Industrial Air Preheater Market

Industrial Air Preheater Market Outlook (2024 to 2034)

The global industrial air preheater market is expected to reach a valuation of US$ 9,069.8 million in 2024 and is projected to climb to US$ 16,396.5 million by 2034, expanding at a CAGR of 6.1% during the forecast period of 2024 to 2034.

The industrial air preheater market represents approximately 5.0% of the global industrial equipment and machinery market, which is valued at about USD 200 billion in 2024.

Report Attributes	Details
Industrial Air Preheater Market Size (2023A)	US$ 8,548.3 Million
Estimated Market Value (2024E)	US$ 9,069.8 Million
Forecasted Market Value (2034F)	US$ 16,396.5 Million
Global Market Growth Rate (2024 to 2034)	6.1% CAGR
East Asia Market Share (2024)	22.3%
North America Market Growth Rate (2024 to 2034)	6.8% CAGR
Key Companies Profiled	ABB Ltd.; Air Preheater Company, Inc.; Alstom Power; Arvos Group; Babcock & Wilcox Enterprises, Inc.; Balcke-Dürr GmbH; BD Group Industries, LLC; Born Inc.; Ekstroms Varmetekniska AB; GE Power; Geurts International B.V; Harbin Boiler Co., Ltd.; Howden Group Ltd.; Kelvion Holding GmbH; L&T-MHPS Boilers Pvt. Ltd.; Ljungström (ARVOS Group); Mitsubishi Heavy Industries; Shandong Hengtao Enterprise Co., Ltd.; Thermodyne Engineering Systems; Thyssenkrupp Industries India Pvt. Ltd.; Other Competitors

Historic Analysis (2019 to 2023) Vs Future (2024 to 2034) Pathway Analysis

The industrial air preheater market was valued at US$ 8,548.3 million in 2023, growing at a CAGR of 4.8% from 2019 to 2023.

• Short Term (2024 to 2027): The industrial air preheater market is expected to grow steadily with the growing demand for energy efficiency and stricter environmental regulations across various industries. Investments in both power generation and chemical industries will further support the adoption of advanced air preheaters to bring about further enhancement of operational efficiency.
• Medium Term (2027 to 2030): The market will accelerate due to the technological developments of air preheaters along with the involvement of IoT and automation solutions. The growth of infrastructure in developing regions and an increase in industrial activities that will give rise to air preheater demand and thereby increase the market are some of the expansion paths of the air preheater market.
• Long Term (2030 to 2034): During Long term, there will be higher focus on designing super-efficient and environment-friendly preheater designs. Stricter carbon emission regulations will work as a significant factor for increasing such energy-efficient designs, and with regards to the global industrial process transition towards sustainability, it will get momentum.

Market Dynamics

What are the factors driving the demand of Industrial Air Preheater?

“Increasing Focus on Energy Efficiency and Emission Reduction”

Energy efficiency has come into sharp focus as pressure mounts to reduce carbon footprints and adhere to stringent environmental regulations for industries around the world. Industrial air preheaters work considerably towards ensuring better thermal efficiency in power plants, cement factories, and other heavy industries by recuperating waste heat from the exhaust gas. This directly translates into reductions in fuel consumption-significantly lowering the operating cost and reducing emissions. With the emission of carbon and energy consumption, environmental regulations worldwide are trying to be more stringent on these aspects.

“Growth in Power Generation and Industrial Expansion”

New power plants are being set up, and many already existing ones are upgraded. As a consequence, better heat recovery systems are more or less in demand to enhance efficiency. Rapid industrialization in regions like the Asia-Pacific and the Middle East contributes somewhat significantly to the market's growth. These industries require more advanced air preheating solutions to maximize fuel use, thereby enhancing their productivity.

In addition, the growing focus worldwide on clean energy and renewable power generation technologies will hike the demand for more efficient air preheaters in traditional and renewable power plants and, accordingly, spur fuel market growth.

Key factors restraining the market growth

“High Impact of Global Warming and Growing Preference of Renewable Energy Sources”

Coal-fired power plants highly affect global warming as their burning releases a number of airborne toxins and pollutants. This includes sulfur dioxide, nitrogen oxide, mercury, lead, and various other heavy metals. Although limits set by the Environmental Protection Agency (EPA) have helped prevent some of these emissions, many industries do not have the necessary pollution control installed.

Most of the developed economies, such as the United States, Canada, and Japan, are shifting their preference towards renewable energy sources such as wind and solar for power generation to reduce pollution. These factors are estimated to hinder the growth of the industrial air preheater market across the forecast duration.

Country-wise Insights

Why There is High Demand for Industrial Air Preheater Services in the United States?

“Stringent Government Regulation Towards Reduction of Carbon Emission”

Attribute	United States
Market Value (2024E)	US$ 1,670.5 Million
Growth Rate (2024 to 2034)	7.0% CAGR
Projected Value (2034F)	US$ 3,285.1 Million

The industrial air preheater market in the United States is expected to remain steady due to the energy efficiency of the country and its emission-reduction focus. Stricter regulations across diverse industries, especially due to initiatives such as the Clean Air Act, have increased the demand for air preheaters to recover energy and cut down fuel consumption in sectors such as power generation, chemical manufacturing, and oil refining.

