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