India Industrial Heating Equipment Market Overview, 2031

Key Insights

• According to the research report, "India Industrial Heating Equipment Market Outlook, 2031," published by Bonafide Research, the India Industrial Heating Equipment Market is anticipated to grow at more than 7.98% CAGR from 2026 to 2031.
• India's Industrial Heating Equipment Market is undergoing a fundamental transformation driven by ambitious climate targets and the imperative to decarbonize industrial heat. The Government of India has notified the National Policy on Geothermal Energy (2025), reinforcing its commitment towards achieving the ambitious 2070 Net Zero Goal and strengthening the country's energy security through diversified renewable energy sources. The policy promotes direct uses like heating, cooling, and agriculture.
• National government policies are reshaping industrial heating equipment investments through multiple regulatory instruments. The Boilers Act, 2025, which came into force on May 1, 2025, repeals the Boilers Act, 1923, introducing a centralized, safety-driven regulatory framework for registration, inspection, and use of boilers. The Act establishes a Central Boilers Board to oversee regulatory functions. India has also decided to restrict foreign participation in government contracts for industrial boilers, prioritizing local firms for supply and services, aligning with the 'Make in India' initiative.
• Industrial boilers constitute a critical equipment category across Indian industrial thermal systems. There are approximately 45,200 process and co-generation boilers in India, with eight states accounting for two-thirds of these boilers. The average age of these boilers is 18 years and nearly 20% are 25 years or older. The Boilers Manufacturers and Ancillaries Association of India (BMAAI), formerly the Indian Boiler Manufacturers Association (IBMA), serves as a leading industry association committed to promoting, advancing, and protecting the interests of boiler manufacturers and allied industries. Major manufacturers including Thermax Limited, Forbes Marshall, and Larsen & Toubro continue to expand domestic production capabilities.

Market Outlook

• India's Industrial Heating Equipment Market is steadily transitioning toward energy efficiency, electrification, and clean energy alternatives. The Bureau of Energy Efficiency (BEE), under the Ministry of Power, launched a Standards and Labeling (S&L) program for packaged boilers in March 2024 to improve energy efficiency and reduce emissions. The program is currently in a voluntary phase valid until December 2026.
• Alternative carbon-free combustion technologies, including green hydrogen, are emerging for industrial heating applications. India's National Hydrogen Mission, launched in January 2023, aims to establish the country as a global leader in green hydrogen production, targeting 5 million metric tonnes of annual production by 2030. Several Indian industrial companies have successfully demonstrated hydrogen blending and hydrogen-fired boiler applications at pilot and commercial demonstration scale.
• Major industrial decarbonization initiatives are gaining momentum. Environment think tank iFOREST, in partnership with the Department for Promotion of Industry and Internal Trade (DPIIT), has proposed a Green Boiler Mission to support a switch to solar thermal, renewable electricity, hydrogen, and clean biomass to drive net-zero goals. The proposed mission aims to modernize infrastructure, enhance efficiency, and support India's 2070 net-zero target. The Draft Energy Conservation (Compliance Enforcement) Rules, 2025, notified in August, transform compliance enforcement for industry.
• Indian manufacturers continue expanding capabilities in industrial heating equipment. Thermax Babcock & Wilcox Energy Solutions (TBWES), a wholly owned subsidiary of Thermax, secured a ₹1,600 crore order for manufacturing and supplying boilers for a 1x800 MW ultra-supercritical thermal power project in Central India. Thermax also secured a ₹580 crore boiler order from Dangote Industries for a Nigeria refinery, involving the supply of four high-pressure utility boilers. Forbes Marshall, with over 75 years of experience, provides a complete range of packaged boilers for efficient steam generation. The company's ForbesVyncke joint venture with Belgium-based Vyncke specializes in biomass and industrial waste-fired boilers.