The other driver of note is the current modernization of aging power infrastructure. Many power plants across the country now undertake retrofitting and upgrades to meet new efficiency standards and are increasingly adopting advanced air preheater systems. This expansion of renewable energy sources also supports this by optimizing operational efficiency in biomass and waste-to-energy plants. This benefit to the country’s market of technological improvements and the movement toward better and more efficient processes in industry arising from that clean-up process.

Why China’s Industrial Air Preheater rise with fastest CAGR in the forecast period?

“Industrialization and Expansion of Power Generating Capacity”

Attribute	China
Market Value (2024E)	US$ 997.1 Million
Growth Rate (2024 to 2034)	7.9% CAGR
Projected Value (2034F)	US$ 2,126.7 Million

Major factor driving the industrial air preheaters market in China is the commitment to drastically reduce atmospheric pollution and reach carbon neutrality by 2060. With its energy reform package, the Chinese government propels cleaner and more efficient technologies, such as industrial air preheaters. The drive for upgrading older industrial establishments and incorporating environment-friendly technologies pushes demand, with China positioned as one of the strongest performers in the global air preheater market.

Category-wise Insights

Which Product Type Accounts for Leading Share in the Industrial Air Preheater Market?

“Regenerative Air Preheater is Likely to Have Leading Share in the Industrial Air Preheater”

Attribute	Navigation Mapping
Market Value (2024E)	US$ 5,913.5 Million
Growth Rate (2024 to 2034)	6.8% CAGR
Projected Value (2034F)	US$ 10,510.2 Million

Regenerative air preheaters are more famous in the market of industrial air preheaters because they have higher recovery efficiency from the heat side compared to recuperative air preheaters. These work on a principle where hot exhaust gases and cooler air are cut one after the other in a rotating or stationary matrix, thus ensuring quite high recovery. These take place efficiently compared to the recuperative method; therefore, these systems are better suited for extensive use in fields like power plants and heavy industry processes.

Some of the major trends spurring the demand for regenerative air preheaters are the global push towards the implementation of energy-efficient solutions and more stringent environmental regulations that are being enforced worldwide. These pieces of equipment can also be used at higher temperature variations and have an enduring cost benefit, which makes them very popular in industries wishing to reduce operational costs and emissions as much as possible.

In conclusion, in the industry, it can be realized that regenerative air heaters lead because they are more energy-efficient; regenerative heaters save a lot of energy in the long term and are likely to fit well into tight regulatory environments.

Which End-Use Industry Gaining Maximum Market Share?

“Thermal power plants to exhibit leading share among end-user industries”

Attribute	Construction
Market Value (2024E)	US$ 3,002.1 Million
Growth Rate (2024 to 2034)	5.5% CAGR
Projected Value (2034F)	US$ 5,656.8 Million

Thermal power plants are one of the chief end-use verticals in the market for industrial air preheaters because these consumption end-users are thoroughly energy-intensive and rely heavily on their efficiency of heat recovery systems. In these plants, air preheaters are used mainly to recover waste heat from exhaust gases, enhancing fuel efficiency and reducing emissions. Demand among thermal power plants for air preheaters is growing mainly due to the raised need for efficiency while operating, lowered fuel costs, and strict regulations related to emissions.

With most traditional thermal power plants are being upgraded to meet the rising energy standards of the time, quality air preheaters are highly in demand. Especially in regions that put more emphasis on reducing carbon footprints, thus further hastening the growth of the market in thermal power.

Competitive Landscape

Key market participants in the industrial air preheater services market are ABB Ltd., Air Preheater Company, Inc., Alstom Power, Arvos Group, Babcock & Wilcox Enterprises, Inc., Balcke-Dürr GmbH, BD Group Industries, LLC, Born Inc., Ekstroms Varmetekniska AB, GE Power, Geurts International B.V, Harbin Boiler Co., Ltd., Howden Group Ltd., Kelvion Holding GmbH, L&T-MHPS Boilers Pvt. Ltd., Ljungström (ARVOS Group), Mitsubishi Heavy Industries, Shandong Hengtao Enterprise Co., Ltd., Thermodyne Engineering Systems, Thyssenkrupp Industries India Pvt. Ltd. and Other Prominent Players.

Recent developments in the industrial air preheater market highlight a trend toward enhanced performance and durability. Key players are focusing on advanced materials, such as stainless steel, and designing systems capable of withstanding extreme temperatures and pressures. This reflects a commitment to supporting offshore and renewable energy applications for improved efficiency. For instance,

• In July 2024, Honeywell agreed to acquire Air Products' liquefied natural gas (LNG) process technology and equipment business for about US$ 1.81 billion to expand its energy transition portfolio through comprehensive solutions in natural gas pre-treatment and liquefaction, built on digital automation through the Honeywell Forge and Experion platforms.
• In May 2020, Geurts International B.V., a part of Heilig Group, announced that they have completed a project for a combustion air preheater designed for offshore business and renewable energy. The stainless steel preheater can withstand temperatures up to 480 degrees Celsius at 0.25 barg.

Segmentation of Industrial Air Preheater Industry Research

• By Product :

  • Regenerative Air Preheater
  • Recuperative Air Preheater

• By End-Use :

  • Thermal power plants
  • Steel industries
  • Cement industries
  • Chemical industries
  • Food industries
  • Pharmaceutical industries
  • Others (Textile, Refinery)

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa