Steam Generator Market Trends

Growth Drivers

• Elevating Growth in Urbanization – The population movement from rural to urban regions, the concomitant decline in the number of individuals living in rural areas, and the manner in which societies adjust to this transition are also included. Urbanization is significantly increasing all over the world and is estimated to increase more over the forecast period. Globally, 55% of people lived in cities in the year 2018, and 68% are expected to do so by the year 2050. The urbanization rate is rising as more individuals are showing the tendency of moving to urban areas. As a result, the demand for electricity services has been growing, which has increased the usage of steam generator for different activities.

• Increasing demand for electricity: The demand for electricity is increasing owing to the growing population, urbanization, and industrialization. Steam generators are used in thermal power plants to generate electricity, and the increasing demand for electricity is expected to drive the market for steam generators. Global electricity demand increased by 3% in 2019, with buildings and industry accounting for 80% of the increase.

• Rising focus on renewable energy: The world is moving towards renewable energy sources, and steam generators are used in solar thermal power plants to generate electricity. The increasing focus on renewable energy is expected to boost the steam generator market. The world has seen a significant increase in renewable energy generation capacity in recent years. As of the end of 2020, renewable energy had a total installed capacity of 2,799 GW, which represents an increase of 45% compared to 2015.

• Rise in Research Spending – Growth in the global market during the forecast period can be further attributed to increased investment in research and development activities to continuously find more viable solutions for steam generations. Research reports show that global R&D spending has more than tripled in real terms since 2000, rising from about USD 680 billion to more than USD 2.5 trillion in the year 2019.

• Spiking Electricity Consumption – The world consumed nearly 23,500 TWh (terawatt-hours) of electricity in the year 2020, according to the International Energy Agency (IEA) and it is anticipated to grow more over the forecast period.

• Rapidly Growing Chemical Industry – For instance, chemical demand is expected to increase by 8% each year by 2025. By 2025, India's chemical industry will contribute USD 290 billion to its gross domestic product.

Challenges

• High Cost of Installing Steam Generators – The cost of installing Steam Generators can be high owing to several factors, including equipment costs, civil works, and others, which is estimated to hamper the market growth.
• Dearth of Skilled Professionals
• Presence of Product Alternative