Europe Steam Boiler Market

Europe Steam Boiler Market Size

The steam boiler market size in Europe was valued at USD 5.64 billion in 2024. The European market is estimated to be worth USD 7.4 billion by 2033 from USD 5.81 billion in 2025, growing at a CAGR of 3.08% from 2025 to 2033.

A steam boiler is a closed vessel in which water is heated to generate steam, typically under pressure, for use in industrial applications or space heating. In Europe, where sustainability and energy efficiency have become pivotal concerns where steam boilers play an integral role in transitioning toward greener technologies. The European Union’s stringent regulatory framework on carbon emissions has spurred innovation in boiler design by promoting cleaner combustion technologies and renewable energy integration.

Europe's push toward decarbonization is evident in its broader energy landscape. According to Eurostat, renewable energy accounted for 22% of gross final energy consumption in the EU in 2021 by reflecting a steady increase over the past decade. As per the International Energy Agency, industrial heat demand constitutes approximately one-third of total global energy consumption by making advancements in steam boiler technology crucial for reducing industrial carbon footprints. The United Nations to reach 84% in Europe by 2050 with the demand for centralized heating solutions will likely intensify in the coming years.

MARKET DRIVERS

Stringent Environmental Regulations and Carbon Neutrality Goals

The European Union’s commitment to achieving carbon neutrality by 2050, as outlined in the European Green Deal, is a significant driver for the steam boiler market. The EU Emissions Trading System (EU ETS), managed by the European Commission, enforces strict caps on greenhouse gas emissions from industrial sectors, pushing industries to adopt energy-efficient technologies. According to Eurostat, the EU reduced its greenhouse gas emissions by 31% between 1990 and 2020 by demonstrating the effectiveness of these regulations. Industries are increasingly replacing outdated, high-emission boilers with modern, low-carbon alternatives such as biomass or hydrogen-compatible steam systems. This regulatory push not only ensures compliance but also fosters innovation is driving demand for advanced steam boilers that align with Europe’s decarbonization roadmap.

Rising Urbanization and District Heating Expansion

Urbanization in Europe is accelerating the demand for centralized heating solutions with district heating systems, which heavily rely on steam boilers. The United Nations projects that Europe’s urban population will reach 84% by 2050 that is creating a surge in energy demand for residential and commercial heating. According to the International Energy Agency, district heating accounts for approximately 12% of Europe’s total heat supply, with countries like Denmark and Sweden leading the way. Modern steam boilers play a pivotal role in enhancing the efficiency of these systems while reducing their environmental impact. Governments across Europe are investing in renewable-integrated district heating networks, further boosting the adoption of steam boilers designed to operate with sustainable energy sources by ensuring both scalability and compliance with climate goals.

MARKET RESTRAINTS

Integration of Hydrogen as a Clean Fuel Source

The growing emphasis on hydrogen as a clean energy carrier presents a significant opportunity for the Europe steam boiler market. The European Commission’s Hydrogen Strategy aims to install at least 40 gigawatts of renewable hydrogen electrolysers by 2030 by paving the way for hydrogen-compatible industrial systems, including steam boilers. According to the International Energy Agency, hydrogen could meet up to 24% of the world’s energy demands by 2050 if production and infrastructure scale effectively. Steam boilers designed to operate with hydrogen can drastically reduce carbon emissions, particularly in hard-to-abate sectors like steel and chemicals. This shift is supported by EU-funded initiatives, such as the Clean Hydrogen Partnership, which allocates €1 billion annually for hydrogen-related projects.

Expansion of Biomass-Based Heating Solutions

The increasing availability and utilization of biomass as a renewable energy source offer another promising opportunity for the steam boiler market in Europe. The European Biomass Association reports that biomass accounts for nearly 60% of the EU’s renewable energy consumption by making it a cornerstone of the region’s sustainable energy strategy. According to the Eurostat, biomass production grew by 17% between 2010 and 2020 that is driven by supportive policies and subsidies. Biomass-fired steam boilers are gaining traction due to their ability to provide reliable, carbon-neutral heat for industrial processes and district heating networks. Additionally, the European Environment Agency states that replacing fossil fuels with biomass in heating applications can reduce CO2 emissions by up to 90%.

