Condensing Industrial Hot Water Boiler Market Size – By Fuel, By Capacity, By Application, Analysis, Share, Growth Forecast, 2025 – 2034

Condensing Industrial Hot Water Boiler Market Size

The global condensing industrial hot water boiler market was valued at USD 342.5 million in 2024 and is expected to reach USD 583.1 million by 2034, growing at a CAGR of 5.5% from 2025 to 2034. Rapid industrialization & urbanization in line with increasing environmental concern and stringent regulations to reduce carbon emission will augment the industry landscape.
 

Increasing adoption of biomass powered systems in line with the implementation of smart automation in boiler control systems will foster business growth. The growing demand of highly efficient condensing units across pulp & paper, chemical, food processing industries will propel the product penetration.
 

The global shift toward implementation of economic development growth and energy policies along with growing adoption of smart building management systems will influence the industry outlook. Continuous advancements in technology comprising of materials, digital monitoring solutions, and combustion control systems will energize the product adoption.
 

Governments are encouraging the replacement of obsolete and ineffective boiler systems with energy efficient ones through subsidies, tax deductions, or funding schemes, which in turn will subsequently increase the demand for these units. Additionally, the development of district heating networks in the colder areas will enhance the condensing industrial hot water boiler market potential.
 

The food & beverage sector mounting requirement for hot water boilers, added to the adoption of combined heat & power systems, will foster business growth. Companies are advancing in research and development to build next generation boilers with ultra-low emission features, modular structures, and super thermal efficiency which will further sustain the demand for industrial boilers.
 

Condensing Industrial Hot Water Boiler Market Trends

The industry is anticipated to witness owing to their lower fuel consumption, high efficiency and reduced emissions. The need for enhanced heating systems to guarantee seamless operations along with the modernization and upgrading of conventional boilers, will further shape the industry landscape.
 

Increased funding in the development of new energy-efficient boiler plants and industrial infrastructure projects in urban centers coupled with expansion of AI aided energy load forecasting tools will improve the outlook for the business. In addition, the advancement in design of industrial boilers together with the fast-paced economic growth of key emerging countries will improve the condensing industrial hot water boiler market environment.
 

These boilers enable industries to adjust heating output based on demand, minimizing energy waste and improving fuel efficiency. In addition, the adoption of both remote industrial site and off-grid facility centralized heating solutions, in combination with automated water quality monitoring system implementation, is increasing the demand for industrial hot water boilers.
 

For instance, in March 2023, the UK implemented heat network regulations under the Energy Security Bill to drive heat zoning initiatives. According to the Climate Change Committee, reliance on heat networks may reach about 18% of total national consumption by 2050, which continues to sustain the nation’s energy efficiency objectives.
 

Condensing Industrial Hot Water Boiler Market Analysis

• The condensing industrial hot water boiler industry was estimated at USD 302.1, 321 & 342.5 million in 2022, 2023 and 2024 respectively. Based on fuel, the industry is segmented into natural gas, oil, coal and others. These units are increasingly propelled by stringent energy efficiency regulations, growing industrial demand for low-emission heating solutions, and advancements in heat recovery technology.
   
• The natural gas condensing industrial hot water boiler market will grow at a CAGR of over 6% till 2034. The growing network of natural gas coupled with an improvement in the boiler's capability to consistently produce steam and hot water at reduced operational costs will promote industrial expansion.
   
• For instance, India is targeting investments of about USD 5 billion by March 2024, the capital of which will be used to build a natural gas pipeline infrastructure in the northeastern regions and northern territories of Kashmir and Ladakh. The country further seeks to increase its energy security by setting a national goal for the share of natural gas in the energy mix to 15% by 2030.
   
• The oil condensing industrial hot water boiler market is projected to reach over USD 100 million by 2034. In remote regions, food manufacturers are dependent on oil systems, especially those in the fields which need a steam of high temperature for the sterilization, drying, and pasteurization processes.
   
• The coal condensing industrial hot water boiler market has a market share of over 25% in 2024. These boilers are employed in places where coal is easy to access and affordable, particularly in big agricultural processing factories. Moreover, growth in leasing services for industrial machinery will enhance the scope of the industry.
   
