Spain Industrial Heating Equipment Market Overview, 2031

Key Insights

• According to the research report, "Spain Industrial Heating Equipment Market Outlook, 2031," published by Bonafide Research, the Spain Industrial Heating Equipment Market is anticipated to add to more than 218.60 Million by 2026-31.
• Spain's Industrial Heating Equipment Market is undergoing a fundamental transformation driven by ambitious climate targets and the imperative to decarbonize industrial process heat. The government has activated a comprehensive aid package focused on transformative industrial processes, heat and cold networks, and innovative thermal solutions, with electrification playing a key role. Industrial manufacturers are increasingly evaluating electric boilers, electrode boilers, thermal fluid heaters, electric furnaces, and hybrid process heating systems.
• National government policies are reshaping industrial heating equipment investments through multiple regulatory and funding instruments. The Strategic Projects for Economic Transformation and Recovery (PERTE) for industrial decarbonization has allocated substantial funding, with the second call in 2026 providing €329.7 million for comprehensive industrial decarbonization projects. Spain has also committed €50 million to the first European industrial heat auction to support electrification of industrial heat and renewable heat projects.
• Industrial boilers constitute a significant equipment category across Spanish industrial thermal systems. Spain's industrial boiler market serves the country's extensive chemical, food processing, ceramics, and automotive sectors. The market is witnessing a significant shift towards electric, biomass, and hydrogen-ready solutions, driven by emissions regulations and energy efficiency requirements. The government's aid programs prioritize the replacement of boilers or systems based on fossil fuels with high-efficiency electric solutions.

Market Outlook

• Spain's Industrial Heating Equipment Market is pivoting decisively toward electrification, heat recovery, biomass, and renewable thermal solutions. Bosch Industrial has introduced electric boilers and electric steam boilers as key technologies within the process of industrial heat electrification. The government's aid package for energy transition includes investments oriented toward the energy transformation of industrial processes, efficiency improvement, emission reduction, and fossil fuel substitution.
• Hydrogen-ready burners and hybrid heating systems are emerging as pragmatic solutions, allowing operators to flex between fuels. Spain is participating in the European Hydrogen Bank's Auction-as-a-Service (AaaS) mechanism with €415 million for renewable hydrogen projects. Smart combustion systems, digital burner controls, and predictive maintenance technologies are enhancing operational efficiency. Spain's involvement in the first European industrial heat auction supports projects for electrification of industrial heat (heat pumps, resistive heating, plasma heating), direct renewable heat (solar thermal or geothermal), and hybrid systems.
• Major industrial decarbonization projects are demonstrating technology viability across diverse sectors. Bayer and Iberdrola España have signed a heat purchase agreement (HPA) for the electrification of Bayer's production plant in La Felguera, Asturias, representing one of the largest steam electrification projects in the world with 15 MW of renewable energy. The €17 million project, supported by the Ministry of Industry's PERTE for industrial decarbonisation, will install an innovative molten salt thermal storage system designed by Spanish company Inerco and is expected to be completed by June 2026. The project uses thermal storage technology that can decarbonise up to 50% of the heat consumed by industry in Spain.

Policies & Regulatory Landscape

• National government policy is accelerating industrial heating equipment modernization through multiple channels. The Strategic Projects for Economic Transformation and Recovery (PERTE) for industrial decarbonisation provides substantial funding for manufacturing industry decarbonisation under the Recovery, Transformation and Resilience Plan. The second call in 2026 provides €329.7 million for comprehensive industrial decarbonisation projects under Component 31 (REPowerEU), with projects eligible for up to €200 million per project.
• The Ministry for Ecological Transition and the Demographic Challenge (MITECO) has authorized €300 million for efficiency and savings initiatives in industry through the National Energy Efficiency Fund (FNEE). The energy efficiency program targets SMEs and large companies in the industrial sector, focusing on improving technology in industrial equipment and processes with savings of over 10%, and implementing energy management systems. The distribution of funds to autonomous communities will be decided at the Energy Sector Conference.
• The government has activated an aid package within the Recovery, Transformation and Resilience Plan and the CISAF state aid regime, oriented toward transformative industrial processes, heat and cold networks, and innovative thermal solutions. The measures include a specific axis for innovative thermal solutions in industrial and residential settings, creating a direct opportunity for companies to replace boilers or traditional systems based on fossil fuels with high-efficiency electric technologies. The execution horizon extends to 2028, offering industry time to plan strategic investments.

Procurement & Industry Impact

• Procurement decisions in Spain's Industrial Heating Equipment Market are increasingly shaped by regulatory compliance, energy cost optimization, and total cost of ownership. The PERTE industrial decarbonisation program and National Energy Efficiency Fund provide substantial financial support for equipment upgrades. OEM procurement factors increasingly include burner efficiency, lifecycle cost, automation compatibility, fuel flexibility, and remote diagnostics capabilities. Projects must demonstrate direct emissions reduction or carbon capture impacts.
• The electrification of process heat is emerging as a dominant procurement theme across industrial boilers, furnaces, and process heaters. The government's aid programs prioritize the replacement of boilers or systems based on fossil fuels with high-efficiency electric solutions such as electric boilers and electric steam boilers. Bosch Industrial's electric boilers and electric steam boilers are positioned as key technologies within industrial heat electrification. 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, hydrogen readiness, automation, and predictive maintenance. Digital burner control systems are being specified to optimize combustion efficiency. Aftermarket services including burner replacement, refractory replacement, tube replacement, and control upgrades represent significant recurring revenue opportunities. The €300 million industry efficiency program supports technology improvements in industrial equipment and processes with energy savings of over 10%.
• Technology innovation and consolidation are reshaping the supplier landscape. Babcock Wanson Group strengthened its presence in Spain with the acquisition of ACT ANDALUCES S.A. in September 2025, integrating a company primarily dedicated to industrial boiler services and optimization. ATTSU Group, with over 103 years of experience, manufactures steam boilers, thermal oil heaters, and hot water boilers in Spain (Madrid, Girona and Valencia). Pirobloc, founded in 1977 and based in Barcelona, designs, manufactures, and installs thermal oil boilers and electric thermal fluid boilers.