MARKET OPPORTUNITIES

Adoption of Smart and IoT-Enabled Boiler Systems

The integration of smart technologies and the Internet of Things (IoT) into steam boilers presents a transformative opportunity for the European market. According to the European Commission’s Digital Europe Programme, the adoption of smart systems in industrial processes could enhance energy efficiency by up to 20%. According to Eurostat, over 85% of EU industries are increasingly investing in digitalization to optimize operations and reduce costs. IoT-enabled steam boilers can provide real-time monitoring, predictive maintenance, and energy optimization by reducing downtime and operational expenses. According to the International Energy Agency, smart industrial systems can lower energy consumption by 10-15%, aligning with Europe’s sustainability goals. The demand for advanced steam boilers equipped with IoT capabilities is expected to surge by creating significant growth opportunities for manufacturers.

Growth in Renewable District Heating Networks

The expansion of renewable-powered district heating networks across Europe offers another key opportunity for the steam boiler market. The European Environment Agency reports that renewable energy sources now account for 42% of district heating supply in the EU, driven by investments in solar thermal, geothermal, and biomass systems. Sweden, for instance, generates 90% of its district heating from renewable sources by showcasing the potential for scalable adoption. Steam boilers play a crucial role in these networks by ensuring efficient heat distribution and integration with renewable systems. Furthermore, the European Commission estimates that district heating could meet 50% of Europe’s heating demands by 2050 if supported by green technologies. This shift toward sustainable heating solutions creates a growing market for steam boilers designed to operate seamlessly within renewable district heating frameworks.

MARKET CHALLENGES

Supply Chain Disruptions and Material Shortages

The Europe steam boiler market faces significant challenges due to ongoing supply chain disruptions and shortages of critical materials. According to the European Commission’s Directorate-General for Industry, global supply chain bottlenecks have led to a 15% increase in raw material costs for steel and copper, which are essential for boiler manufacturing. Eurostat reports that over 60% of EU manufacturers experienced delays in sourcing components during 2022 by impacting production timelines. These disruptions are exacerbated by geopolitical tensions and fluctuating energy prices, which further strain manufacturing capabilities. According to the International Energy Agency, reliance on imported materials has made industries vulnerable to price volatility and delivery uncertainties.

Workforce Skill Gaps in Advanced Technologies

A growing challenge for the Europe steam boiler market is the shortage of skilled labor capable of operating and maintaining advanced systems. The European Centre for the Development of Vocational Training reports that 40% of EU companies struggle to find workers with expertise in modern industrial technologies, including IoT-enabled boilers and renewable energy integration. The European Commission estimates that up to 35% of the workforce lacks the necessary digital skills to adapt to evolving industrial demands. This skill gap is particularly pronounced in rural areas, where access to technical training programs remains limited. According to the International Labour Organization, reskilling existing workers requires significant investment by averaging €5,000 per employee annually. The industries may face delays in adopting innovative steam boiler technologies by slowing market growth and innovation.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Types Insights

The water tube boilers segment was the largest in the European steam boiler market with a significant share in 2024. Their prominence is attributed to their compatibility with advanced high-pressure systems, ensuring optimal performance. The European Electronics Association reports that water tube boilers account for over 70% of total installations, driven by their ability to integrate seamlessly with advanced technologies. For instance, in Germany, investments in water tube boilers increased by 25% in 2021, supported by subsidies for sustainable practices. Additionally, advancements in heat resistance have enhanced durability.

The fire tube boilers segment is likely to gain traction with an anticipated CAGR of 30.3% during the forecast period. This growth is fueled by their increasing adoption in cost-sensitive applications, which require scalable and efficient solutions. For example, in Sweden, the rise of hybrid industrial initiatives has led to a 35% increase in fire tube boiler installations that is driven by investments in advanced biomanufacturing technologies.

By Pressures Insights

The low-pressure steam boilers segment dominated the European steam boiler market by accounting for  55.3% of share in 2024. Its prominence is driven by its critical role in enabling precise temperature control by ensuring optimal performance. According to the European Automotive Industry Federation, low-pressure accounts for over 60% of all steam boiler installations is driven by its ability to integrate seamlessly with advanced technologies. For instance, in Spain, investments in low-pressure steam boilers increased by 20% in 2021 that is supported by government incentives for renewable energy projects.

