Preheater Market Size - By Type, By End Use, By Distribution Channel, Growth Forecast, 2025 - 2034

Global Preheater Market Size

The global preheater market size was valued at USD 2.4 billion in 2024 and is projected to grow at a CAGR of 3.2% between 2025 and 2034, due to regulations, technological advancements, and industrial shifts. As these preheaters help companies to improve energy efficiency in different industries. Shifts in government policies towards greater emission and energy consumption management have become one of the main catalysts for the market. Governments across both developed and developing regions are mandating that industrial centers optimize their carbon emissions and overall energy consumption. Demand for preheaters has surged as countries across the globe are adopting carbon neutrality policies and encouraging other lower emission practices.
 

Also, enhanced construction, industrialization, and urban development are most important contributors to the boom of end-use sectors like manufacturing and heavy industries. This upsurge meets the growing demand for advanced and economical heating systems, increasing preheater adoption in both new and existing industrial facilities.
 

The usage of modern preheater systems has smart sensors, AI diagnostics, and predictive maintenance safeguards which improve system reliability, efficiency, functional adaptability, and overall performance. These improvements further optimize processes, increase equipment utilization, and decrease the total cost of ownership, which are all important to industrial users with constrained budgets. Additionally, availability of energy resources is becoming expensive globally. Alongside an increase in focus towards energy sustainability, industries are urged to adopt energy saving technologies. Since preheaters are directly responsible for lowering operational costs, they are increasingly seen as important in enhancing industrial efficiency initiatives.
 

Global Preheater Market Trends

• The preheater industry is growing rapidly due to a mix of regulatory pressure, new technology, and increasing industrial demand. One of the primary trends is the shift towards energy conservation and emission control. Governments and regulatory authorities have set strict environmental policies which require industries to use more efficient energy performance equipment. Preheaters, in recovering waste heat and improving thermal efficiency, form an integral part of these requirements, especially in high energy consuming sectors such as cement, steel, and chemical manufacturing.
   
• Furthermore, another important trend is technological development. The incorporation of smart technologies such as IoT sensors, automation, and AI diagnostics have turned conventional preheaters into smart systems capable of real-time monitoring and predictive maintenance. These changes not only improve operational performance but also reduce downtime and increase the lifespan of preheaters. 
   
• Additionally, new materials with greater heat and corrosion resistant properties are aiding greater reliability and durability in extreme industrial conditions which is also supporting market growth. In the future, market demand will continue changing with the adoption of industrial decarbonization, net-zero emission goals, and electrification of heating systems. Focused efforts on clean energy transitions accompanied by economical carbon footprint reduction will heighten the importance of preheaters. These factors will catalyze further innovation and investment in the market.
   

Global Preheater Market Analysis

Based on the type, the market is divided into tubular air preheaters, regenerative air preheaters, regenerator and other types. In 2024, the tubular air preheaters segment dominated the market accounting for around 36.8% share and expected to grow at a CAGR of over 3.8% during 2025 to 2034.
 

• Tubular air preheaters have a compact structure, as well as durable, dependable, reliable performing remaining qualities in high temperature and high-pressure environments. By preheating combustion air to be used with oxygen-enabled fuel and flue gases, their ability to enhance fuel efficiency greatly minimizes energy expenditure alongside accruing operational expenses. Their design features include cost effectiveness, ease of use, and operational efficiency as they relate to a myriad of industrial applications, especially in power plants, cement industry, and refineries.
   
• In comparison with regenerative air preheaters that use rotating heat storage elements, tubular types have lower alterations, maintenance, and relatively simple construction. Although regenerative units have higher capital costs, deal with frequent sealing issues, and are often largely complex, they are highly adaptable for large-scale applications.
   
• Therefore, the versatility, lower lifecycle costs and enduring qualities crowning preheaters amplify their advantage. Tubular preheaters remain on top as industries focus on boosting energy efficiency and emission control.

Based on end use, the preheater market is segmented into power & utilities, oil & gas, chemical industry, metal & steel industry, food & beverage and others. In 2024, power & utilities segment dominates the market with 36% market share.
 

• The power and utilities segment is dominating due to the high need for energy efficiency and emissions control in power generation processes. As industrialization increases globally, the demand for preheaters in power plants is increasing.
   
• Preheaters are used to heat the air or feedwater prior to its introduction into the boilers, so elevating the combustion efficiency and lowering fuel consumption, these preheaters are vital in thermal power plants.
   
• Power plants are constantly looking for ways to improve performance, and with the global focus on carbon emission reduction and the need for cleaner technologies. In addition, the power infrastructure development in emerging economies and the retrofitting of existing plants in developed regions also drive this segment.
   

Based on the distribution channel, the preheater market is segmented into direct and indirect. In 2024, indirect segment dominates the market with 52.1% market share.
 

• The Indirect is dominating due to effective market coverage, cost efficiency, and value-added services. Indirect distribution channel provides access to various regional markets through third-party vendors, dealers, distributors, and other indirect sales channels eliminates the need for direct sales personnel. These intermediaries have established customers, technical proficiency, and local support which enhance trust and after-sales service.
   
• Furthermore, indirect channels provide better management of storied inventories and shortened delivery timelines, so buyers are preferentially from power, oil & gas, and chemical industries where timely equipment supply is crucial.
   

In 2024, China dominated the APAC preheater market with around 40.6% market share and project the estimated revenue of USD 500 million by 2034, due to their large industrial base, quick infrastructure construction, and investments in power plants and factory buildings. The country’s strong presence in industries such as steel, cement, chemicals and energy creates sustainable demand for preheaters which aid in process automation, improve energy efficiency and other factors. Also, government efforts aimed at increasing industrial output while decreasing emissions enhance the modernization of preheating systems, thereby confirming China’s predominant position in the world market.
 

