The package boilers market is estimated to be USD 8.92 Billion in 2017 and is projected to reach USD 11.06 Billion by 2022, at a CAGR of 4.40% from 2017 to 2022
This growth can be attributed to the increased demand for package boilers from the food & beverage industry. The demand for package boilers is growing significantly across various regions worldwide, due to advantages associated with the use of package boilers, such as easy installation and low maintenance costs as compared to large industrial boilers. Furthermore, research & development activities are being carried to enhance the features of package boilers.
The oil fuel segment is projected to lead the package boilers market from 2017 to 2022. Oil-based package boilers have gained popularity in regions with limited access to natural gas, such as the Northeast Asia. Boiler manufacturers are currently offering heating oil blended with biodiesel, which allows end users to reduce their dependence on foreign oil. These biodiesel blends also produce less pollution as compared to pure heating oil. Thus, biodiesel blends as a fuel source in package boilers have contributed to the growth of the oil segment of the package boilers market.
The package boilers market in the Asia Pacific region is projected to grow at the highest CAGR during the forecast period. Rapid industrialization and infrastructural developments in the Asia Pacific region offer lucrative growth opportunities to manufacturers of package boilers.
However, the formulation of stringent emission standards is acting as a key restraint to the growth of the package boilers market.
Increasing Demand for Package Boilers in the Food & Beverage Industry
Stringent Government Regulations for Meeting Emission Standards
Adoption of Burner Technology for Reducing NOX Emissions
Growing Focus on Clean and Renewable Energy Sources