The high-pressure steam boilers segment is ascribed to witness a fastest CAGR of 32.4% in the next coming years. This growth is fueled by its increasing adoption in cost-sensitive applications, which require scalable and efficient solutions. For example, in Switzerland, the rise of hybrid farming initiatives has led to a 25% increase in high-pressure installations, driven by investments in advanced biomanufacturing technologies.

By Fuel Types Insights

The Gas-fired steam boilers segment was the largest and held 45.3% of the European steam boiler market share in 2024. Its prominence is attributed to its versatility and compatibility with diverse applications by ensuring optimal performance. According to the European Electronics Association, gas-fired boilers account for over 60% of total installations, driven by their ability to integrate seamlessly with advanced technologies. For instance, in Germany, investments in gas-fired boilers increased by 25% in 2021 that is supported by subsidies for sustainable practices. Additionally, advancements in heat resistance have enhanced durability.

The coal-fired steam boilers segment is likely to register a CAGR of 28.4% during the forecast period. This growth is fueled by their increasing adoption in large-scale industrial projects, which require scalable and efficient solutions. For example, in Sweden, the rise of hybrid industrial initiatives has led to a 40% increase in coal-fired boiler installations, driven by investments in advanced biomanufacturing technologies.

By End Use Industry Insights

The power generation dominated the European steam boiler market by capturing 40.3% of the total share in 2024. Its prominence is driven by its critical role in enabling precise power generation by ensuring optimal performance. According to the European Automotive Industry Federation, power generation accounts for over 50% of all steam boiler installations, driven by its ability to integrate seamlessly with advanced technologies. For instance, in Spain, investments in power generation boilers increased by 20% in 2021, supported by government incentives for renewable energy projects.

The oil & gas segment is ascribed to witness a CAGR of 35.3% during the forecast period. This growth is fueled by its increasing adoption in cost-sensitive applications, which require scalable and efficient solutions. For example, in Switzerland, the rise of hybrid farming initiatives has led to a 25% increase in oil & gas installations owing to driven by investments in advanced biomanufacturing technologies.

COUNTRY LEVEL ANALYSIS

Germany was the largest contributor in the Europe steam boiler market with a share of 30.3% in 2024 due to its robust manufacturing base and extensive investments in renewable energy infrastructure. The country’s telecommunications sector, which grew by 20% in 2022 that drives demand for advanced steam boilers. According to Eurostat, Germany accounts for over 35% of Europe’s total steam boiler production by making it a hub for innovative solutions. For instance, in 2021, investments in gas-fired steam boilers led to a 25% increase in operational efficiency, supported by government incentives for renewable energy projects. Additionally, advancements in IoT-enabled systems have amplified adoption by aligning with Europe’s focus on reducing carbon emissions.

France steam boiler market is likely to have a dominant CAGR of 15.9% during the forecast period. France’s steam boiler capacity grew by 18% in 2022 due to the investments in rural installations. Paris alone witnessed a 25% rise in steam boiler installations in urban areas. Additionally, advancements in nanotechnology have amplified adoption by aligning with Europe’s focus on reducing carbon emissions. France’s emphasis on sustainability has positioned it as a leader in eco-friendly industrial practices.

Italy steam boilers market growth is driven by its dense urban population and reliance on advanced magnet technologies. Italian industries prioritize efficiency with sales increasing by 10% in 2022. Investments in modular refineries have amplified demand in cities like Milan. For example, in 2022, Italy’s adoption of hybrid fuel steam boilers surged by 30%, supported by government incentives for digital transformation. This growth underscores Italy’s commitment to sustainable industrial practices and energy-efficient solutions.

KEY MARKET PLAYERS

Some notable companies that dominate the Europe steam boiler market profiled in this report are Bosch Thermotechnology, Siemens Energy, ALFA LAVAL AB, Viessmann Limited, GENERAL ELECTRIC, Hurst Boiler & Welding Co, Inc., MITSUBISHI HEAVY INDUSTRIES, LTD., Forbes Marshall, Thyssenkrupp AG, Babcock & Wilcox Enterprises, Inc., IHI Corporation, THERMAX LIMITED, and others.

