Commercial Boiler Global Market Report 2024

Commercial boilers are pressurized systems designed to provide steam and hot water to buildings, utilizing electricity or burning combustible fuel. These boilers contribute to the comfort and safety of commercial buildings while minimizing energy wastage. Typically ranging from 30 to 150 kW, commercial boilers play a crucial role in heating systems.

In the commercial boiler market, two main types are prevalent including fire tube and water tube boilers. Fire tube boilers have the hot gas or fire inside the tubes, with water surrounding these tubes. They are known for their ease of installation and operation. Commercial boilers can utilize various fuels, including natural gas, oil, coal, and others, and they incorporate technologies such as condensing and non-condensing. Commercial boilers find applications in a variety of settings, including offices, warehouses, retail stores, educational institutions, lodging facilities, public assembly buildings, and healthcare facilities. Their versatility makes them a key component in maintaining optimal conditions within commercial spaces.

The commercial boiler market research report is one of a series of new reports that provides commercial boiler market statistics, including commercial boilers industry global market size, regional shares, competitors with a commercial boiler market share, detailed commercial boiler market segments, market trends and opportunities, and any further data you may need to thrive in the commercial boilers industry. This commercial boiler market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The commercial boiler market size has grown strongly in recent years. It will grow from $3.81 billion in 2023 to $4 billion in 2024 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period of the commercial boiler market can be attributed to several factors, including an increased demand for heating and hot water, the need for industrial process heat, the influence of energy efficiency regulations, fluctuations in fuel prices and availability, and overall economic growth. These factors collectively contributed to the expansion and development of the commercial boiler market during this time.

The commercial boiler market size is expected to see steady growth in the next few years. It will grow to $4.86 billion in 2028 at a compound annual growth rate (CAGR) of 4.9%. The growth in the forecast period for the commercial boiler market can be attributed to various factors, including the increasing demand for green and sustainable heating solutions, the integration of renewable energy sources, a rising need for building energy management, the push for carbon emissions reduction goals, the entry of new players into the market, and the emergence of demand in new markets. Additionally, major trends in the forecast period include the introduction of advanced control systems, integration of IoT and smart building technologies, advancements in combined heat and power (CHP) systems, ongoing technological innovations, and the formation of strategic partnerships within the industry.

The growth of the commercial boiler market is expected to be propelled by the increasing number of commercial buildings and the rising demand for safety equipment. The surge in economic development, rapid urbanization, and industrial growth contribute to the construction of commercial buildings, including offices, retail stores, warehouses, and hospitals. Commercial boilers, essential components of pressurized systems that provide heat or steam through electricity or fuel combustion, play a crucial role in maintaining safety and comfort in these buildings while minimizing energy wastage. The Center for Sustainable Systems predicts a 33% increase in commercial building floor space in the USA by 2050, reaching 124.3 billion square feet. As safety equipment becomes a priority, the demand for commercial boilers is set to increase, making them a safe and cost-effective heating solution for diverse commercial applications.

The growth of the commercial boilers market is further driven by the increasing demand for green buildings, characterized by a focus on minimizing environmental impact and maximizing resource efficiency. These structures prioritize energy efficiency, emission reduction, and the use of renewable energy sources. To meet sustainability goals, developers and building owners opt for high-efficiency, low-emission commercial boilers. Incentives and certifications for green buildings further encourage the adoption of eco-friendly heating systems. In 2021, China, with 1,077 certified LEED projects, topped the US Green Building Council's annual ranking, highlighting the global trend towards environmentally conscious construction practices. The demand for energy-efficient commercial boilers is expected to grow in tandem with the increasing emphasis on green building initiatives, providing long-term cost savings and enhancing market reputation.

A key trend in the commercial boiler market is the introduction of innovative boiler systems, characterized by features such as low NOx emissions, high efficiency, compact designs, reduced carbon footprints, and easy installation. These advancements cater to the growing demand for sustainable and efficient heating solutions. In April 2022, Bosch, a global heating products manufacturer, launched the Condens 7000 WP commercial boiler series. This series, equipped with a new design, offers increased installation convenience, saving up to 60% on average installation times compared to other models. The launch of innovative boiler systems presents companies with opportunities for increased sales and a competitive edge in the market. As the market continues to witness advancements, commercial boilers with improved efficiency and design are expected to play a significant role in meeting the evolving needs of the industry.

Leading companies in the commercial boiler market are investing in new technologies to secure a competitive advantage. In June 2021, Lochinvar, LLC, a US-based heating equipment manufacturing company, introduced the Crest Condensing Boiler equipped with Hellcat Combustion Technology and RealTime O2 Trim. This innovative boiler system incorporates automatic combustion adjustments based on surrounding conditions, allowing for peak performance without the need for manual interventions. The technology integrates various features, including Feed Forward, Feed Back, Commissioned Trim, and Learned Trim, to ensure optimal functionality. Additionally, a condensing hydronic boiler is equipped with an O2 sensor located in the combustion chamber, providing real-time feedback on the fuel/air ratio. The Smart Touch operating control adapts to changing environmental conditions, offering flexibility in response to factors like weather, season, and altitude. Lochinvar's commitment to technological advancements positions the Crest Condensing Boiler as an adaptive and efficient solution in the competitive commercial boiler market.

In December 2022, Babcock Wanson International, a France-based industrial machinery manufacturing company, made a strategic acquisition by purchasing Parat Halvorsen AS for an undisclosed amount. This acquisition strengthens Babcock Wanson Group's market presence, particularly in Northern Europe, while expanding its portfolio of decarbonization solutions. The addition of Parat supports the group's service activities and aligns with its strategic goals in the energy transition and industrial boiler market. Parat Halvorsen AS, based in Norway, specializes in electric boilers and offers decarbonization solutions tailored for industrial and marine applications. This acquisition positions Babcock Wanson International as a key player in addressing evolving industry needs and underscores its commitment to advancing sustainable and innovative solutions in the commercial boiler market.

Major companies operating in the commercial boiler market include AO Smith Corporation, Bosch Thermotechnology, Cochran Limited, Cleaver-Brooks, Fulton Boiler Company, Mitsubishi Heavy Industries Ltd, Siemens Energy AG, Asea Brown Boveri, Alfa Laval AB, Babcock & Wilcox Enterprises Inc., Harbin Electric Co. Ltd., Hurst Boiler & Welding Company Inc., IHI Corporation, Miura Co. Ltd., Thermax Limited, Zhengzhou Boiler (Group) Co. Ltd., Parker Boiler, Superior Boiler Works Inc., Vaillant Group, Weil-McLain, Slant Fin Corporation, Pelco Products Inc., Lochinvar LLC, Burnham Commercial, Raypak Inc., Mestek Inc., Laars Heating Systems Company, Columbia Boiler Company, Victory Energy Operations LLC, UNILUX

North America was the largest region in the commercial boiler market in 2023. The regions covered in the commercial boiler market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the commercial boiler market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

The commercial boiler market consists of sales of commercial electric boilers, vertical boilers, and condensing boilers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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