by The commercial boiler market is estimated to be valued at US$ 2.02 Bn in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Commercial boilers are heating equipment used to produce hot water or steam for various commercial applications such as in hospitals, hotels, offices, malls and other commercial establishments. Commercial boilers operate on different types of fuels like natural gas, oil, coal and others to efficiently heat water or spaces. They come in various types including fire-tube boiler, water-tube boiler, electric boiler and combination boiler based on the design and fuel used. With increasing concerns over carbon emissions and growing need for energy-efficient heating solutions in commercial buildings, the demand for high-efficiency condensing boilers is growing rapidly.
Market Dynamics:
Rising construction of commercial buildings worldwide is a major factor driving the growth of commercial boiler market. According to research, the commercial real estate construction spending globally is estimated to reach nearly US$ 12 trillion by 2027. Furthermore, stringent government regulations regarding energy efficiency and carbon emissions from heating systems are also propelling the demand for efficient commercial boilers. However, high initial investment cost associated with installation of new commercial boilers is a major challenge. Rising adoption of hybrid heating solutions combining boilers with renewable energy sources is expected to create new opportunities over the forecast period.
Segment Analysis
The commercial boiler market is dominated by the gas-fired boiler segment. Gas-fired boilers account for over 50% of the market share as they are more energy efficient and emit fewer emissions as compared to oil-fired or coal-fired boilers. They have higher thermal efficiency and are preferred for commercial establishments like hospitals, hotels, educational institutions etc. where energy efficiency and lower emissions are priorities.
PEST Analysis
- Political: Regulations regarding energy efficiency and emissions are becoming more stringent. This is increasing the demand for efficient gas-fired boilers.
- Economic: With rising energy costs, commercial establishments are looking to upgrade their old boilers to more efficient models to reduce energy bills. This is driving market growth.
- Social: Environmental consciousness is increasing. Organizations want to reduce their carbon footprint which is increasing adoption of clean fuel boilers.
- Technological: Advances in burner technology, automated controls and integrated systems have enhanced efficiency and ease of use of modern commercial boilers. Micro-CHP (combined heat and power) technology is also gaining traction.
Key Takeaways
The global commercial boiler market is expected to witness high growth, exhibiting CAGR of 4.3% over the forecast period, due to increasing focus on energy efficiency and emissions reduction across industries. The market size for 2023 is estimated to be US$ 2.02 Bn.
Regional analysis: Asia Pacific region is expected to dominate the market during the forecast period. Factors such as rapid industrialization, infrastructure growth and replacement of old boilers with advanced systems are driving demand in the region with China, India and Southeast Asia being major markets.
Key players: Key players operating in the commercial boiler market are A.O. Smith Corporation, Bosch Thermotechnology, Cochran Limited, Cleaver-Brooks, Fulton Boiler Company, Parker Boiler, Slant/Fin Corporation, Superior Boiler Works, Inc., Vaillant Group, and Weil-McLain. Players are focusing on developing energy efficient condensing boilers, modular boilers and integrated systems to tap market opportunities.
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