Market driven by government incentives and regulations for industrial decarbonization
BOULDER, Colo., July 11, 2024 /PRNewswire/ — A new report from Guidehouse Insights evaluates the global market for electric process heat—primarily electric boilers and heat pumps.
The market is beginning to find significant growth as world governments turn increased attention toward decarbonization efforts. According to a new report from Guidehouse Insights, annual revenue from the sale of electric process heat equipment is expected to grow from $621.5 million in 2024 to $4.2 billion in 2033 at a compound annual growth rate (CAGR) of 23.5%.
“Across all world regions, governments have been passing large funding bills to support decarbonization efforts and develop domestic supply chains for green technologies,” says Grant Samms, research analyst with Guidehouse Insights. “Decarbonization in the industrial sector has long been seen as difficult to address, but growing desire from both governments and industry to reduce emissions is driving a new wave of innovative electric process heat adoption that could benefit manufacturers.”
Process heat for low grade processes (below 200°C) represents a substantial portion of the energy need for many industrial sectors—chiefly food and beverage, chemicals, pharmaceuticals, paper, and wood products. However, structural barriers still exist related to input fuel costs and electricity infrastructure constraints.
The largest driver of the electric process heat market today is government incentives and regulations for industrial decarbonization. Other drivers include insulation from input fuel price volatility in certain regions, better operational safety, and better operational efficiencies. Barriers to adoption vary significantly by region, but the most striking is the cost for comparable amounts of input fuel across sources. In some regions, fueling a boiler with natural gas can be significantly cheaper than with electricity, according to the report.
The report, Electric Process Heat, examines the global market for electric process heat technologies used in industrial and commercial facilities. The report analyzes current market issues, technology trends, drivers, barriers, and the policy landscape. Market analyses are presented for revenue and unit sales through 2033 and are segmented by technology (electric boilers, heat pumps), value chain position (hardware, services), and region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa). An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
About Guidehouse
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 16,000 professionals in over 55 locations globally. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, Electric Process Heat, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
For more information, contact:
Cecile Fradkin for Guidehouse Insights
+1.646.941.9139
cfradkin@scprgroup.com
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SOURCE Guidehouse Insights
