Commercial Boiler Market Report 2025

The commercial boiler market size has grown steadily in recent years. It will grow from $3.95 billion in 2024 to $4.13 billion in 2025 at a compound annual growth rate (CAGR) of 4.7%. The growth in the historic period can be attributed to increased heating and hot water demand, increased industrial process heat, energy efficiency regulations, fuel prices and availability, and economic growth.

The commercial boiler market size is expected to see strong growth in the next few years. It will grow to $5.13 billion in 2029 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to growing green and sustainable heating solutions, renewable energy integration, growing need for building energy management, growing carbon emissions reduction goals, market entry of new players, and emerging market demand. Major trends in the forecast period include introduction of advanced control systems, iot and smart building integration, advanced combined heat and power (chp) systems, technological advancements, strategic partnerships.

The increasing number of commercial buildings and the rise in safety equipment are anticipated to drive the growth of the commercial boiler market. Various factors, such as economic development, rapid urbanization, and industrial growth, contribute to the proliferation of commercial buildings like offices, retail stores, warehouses and storage facilities, and hospitals. A commercial boiler is a pressurized system that uses electricity or burns fuel to heat water or provide heat in commercial structures. These boilers help maintain safety and comfort in commercial buildings while minimizing energy waste. Commercial boilers are a safe and cost-effective option for these buildings. As the number of commercial buildings rises and the need for safety equipment increases, the demand for commercial boilers will also grow, as they are essential for heat and steam applications in such facilities. For instance, according to a factsheet from the Center for Sustainable Systems, the commercial building floor space in the USA is projected to reach 124.3 billion square feet by 2050, marking a 29% increase from 2022. In the U.S., commercial buildings accounted for 17% of total energy consumption, with CO2 emissions from the building sector making up one-third of the country's energy system emissions in 2022. Therefore, the growth in commercial buildings and the demand for increased safety equipment will drive the expansion of the commercial boiler market.

The increasing demand for green buildings is expected to propel the growth of commercial boilers market going forward. Green buildings are structures designed, constructed, and operated with a focus on minimizing their environmental impact and maximizing resource efficiency. Green buildings prioritize energy efficiency, emission reduction, and the use of renewable energy sources. To meet these goals, developers and building owners opt for high-efficiency, low-emission commercial boilers, which align with sustainability requirements. Additionally, incentives and certifications for green buildings encourage the use of eco-friendly heating systems, while the long-term cost savings and market reputation associated with green buildings further drive demand for efficient commercial boilers. For instance, in February 2022, according to the annual ranking report from the US Green Building Council (USGBC), a US-based non-profit organization 2021, China was ranked first with 1,077 certified LEED projects that reduced carbon emissions, followed by Canada with 205 LEED projects and India with 146 LEED projects. Therefore, the increasing demand for green buildings is driving the growth of commercial boilers market.

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 boilers market are concentrating on the development of hydrogen-ready combined heat and power (CHP) plants to improve energy efficiency and facilitate the transition to low-carbon energy solutions. A hydrogen-ready combined heat and power plant (CHP) is a facility designed to efficiently generate both electricity and usable heat by utilizing hydrogen as a fuel source. For example, in July 2024, Essar Oil (UK) Limited, a UK-based sustainable energy company, launched EET Hydrogen Power, which is Europe’s first hydrogen-ready combined heat and power plant (CHP) to be constructed at its Stanlow refinery. This investment will support EET Fuels’ goal of becoming the lowest carbon process refinery in the world and EET Hydrogen’s aim of becoming the leading low-carbon hydrogen producer in the UK. Additionally, it will provide low-carbon power to other regional industrial users to help them achieve their decarbonization targets. EET Hydrogen Power will be developed in two phases to achieve a capacity of 125 MW of power along with 6,000 tonnes of steam per day, with hydrogen replacing hydrocarbons to deliver a reduction of 740,000 tonnes of carbon dioxide annually.

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.

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.

North America was the largest region in the commercial boiler market in 2024. 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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