Commercial Boiler Market Size, Share & Industry Analysis, By Fuel (Natural Gas, Coal, Oil, and Others), By Technology (Condensing, Non-Condensing), By End-user (Educational Institutions, Healthcare Sector, Offices, Hospitality, and Others), and Regional Forecast, 2024-2032

The global commercial boiler market size was valued at USD 4.34 billion in 2023. The market is projected to grow from USD 4.55 billion in 2024 and reach USD 6.93 billion by 2032, exhibiting a CAGR of 5.41% during the forecast period.

The growth is mainly driven by the rise in many commercial buildings and increased safety for heating equipment. In addition, the boiler manufacturer is using safety relief valves in current and new boilers to release excessive pressure and improve efficiency & performance, driving the market growth.

This boiler is a pressurizing system that burns combustible fuel or uses electricity to heat water used to provide heating. These boilers are used in various educational institutions, offices, the healthcare sector, hospitality, and others such as warehouses & storage facilities, retail stores, and public assembly buildings.

The outbreak of COVID-19 has hampered this market by restricting the manufacturing operation of essential water heating and water treatment products. Various government bodies worldwide have imposed the strict lockdown, which resulted in the shutdown of different commercial projects. As a result, operations in commercial building sectors such as offices, educational institutions, and the hospitality industry have impacted the market.

Commercial Boiler Market Trends

Growing Adoption of Energy-Efficient and Cost-Effective Water Systems to Support Growth of Boilers

The growing penetration of highly cost-effective and energy-efficient systems to meet the water storage & heating requirements across commercial facilities will favor these kinds of boiler products during the forecast period. Various technologies have been adopted by these boiler manufacturers, such as growing digital system integration for effective control & monitoring capabilities, ease of installation, and low acquisition costs, driving the market's growth.

Establishment of New Commercial Sectors to Propel Market Growth

The establishment of the new commercial sector such as offices, healthcare, and educational institutions is expected to propel these boilers worldwide. For example, from April 2021 to June 2021, more than 17,200 new companies were set up in India. Therefore, these new companies will propel the commercial sector, supporting the commercial boiler market growth.

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Commercial Boiler Market Growth Factors

On-Going Advancements in Boiler Design and Combustion Technology to Drive Market Growth

Advancements in boiler design, combustion technology, and heat exchangers have developed highly efficient commercial boilers. These boilers can achieve higher energy efficiency ratings, resulting in cost savings for businesses by reducing fuel consumption. Condensing boilers utilize advanced heat exchangers to extract additional heat from combustion gases, achieving higher efficiency than traditional boilers. The adoption of condensing boiler technology has become increasingly common in the commercial sector, driven by its superior energy efficiency and environmental benefits.

In June 2021, Viessmann presented the latest additions to its family of home products at a virtual product launch. New products that would arrive in wholesale stores in July 2021 include new boilers from the popular Vitodens series and new digital applications for homeowners and contractors. The all-new Vitodens 100-W wall-mounted gas condensing boiler features a compact and lightweight design with no space for combustible materials, a stainless steel heat exchanger for durability and reliability, and a fully modular MatriX-Plus cylindrical burner. The products would be available in combi (B1KE) and non-combi (B1HE) models.

Growth of Connected Controls to Boilers Will Boost Product Adoption

Boiler manufacturers are continuously doing research and producing technology-driven products. Today, the boilers are growing due to their connected controls, which are Wi-Fi accessible and allow the consumer to control the boiler. Connected controls boilers are gaining popularity among consumers as they can control home heating or cooling, which traditional boilers don’t provide. For Example, Bosch Thermotechnology has launched industry-first connected boilers, which can be connected through laptops or tablets and allow multiple heating systems to be monitored or controlled.

Restraining Factors

High Maintenance Cost of these Boilers will Hinder the Market

One of the most prominent factors hindering the market is frequent cleaning and maintenance throughout the forecast period. Although regular cleaning will improve the performance and efficiency of the boiler, it will also add the additional maintenance cost, which is expected to decline the sale of boilers worldwide.

Commercial Boiler Market Segmentation Analysis

By Fuel Analysis

Natural Gas as a Fuel is Set to Lead Market Owing to its Combustion Process

Based on fuel, the market is segmented into natural gas, coal, oil, and others. The natural gas segment is expected to lead the market because the combustion of natural gas produces mainly carbon dioxide and water, and they don’t affect the environment. Natural gas causes the least pollution compared to oil and coal as fossil fuel; in addition, natural gas has a high calorific value which means that natural gas presents the highest amount of heat during the combustion process. The government worldwide is also supporting natural gas usage compared to solid fuels because natural gas improves the overall efficiency and reduces the harmful emission of gases to the environment.

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By Technology Analysis

Non-Condensing Technology to Dominate Global Market Owing to Ease in Installation Process

By technology, the market is segmented into condensing and non-condensing boilers. The non-condensing boilers are anticipated to lead the market due to their energy efficiency, longer life span, and lower price. The non-condensing boiler doesn’t require any expert for installation. Furthermore, the non-condensing boilers have a single unit heat exchanger chamber, which allows the hot gases from the burner, pass through to heat the water within the exchanger's walls before reaching the exit flue. The non-condensing boiler heating temperature is kept high enough to prevent water vapor in the flue gas from condensing, which prevents the boiler from corrosion.

By End-user Analysis

Growing Demand for Hot Water and Steam in the Healthcare Sector to Lead Market

By end-user, the market is segmented into educational institutions, offices, healthcare sector, hospitality, and others. The healthcare sector segments are expected to dominate and fastest-growing users for these boilers. Large quantities of reliable hot water and steam are required for cleaning, sterilizing, and space heating. The demand for heat systems such as blowers, geysers, and others in office premises has increased the demand for these boilers.

REGIONAL INSIGHTS

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Geographically, the market is studied across Europe, North America, Asia Pacific, the Middle East & Africa, and Latin America. As per our findings, Asia Pacific dominates the commercial boiler market share during the forecast timeframe. The environmental policy and increasing thermal treatment process in Asia Pacific have led to the highest share. In addition, the growing foreign direct investment in the region has led to increase in commercial buildings, such as the healthcare sector, offices, and others, leading to dominance in the region.

North America is anticipated to witness steady growth, with the U.S. leading the industry landscape in the region. The market in the region will grow owing to changing trends toward replacing or upgrading the existing heating systems and improvement in the operational ability of boilers. The high operating and maintenance cost, rising fuel prices, and stringent government regulations have set the tone for replacing the existing heating system with the energy-efficient heating system in the region.

Increasing focus of government bodies toward reducing carbon emission to the environment and implementing green building codes in Europe augmented the demand for these boilers. High energy efficiency, minimal carbon emission, and low heating cost in the region are critical factors surging the demand for boilers. Latin America is calculated to grow substantially during the forecast period. The need for clean fuel heating systems and increasing investment into the domestic lodging sector are expected to support the market growth.

The Middle East & Africa is likely to observe a steady pace during the forecast period. The growing tourism, hospitality, and healthcare facilities in the Middle East & Africa are anticipated to witness the product demand. South Africa and Gulf Cooperation Council (GCC) are the key nations actively operating in the region.

List of Key Companies in Commercial Boiler Market

The vital market players are engaged in technological advancements across boiler technologies to cater to the demand of end users, anticipating growth in market share. In addition, the growing R&D investments and strategic partnerships and alliances are some of the key strategies implemented by the players to gain competitiveness in the market. The major players operating in this market are A.O. Smith Corporation, Babcock and Wilcox Enterprises, Bosch Thermotechnology, and others.

List of Key Companies Profiled:

• A.O. Smith Corporation (U.K.)


• Bosch Thermotechnology (Germany)


• Cochran Limited (U.K.)


• Cleaver-Brooks (U.S.)


• Fulton Boiler Company (U.S.)


• Slant/Fin Corporation (U.S.)


• Weil-McLain Solvay S.A. (U.S.)


• Valliant Group (Germany)


• Babcock and Wilcox Enterprises (U.S.)


• Ferroli (Italy)


• Superior Boiler Works, Inc (U.S.)


• Viessmann (Germany)


• Simoneau Group (Canada)

KEY INDUSTRY DEVELOPMENTS:

• March 2022- Ariston Group has introduced a new commercial heating system that improves energy efficiency while increasing redundancy and reliability. HTP Elite ULTRA Duo boilers contain two heat exchangers that provide built-in redundancy. With a burn rate of 285,000 to 399,000 Btuh, the boiler provides energy savings with an Annual Fuel Utilization Efficiency (AFUE) of up to 96%.


• June 2021 – Lochinvar, a leading Manufacturer of high-efficiency and water heaters, announces the CREST condensing boiler with Hellcat Combustion Technology, featuring Real-time O2 trim. These boilers can be used in large commercial applications. The Hellcat Combustion Technology helps decrease monitoring and maintenance and extends the boiler's life.


• April 2021- Mestek, Inc. announced the purchase of baseboard assets of water-based radiant source supplier Slant/Fin. The Slant/Fin Baseboard brand would become part of Mestek's portfolio of brands specializing in industrial, commercial, and residential HVAC systems. The acquisition of the Slant/Fin motherboard brings together two family-owned companies focused on producing water heaters for residential and commercial customers across North America.


• July 2020 - As a leading provider of boiler solutions, Ferrol's goal has always been to provide its customers with cutting-edge, innovative products and services. Due to the growth of intelligent services and solutions in the industry, Ferroli created a unique boiler proposal. This would not improve and simplify the end-user experience and also enable a better experience for everyone involved in the process, from stakeholders to technicians, ultimately promoting a better service offering.


• March 2020 – Viessmann Group, a German manufacturer, has launched a new gas wall-mounted and compact gas boiler from the new vitodens 200 generations, which are cost-effective, high reliability, and consistently high utilization condensing process.

REPORT COVERAGE

The market research report offers qualitative and quantitative insights on the commercial boiler and a detailed analysis of market size & growth rate for all possible segments in the market.

Along with this, the report provides an elaborative commercial boiler market analysis with market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are advancement in technology for commercial boiler by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

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