Saudi Arabia industrial boilers market revenues are projected to grow at a CAGR (compound annual growth rate) of 5 percent over the next six years, said a report.
The rapid industrialization as well as increasing emphasis on the development of the downstream petroleum sector is likely to spur this market growth, according to 6Wresearch.
Government initiatives such as Saudi Vision 2030 and National Transformation Plan 2020 have been put in place to develop the country's non-oil sectors including manufacturing, chemical, and hospitality, stated 6Wresearch in its new report, "Saudi Arabia Industrial Boilers Market (2018-2024)."
The report estimates and forecasts the overall Saudi Arabia Industrial Boilers market by capacity, type, fuel, types of services offered, end-users, and regions.
The Saudi government is focused on changing the current industrial landscape of the country by taking steps such as the expansion of several chemical and petrochemical complexes and setting up of new industrial cities; for instance, recent plans to develop $4.4 billion worth Saudi Aramco's Industrial Energy City.
With an anticipated increase of around 150 percent in foreign direct investment by 2020 and a rise in investors' confidence, the country's industrial boilers market would register substantial growth over the coming years.
Non-condensing industrial boilers are more environmentally friendly, however, their usage is limited in Saudi Arabia as end-users are opting for more economical condensing boilers.
Expansion of the existing petrochemical complexes such as $47-million Yanbu Refinery and petrochemical complexes as well as $95-million Jubail refinery coupled with a rise in exports of refined products are likely to surge the demand for industrial boilers.
Ravi Bhandari, the assistant manager, 6Wresearch, said: "The processing industry, which includes food and beverage (F&B), automobile, surface finishing, plastics, pharmaceutical, cement, fabrics, dyeing, and textiles is expected to grow rapidly due to growing investments in these sectors."
"Continuous steam generation is a pre-requisite in the processing industry for various processes and thus the demand for industrial boilers is expected to surge over the coming years," he added.
According to Bhandari, the revenues of the Saudi industrial boilers service market are projected to grow at a CAGR of 3.7 percent during 2018-24 and is dominated by repair and maintenance services due to the constant need for repairing and maintaining industrial boilers - old or new.
Akash Jain, the research associate, 6Wresearch, pointed out that low capacity industrial boilers ranging from 0.5-10 tonnes/hr dominated the market due to growing demand from hospitality, pulp, and paper, and construction sectors.
"Further, Saudi Arabia is poised to become an automotive manufacturing hub in the Middle East region with several companies set to launch their vehicle manufacturing facilities over the coming years," stated Jain.
"Oil-fired industrial boilers are expected to dominate the market while natural gas-fired boilers are anticipated to register maximum growth during the forecast period. Water tube industrial boilers are preferred by end-users due to their high capacity, sound work efficiency (up to 90 percent), and better recovery than fire tube boilers", he added.
Some of the key players in the Saudi industrial boilers market are Thermax, Bosch, Cochran, Cleaver-Brooks, Macchi, Amec Foster Wheeler, and Hurst Boiler.- TradeArabia News Service.
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Media Courtesy : Trade Arabia