This market study aggregates specific industrial boilers segments. These segments are defined according to pressure and output.

1. Industrial Boilers Market
Summary: Spain
by: Antonio Mendonça
February 2019

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Spain

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Market size 2017-2018 in volume and in value
Thismarketstudyaggregates
specificindustrialboilerssegments.
These segmentsare defined
accordingto pressure andoutput.
Steamboilersandsuper-heated
boilersare withinthe interval of 16
to 25 bar. While the steamboilers
outputcapturedhasto be above
200 kg/hof steam,the super-
heatedwaterboilersoutputhasto
be above 450 kW.Water-tube
boilersare excluded.
What isalsocapturedinthisstudy
isthe marketsize for lowcapacity
steamgenerators,above 400 kg/h
and thermal fluidheaters above
300 kW.
The Industrial boilersproduct
market,forthe segments
mentionedinSpain,in2018, is
calculatedat€2.68 million.This
value onlyrelatestothe 159 units
sold.Thisfigure includesthe units
soldbymanufacturersandbylocal
installersthathave the capacityto
assemble the products(talleres).
These fabricators/manufacturers
/ installershave alarge share of
the marketand theyare the
moneymakersinthe Spanish
industrial boilersmarket.
Additionally,theyrepresent
manufacturers,thatdoor don´t
have a countryrepresentative
office.
BSRIA researchersalsocalculated
the marketvalue forproducts+
accessories+installation.This
marketiscalculatedat€4.11
millionin2018. On the topof this
value,andaccordingtothe market
participantsinthisresearch,the
service &maintenance canadd
approximately €0.74 million
annually,the equivalentto18% of
the total representedmarket.
In summary,the total Spanish
marketfor the segmentsanalysed
isequivalentto €4.85 million,in
2018. The rental marketisnot
capturedinthisvalue.
Source: BSRIA
18%
32%
38%
12%
Product market size in value, %
2018
- Super-heated water
boilers
- Saturated steam boilers
Steam generators
Thermal fluid heaters
(hot oil boilers)

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Market trends
The steamboilerssegmentisthe biggestin
unitssold.Thissegmentrepresents44.6%of
the productmarket,howeveritsvalue is
reducedto32% of the total market.
The steamboilersmarketisexpectedto
deliveraperformance of 3.7%CAGR for the
forecastedperiod,withanestimated
productvalue in2023 of €1.02 million,at
currentprices.
The super-heatedwaterboilersisthe
segmentthatisexpectedtohave the best
performance duringthe forecastperiod.
However,super-heatedboilersoutput
temperaturescanbe reachedbywater
boilers.Despite beingagainstthe rules,
researcherswere toldthat,the change of
the thermostatisenoughfora waterboiler
to reachtemperaturesabove 100 degrees
Celsius.Tobe confirmed,thishasa
significantimpactinthe super-heated
marketgrowth.Consequently,this
performance hastobe takenwithsome
caution.
The steamgeneratorssegmentisthe
biggestmarketinvalue.The steam
generatorsare the firstchoice forindustries
witha needof shortperiodsof steam,but
quickreactiontoproduction.Thisproductis
highlyrequiredbythe pharmaceutical
industryandhospitals.Otherindustriesuse
thisproductas a backupas well.
The thermal fluidindustrial boilersisthe
segmentthatisexpectedtobackslide during
the forecastperiod.The mainreasonsfor
thisare relatedtothe sellingprices,safety,
energyconsumptionandmaintenance of
the product.Internationalpoordemand
estimatedforthe near-termalsoplaysan
significantrole ,asthisproductis largely
exported.
Overall,the 3.3%growthacross segmentsis
basedonthe industrial investment
performance,country’sgrowthand
international economicenvironment,while
the external demandisexpectedtoslow-
down.