The U.S. preheater market is expected to experience significant and promising growth from 2025 to 2034.
 

• With the adoption of preheaters in the US power generation industry, the US has emerged as a significant market share owing to the advanced industrial framework of the country. The shift towards preheaters made alongside the stringent environmental policies resulted in enhanced R&D spending in the oil, gas, chemical, and power generation industries. The overwhelming expenditure on the renewal of the preexisting infrastructure and the lower costs associated with operational activities in the US continues to aid jo US’s dominance in the region.
   

The U.K. preheater market is expected to experience significant and promising growth from 2025 to 2034.
 

• The UK accounts for the largest market share of preheater installations in Europe because of its developed industrial and economic characteristics, environmental awareness, as well as rigid terms of energy consumption.
• The country’s movement towards low carbon technologies and updating old frameworks is utilizing high-efficiency preheaters in power, chemical, and manufacturing industries most prolifically. Furthermore, energy policy and the progressive engineering industry in the UK make the region competitively advanced in comparison to other European countries.
   

The MEA preheater market held a market share of around 9.3% market share in 2024.
 

• With its fast-growing industrial base, infrastructure, and cement, petrochemicals, & power generation industries, the UAE is the dominant leader in the market for the MEA region. 
   
• Additionally, the region is accompanied by other government policies, the UAE Energy Strategy 2050 directed the noted focus on energy efficiency. This encourages high-performance preheaters to be used for greater energy and combustion emission reduction. Also, the UAE’s enhanced focus on sustainable and smart manufacturing makes it a center for investment, growing its use of advanced thermal processing tools in the region.
   

Global Preheater Market Share

• The top 5 companies in the global preheater industry are Fives Group, Doosan Heavy Industries & Construction, Babcock & Wilcox Enterprises and Mitsubishi Heavy Industries and contribute around 20-30% of the market in 2024.
   
• Fives Group focuses on reducing energy utilization while optimizing thermal efficiency. Emissions reduction as well as enhancing combustion is possible alongside the Fives advanced calciner systems which the unit is integrated with. This ensures leadership position within the other preheater solutions in the market by providing further advanced sustainable solutions.
   
• Doosan Heavy Industries & Construction provides comprehensive solutions for the thermal power plants which also includes the design and supply of air preheaters. These preheaters are vital for increasing the efficiency of boilers by reclaiming heat from the flue gas to preheat the combustion air. They serve the requirements of the major power generation plants.
   
• Babcock & Wilcox manufactures regenerative (rotary) and recuperative (tubular or plate) air heaters for both boiler supplementary and boiler auxiliary functions. Each of these air heaters is custom-built to improve unit efficiency by recovering heat from flue gases to preheat incoming combustion air. B&W solves problems using engineering innovation and support services.
   
• Mitsubishi Heavy Industries is one of the distinguished manufacturers of air heaters which are extensively used in the steam power plants turbines under boilers for heating up the needed combustion air in the boilers. MHI air heaters are well-known for their high heat-recovery rate, economy, and ease of maintenance.
   

Global Preheater Market Companies

Major players operating in the global preheater industry are:

• Aalborg Engineering
• Alstom Power
• Andritz
• Babcock & Wilcox
• Bharat Heavy Electricals
• Dongfang Electric
• Doosan Heavy Industries
• Eisenmann
• Five Group
• Jiangsu Jinfeng Air Preheater
• Mitsubishi Heavy Industries
• Rentech Boilers
• Rotary Engineering
• SPX
• Thermax
   

With the ever-growing demand in the sectors of oil and gas, chemicals, power generation, and cement, there is immense pressure on industries to reduce emissions and improve energy efficiency. Companies are now inclined to invest in advanced preheaters intended for air and gas that improve operational cost efficiency and aid in better heat recovery. These preheaters need to work effectively and need to operate in an environmentally friendly manner. To cater to this market demand, companies in markets are continuously working to improve efficiency.
 

Global Preheater Industry News

• In May 2025, Babcock & Wilcox sold key assets of its Denmark-based subsidiary to Kanadevia Inova for $20 million. The deal includes DynaGrate combustion technology and ongoing European waste-to-energy projects. Part of the funds will support B&W’s BrightLoop hydrogen and carbon capture project in Ohio. This move helps the company streamline operations, reduce debt, and focus on clean energy solutions—strengthening its position in high-efficiency thermal systems like preheaters.
   
• In April 2025, Bharat Heavy Electricals Limited (BHEL) reported strong financial performance in FY 2024-25, with revenue reaching Rs. 27,350 crores, a 19% increase—and record order inflows of Rs. 92,534 crores, bringing its total order book to Rs. 1,95,922 crores. The company secured major orders in the power sector (Rs. 81,349 crore) and industrial segment (Rs. 11,185 crore), and commissioned 8.1 GW of power capacity, reflecting efficient project execution. This robust growth and large order backlog strengthen BHEL’s position in the preheater industry, as rising power projects drive demand for air preheaters, a key component in thermal power plants, enhancing BHEL’s market presence and production opportunities.
   

The global preheater market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) & volume (Units) from 2021 to 2034, for the following segments:

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Market, By Type

• Tubular air preheaters
• Regenerative air preheaters
• Regenerator
• Other types

Market, By End Use

• Power & utilities
• Oil & gas
• Chemical industry
• Metal & steel industry
• Food & beverage
• Others

Market, By Distribution Channel

• Direct
• Indirect

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa