The future of industrial heating: Navigating challenges with technology and innovation

In the evolving landscape of industrial operations, thermal processing and controls – the backbone of industries including metals, glass, ceramics, and chemicals – is undergoing a profound transformation. As global pressure mounts around sustainability, energy efficiency, and fuel flexibility, the industrial heating market is at a critical inflection point. The convergence of digitalisation, data-driven process optimisation, and remote services is not just a trend in this situation; it’s a necessity.
This article explores the trends, challenges, and technological advancements reshaping the industrial heating sector, with a spotlight on how companies like Honeywell are leading the charge through solutions like Thermal IQ.
A sector under transformation
Industrial heating systems are responsible for a significant portion of global energy consumption and carbon emissions. According to industry estimates, thermal processes account for nearly 50% of industrial energy use. As governments tighten regulations and customers demand greener and more efficient operations, manufacturers are being forced to rethink their heating strategies.
Key challenges include:
- Decarbonisation mandates: Regulatory bodies are pushing for net zero emissions, requiring industries to reduce their carbon footprint.
- Rising energy costs: Volatile fuel prices are squeezing margins, especially in energy-intensive sectors.
- Ageing infrastructure: Many plants still operate with legacy systems that lack connectivity and real-time diagnostics.
- Skilled labour shortage: As experienced technicians retire, fewer skilled workers are available to manage complex thermal systems.
- Fuel flexibility needs: The shift towards alternative fuels, such as hydrogen, green electricity, and LNG, demands adaptable combustion systems.
The industrial heating market in turn is being reshaped by several transformative forces:
- Sustainability and ESG goals: ESG (environmental, social and governance) metrics are now boardroom priorities. Companies are investing in hybrid and cleaner technologies to meet internal and external sustainability targets.
- Digital transformation: The integration of IoT, cloud computing, and edge analytics, enables real-time monitoring and control of thermal systems. This shift is moving operations from reactive to predictive.
- Remote operations: The Covid-19 pandemic accelerated the adoption of remote monitoring and diagnostics; a trend that continues to gain momentum for safety, efficiency, and cost reasons.
- AI and machine learning: Advanced analytics are being used to optimise combustion, predict failures, train new workforces, and reduce energy consumption, often with minimal human intervention.
Technology to the rescue: Software, AI, and remote services
To address these challenges, a new generation of smart thermal solutions is emerging. These technologies are not just add-ons; they are becoming central to operational strategy.
- Remote monitoring and diagnostics: Solutions that allow operators to monitor burner or heater performance, combustion efficiency, and system health from anywhere, reducing on-site inspection needs. This leads to reduced unplanned downtime, improved safety through early fault detection, and lower maintenance costs.
- Fuel flexibility and hybrid systems: Next-gen combustion systems are being designed to handle multiple fuel types, including hydrogen blends, electricity, LNG, and biofuels. This flexibility is crucial for future-proofing operations and demonstrating a clear path to ESG goals, while ensuring business success.
- Data-driven optimisation: Algorithms written with thorough combination and industrial heating knowledge can analyse historical and real-time data to optimise air-fuel ratios, predict component failures, and recommend maintenance schedules and specific actions. This leads to energy savings, emission reductions, and longer equipment life.
- Software-defined combustion systems: Modern burner management systems (BMS) are increasingly software-defined, allowing for remote configuration, adaptive control based on fuel type, and integration with enterprise systems.
Real-world impact: FBM Metals case study
A compelling example of these technologies in action is FBM Metals, a zinc processing company who partnered with Honeywell to modernise its thermal operations.
The challenge: While building their new facility, FBM Metals realised the need for deeper thermal process expertise to operate the plant efficiently, as many of the skilled employees were new and lacked specific experience.
Alongside this, the company required implementing an energy management system to monitor and control energy use and emissions on an ongoing basis, as it was pursuing ISO 15001 certification.
The solution: Honeywell deployed Thermal IQ, integrating it with Eclipse Thermjet Burners and Kromschroeder BCU 570. The platform provided:
- Real-time performance data
- Alerts for abnormal conditions
- Trend analysis and recommendations
It has been operational for more than two years, and alongside witnessing improved production quality, there has been:
- Significant reduction in unplanned downtime
- Improved maintenance planning
- Energy savings through optimised combustion
- Faster issue resolution, reducing technician workload
This case underscores how digital transformation can deliver tangible ROI in traditional industries. Both companies continue to collaborate to further enhance technology adoption and advancement.
The road ahead and focus areas
As the industrial heating sector continues to evolve, leadership may need to adopt a forward-thinking mindset. There are five key focus areas to explore:
- Invest in digital infrastructure: Digitalisation is no longer optional. Leaders must prioritise investments in connected systems, cloud platforms, and cybersecurity to enable scalable, secure operations.
- Champion cross-functional collaboration: Sustainability and efficiency goals require collaboration between operations, IT, engineering, and finance. Breaking down silos is essential for holistic transformation.
- Adopt a lifecycle mindset: From design to decommissioning, every phase of a thermal system’s lifecycle should be optimised for efficiency, sustainability, and resilience.
- Embrace AI and automation: AI is not just a buzzword – it’s a strategic asset. Leaders should explore how predictive analytics, digital twins, and automated controls can drive performance.
- Prepare for fuel transition: The future is multi-fuel. Systems must be designed or retrofitted to handle hydrogen, electricity, ammonia, and other low-carbon alternatives.
From heat to height
The industrial heating market is undergoing a seismic shift. What was once a domain of manual controls and reactive maintenance is now becoming a smart, connected ecosystem. Companies like Honeywell are demonstrating that, with the right technology, even legacy systems can be transformed into data-driven, efficient, and sustainable assets.
The message is clear: embrace innovation, invest in intelligence, and lead with purpose. The heat is on: not just in the furnaces, but in the boardrooms, where the future of industrial operations is being forged.
Murajith Muraleedharan
Director Engineering
Honeywell | Thermal Solutions
As these innovations reshape the way industries operate, the conversation is only just beginning. Murajith will be continuing this discussion live on stage at Microelectronics UK 2025 (24–25 September, Excel London), where he'll join peers from Johnson Controls, Eurostar, Schneider Electric, Thales and more.
On Day 2 of the Embedded Systems UK Stage, he’ll be speaking on:
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Smart Factories & the Potential of Autonomous Manufacturing (11:50–12:35)
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Powering Smart Cities with Intelligent Connected Systems (14:50–15:40)
Exploring how we can harness technology to build smarter, safer and more sustainable systems together.
👉 Secure your ticket to Microelectronics UK