Circulating Fluidized Bed CFB Boilers Market Report 2024 (Global Edition)

CURRENT SCENARIO OF THE CIRCULATING FLUIDIZED BED (CFB) BOILERS MARKET

Key factors driving the growth of the Circulating Fluidized Bed (CFB) Boilers Market

• The high-power demand for circulating fluidized bed (CFB) boilers in the oil and gas industry as well as the coal industry driving the growth of the market.

By cutting greenhouse gas emissions, circulating fluidized beds increase coal-fired power efficiency. High steam efficiency results in improved performance, which in turn propels the market for circulating fluidized bed (CFB) boilers worldwide. 
Boilers with circulating fluidized beds (CFBs) are frequently used to burn garbage and biofuels simultaneously. The boiler control system may encounter a number of control difficulties when multiple non-homogeneous fuels with different heat values are burned concurrently. This is because it is not practical to accurately assess the energy content of the multi-fuel flow. 

Cofiring using high heat value fuels like gas, oil, or coal is required to meet energy production needs while preserving the capacity to burn low grade fuels. The capacity of CFB boilers to burn a range of fuels, including biomass and low-grade coals, while maintaining reduced emissions as compared to conventional combustion technologies has drawn attention to them.  

Therefore, the market for circulating fluidized bed (CFB) boilers is being driven by the increase in demand for CFB boilers in oil and gas applications.

Furthermore, an increase in the usage of coal is expected to propel the growth of the circulating fluid bed boiler market going forward. Coal refers to a mineral that may be mined from the earth and used as fuel, a black rock. A circulating fluid bed boiler is common in coal-fired power plants, where it generates steam to power enormous turbines and the mineral content of coal is transformed into ash after burning. 

• For instance, in April 2023, according to the report published by the US Energy Information Administration, a US-based federal statistical system for gathering, processing, and disseminating energy data, usage of coal increased by 20 million short tons (MMst) in 2022 to a total of 598 MMst for the year, up 14.5% from the level of 545.6 MMst in 2020. 

(Source: https://www.eia.gov/coal/production/quarterly/)

Therefore, an increase in the usage of coal is driving the growth of the circulating fluid bed boiler market going forward.

• Escalating adoption of renewable energy sources is anticipated to fuel

The market for circulating fluid bed boilers is anticipated to develop in the future due to the increasing use of renewable energy sources. Solar, wind, hydro, geothermal, and biomass energy are examples of naturally renewing and environmentally sustainable resources that can be exploited to provide clean, sustainable power. By effectively burning a variety of renewable resources, including biomass fuels, circulating fluidized bed boilers help generate power in a way that is both environmentally friendly and sustainable. 

• For instance, in December 2021, according to the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, by 2026, renewables are predicted to make up nearly 95% of the augmentation in global power capacity, with solar PV standing out as the prime contributor, furnishing more than half of this expansion. 

(Source: https://www.iea.org/news/renewable-electricity-growth-is-accelerating-faster-than-ever-worldwide-supporting-the-emergence-of-the-new-global-energy-economy)

Organisations are under pressure to find more energy-efficient methods of generating power due to strict environmental restrictions and the growing desire for cheaper, cleaner combustion technologies. Numerous steps are being conducted to address these problems and discover environmentally acceptable fuel combustion solutions. Circulating fluidized bed (CFB) boilers are relatively inexpensive to set up and operate, which has led to a rise in the use of this technology, mostly in the power generation industry. One of the effective techniques that may be adjusted to accommodate a broad range of fuel and moisture contents is fluidized bed combustion.

This technology has several advantages, such as low temperature operation, a wide range of fuel properties, and a reduced carbon footprint. Moreover, petro-coke, coal, biomass, wood, industrial & agricultural waste, and other traditional and exotic fuels can all be used with circulating fluidized bed boilers. Total automation of processes reduces the dangers of fire and health-related issues. Coal blends, low-grade coal, pet coke, and other fuels that are available from coal mines can all be ignited with the help of an optimised boiler design. The boiler's low working temperature reduces emissions of sulphur, nitrogen oxides, and carbon dioxide. Simple ash removal boosts fuel ignition efficiency overall and strengthens the boiler's independence. This technology's increased thermal efficiency will contribute to an increase in plant output overall.

Therefore, the escalating adoption of renewable energy sources is driving the circulating fluid bed boilers market.

Key factors hampering the Market growth

• High Initial investment and overall costs to restrain market growth

The growth rate of the circulating fluidized bed boiler market is slowed due to its high instalment cost. Furthermore, there are many other logistical challenges associated with the circulating fluidized bed boiler. The high initial cost associated with the installation and maintenance of circulating fluidized bed boiler is hampering the growth of the circulating fluidized bed boiler market.

