental Regulations
Technological advancements such as the development of supercritical and ultra-supercritical boilers are integral to the market’s evolution. These innovations are crucial for achieving lower emissions and higher efficiency, particularly in regions committed to reducing their carbon footprint [1]. Concurrently, regulatory frameworks focusing on emissions reductions are advocating for the retrofitting of outdated systems and a shift towards more sustainable energy sources. This shift is supported by the global move toward meeting targets set by international agreements such as the Paris Agreement, which aims to mitigate the impacts of climate change by limiting global temperature rise [5].
Regional Dynamics
The Asia-Pacific region leads the power plant boiler market, fueled by substantial investments in energy infrastructure by countries like China, India, and various Southeast Asian nations [1]. These countries are focusing on energy infrastructure to support rapid urbanization and industrial growth. Additionally, stringent environmental regulations in North America and Europe are prompting upgrades to cleaner and more efficient boiler systems, further propelling market growth in these regions [1].
Challenges and Opportunities
Despite the promising growth trajectory, the power plant boiler market faces significant challenges. The high cost of advanced boiler systems can be a barrier, particularly for smaller utilities and regional power producers. Furthermore, the prolonged return on investment associated with these systems poses a deterrent. Nevertheless, opportunities abound with the increasing adoption of biomass and waste-to-energy power plants, which align with the global shift towards decentralized and sustainable energy systems [1][5].