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Segmentation by type of fuel 2018
A more efficientandrational use of
energyallowsabetteruse of
resources.Furthermore,the
processesof productioncanbe
more competitive,withthe same
amountof energyproductioncan
be increased.Inthe industrial
sector,a large part of the primary
energyconsumedisusedtoheat
fluidssuchashotwater,steamor
thermal oil,inboilerswhose energy
yieldsare usuallylow.The most
representative fuel isnatural gas.
Natural gas isa mixture of gases
obtaineddirectlyfromnature in
deposits,where methane (CH4)
constitutesmore than70%of its
composition.Itissafe,deliversa
highperformance,onlyforms
thermal NOx anditis cheaperthan
otherfuelsthatare able to provide
similaroutputs.Atambient
temperature andpressure,itsstate
isgaseous,butcan be liquefiedat
pressuresthatare not excessively
high,whichfacilitatesitstransport
and storage inliquidformunder
pressure.Thisfuel accountsfor
around60% of the total product
segmentsanalysed.
Dual fuel isthe nextmostimportant
fuel segment.Itoftenimpliesthe
capabilityof multipletype of fuel.
The most usedisfuel-oil andgas,
butit isalsocommonto find
boilers,whosecombustionsystem
can run at gas, diesel andfuel-oil.
The heatingoptions,inindustrial
boilers,include alarge range from
electricity,liquidfuels(fueloil,gas
oil),gaseousfuels(natural gas,
propane gas,biogas,effluent
gases),heatrecoveryinenginesor
cogenerationturbinesandbiomass.
However,the productrange and
specificitiesanalysedinthisstudy
narrowedthe fuel segmentoptions
to the one identifiedinthe table
above.
Source: BSRIA
52%
12%
6%
0%
24%
7%
Segmentation by type of fuel,
2018, market volume
Natural gas
Diesel
Oil
Biomass
Dual fuel
Electric

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Market background (I)
Country legislation Other regulations
 RD 709/2015, of July 24, which establishes the essential safety
requirements for the marketing of pressure equipment;
 Royal Decree 2060/2008, (B.O.E. 5-2-2009), which approves the
regulation of pressure equipment and its technical instructions;
 Royal Decree 769/1999, (B.O.E. 31-5-1999), which establishes
the provisions for the application of the Directive of the European
Parliament and of the Council, 97/23 / EC, on pressure
equipment;
 Order of July 27, 2009 (B.O.P.V. 11-9-2009), which dictates
standards in relation to the regulation of pressure equipment
(REP);
 Royal Decree 560/2010, (B.O.E. 22-5-2010), which modifies
various regulatory standards on industrial safety, to adapt them to
Law 17/2009 on free access to service activities and their
exercise;
 Decree 229/2012, (B.O.P.V. 3-12-2012), simplification of the
procedure for the commissioning of industrial facilities;
 Law 8/2004, (B.O.P.V. 29-11-2004), of the Autonomous
Community of the Basque Country.
 The pressure equipment captured in this report fall into the EIP-2
certification for installers;
 The fire-tube boilers analysed in this report fall into the ‘category
2’ - Apt. 4 art. 6 ITC-EP-1;
 The thermal heaters can be installed in the open-air, they do not
have to comply with apt.4;
 The manufacturer operating instructions will include the
surveillance requirements that can be direct or indirect. UNE-EN
12953 and 12952 are considered the adequate norms for control
and security systems;
 The water treatment and its quality has to be reassured, likewise
the regime of purges and extractions. UNE-EN 12953-10 and
12952-12 regulate these requirements;
 The period inspections have to be carried on time and according
specifications. They have to be completed the latest in the last
month of due date. Inspections Level A have to be done every
year, in accordance with ITC EP1, annex I, apart. 1.1; Inspections
Level B, every three years, in accordance with ITC EP1, annex I,
apart. 1.2; Inspections Level C, every six years, in accordance
with ITC EP1, annex I, apart. 1.13.

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Market background (II)
NOx Emissions normative
 Royal Decree 1042/2017, which transposes the directive
2193/2015, establishes emission limit values ​​for nitrogen oxides
(NOx) - The scope of application is the combustion plants
between 1 MW and 50 MW, therefore it is applicable for
example to thermal oil boilers from 750,000 kcal / h or steam
boilers from about 1,250 kg / h, for all types of fuels.
 The emission maximum value (mg/Nm3) for new combustion
installations < 5 MW from 2019 are the following: Biomass 300,
Other solid fuel 300, Diesel 200, Other oil 300, Natural gas 100,
Other gases 200.
 The emission maximum value (mg/Nm3) for new combustion
installations > 5 MW from 2019 are the following: Biomass 650,
Other solid fuel 650, Diesel 200, Other oil 650, Natural gas 200,
Other gases 250.
 For combustion plants > 50 MW, Royal Decree 430/2004
already existed, which corresponded to Directive 2001/80 / EC.
 The existing facilities must also be adapted:
1) Between 5 MW and 50 MW as of January 1, 2025;
2) Between 1 MW and 5 MW as of January 1, 2030.
 For the monitoring of emissions and the assessment of
compliance, it is mandatory to carry out external controls with
the following periodicity:
1) Between 1 MW and 20 MW every 3 years;
2) Between 20 MW and 50 MW each year.

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Distribution channels
The dominantroute tomarketisvia the
contractor.The manufacturerssell to
these (contratistas) whichthensell tothe
end-user.Thisisthe preferredroute for
renownbrandsandinternationalplayers,
theirinvolvementinthe processis
minimal.The contractorisalsothe route
to marketthatprevail amongstthe
biggestdomesticmanufacturers.
However, the
distributors/Installers/Fabricatorsroute is
alsoimportant.A significantamountof
playersinthe industrial boilersmarket
call uponthisroute, includingthe
international brands.Aspreviously
mentioned, partnershipsare common
betweendomestic
manufacturers/fabricatorsandrenown
brands.
The end-userroute isnotnegligible inthe
Spanishmarket.Manyend-userscall on
local installers/fabricatorstofulfil their
needsandrequirementsinindustrial
heating.These are oftenthe easiestand
more reliable route,due tothe proximity
withend-usersandalsothe more
commonroute forsmall projects.They
are able toprovide solutionsaccordingto
specificationsanddeliverproductswithin
the normsand regulatedstandards.
Direct
Building
contractors
Distributors/In
stallers/Fabric
ators
ESCOs Total (%)
Total industrial boilers 20% 50% 30% 0 100%
Industrial boilers market by distribution channels,
% share, 2018
Source: BSRIA
20%
50%
30%
Direct Supply Contractors Distributors/fabricators

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Specification process / Criteria of choice
Industrial boilersplantsrequire highlevel
of expertise,thisiswhythe marketmakers
have to have technical resourcesand
competences,toadvise end-usersonthe
bestsolutionsavailable.Itgetsmore
emphasiswhenthe analysedmarketfocus
on specificoutputs.The boilersanalysedin
thisreport,due toits pressure bracket,fits
inthe so called‘category2’,requiringa
boiler’sroombuiltaccordinglythe boiler’s
size.The distance betweenthe boilerand
the wallshave tocomplywithspecific
measurements.The roomhastobe
equippedwith2emergencydoors,eachon
a differentwall.These roomsare required
to be separatedintheirownsite andmust
complywiththe regulationsregarding
ventilations,protectionsandpreventions
for the fire andexplosionriskstowhich
theycouldbe exposed.A passive fire
sectorwitha minimumfire resistance of
120 minutesmustbe considered,and
firewall doorsmustbe installedatthe
entrances.These are justsome of the
installationrequirements.The majorityof
the manufacturers,particularlythe
international players,donothave the
requiredresourcesin-house,sotheyrely
on eitherthe expertplanningfromthe
contractor or the resourcesof theirlocal
partner.
End-usersprefertouse the competent
customerservice engineersthatare
trainedinusingthe productsandcan
handle eventual productfailuresinan
efficientandtimelymanner.Forthis
reason,a large share of the marketbelongs
to the local manufacturersandfabricators.
Additionaltothisend-userproximity,the
final andrunningcostsare veryimportant
and a decisive factor.Inaveryprice
sensitive market,comparedtoother
westernEuropeancountrieswhere the
international manufacturersoperate,the
marketmakershave to considerthe costs
inherenttoeachproject.Spanish
businessespreferlowerprice products,
evenif the runningcostsare higher.Local
manufacturerscancope withthisdemand,
renownbrandswithhighstandard
productsmightstruggle tocompete.The
installation,accessoriesandrelated
productsare alsotobe considered.End-
userswantto have accessto spare parts
veryquickly.Theycannotstoptheir
factoriesbecause of adamage or failure in
a boilercomponent.Also,inmanycases,
the supportboilerorgeneratordonot
have the same outputandthe production
dropssignificantly.
Some industrial projectsare subjectto
publictendering.Ithappensmostlyin
governmentalprojects,where bylaw,
projectsabove acertainamountof
investmenthave tobe tendered.The
applicantshave tofulfilalarge numberof
conditionstobe able toapplyforthe
offeringof contracts.

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consultancy in the building services industry
Reports available for: Air Conditioning, Heating, Renewable Technology, Energy, Smart Homes, Cabling and
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