Key Insights• According to the research report, "South Korea Industrial Heating Equipment Market Research Report, 2031," published by Actual Market Research, the South Korea Industrial Heating Equipment Market is anticipated to add to more than 626.50 Million by 2026-31.• South Korea's Industrial Heating Equipment Market is undergoing a fundamental transformation driven by ambitious decarbonization targets and the imperative to decarbonize industrial heat. The government has committed to achieving carbon neutrality by 2050 and has set a 2035 NDC target of reducing greenhouse gas emissions by 53–61% compared to 2018 levels. The 2035 NDC, finalized through a Cabinet meeting on November 11, 2025, commits Korea to reduce net emissions to 53–61 percent below 2018 levels.• National government policies are reshaping industrial heating equipment investments through multiple regulatory instruments. In September 2025, the Ministry of Trade, Industry and Energy (MOTIE) expanded the energy efficiency management equipment framework to 54 product categories. The government has also announced plans to formulate the Green Transformation Plan (K-GX) to foster green industries including heat pumps.• Industrial boilers constitute a critical equipment category across South Korean industrial thermal systems. Major manufacturers include Booster Co., Ltd., Kangwon Energy Co., Ltd., and DKME Co., Ltd.

Booster Co., Ltd. engages in the design and manufacture of industrial boilers including tube boilers, vacuum hot water boilers, and control systems. Kangwon Energy Co., Ltd. manufactures water tube packaged boilers, waste heat recovery boilers, and thermal oil heaters.Market Outlook• South Korea's Industrial Heating Equipment Market is steadily transitioning toward electrification, energy efficiency, and clean energy alternatives. The government's 2035 NDC, finalized through a Cabinet meeting on November 11, 2025, sets out to reduce greenhouse gas emissions by 53–61% compared to 2018 levels. The industrial sector is responsible for a 24.3–31.0% reduction target. In July 2025, Korea launched its first Energy Storage System Central Contract Market.• Alternative carbon-free combustion technologies, including hydrogen and carbon capture, are emerging for industrial heating applications. Low-emissions hydrogen is widely seen as a potential solution for decarbonising hard-to-abate industrial sectors.

Carbon capture and liquefaction technologies are being explored to accelerate carbon reductions in Korea's high-emission industries.• Major industrial decarbonization initiatives are gaining momentum. The Ministry of Climate, Energy and Environment (MCEE), launched on October 1, 2025, through the consolidation of energy-related functions from the Ministry of Environment and MOTIE, is expected to strengthen overall climate policy coordination. A Development Strategy for the Energy Storage Industry was announced in October 2023. The Korea Energy Agency (KEA) contributes to establishing implementation measures to achieve mid- to long-term national GHG reduction goals.• South Korean manufacturers continue expanding capabilities in industrial heating equipment. BHI Co., Ltd., a Korea-based company engaged in the design and manufacture of industrial equipment, won a significant order. DKME Co., Ltd., founded in 1981 and headquartered in Ulsan, manufactures energy and chemical equipment including heat exchangers and waste heat boilers.

The company was formerly known as Kib plug energy Co., Ltd. and changed its name to DKME Co., Ltd. in May 2025. The Korea Energy Technology Association, established in 1995 under MOTIE, oversees the maintenance and management of boilers and heat source facilities.Policies & Regulatory Landscape• National government policy is accelerating industrial heating equipment modernization through multiple channels. In September 2025, MOTIE expanded the energy efficiency management equipment framework to 54 product categories. MOTIE Notice No. 2025-578 announced revisions to the Regulation on Energy Efficiency Management Equipment. The Energy Utilization Rationalization Act Enforcement Rules were updated effective October 1, 2025.• The government is strengthening the high-efficiency energy equipment framework through the revision of the "Regulations on Promotion of High-Efficiency Energy Equipment Distribution," announced by MOTIE on July 18, 2025. The revision introduces new product categories including air-to-water heat pumps, establishing systematic management systems for carbon-neutral core technologies.• The 2035 NDC, finalized on November 11, 2025, commits Korea to reduce net emissions to 53–61% below 2018 levels.