Policies & Regulatory Landscape

• National government policy is accelerating industrial heating equipment modernization through multiple channels. The Boilers Act, 2025, which came into force on May 1, 2025, repeals the Boilers Act, 1923. The Act provides for the regulation of boilers, safety of life and property from the danger of explosions of steam-boilers, and uniformity in registration and inspection during manufacture, erection, and use of boilers. The Act establishes a Central Boilers Board to oversee regulatory functions. The Board's functions include regulating the design, manufacture, erection, and use of boiler and boiler components.
• The Public Procurement (Preference to Make in India) Order, 2017, provides purchase preference for industrial boilers (steam generators). India has restricted foreign participation in government contracts for industrial boilers, allowing only local firms to supply these critical components for upcoming thermal power projects and industrial applications. This move aligns with the 'Make in India' initiative, aiming to boost domestic manufacturing and reduce reliance on imports.
• The Bureau of Energy Efficiency (BEE), under the Ministry of Power, implements key energy efficiency programs including the Perform, Achieve, and Trade (PAT) scheme, Standards and Labelling (S&L), and the National Mission for Enhanced Energy Efficiency (NMEEE). The PAT scheme, launched in 2012, is a market-based mechanism that enhances cost-effectiveness through certification of excess energy saving which can be traded. The Standards and Labeling program for packaged boilers was launched in March 2024 under a voluntary phase.
• The Draft Energy Conservation (Compliance Enforcement) Rules, 2025, notified in August, are transforming compliance enforcement for industry, empowering BEE to detect, verify, and act upon non-compliance. Proposed Bureau of Energy Efficiency (Appliance Labelling) Regulations, 2025, are also under development. A national standard for packaged boiler efficiency calculation (IS 13979:1994) provides the framework for the labeling program.

Procurement & Industry Impact

• Procurement decisions in India's Industrial Heating Equipment Market are increasingly shaped by regulatory compliance, energy cost optimization, and total cost of ownership. The Boilers Act, 2025, strengthens compliance measures for boiler operations. The Public Procurement (Preference to Make in India) Order prioritizes domestic suppliers for industrial boiler contracts. The PAT scheme requires Designated Consumers to reduce their Specific Energy Consumption within a period of three years; those who fail to achieve the target must pay a penalty.
• The electrification and efficiency of process heat is emerging as a dominant procurement theme across industrial boilers, furnaces, and process heaters. The BEE's Standards and Labeling program for packaged boilers is driving adoption of high-efficiency systems. The proposed Green Boiler Mission would support switching to solar thermal, renewable electricity, hydrogen, and clean biomass. Electric heating adoption is strongest in food processing, pharmaceuticals, and specialty chemicals where precise temperature control is essential.
• Procurement priorities increasingly focus on energy efficiency, emissions compliance, automation, and predictive maintenance. Forbes Marshall Digital offers EverSense for Boiler Efficiency, helping customers improve and sustain boiler performance through load stabilization, ON/OFF minimization, and improved feed water temperature and steam-to-fuel ratio. Thermax provides boiler upgrades and performance improvement services. Aftermarket services including burner replacement, refractory replacement, tube replacement, and control upgrades represent significant recurring revenue opportunities.

Industry News

• May 2025: The Government of India appointed May 1, 2025, as the effective date for the Boilers Act, 2025, repealing the Boilers Act, 1923.
• May 2025: India decided to restrict foreign participation in government contracts for industrial boilers, prioritizing local firms for supply and services.
• May 2025: Environment think tank iFOREST, in partnership with DPIIT, proposed a Green Boiler Mission to support switching to solar thermal, renewable electricity, hydrogen, and clean biomass.
• August 2025: The Draft Energy Conservation (Compliance Enforcement) Rules, 2025, were notified, transforming compliance enforcement for industry.
• September 2025: The Government of India notified the National Policy on Geothermal Energy (2025), reinforcing its commitment towards achieving the 2070 Net Zero Goal.
• 2025-2026: Thermax's subsidiary TBWES secured a ₹1,600 crore boiler package supply order for a 1x800 MW ultra-supercritical thermal power project in Central India.

