Industry Outlook

The commercial boiler market size accounted for USD 11.8 Billion in 2022 and is expected to reach USD 29.3 Billion by 2035, growing at a CAGR of around 6.8% between 2023 and 2035.

A commercial boiler is a heating system specifically designed to provide heat and hot water to commercial and industrial buildings, such as offices, hotels, hospitals, schools, and manufacturing facilities. Commercial boilers are generally larger and more powerful than residential boilers, as they need to meet the higher heating demands of larger spaces.

Report Scope:

There is a growing focus on energy efficiency in commercial buildings to reduce operating costs and carbon emissions. This drives the demand for high-efficiency commercial boilers that incorporate advanced technologies, such as condensing boilers and modulating burners, to optimize fuel utilization and minimize energy wastage.

Market Dynamics

Regulatory policies and environmental initiatives are driving the adoption of low-emission commercial boilers. Stricter emissions standards and the desire for greener buildings are encouraging the use of cleaner fuels, such as natural gas or biofuels, and the implementation of emission control technologies to meet sustainability goals.

The growth of boilers in the market can be attributed to their widespread availability worldwide and their relatively high energy efficiency. These boilers offer customers the flexibility to use renewable fuels for heating purposes. In some regions, heating oil blended with biodiesel is being offered by companies, aiming to reduce dependence on foreign oil while utilizing locally available energy sources. Oil-fired boilers also have a lower running cost compared to electric boilers, making them a cost-effective heating solution for many consumers.

Event Analysis

The commercial boiler market has faced significant challenges and disruptions as a result of the COVID-19 pandemic. The implementation of lockdown measures by authorities has not only impacted the production capacities of boiler manufacturers but has also caused a decline in demand for commercial applications. However, there has been a noticeable market recovery since late 2021, as many manufacturing industries have resumed their operations.

Pricing Analysis

The pricing analysis for the commercial boiler market is impacted by various factors.

• Different boiler types exist
• The levels of efficiency of different boilers vary
• Different installation businesses provide services of varying quality
• Consumers purchase various value-added services

Segment Analysis

Based on the fuel, the market of boiler has been classified into natural gas, oil, electric and others. Due to its long-term use, the natural gas segment which now dominates with more than 40% in 2022 is expected to have the most impact on the boiler industry. The demand for advanced hot water systems equipped with smart space heating technologies is driven by the need to address extreme climatic conditions. This factor is expected to drive the penetration of such products in the market. Additionally, increasing consumer awareness and environmental constraints further contribute to the development of the industry.

To explore in-depth analysis in this report - Request Free Sample Report

Based on the technology, the market of boiler has been classified into condensing and non-condensing. The condensing segment is anticipated to be growth at the highest CAGR with a market share of 55% in 2022 during the forecast period. The market is experiencing positive dynamics due to the increasing popularity of condensing boilers for space and water heating in various commercial establishments. This trend is particularly evident in universities, schools, federal institutions, and airports. Condensing boilers are highly efficient and offer significant energy savings, making them a preferred choice for these commercial buildings. This growing adoption of condensing boilers in the mentioned establishments is expected to have a favorable impact on the overall market dynamics of the commercial boiler industry.

Based on the product, the market of boiler has been classified into hot water and steam. The steam boiler market scenario is expected to be favorable due to the increasing government spending in the healthcare industry and ongoing upgrades of existing hospitals. These boilers play a crucial role in these facilities, providing space heating, equipment sterilization through autoclaves, and water heating. The demand for commercial boilers in the healthcare sector is expected to grow as healthcare facilities strive to meet the heating requirements of various applications. This, in turn, will drive the positive outlook of the industry.

Based on the capacity, the market of boiler has been classified into ≤ 0.3 - 2.5 MMBtu/hr, > 2.5 - 10 MMBtu/hr, > 10 - 50 MMBtu/hr, > 50 - 100 MMBtu/hr and > 100 - 250 MMBtu/hr. ≤ 0.3 - 2.5 MMBtu/hr capacity boilers are extensively deployed in public assemblies, lodgings, offices, schools, institutions, and retail centers due to their numerous advantages. These advantages include low initial investment costs, ease of installation, and low maintenance requirements. Moreover, the increasing consumer awareness regarding the adoption of reliable and efficient heating units will drive the demand for boilers. This demand is expected to be fostered by the benefits they offer, making them a preferred choice for various commercial applications.

Based on the application, the market of boiler has been classified into offices, healthcare facilities, educational institutions, lodgings, retail stores and others. The commercial boiler market is poised for growth due to a paradigm shift towards the development of green buildings and the introduction of government objectives to achieve decarbonization and highly energy-efficient building stocks in the near future. Authorities have implemented policies that mandate member states to adopt strategies aimed at reducing the carbon footprint of commercial and industrial establishments. These initiatives have created a conducive environment for the adoption of energy-efficient heating solutions, driving the market outlook.

Regional Analysis

Regionally, Europe has been the market leader with a growth rate of 7.7% by 2032 and is expected to maintain its leadership position in the years to come. The flourishing commercial sector, coupled with the rapid development of educational institutions, is expected to have a positive impact on the business landscape of the commercial boiler industry. The extreme winter temperatures in the country, along with increasing construction spending, will drive the adoption of commercial boilers for efficient heating solutions. Additionally, the ongoing expansion of existing medical facilities and the growth of the hospitality sector will further contribute to the revenues of the industry. These factors collectively create a favorable market environment for the commercial boiler industry.

Competitive Landscape

Key operating players in commercial boiler market are Babcock Wanson, Clayton Industries, The Fulton Companies, Miura America, Vaillant Group, Ariston Holding, Remeha, Precision Boilers, A.O. Smith Water Products Company, Slant/Fin Corporation, PARKER BOILER, Bradford White Corporation, Columbia Boiler Company, BURNHAM COMMERCIAL BOILERS, Weil-McLain, Bosch, Atlantic Boilers, FERROLI, VIESSMANN, Cleaver-Brooks and Babcock & Wilcox Enterprises.

Commercial Boiler Market, Company Shares Analysis, 2022

To explore in-depth analysis in this report - Request Free Sample Report

Recent Developments:

• LAARS Heating Systems, a subsidiary of Bradford White Corporation, launched the FT series boilers in May 2021, targeting commercial users. These boilers are equipped with a unique integrated domestic hot water mini-indirect tank, guaranteeing a reliable and continuous supply of hot water as per the user's requirements. The FT series provides flexible installation options, a robust stainless steel fire tube heat exchanger, and convenient top piping connections. These features enhance the attractiveness of the FT series boilers to homeowners, offering convenience and durability in their heating systems.

The commercial boiler market is segmented as follows:

By Fuel

• Natural Gas
• Oil
• Electric
• Coal
• Others

By Technology

• Condensing
• Non-Condensing

By Capacity

• ≤ 0.3 - 2.5 MMBtu/hr
• > 2.5 - 10 MMBtu/hr
• > 10 - 50 MMBtu/hr
• > 50 - 100 MMBtu/hr
• > 100 - 250 MMBtu/hr

By Product

• Hot Water
• Steam

By Application

• Offices
• Healthcare Facilities
• Educational Institutions
• Lodgings
• Retail Stores
• Others

By Region

• North America

• U.S.
• Canada
• Mexico

• Europe

• Frances
• UK
• Poland
• Italy
• Spain
• Austria
• Germany
• Sweden
• Russia

• Asia Pacific

• China
• India
• Philippines
• Japan
• South Korea
• Australia
• Indonesia

• Middle East & Africa

• Saudi Arabia
• Iran
• UAE
• Nigeria
• South Africa

• Latin America

• Argentina
• Chile
• Brazil

Frequently Asked Questions (FAQs)

---

Related Report