The government is aligning the Emissions Trading Scheme with the minimum reduction target to minimize the additional burden on local businesses. The Fourth Emissions Trading Allocation Plan was also finalized at the Cabinet meeting.• The government announced on December 16, 2025, a "Heat Pump Deployment Activation Plan" to replace fossil fuel-based heating systems, targeting the deployment of 3.5 million heat pumps by 2035 with a goal of reducing 5.18 million tons of greenhouse gas emissions. The plan includes institutional, tariff, and subsidy system reforms. The government is also pursuing legal amendments to recognize air-source heat as renewable energy and establish legal grounds for heat pump deployment support.Procurement & Industry Impact• Procurement decisions in South Korea's Industrial Heating Equipment Market are increasingly shaped by regulatory compliance, energy cost optimization, and total cost of ownership. The expansion of energy efficiency management equipment to 54 categories strengthens compliance requirements for industrial heating equipment. The Korea Energy Agency provides long-term, low-interest loans to businesses that install energy-efficient facilities.

The government also operates support programs including grants and funding to cover product testing fees.• The electrification and efficiency of process heat is emerging as a dominant procurement theme across industrial boilers, furnaces, and process heaters. The government is operating the Carbon Neutral Facility Investment Project through auction bidding, designed to support industries in achieving GHG reduction targets through cost-effective, innovative technology investments. The heat pump deployment plan with a 3.5 million unit target signals strong policy support for electrification.• Procurement priorities increasingly focus on energy efficiency, emissions compliance, automation, and predictive maintenance. The Korea Energy Agency offers energy efficiency initiatives through business collaboration and partnerships. The government's Green Transformation Plan (K-GX) includes detailed tasks to foster green industries including heat pumps. Aftermarket services including burner replacement, refractory replacement, tube replacement, and control upgrades represent significant recurring revenue opportunities.• Technology innovation and domestic manufacturing are reshaping the supplier landscape.

BHI Co., Ltd. secured a significant order for industrial equipment. DKME Co., Ltd., headquartered in Ulsan, manufactures energy and chemical equipment including heat exchangers and waste heat boilers. Booster Co., Ltd. engages in the design and manufacture of industrial boilers including once-through boilers, vacuum boilers, and heat pumps. Kangwon Energy Co., Ltd. manufactures water tube packaged boilers, waste heat recovery boilers, and thermal oil heaters. The Korea Energy Agency has also patented technology for analyzing energy efficiency improvement potential in industrial boiler facilities.Industry News• July 2025: MOTIE announced the revision of the "Regulations on Promotion of High-Efficiency Energy Equipment Distribution," introducing new product categories including air-to-water heat pumps.• September 2025: MOTIE expanded the energy efficiency management equipment framework to 54 product categories. MOTIE Notice No. 2025-578 announced revisions to the Regulation on Energy Efficiency Management Equipment.• October 2025: The Ministry of Climate, Energy and Environment (MCEE) was launched on October 1 through the consolidation of energy-related functions from the Ministry of Environment and MOTIE.

The Energy Utilization Rationalization Act Enforcement Rules were updated effective October 1.• November 2025: The government finalized the 2035 NDC, committing to reduce greenhouse gas emissions by 53–61% compared to 2018 levels. The Fourth Emissions Trading Allocation Plan was also finalized. The government announced plans to formulate the Green Transformation Plan (K-GX).• December 2025: The government announced the "Heat Pump Deployment Activation Plan," targeting 3.5 million heat pumps by 2035 with a goal of reducing 5.18 million tons of greenhouse gas emissions.• March 2026: The Korea Energy Agency patented a technology for quantitatively analyzing energy efficiency improvement potential in industrial boiler facilities.Segment AnalysisSouth Korea Industrial Heating Equipment Market By Equipment Type• Industrial Boilers generate steam or hot water for chemical processing, food production, power generation, and manufacturing. South Korean manufacturers include Booster Co., Ltd. (design and manufacture of tube boilers, vacuum hot water boilers, and control systems), Kangwon Energy Co., Ltd. (water tube packaged boilers, waste heat recovery boilers, thermal oil heaters), and DKME Co., Ltd. (energy and chemical equipment including heat exchangers and waste heat boilers). The Korea Energy Agency patented technology for quantitatively analyzing energy efficiency improvement potential in boiler facilities.• Industrial Furnaces serve high-temperature applications including steel reheating, metal processing, heat treating, forging, and melting across metallurgy, automotive, and metals industries. South Korea hosts the Korea International Metallurgy, Casting, Forging, Non-ferrous Metals, Heat Treatment, Industrial Furnace, Refractory Materials, and Surface Treatment Industry Equipment Exhibition, with the 13th edition scheduled for March 18-20, 2026, in Busan.