• For instance, in 2023, IEA estimates that the total spending in energy would have risen to USD 2.8 trillion, USD 1.7 trillion of which was spent on modern energy technologies such as renewables, nuclear power, renewable energy super grids, and low emission fuels. The balance of USD 1 trillion was incurred on fossil fuels, 15% of which was spent on coal and the remaining portion on oil & gas.
   
• Based on capacity the market is segmented into 10 MMBTU/hr, 10 - 25 MMBTU/hr, 25 - 50 MMBTU/hr, 50 - 75 MMBTU/hr, > 75 MMBTU/hr. 10 MMBTU/hr condensing industrial hot water boiler market is projected to reach over USD 75 million by 2034. The investment intensification by the key private and public sector stakeholders in the improvement of the existing boiler design as well as meeting the new environmental regulations and efficiency standards will reinforce the need for these units.
   
• The 10 – 25 MMBTU/hr condensing industrial hot water boiler has a market share of over 15% in 2024. Increasing development of multi-generation plants integrating industrial boilers in line with expansion of energy-positive industrial zones will escalate the product adoption.
   
• The 25 - 50 MMBTU/hr capacity condensing industrial hot water boiler market is expected to grow at a CAGR of over 5% through 2034. Development of smart control technologies that facilitate predictive maintenance, real time monitoring, and improved operational efficiency will energize the industry outlook.
   
• For instance, during the COP28 summit in 2023, almost 200 nations reached a milestone agreement for the first time to increase the rate of energy efficiency enhancements across the globe by 2030. This agreement was set to expedite decarbonization, economic development, energy diversification, and enhance innovation in working efficiency.
   
• The 50 - 75 MMBTU/hr capacity condensing industrial hot water boiler market is projected to reach over USD 130 million by 2034. The development of low and ultra-low-NOx burner technologies combined with the growth of beverage processing facilities needing steam heating will positively influence the industry penetration.
   
• The > 75 MMBTU/hr capacity condensing industrial hot water boiler market is expected to grow at a CAGR of over 4.5% through 2034. Increasing foreign direct investment in industrial infrastructure along with the development of micro-climate controlled industrial heating zones will escalate the demand of these units.
   

• Based on application, the industry is segmented into food processing, pulp & paper, chemical, refinery, primary metal and others. The food processing segment dominated market share of over 20% in 2024. The industry will experience robust growth due to maintaining product quality through precise control of water temperature and minimizing changes during food processing.
   
• The pulp & paper condensing industrial hot water boiler market is projected to register at a CAGR of over 5% through 2034. The industry relies heavily on industrial hot water boilers for various processes, including pulp digestion, bleaching, and drying. Steep energy prices, environmental issues, and rigorous emissions policies set by the governmental bodies will, cumulatively, increase the demand for these units.
   
• For instance, in 2022, the pulp and paper industry experienced significant growth as Asia Pulp & Paper received the green light to set up a paper-making unit at Raigad. With an investment of USD 2.3 billion, the Sinar Mas Pulp and Paper project was designed to enhance India's productivity in the industry.
   
• Chemical condensing industrial hot water boiler market is projected to reach over USD 90 million by 2034. Chemical plants are increasingly exploring alternative fuel sources, including biofuels, waste-derived gases, and hydrogen blends, to meet sustainability goals, which in turn will energize the business dynamics.
   
• Moreover, the application of AI predictive maintenance and automation technologies is aiding chemical manufacturing plants in optimizing boiler operations, cutting down energy waste, and increasing plant productivity. This will enhance the overall business environment.
   
• The American Chemistry Council projects a growth of 2.5% in the U.S. basic chemicals segment in 2024, stimulated by increases in petrochemicals, organic intermediates, inorganic chemicals, and plastic resins. In addition, total production of plastic resins was expected to increase by 2.9%, buoyed by higher exports.
   
• The refinery condensing industrial hot water boiler market set to grow at a CAGR of over 5% up to 2034. These types of boilers are used to process heating, crude oil distillation, and thermal fluid heating. The integration of flue gas recirculation and selective catalytic reduction technologies in condensing boilers will further proliferate the industry momentum.
   