Significant upfront investment and technical expenses required for its setup and operation are important challenges for CFB boilers business. The substantial capital needs associated with CFB Boiler systems provide entry barriers, particularly for smaller businesses with limited financial resources. These initial expenses include procurement, installation and technical integration which may discourage potential buyers or need large financial commitments.

Therefore, despite the long-term benefits of CFB Boilers, the initial financial cost is a deterrent in sectors that are bounded by limited capital.

Opportunity

• Strategic Partnerships Propel Advancements In The Circulating Fluid Bed Boiler Market 

Strategic collaboration is the key trend gaining popularity in the circulating fluid bed boiler market. Major players in the circulating fluid bed boiler market are focusing on producing innovative products through strategic collaboration to strengthen their market position. 

For instance, in December 2022, Bharat Heavy Electricals Limited (BHEL), an Indian-based power generation equipment manufacturer, partnered with Sumitomo SHI FW, a Finland-based circulated fluid bed boilers manufacturer, to expand distributing fluidized bed combustion (CFBC) boilers market in India and overseas. The technology License Agreement involves designing, engineering, producing, installing, commissioning, and marketing a circulating fluidized bed combustion (CFBC) boiler with innovative technology for the Indian and global markets. CFBC boiler technology has inherent benefits such as fuel flexibility, better operational flexibility, and meeting emission norms. The technology licensing agreement (TLA) will enhance the company's capabilities to provide power plants that meet emission norms and offer biomass co-fired CFBC boilers.
(Source:https://www.bhel.com/bhel-enters-technology-license-agreement-sumitomo-shi-fw-finland-cfbc-boilers#:~:text=New%20Delhi%2C%20December%2023%3A%20Bharat,Circulating%20Fluidised%20Bed%20Combustion%20(CFBC))

How did COVID–19 Impact the Circulating Fluidized Bed (CFB) Boilers Market?

The circulating fluidized bed boiler market has been negatively impacted due to the wake of the COVID-19 pandemic, owing to its dependence on the oil & gas, energy and power, and other industrial sectors. 

• According to a report published by the Energy and Economic Growth Survey, the oil & gas sector is among the hardest hit sector with an average contraction of -2.8% in 2020. 

(Source: https://www.oecd.org/coronavirus/policy-responses/the-impact-of-coronavirus-covid-19-and-the-global-oil-price-shock-on-the-fiscal-position-of-oil-exporting-developing-countries-8bafbd95/)

Furthermore, over 100 nations have closed their borders to outside trade and transportation, which has disrupted supply and demand in the market for circulating fluidized bed boilers. 
Additionally, the COVID-19 period's temporary suspension of oil refineries has decreased the need for circulating fluidized bed boilers, which are used to burn a wide range of fuels. 

• For instance, according to a report published by the Indian Ministry of Petroleum & Natural Gas, the central public sector enterprise (CPSE) refineries have produced 7,103.76 thousand metric tons (TMT) of crude oil in April 2020 that is 28.91% lower than the target for the month and 36.93% lower than the production achieved in the corresponding month of 2019. 

(Source: https://pib.gov.in/PressReleseDetailm.aspx?PRID=1626327)

This has had a significant impact on oil refineries' need for circulating fluidized bed boilers during the COVID-19 pandemic. Furthermore, the power sector has been adversely affected by issues like financial strain, declining demand, and disruptions in the power supply chain. These reasons have consequently led to a decline in the market for circulating fluidized bed boilers in the context of the COVID-19 scenario. 

Post-Pandemic- However, growth in global energy needs and fuel consumption is anticipated to push growth of the circulating fluidized bed boilers market post COVID-19 scenario. 

• For instance, according to a report published by the U.S. Energy Information Administration, the organization of petroleum exporting countries (OPEC) crude oil production is expected to rise to an average of 28.7 million barrel per day by 2022. 

(Source:https://www.opec.org/opec_web/static_files_project/media/downloads/AR%202022.pdf)

Furthermore, both developed and developing economies—the United States, China, India, and others, for example—are always working to maximise their capacity for refining, and circulating fluidized bed boilers are frequently used for this reason. 

• For instance, in February 2021 Numaligarh Refinery Limited (NRL) has increased its refining capacity from 3MMTPA to 9MMTPA (million metric tons per annum). 

(Source: https://pib.gov.in/Pressreleaseshare.aspx?PRID=1560102)

This is expected to enhance the performance of the circulating fluidized bed boilers market post-COVID-19 scenario.

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Circulating Fluidized Bed CFB Boilers Market is witnessing significant growth in the near future.

In 2023, the Subcritical segment accounted for noticeable share of global Circulating Fluidized Bed CFB Boilers Market and is projected to experience significant growth in the near future.

The Energy & Power segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies General Electric , Mitsubishi Hitachi Power Systems and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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