Australia Industrial Heating Equipment Market Overview, 2031

Key Insights

• According to the research report, "Australia Industrial Heating Equipment Market Outlook, 2031," published by Bonafide Research, the Australia Industrial Heating Equipment Market is anticipated to grow at more than 5.48% CAGR from 2026 to 2031.
• Australia's Industrial Heating Equipment Market is undergoing a fundamental transformation driven by ambitious decarbonization targets and the imperative to reduce reliance on fossil gas. The Australian Government has set an emissions reduction target of 62–70% below 2005 levels by 2035. Industrial energy demand accounts for a significant share of Australia's total final energy consumption, with process heating representing a major portion.
• National government policies are reshaping industrial heating equipment investments through multiple regulatory instruments. The $5 billion Net Zero Fund supports Australian heavy industry to decarbonise and scale up low emissions technologies. The $400 million Industrial Transformation Stream, part of the $1.9 billion Powering the Regions Fund, supports industrial decarbonisation solutions including electrification, energy efficiency, and fuel switching.
• Industrial boilers constitute a critical equipment category across Australian industrial thermal systems. Major suppliers include Tomlinson Energy Service, Concept Boiler Systems, PWS Hunt Boilers, O'Brien Energy, and Novatherm Boilers & Combustion. The landscape for industrial boilers is shifting quickly, with efficiency, compliance, and net-zero readiness becoming priorities.

Market Outlook

• Australia's Industrial Heating Equipment Market is steadily transitioning toward electrification, energy efficiency, and renewable heat alternatives. The Australian Government's Net Zero Plan, released in September 2025, identifies five decarbonisation priorities. For industrial facilities that use low heat processes, immediate decarbonisation opportunities include using commercial technologies such as heat pumps and electric boilers where there is access to electricity. The 2025 Australian Renewable Heat Conference focused on practical information on how industry can decarbonise process heat with electrification, biomass, and biogas technologies.
• Gas supply concerns are accelerating the transition away from fossil gas for industrial heating. AEMO's 2025 Gas Statement of Opportunities noted that without action, peak-day gas shortfalls are forecast for Victoria, NSW, SA and Tasmania as early as 2028. Industrial gas consumption has fallen nearly 20% between 2018 and 2024. AEMO forecasts slowly declining industrial gas consumption as a result of production changes, fuel switching and electrification.
• Major industrial decarbonisation projects are demonstrating technology viability across diverse sectors. McCain Foods received $7.38 million to install two interconnected heat recovery systems at its Ballarat potato plant, expected to reduce the site's natural gas boiler load by 22%. Sugar Australia received $4.1 million to replace traditional gas evaporators with an electrically driven mechanical vapour recompression (MVR) system at its Yarraville refinery. Blackmores received $723,900 to replace a natural gas boiler with a high-efficiency heat pump at its Braeside facility, expected to cut natural gas use by 25%. These projects are expected to serve as blueprints for the wider manufacturing industry.
• Australian manufacturers continue expanding capabilities in industrial heating equipment. Tomlinson Energy Service is a leading vendor of steam boilers in Australia. Concept Boiler Systems manufactures a range of natural gas, LPG, and electric steam boilers. O'Brien Energy provides complete boiler room solutions. Johnson Controls has expanded its lineup of high-temperature heat pumps in Australia. Glaciem Cooling Technologies specialises in CO₂ industrial heat pumps. Next Cycle has launched a range of inverter heat pumps in Australia.

Policies & Regulatory Landscape

• National government policy is accelerating industrial heating equipment modernization through multiple channels. The Climate Change Act 2022 establishes a framework to ensure Australia remains on track to reach net zero emissions. The Net Zero Plan, released in September 2025, sets out how Australia will achieve a fair, orderly, and efficient transition to net zero emissions by 2050. The government has reallocated $5 billion to a Net Zero Fund from the National Reconstruction Fund to drive industrial decarbonisation.
• The Safeguard Mechanism is the main framework for industry facilities to adopt decarbonisation technologies. It applies a declining emissions baseline to facilities emitting more than 100,000 tonnes of CO₂-e per year. Safeguard facilities abated 2.7 Mt CO₂-e in the first year of operations of the reformed scheme. The Safeguard Mechanism can incentivise the uptake of technologies including electric boilers for alumina refining. Settings under the existing Safeguard Mechanism will be reviewed in 2026-27.
• The Australian Government has announced over $22.7 billion to promote industrial development where Australia has comparative advantages. A Future Made in Australia is underpinned by a National Interest Framework. The $500 million Future Made in Australia Innovation Fund provides merit-based grants for manufacturing opportunities. The Green Iron Investment Fund provides $1 billion to support early movers in establishing commercial-scale green iron facilities.
• The Australian Government has set an ambitious emissions reduction target of 62–70% below 2005 levels in 2035. Australia's updated Nationally Determined Contribution (NDC) sets a new target of 62–70% reduction in greenhouse gas emissions by 2035. The government's Net Zero Plan is supported by sectoral plans for industry, resources, electricity and energy, agriculture and land, built environment, and transport.

