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).