• The primary metal condensing industrial hot water boiler has a market share of over 20% in 2024. Increasing emphasis on waste heat utilization along with the growth of distributed manufacturing hubs in developing regions will augment the business landscape.
   
• For reference, In 2023 the US refinery industry grew, with coking capacity increasing by 1.9 percent. Catalytic and hydrocracking capacities also grew by 0.4 percent each since January, improving the sector's processing capabilities. These factors improved efficiency in refining and increased the production of fuels for transportation and feedstocks for petrochemicals.
   

• U.S. condensing industrial hot water boiler market was valued at USD 33.5, 35.8 & 38.5 million in 2022, 2023 and 2024 respectively. Government initiatives incorporating tax incentives, rebates, and grants aimed at promoting energy efficiency and reducing carbon emissions will foster the industry size.
   
• North America condensing industrial hot water boiler industry will witness at a CAGR of over 5.5% till 2034. The region is witnessing significant growth on account of implementing stringent energy efficiency regulations and target to combat climate change. Increasing use of corrosion-resistant polymers in water heating systems coupled with expansion of high-altitude industrial projects will further escalate the business growth.
   
• For instance, in 2025, more than USD 230 billion is projected to be spent on investments into the energy manufacturing sector in the U.S. This will aid in the building of more than 920 new and expanded production facilities. This will enhance the domestic supply chains and accelerate the transition to a more sustainable energy in the near terms.
   
• The Europe condensing industrial hot water boiler market was valued at over USD 140 million in 2024. The continuing investment in expansion & upgrading of the existing industrial facilities along with favorable incentives products and rebates for the adoption of energy efficient technologies will increase product demand. In addition, surging spending on research and development activities in the region will enhance the industry outlook.
   
• For instance, in 2023, Europe's industrial sector raised R&D investment by over 9.5%, reinforcing its commitment to innovation and technological advancement. Moreover, this growth highlights a strategic push toward competitive and sustainable industrial development.
   
• The Asia Pacific condensing industrial hot water boiler market is set to reach over USD 250 million by 2034. Increasing population growth, urbanization, and changing consumer preferences are the key parameters, will in turn will stimulate the product deployment. Moreover, the increasing need for dependable & effective hot water systems for production processes will have a positive effect on the business environment.
   
• For instance, India’s infrastructure sector is set for significant growth, with USD 1.4 trillion in planned investments by 2025, prioritizing energy development. Increasing investment in renewable energy, expanding power grids & developing sustainable approaches will be essential to addressing rising demand and facilitating sustained economic growth.
   
• The Middle East & Africa condensing industrial hot water boilers market is poised to grow at a CAGR of over 6% in 2034. Growing investment in industrial-scale water desalination plants and rising demand for cybersecurity-protected boiler automation systems in line with expansion of government-backed energy efficiency funds will fortify the business scenario.
   
• For instance, Saudi Arabia committed approximately USD 80 billion to desalination projects over the next decade to enhance water security and infrastructure. The country’s desalination capacity was projected to reach 8.5 million cubic meters per day by 2025, supporting industrial and municipal demand.
   
• The Latin America condensing industrial hot water boiler market has a market share of over 2.5% in 2024. Surge in localized industrial manufacturing hubs requiring high-capacity boilers along with the expansion of national industrial modernization programs will enhance the industry growth.
   

Condensing Industrial Hot Water Boiler Market Share

• The top 5 players including Babcock Wanson, Babcock & Wilcox Enterprises, ALFA LAVAL, Bosch Industriekessel, and Viessmann together holds share of about 40% in the condensing industrial hot water boiler industry. Babcock Wanson formed a partnership to improve the solutions offered on industrial boilers with special focus on energy efficiency and sustainability. For instance, it partnered with Energisme to equip client sites with intelligent boilers integrated with a data management system, ensuring enhanced security and reliability of the equipment.
   
• The advanced boiler technologies of Bosch Industriekessel are going to make their lead in the industry even stronger. The firm is transforming the entire industry through the changes in the heating system efficiency, energy consumption and emission reduction. Additionally, the new tool enhanced operational efficiency that resulted in a significant reduction in production shutdowns.
   