Procurement & Industry Impact

• Procurement decisions in Australia's Industrial Heating Equipment Market are increasingly shaped by regulatory compliance, energy cost optimization, and total cost of ownership. The Safeguard Mechanism provides the clearest signal to reduce emissions in line with Australia's climate targets. The Net Zero Fund supports large industrial facilities to make major investments in new equipment to decarbonise. The Industrial Transformation Stream provides funding for electrification, energy efficiency, low-emissions processing, and fuel switching.
• The electrification of process heat is emerging as a dominant procurement theme across industrial boilers, furnaces, and process heaters. The Australian Industry Renewable Heat Accelerator provides support for projects across sectors such as food and beverage, agriculture, textiles, chemicals, and building materials. Electric heating adoption is strongest in food processing, pharmaceuticals, and low-temperature industrial processes. The Australian Renewable Energy Agency (ARENA) has expanded its mandate to include energy efficiency and electrification technologies.
• Procurement priorities increasingly focus on energy efficiency, emissions compliance, automation, and predictive maintenance. The Industrial equipment upgrades method allows projects to earn Australian carbon credit units (ACCUs) by upgrading industrial equipment. Aftermarket services represent significant recurring revenue opportunities. Gas prices have more than tripled in the past decade, and manufacturers are seeking lower, more predictable energy costs.
• Technology innovation and domestic manufacturing are reshaping the supplier landscape. Tomlinson Energy Service, Concept Boiler Systems, PWS Hunt Boilers, O'Brien Energy, and Novatherm Boilers & Combustion represent key Australian suppliers. Johnson Controls has expanded its heat pump lineup in Australia. Glaciem Cooling Technologies has designed and manufactured CO₂ heat pumps. Next Cycle offers inverter heat pumps. Advansor has released SteelXL Heat Pumps for large-scale heating and cooling.

Industry News

• June 2025: The Australian Industry Renewable Heat Accelerator was launched to help manufacturers transition from gas to renewable process heat, providing support for pre-feasibility studies, small-scale pilots, and appliance switching.
• September 2025: The Australian Government released Australia's Net Zero Plan, setting out how Australia will achieve a fair, orderly, and efficient transition to net zero emissions by 2050.
• September 2025: The Government announced a new $5 billion Net Zero Fund to support Australian heavy industry to decarbonise and scale up low emissions technologies.
• September 2025: ARENA opened Round 3 of the Industrial Transformation Stream with $180 million in funding to help regional industries reduce emissions through electrification, energy efficiency, low-emissions processing, and fuel switching.
• September 2025: ARENA announced funding to support low-emission process heat technologies at McCain Foods ($7.38 million), Sugar Australia ($4.1 million), and Blackmores ($723,900).
• December 2025: The Australian Industry Renewable Heat Accelerator announced 12 projects to support manufacturers and industry associations in progressing practical, low-carbon alternatives to gas-fired process heat.

Segment Analysis

Australia Industrial Heating Equipment Market By Equipment Type
• Industrial Boilers generate steam or hot water for food processing, chemical processing, power generation, and manufacturing. The landscape for industrial boilers in Australia is shifting quickly, with efficiency, compliance, and net-zero readiness becoming priorities. Australian suppliers include Tomlinson Energy Service, Concept Boiler Systems (natural gas, LPG, and electric steam boilers), PWS Hunt Boilers, O'Brien Energy, and Novatherm Boilers & Combustion. The Industrial equipment upgrades method allows projects to earn Australian carbon credit units by upgrading industrial equipment to be energy efficient.
• Industrial Furnaces serve high-temperature applications including steel reheating, metal processing, heat treating, forging, and melting. The Safeguard Mechanism can incentivise the uptake of technologies including improvements to blast furnaces for ironmaking. The Green Iron Investment Fund provides $1 billion to support early movers in establishing commercial-scale green iron facilities that use lower emissions technologies such as direct reduction using gas or hydrogen.
• Process Heaters deliver precise thermal energy for chemical, petrochemical, and refining operations. Australian manufacturers produce thermal oil heaters, steam generators, and process heating equipment. Industrial process heating accounts for approximately 21% of Australia's total energy use. The Australian Industry Renewable Heat Accelerator supports switching from gas to renewable process heat across sectors including chemicals and textiles.
Australia Industrial Heating Equipment Market By Mode of Operation
• New Equipment installations occur in greenfield facilities, production line expansions, and new facility construction. The $5 billion Net Zero Fund supports large industrial facilities to make major investments in new equipment to decarbonise. The Industrial Transformation Stream provides funding for electrification, energy efficiency, and fuel switching. These projects allow operators to specify the latest technologies including electric heating systems and integrated control platforms. The Future Made in Australia Innovation Fund provides $500 million for clean energy technology manufacturing.
• Replacement & Retrofit activities address the vast installed base of aging industrial heating systems. Many boilers, furnaces, and process heaters are reaching end of service life. The Industrial equipment upgrades method allows projects to earn Australian carbon credit units. The Australian Industry Renewable Heat Accelerator supports appliance switching projects. ARENA's funding for McCain Foods, Sugar Australia, and Blackmores demonstrates the viability of retrofitting existing facilities with heat recovery, MVR, and heat pump technologies.
Australia Industrial Heating Equipment Market By Heating Technology
• Combustion Heating utilizes natural gas, oil, or biomass combustion, with natural gas remaining a significant fuel across Australian industrial heating applications. Industrial gas consumption has fallen nearly 20% between 2018 and 2024. AEMO forecasts slowly declining industrial gas consumption. The Safeguard Mechanism incentivises the uptake of alternative fuels for cement production and improvements to blast furnaces. The Green Iron Investment Fund supports direct reduction using gas or hydrogen for lower emissions steelmaking.
• Electric Resistance Heating converts electrical energy directly into heat through resistive elements, offering precise temperature control and zero onsite emissions. For industrial facilities that use low heat processes, immediate decarbonisation opportunities include using heat pumps and electric boilers. Concept Boiler Systems manufactures electric steam boilers. The Industrial Transformation Stream supports electrification projects. The Net Zero Plan identifies clean electricity across the economy as a key priority. Grid capacity and electricity pricing remain adoption constraints.
• 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. The Safeguard Mechanism covers a significant portion of resources sector emissions. Induction technology is widely used across the Australian mining 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