Frost & Sullivan Research Service   Published: 12 Oct 2009
The South African Boiler Market
   Research Overview

This Frost & Sullivan research service titled The South African Boiler Market provides valuable quantitative and qualitative insights into the boiler market. Revenue projections to 2014 as well as a summary and explanation of the main market drivers and restraints are included. The research also offers an examination of the size and value of various segments, a brief analysis of boiler end users together with revenue projections for the segments in the market. Competitive profiles of the main market participants are provided along with strategic recommendations. In this research, Frost & Sullivan's expert analysts thoroughly examine the following product segments: package boilers (shell boilers), utility boilers, water-tube boilers and electrode boilers.


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Market Overview


Strong Growth in the Production Sector Promotes Innovation in the South African Boiler Market


Development in the food and beverage industry as a segment of the production sector in South Africa resulted in the South African boiler market witnessing significant growth in 2008 prior to the economic downturn, which hit the globe later that same year. “The economic development and prosperity of South Africa South prior to the global economic recession resulted in the fact that the domestic boiler market experienced extreme growth in 2008,” notes the analyst of this research. “Although this will not be the case in the years 2009 and 2010, the outlook remains positive for the boiler industry as soon as the economy starts recovering.”


The South African boiler market is expected to grow at a compound annual growth rate (CAGR) of 10.92 percent from 2007 to 2014.The market is expected to remain robust due to a strong pipeline of projects in the power sectors, as the public utility Eskom has embarked on a massive $15.4 billion capital expenditure programme. Strong demand from the metals and mining sectors, coupled with healthy demand from the production sector, especially the food and beverage industry, will further promote market prospects.


Skills Shortage Poses a Challenge


Boiler manufacturers as well as the end users of boilers face a significant challenge of skills shortage in South Africa. Although some of the market leaders, for example, John Thompson, run a boiler house training school, the pool of knowledge and skills in the boiler industry is extremely limited. “Not enough is being done to train and empower boiler operators,” cautions the analyst. ”The shortage of skilled labour could translate into inefficiency in the near future and national economic growth targets not being achieved.” Participants in the boiler OEM market segment and the servicing segment have attempted to overcome these challenges by best practices, such as investing in training programmes (to equip a skilled workforce) and by design flexibility and product customisation.


“The knowledge, skills and experience of boiler operators and manufacturers in South Africa are limited to an exclusive and small pool of professionals,” states the analyst. “The ability to combine Black Economic Empowerment (BEE) with providing apprenticeships at an OEM will ensure the retention of valuable expertise.” With increasing competition forecasts for the South African boiler market through to 2011, it is important to get strategies into place to develop, maintain and retain a competent workforce that is equipped with the necessary expertise to contribute to the efficiency of the boiler facility. Goals should be set as to how a company wants to expand and empower their existing workforce. At the same time, one of the best practices needed to be successful in the market is having access to a database of internationally acclaimed boiler design and technologies. It is the opinion of Frost & Sullivan that the development of world-class boiler technology (for example, fibrous fuel technologies) could result in a company being the market leader.


Market Sectors


Expert Frost & Sullivan analysts thoroughly examine the following product segments in this research: 

  • Package boilers (shell boilers)
  • Utility boilers
  • Water-tube boilers
  • Electrode boilers

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  Table Of Contents

1. Executive Summary
   1.1 Motivation for the Study
   1.2 Research Aim and Objectives
   1.3 Research Scope and Definitions
   1.4 Regulatory and Legislative Requirements
   1.5 Summary of Major Research Findings

2. The South African Boiler Market
   2.1 Total Market Overview
       2.1 a. Manufacturing Market Overview
       2.1 b. Maintenance, Repair and Overhaul Market Overview
   2.2 Market Engineering Research Measurements
   2.3 Market Revenue and Growth Forecasts
   2.4 Industry Challenges
   2.5 Market Drivers and Restraints
   2.6 Market Size and Forecasts by Capacity and Revenues
       2.6 a. Package Boiler Market
       2.6 b. Utility Boiler Market
       2.6 c. Water-tube Boiler Market
       2.6 d. Electrode Boiler Market
   2.7 Total Market Share by Boiler Manufacturer
   2.8 Total Market Share by Boiler Service Market (MRO)
   2.9 End-user Market Overview
   2.10 End-user Analysis

3. Industry Best Practice
   3.1 Critical Success Factors in the Boiler Market

4. Competitive Profiling of Top Participants in South Africa
   4.1 Profiles

5. Recommendations
   5.1 Strategic Recommendations

6. Abbreviations Used in the Research Service
   6.1 List of the Abbreviations used in this Research Service

7. Conclusion
   7.1 Conclusion

8. About Frost & Sullivan
   8.1 About Frost & Sullivan

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