Segment Analysis

India Industrial Heating Equipment Market By Equipment Type
• Industrial Boilers generate steam or hot water for chemical processing, food production, power generation, and manufacturing. There are approximately 45,200 process and co-generation boilers in India. The Boilers Act, 2025, provides a centralized regulatory framework. Indian manufacturers include Thermax Limited (through TBWES), Forbes Marshall (Marshall C series packaged boilers from 6 TPH to 25 TPH), and Larsen & Toubro. The BEE launched a Standards and Labeling program for packaged boilers in March 2024. Biomass and industrial waste-fired boilers are gaining traction through joint ventures like ForbesVyncke.
• Industrial Furnaces serve high-temperature applications including steel reheating, metal processing, heat treating, forging, and melting across metallurgy, automotive, and metals industries. Leading manufacturers include Thermax Limited, Larsen & Toubro, and Industrial Furnaces and Ovens Pvt. Ltd. The market is driven by the country's growing manufacturing and metallurgical industries. The Bureau of Energy Efficiency provides energy conservation guidelines for industrial furnaces.
• Process Heaters deliver precise thermal energy for chemical, petrochemical, and refining operations. Indian manufacturers produce thermal oil heaters, steam generators, and process heating equipment serving diverse industrial applications. The industrial sector's reliance on thermal processes creates opportunities for process heater modernization.
India Industrial Heating Equipment Market By Mode of Operation
• New Equipment installations occur in greenfield facilities, production line expansions, and new facility construction. Major orders include Thermax's ₹1,600 crore contract for an ultra-supercritical thermal power project. The National Hydrogen Mission supports new equipment investments in hydrogen-ready technologies. These projects allow operators to specify the latest technologies including electric heating systems and integrated control platforms.
• Replacement & Retrofit activities address the vast installed base of aging industrial heating systems across Indian industrial facilities. Many boilers, furnaces, and process heaters are reaching end of service life or facing non-compliance with evolving energy efficiency standards. The average age of industrial boilers in India is 18 years and nearly 20% are 25 years or older. The PAT scheme requires Designated Consumers to reduce Specific Energy Consumption within a three-year period. The BEE's Standards and Labeling program for packaged boilers is driving efficiency improvements. Forbes Marshall provides boiler efficiency improvement solutions through digital monitoring and predictive analytics.
India Industrial Heating Equipment Market By Heating Technology
• Combustion Heating utilizes natural gas, oil, coal, or biomass combustion, with coal historically dominant but facing increasing environmental restrictions. About 40% of installed boiler capacity runs on fossil fuels like coal, gas or oil, accounting for nearly 37% of all boilers. Biomass is used in nearly half of the steam capacity. Several Indian industrial companies have successfully demonstrated hydrogen blending and hydrogen-fired boiler applications at pilot and commercial demonstration scale. ForbesVyncke offers advanced biomass and industrial waste-fired boiler technology. The proposed Green Boiler Mission would support switching to clean biomass.
• Electric Resistance Heating converts electrical energy directly into heat through resistive elements, offering precise temperature control and zero onsite emissions. The proposed Green Boiler Mission would support switching to renewable electricity for industrial heating. Indian manufacturers are expanding electric heating portfolios. Grid capacity and electricity pricing remain adoption constraints for widespread electric resistance heating adoption in industrial applications.
• Induction Heating generates heat through electromagnetic induction for metal processing, heat treating, gear hardening, brazing, billet heating, forging, and melting. This technology is contactless and highly efficient with precise temperature control. India's induction furnace market is driven by the country's growing manufacturing and metallurgical industries. Induction technology is widely used across the Indian automotive and manufacturing sectors.


Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031



Aspects covered in this report
• Industrial Heating Equipment Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Equipment Type
• Industrial Boilers
• Industrial Furnaces
• Process Heaters
• Industrial Ovens
• Thermal Fluid Heaters
• Electric Industrial Heaters

By Mode of Operation
• New Equipment
• Replacement & Retrofit
• Service & Maintenance



By Heating Technology
• Combustion Heating
• Electric Resistance Heating
• Induction Heating
• Infrared Heating
• Advanced Heating Technologies