The exhibition is organized with the support of the Korea Metal Heat Treatment Industry Association and the Korea Forging Industry Association.• Process Heaters deliver precise thermal energy for chemical, petrochemical, and refining operations. South Korean manufacturers produce thermal oil heaters, steam generators, and process heating equipment. Kangwon Energy Co., Ltd. manufactures thermal oil heaters. The industrial sector's reliance on thermal processes creates opportunities for process heater modernization. The 2035 NDC's industrial sector reduction target of 24.3–31.0% drives demand for more efficient process heating equipment.South Korea Industrial Heating Equipment Market By Mode of Operation• New Equipment installations occur in greenfield facilities, production line expansions, and new facility construction. The Carbon Neutral Facility Investment Project supports industries in achieving GHG reduction targets through innovative technology investments.

The K-GX plan fosters new green industry investments including heat pumps. These projects allow operators to specify the latest technologies including electric heating systems and integrated control platforms.• Replacement & Retrofit activities address the vast installed base of aging industrial heating systems across South Korean industrial facilities. Many boilers, furnaces, and process heaters are reaching end of service life or facing non-compliance with evolving energy efficiency standards. The expansion of energy efficiency management equipment to 54 categories strengthens compliance requirements. The Korea Energy Agency offers energy efficiency initiatives through business collaboration and partnerships. Long-term, low-interest loans are available for businesses that install energy-efficient facilities.South Korea Industrial Heating Equipment Market By Heating Technology• Combustion Heating utilizes natural gas, oil, or coal combustion, with natural gas remaining a significant fuel across South Korean industrial heating applications.

The steel industry, which accounts for 40% of industrial sector emissions, is a major consumer of combustion heating equipment. Low-emissions hydrogen is widely seen as a potential solution for decarbonising hard-to-abate industrial sectors. Carbon capture and liquefaction technologies are being explored for high-emission industries.• Electric Resistance Heating converts electrical energy directly into heat through resistive elements, offering precise temperature control and zero onsite emissions. The government's heat pump deployment plan with 3.5 million units by 2035 signals strong policy support for electrification. The Green Transformation Plan (K-GX) includes detailed tasks to foster green industries including heat pumps. The revision of the "Regulations on Promotion of High-Efficiency Energy Equipment Distribution" introduced air-to-water heat pumps as a new product category.

Grid capacity and electricity pricing remain adoption constraints for widespread electric resistance heating adoption.• Induction Heating generates heat through electromagnetic induction for metal processing, heat treating, gear hardening, brazing, billet heating, forging, and melting. This technology is contactless and highly efficient with precise temperature control. The Korea Metal Heat Treatment Industry Association and the Korea Forging Industry Association support the industrial furnace and heat treatment sector. Induction technology is widely used across the South Korean automotive and manufacturing sectors.Considered in this report• Historic Year: 2020• Base year: 2025• Estimated year: 2026• Forecast year: 2031Aspects 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 recommendationBy Equipment Type• Industrial Boilers• Industrial Furnaces• Process Heaters• Industrial Ovens• Thermal Fluid Heaters• Electric Industrial HeatersBy Mode of Operation• New Equipment• Replacement & Retrofit• Service & MaintenanceBy Heating Technology• Combustion Heating• Electric Resistance Heating• Induction Heating• Infrared Heating• Advanced Heating Technologies.