Industry News

• July 2025: The Council of Ministers, at the proposal of MITECO, authorized €300 million for efficiency and savings initiatives in industry and €200 million for building renovation in the tertiary sector under the National Energy Efficiency Fund.
• September 2025: Babcock Wanson Group acquired ACT ANDALUCES S.A., strengthening its presence in Spain by integrating a company primarily dedicated to industrial boiler services and optimization.
• December 2025: The Third Vice-President and Minister for Ecological Transition announced Spain's contribution of €415 million to the European Hydrogen Bank's third auction and €50 million to the first European industrial heat auction.
• February 2026: The Ministry of Industry and Tourism launched the second call of the PERTE for industrial decarbonisation with €329.7 million, with applications open until February 19, 2026.
• 2025-2026: Bayer and Iberdrola España signed a heat purchase agreement (HPA) for the electrification of Bayer's production plant in La Felguera, Asturias. The €17 million project, supported by the Ministry of Industry's PERTE, will install an innovative molten salt thermal storage system designed by Inerco, expected to be completed by June 2026.
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Segment Analysis

Spain Industrial Heating Equipment Market By Equipment Type
• Industrial Boilers generate steam or hot water for chemical processing, food production, power generation, and manufacturing. The market is witnessing a significant shift towards electric and biomass solutions. Spanish manufacturers include ATTSU Group (over 103 years of experience, manufacturing steam boilers, thermal oil heaters, and hot water boilers in Spain), Babcock Wanson Group (strengthening presence in Spain through acquisition of ACT ANDALUCES S.A.), Pirobloc (thermal oil boilers and electric thermal fluid boilers), and Sugimat (biomass-fired steam boilers, the only licensee in Spain of ERK Eckrohrkessel GmbH). The government's aid programs prioritize replacement of fossil fuel-based boilers with high-efficiency electric solutions.
• Industrial Furnaces serve high-temperature applications including steel reheating, metal processing, heat treating, forging, and melting across automotive, aerospace, and metals industries. Spanish manufacturers include Hobersal (industrial and laboratory furnaces and ovens since 1946, with temperatures from 30°C to 2,200°C) and Hornos Industriales Pujol (industrial ovens for ceramics, metallurgy, chemicals, and glass). Fives replaced a Spanish steelmaker's reheating furnace that had operated for more than four decades, with the advanced unit producing its first hot billet on November 27, 2025. The ceramics industry in Castellón is pursuing kiln electrification, with electric kilns offering up to 40% energy savings compared to traditional natural gas kilns.
• Process Heaters deliver precise thermal energy for chemical, petrochemical, and refining operations. Spanish manufacturers include AITESA (fired heaters for refineries and chemical industries, complying with API 530 and API 560 codes), NOVARGI (process equipment and thermal systems for the oil & gas industry including fired heaters, steam methane reformers, and waste heat recovery units), and Vulcanic (electrical process heating and temperature control solutions since 1973). Electrified thermal fluid systems are increasingly preferred where precise indirect heating and lower emissions are priorities.
Spain Industrial Heating Equipment Market By Mode of Operation
• New Equipment installations occur in greenfield facilities, production line expansions, and new facility construction. The PERTE industrial decarbonisation program provides funding for new equipment investments. The second call in 2026 offers up to €200 million per project, with an execution horizon extending to 2028. These projects allow operators to specify the latest technologies including electric heating systems, hydrogen-ready burners, and integrated control platforms. The €300 million industry efficiency program supports technology improvements in industrial equipment.
• Replacement & Retrofit activities address the vast installed base of aging industrial heating systems across Spanish industrial facilities. Many boilers, furnaces, and process heaters are reaching end of service life or facing non-compliance with evolving standards. Operators are choosing targeted upgrades including electric boiler installations, hydrogen-ready burners, heat recovery systems, and digital combustion controls. The government's aid programs prioritize replacement of fossil fuel-based systems with high-efficiency electric technologies. The ceramics sector in Castellón, with over 300 kilns, represents a significant retrofit opportunity.
Spain Industrial Heating Equipment Market By Heating Technology
• Combustion Heating utilizes natural gas, oil, or biomass combustion, with natural gas remaining the dominant fuel across Spanish industrial heating applications. Biomass solutions are gaining significant traction, with 55 million euros from PERTE supporting replacement of fossil fuels with biomass in six industries. Companies like Mahou-San Miguel Group and Lactalis have incorporated biomass systems into their thermal processes, achieving reductions of up to 901,000 tons of direct CO₂ emissions. The ceramics industry has adopted biomass to replace fossil fuels in kilns. Hydrogen-ready burners are increasingly specified, with Spain's €415 million hydrogen commitment supporting development.
• Electric Resistance Heating converts electrical energy directly into heat through resistive elements, offering precise temperature control, instant heating, and zero onsite emissions. Bosch Industrial's electric boilers and electric steam boilers are positioned as key technologies. Spanish manufacturers including Industrias Electricas Soler, Electricfor, and Vulcanic produce electric heating elements and systems. The government's aid programs prioritize replacement of fossil fuel-based systems with high-efficiency electric solutions. Spain's €50 million commitment to the industrial heat auction supports electrification of industrial heat.


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