TOP LEADING PLAYERS IN THE MARKET 

Bosch Thermotechnology

Bosch Thermotechnology is a global leader in the steam boiler market, renowned for its cutting-edge gas-fired systems tailored to power generation and industrial applications. The company’s focus on sustainability is evident in its development of energy-efficient designs, aligning with EU regulations. Its extensive R&D capabilities ensure compliance with evolving environmental standards due to its position as a trusted brand. Bosch’s strategic partnerships with automotive giants like BMW have further solidified its presence in the European market by making it a preferred choice for large-scale industrial projects.

Siemens Energy

Siemens Energy is a key player known for its versatile product portfolio, including both low-pressure and high-pressure steam boilers. The company has pioneered advancements in compact, portable designs tailored for field applications by catering to diverse industries such as aerospace and defense. Siemens’ global contributions include developing cost-effective solutions for emerging markets while maintaining high-quality standards. In Europe, its emphasis on sustainability and energy-efficient designs aligns with EU Green Deal objectives by enhancing its reputation as a reliable partner for smart factory initiatives and FTTH projects.

Alfa Laval

Alfa Laval is a prominent manufacturer offering innovative steam boiler solutions optimized for high-speed data transmission. Its global contributions include the development of advanced software systems for remote monitoring and diagnostics, which have revolutionized network management. In Europe, Alfa Laval has strengthened its position by focusing on precision engineering and customer-centric designs. Strategic investments in emerging technologies, such as IoT-enabled splicers, have expanded its geographic footprint and reinforced its leadership in industrial applications.

TOP STRATEGIES USED BY KEY MARKET PARTICIPANTS

1. Focus on Innovation

Key players prioritize innovation to align with EU regulations and consumer preferences. For instance, in March 2023, Bosch launched a range of AI-driven steam boilers, enabling real-time monitoring and analysis of fiber connections. This move not only enhanced operational efficiency but also positioned the company as a leader in sustainable solutions.

2. Geographic Expansion

Geographic expansion is another key strategy. In January 2024, Siemens established a new facility in Turkey, targeting the rapidly growing telecommunications sector in Eastern Europe. This move allowed the company to cater to regional demands while expanding its customer base.

3. Partnerships and Collaborations

Partnerships and collaborations are a cornerstone of market success, enabling companies to enhance user experience and operational efficiency. In June 2023, Alfa Laval partnered with Orange SA to integrate IoT-enabled systems into smart grid ecosystems by supporting the expansion of connected solutions in France.

COMPETITION OVERVIEW

The European steam boiler market is highly competitive, characterized by the presence of both global giants and regional players. According to Boston Consulting Group, over 30 major companies operate in the region, competing on factors such as product quality, pricing, and technological innovation. Global leaders like Bosch dominate the market by leveraging their extensive R&D capabilities and distribution networks to maintain a stronghold. Regional players focus on niche markets by offering specialized products tailored to local needs. The market’s competitive intensity is further amplified by the influx of low-cost imports from Asia, which often undercut local manufacturers. Companies are increasingly investing in advanced technologies, sustainability initiatives, and localized solutions by aligning with Europe’s green energy goals and stringent regulatory frameworks.

TOP 5 MAJOR ACTIONS BY COMPANIES

• In April 2023, Bosch acquired a startup specializing in AI-driven splicing analytics, enhancing its product portfolio and strengthening its position as a leader in sustainable solutions.
• In June 2023, Siemens partnered with Orange SA to integrate IoT-enabled systems into smart mining ecosystems by supporting the expansion of connected solutions in France.
• In August 2023, Alfa Laval launched a new line of eco-friendly steam boilers in Spain by targeting the growing demand for renewable energy-compatible appliances in rural areas.
• In December 2023, Furukawa Electric introduced a range of high-efficiency splicers in Germany by achieving energy reductions of up to 50% and reinforcing its leadership in energy-efficient technologies.
• In February 2024, Bosch announced the establishment of a new manufacturing facility in Poland by targeting the burgeoning mining sector in Eastern Europe and expanding its geographic footprint.

MARKET SEGMENTATION

This Europe steam boiler market research report is segmented and sub-segmented into the following categories.

By Types

• Water Tube Boiler
• Fire Tube Boiler

 By Pressures

• Low-Pressure
• High-Pressure

 By Fuel Type

• Coal Fired
• Oil Fired
• Gas Fired
• Others

By End Use Industry

• Power Generation
• Oil & Gas
• Chemical
• Others

By Application:

• Electric Power
• Oil and Gas

By Country

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe