Boiler & Heat Exchanger Manufacturing in the US: Market Size, Businesses & Forecast 2026

The boiler and heat exchanger manufacturing industry in the US produces equipment that transfers heat between fluids or gases, serving industrial, commercial, and residential markets. The industry has shown modest growth with sector output valued at $9.5 billion in 2022, according to the U.S. Census Bureau. The industry is facing challenges from energy efficiency regulations and increasing competition from imported equipment.

Industry snapshot

Key public data points

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What does the Boiler & Heat Exchanger Manufacturing in the US industry cover?

The boiler and heat exchanger manufacturing industry encompasses businesses that produce equipment for transferring heat between fluids or gases. This includes steam boilers, hot water boilers, heat exchangers, and related parts. Products serve diverse applications including power generation, HVAC systems, petrochemical processing, and food manufacturing.

• •Industry establishments manufacture either stationary or portable boilers and heat transfer equipment
• •Products include power boilers, heating boilers, pressure vessels, and heat exchanger components
• •NAICS code 332413 covers this manufacturing sector according to U.S. government classification

Who operates in the industry and how is it structured?

The industry consists of both large multinational corporations with extensive distribution networks and smaller specialized manufacturers serving niche markets. Production facilities are distributed throughout the US with concentrations in industrial regions. The market operates on B2B relationships with customers ranging from utilities to industrial manufacturers.

• •Approximately 300 establishments operate in this sector according to the U.S. Census Bureau
• •Industry employs around 15,000 workers with average annual wages of $70,000+
• •Manufacturing facilities are strategically located near major industrial markets and transportation hubs

What drives demand in the industry?

Demand for boiler and heat exchanger equipment is primarily driven by industrial expansion, infrastructure development, and replacement cycles in existing systems. Energy efficiency requirements also stimulate demand for modern, efficient equipment. Industrial process heating remains the largest application segment.

• •Industrial sector accounts for approximately 60% of total demand
• •Energy efficiency regulations drive replacement of older, less efficient equipment
• •Infrastructure modernization projects create additional demand for large-scale heat transfer equipment

Who are the notable companies in the industry?

The competitive landscape includes several well-established players with strong market positions through technological capabilities and distribution networks. Competition exists based on product quality, energy efficiency, technical support, and price. Market participants face pressure from both domestic competitors and imported equipment.

• •Babcock & Wilcox Enterprises, Inc. - major provider of steam generation and boiler systems
• •Cleaver-Brooks, Inc. - manufacturer of packaged boilers and boiler room equipment
• •Indeck Power Equipment Company - provider of industrial boiler rentals and sales
• •Modine Manufacturing Company - produces heat transfer equipment for various industries

What are the recent trends and outlook?

Recent trends include increasing focus on energy efficiency and emissions reduction technologies. The industry is seeing growing demand for hybrid systems that combine traditional boilers with renewable energy sources. Supply chain disruptions have impacted production timelines and costs. Market growth is expected to be moderate over the next five years.

• •Low-emission and zero-emission boiler systems represent emerging market segments
• •Hybrid systems combining boilers with solar or waste heat recovery are gaining adoption
• •Supply chain challenges have increased lead times for specialized components

How is the industry regulated?

The industry operates under stringent regulatory requirements enforced by multiple federal agencies. Compliance includes safety standards, environmental regulations, and energy efficiency mandates. Manufacturers must adhere to design and manufacturing standards to ensure product reliability and safety.

• •ASME Boiler and Pressure Vessel Code sets technical standards for equipment design and construction
• •Environmental Protection Agency regulates emissions from combustion equipment
• •Department of Energy establishes minimum efficiency standards for commercial and industrial boilers

Government, statistical and trade sources used for this Claight analysis.

• U.S. Census Bureau, Annual Survey of Manufactures 2022 ·
• U.S. Census Bureau, County Business Patterns 2021 ·
• U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics 2021 ·
• National Board of Boiler and Pressure Vessel Inspectors, Annual Report 2022 ·
• Department of Energy, Commercial Standards for Boilers and Process Heaters 2023