December 8, 2024

The global Commercial Boiler Market is Expected to be Flourished by Rapid Urbanization

Commercial boilers are heating appliances used to generate hot water or steam for various commercial purposes such as heating, cooking and power generation. They are widely used in large commercial buildings, hospitals, hotels and other commercial establishments for space heating and domestic hot water supply. Steam boilers are also used as heat sources in laundries, car washes, mechanical rooms and breweries. Solid fuel boilers burn coal, wood and biomass to produce steam while gas-fired boilers use natural gas as fuel. Commercial establishments are increasingly adopting modern high-efficiency condensing boilers and modular boilers over traditional boilers as they provide cost and energy savings.

The global commercial boiler market is estimated to be valued at US$ 15.25 billion in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Rapid urbanization has led to significant growth in commercial and residential construction activities across the globe. According to the United Nations, approximately 68% of the world population is projected to live in urban areas by 2050. This is expected to drive demand for commercial boilers from various end-use industries including hospitality, healthcare and commercial offices. Moreover, growing adoption of energy-efficient boilers owing to stringent government regulations regarding carbon emissions from commercial facilities is anticipated to fuel the commercial boiler market growth over the forecast period. For instance, the European Union efficiency standards introduced in 2021 mandate all commercial boilers sold to achieve an efficiency level of A or higher by 2026. Rising need for reliable and continuous hot water and steam supply across various process industries such as food processing, chemical and paper manufacturing is also projected to propel the market growth in the coming years.

Segment Analysis

The commercial boiler market is dominated by the gas-fired sub segment with over 60% share. Gas boilers offer reliability and efficiency compared to oil-fired boilers. They are preferred for commercial applications like hotels, hospitals, schools etc. due to ease of installation, maintenance and lower emissions. The oil-fired segment is facing decline due to stringent emission norms and policies promoting cleaner energy sources. Electric boilers account for a small share as they are not favoured for large commercial facilities needing continuous high output.

PEST Analysis

  • Political: Energy efficiency laws and incentives are promoting adoption of advanced commercial boilers. Stringent emission norms are phasing out conventional less efficient models.
  • Economic: Stable growth of commercial sector including real estate, hospitality is fuelling demand. Lower fuel costs make gas boilers popular over oil-fired models.
  • Social: Increasing environmental awareness is supporting cleaner energy options like gas boilers.
  • Technological: Advanced condensing gas boilers are gaining due to high efficiency. Modular designs offer flexibility. Connectivity features enable remote monitoring and maintenance.

Key Takeaways

The global commercial boiler market is expected to witness steady growth driven by expansion of commercial infrastructure. The global commercial boiler market is estimated to be valued at US$ 15.25 billion in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023-2031.

North America accounts for the largest share due to strong construction and real estate sector. Stringent efficiency norms also drive replacement demand for advanced gas boilers in the US and Canada.

Key players operating in the commercial boiler market are Bosch Thermotechnology, Cleaver-Brooks, Fulton, A. O. Smith, Groupe Simoneau, Hurst Boiler & Welding, PB Heat, Raypak, Siemens, Viessmann Manufacturing. Key players focus on expanding product range and services to tap opportunities in various geographies and application sectors. Modular condensing gas boilers with connectivity are gaining traction.

Ravina
+ posts

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

Ravina Pandya

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

View all posts by Ravina Pandya →