• Viessmann is considered one of the top-rated manufacturers for heating and cooling industrial energy systems thanks to the global recognition its high-efficiency boilers have attained. The corporation also offers steam and hot water boilers optimized for use in manufacturing, chemical processing, and even district heating. With strong emphasis on innovation and sustainability, the company is currently working on low carbon and hydrogen ready boiler solutions to better align with the global efforts of decarbonization.
   

Condensing Industrial Hot Water Boiler Market Companies

• ALFA LAVAL reported USD 6.3 billion in net sales in 2024, as compared to USD 6 billion from past year. Moreover, the company deals in energy. food & water, marine, operations and other segments. Among the segments, its energy segment generated USD 1.8 billion net sales in 2024.
   
• Thermax has reported USD 860.9 million in revenue in the first three quarters of 2024. The company generated USD 67.1 million in profit before tax, whereas the net profit of the company reached USD 48.8 million in 2024 (9 months).
   
• Babcock & Wilcox reported USD 651.1 million in revenue in the first three quarters of 2024. Babcock & Wilcox's Thermal segment recorded revenues of USD 499.2 million in 2023, reflecting a 20% rise from USD 415.1 million in 2022, due to the major construction project and higher volume in the package boiler business.
   

Major players operating in the condensing industrial hot water boiler market are:

• ALFA LAVAL
• Babcock Wanson
• Babcock & Wilcox
• Bosch Industriekessel
• FERROLI
• Fulton
• HKB
• Hoval
• Maxima Boilers
• Miura America
• PARAT Halvorsen
• Parker Boilers
• ProTherm
• Thermal Solutions
• Thermax
• Thermodyne Boilers
• Viessmann
• WIKA Alexander Wiegand
   

Condensing Industrial Hot Water Boiler Industry News

• In July 2024, Babcock & Wilcox has been contracted to supply the region with renewable energy boilers to be retrofitted in Asia. New pressure parts, water-cooled wear patches, secondary air delivery systems, waterstock removal systems, and any other tools for emission reduction accompanied by enhanced production efficiency will also be supplied by the company. Furthermore, the company will offer consulting services to the client during the construction and operational start-up periods.
   
• In May 2024, Miura America’s parent company, Miura Co., acquired Cleaver-Brooks with the intent to strengthen engineering and manufacturing competencies toward providing sustainable and high-quality boiler products with unmatched service. Integrating the capabilities of these two entities is expected to improve their market share and broaden the scope of the boilers business.
   
• In February 2024, Babcock Wanson has acquired VKK Group, a company of almost two decades in the area of industrial boilers for the energy, food and chemical sectors. The company’s strategic position in Germany is strengthened by VKK’s engineering and project execution as well as maintenance capabilities and facilitates market growth through VKK’s Köthen and Duisburg plants.
   
• In January 2023, Babcock Wanson purchased Parat and PBS Power Equipment. Parat, a Norwegian company, designs and manufactures high voltage boilers and PBS Power Equipment specializes in industrial boiler solutions. Through the acquisition of Parat and PBS Power Equipment, Babcock Wanson seeks to strategically integrate these firms to enhance their competitiveness in the European industrial boiler market, as well as improve their responsiveness to customer requirements in the context of energy transition and transformation.
   

The condensing industrial hot water boiler market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume (Units), Capacity (MMBTU/hr) & revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Fuel

• Natural Gas
• Oil
• Coal
• Others

Market, By Capacity

• 10 MMBTU/hr
• 10 - 25 MMBTU/hr
• 25 - 50 MMBTU/hr
• 50 - 75 MMBTU/hr
• > 75 MMBTU/hr

Market, By Application

• Food Processing
• Pulp & Paper
• Chemical
• Refinery
• Primary Metal
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Poland
  • Italy
  • Spain
  • Austria
  • Germany
  • Sweden
  • Russia
• Asia Pacific
  • China
  • India
  • Philippines
  • Japan
  • South Korea
  • Australia
  • Indonesia
• Middle East & Africa
  • Saudi Arabia
  • Iran
  • UAE
  • Nigeria
  • South Africa
• Latin America
  • Argentina
  • Chile
  • Brazil