Commercial Boiler Market

Global Commercial Boiler Market Size (2024 to 2032)

The Global Commercial Boiler Market was worth US$ 15.17 billion in 2023 and is anticipated to reach a valuation of US$ 22.74 billion by 2032 from US$ 16 billion in 2024, and is predicted to register a CAGR of 4.6% during the forecast period 2024 to 2032.

MARKET SCENARIO

A commercial boiler is used to heat the desired substances or to boil the water, generally for non-residential purposes. These are mostly heated using oil, natural gas, or electricity. These boilers are mostly used in hospitals, factories, colleges, offices, and leisure centers. The size and the required output for the boilers depend on the usage. The commercial boilers are available in capacities of 15kW to 1500kW as per the user's requirement. 

MARKET DRIVERS

Commercial boilers are used for space heating in many industrial spaces. As the population increases, the demand and production of goods increase as well. This results in the development of industries that ultimately drives the commercial boilers' market share to grow.

High investments in industries by both public and private authorities are leveling up the growth rate of the market. Heavy investments are being made in the commercial boilers market to fulfill the demand for energy-efficient commercial boilers. These boilers not only reduce the emission of carbon and other harmful chemicals but also save the energy bills of the industry.

Strict government regulations regarding the use of sustainable energy sources like biomass fuel and solar energy for commercial boiler heating are driving the growth of the commercial boilers market. As governments of all nations implement and invest in sustainable energy production and usage, the commercial boilers market will continue to grow.

MARKET RESTRAINTS

The availability of cost-effective alternatives like solar thermal systems and heat electric heat pumps is the reason for the decline in commercial boilers' market value.

The cost-effectiveness and increased efficiency of these alternatives are the restraints for the commercial boilers market growth.

Heavy initial investments are required for the purchase of components and installation. This restricts small businesses from using commercial boilers, which acts as a barrier to the growth of the commercial boilers market. Commercial boilers have a complex structure, and the maintenance procedure is complex and time-consuming. This factor is likely to cause the shares of the market. 

MARKET OPPORTUNITIES

Nowadays, hotels and lodges are shifting toward using boilers for space heating as well. This increases the demand for the commercial boilers market, which can act as an opportunity for its growth. As the market shifts toward using sustainable energy sources, commercial boilers are also being operated on renewable energy sources like solar energy. Also, the demand for energy-efficient devices is skyrocketing, and thus, the demand for commercial boilers that are energy efficient is increasing daily. This presents a big opportunity for the growth of the commercial boilers market.

Thus, it can be concluded that increased usage in hotels and lodges, the market shift toward sustainable energy, and the growing demand for energy-efficient devices are opportunities for the growth of commercial boilers' market share.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Commercial Boiler Market Analysis By Fuel

Natural gas is leading the commercial boilers market with a share of more than 50%. At present, natural gas is the cleanest fuel available. It is also a cost-effective option and abundant.

The oil segment stands second in the commercial boilers market, with a share of around 30%. It is used in regions where oil is available in plenty of amounts. Oil is more expensive than natural gas, thus not used as much as it is used.

Coal has the lowest market share in the commercial boilers market, less than 20%. The use of coal for heating has been reduced extensively in recent times as it emits more harmful pollutants than any other fuel available in the commercial boilers market.

Global Commercial Boiler Market Analysis By Technology

The non-condensing segment is ruling the commercial boilers market with a share of more than 60%. The procedure involved in the installation of non-condensing boilers is simple and inexpensive than the condensing boilers.

The condensing segment of commercial boilers is rapidly growing as it is a more energy-efficient option when compared to non-condensing commercial boilers. The condensing segment accounts for around 38% of commercial boilers' markets share.

Global Commercial Boiler Market Analysis By Capacity

The less than 10 MMBtu/hr segment is leading the commercial boilers market with a share of around 40%. The major consumers of these boilers are small and medium-sized businesses. The major usage of commercial boilers in this segment is heating and hot water needs.

The 10-50 MMBtu/hr segment stands in second position in the commercial boilers segment with a share of around 35%. These boilers are majorly used in large commercial complexes and industries for space heating purposes.

The more than 50 MMBtu/hr segment accounts for only 25% of the share in the commercial boilers market. These are mostly used in large industrial settings where heavy-duty operations are being carried out.

REGIONAL ANALYSIS

The Asia Pacific region is leading the commercial boilers market worldwide with a share of around 35%. The industrial sector is growing rapidly in this region, which is one of the biggest reasons for the growth of the commercial boilers market. The rate of migration of people from tier 3 and tier 2 cities to metro cities is also the highest in the Asia Pacific.

The European region accounts for 30% of commercial boilers' market share. The major use of commercial boilers in Europe is space heating. With advancements in technology, the market share of commercial boilers will increase.

North America accounts for around 20% of the commercial boilers' market share. The United States is the biggest consumer in the region, and industrial heating is the main purpose of usage in the region.

Latin America, and Middle East & Africa hold the lowest share of the market.

KEY PLAYERS IN THE GLOBAL COMMERCIAL BOILER MARKET

Companies playing a prominent role in the global commercial boiler market include A.O Smith, Fulton Boiler Co., Cochran Ltd., Parker Boiler and Bosch Thermotechnology.

DETAILED SEGMENTATION OF THE GLOBAL COMMERCIAL BOILER MARKET INCLUDED IN THIS REPORT

This research report on the global commercial boiler market has been segmented and sub-segmented based on fuel, technology, capacity, and region.

By Fuel

• Natural gas
• Coal
• Oil

By Technology

• Condensing 
• Non-condensing

By Capacity

• Less than 10 MMBtu/hr, 10-50 MMBtu/hr, and 
• More than 50 MMBtu/hr

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa