Global Commercial Boiler Market Report and Forecast 2024-2032

Global Commercial Boiler Market Outlook

The global commercial boiler market size was approximately USD 1.32 billion in 2023. The market is further projected to grow at a CAGR of 4.3% between 2024 and 2032, reaching a value of USD 1.94 billion by 2032.

Key Takeaways

• China and North America are among the leading markets for commercial boilers.

• Upgrading to an A-rated boiler from a D-rated boiler enables end users to save 23% of their annual gas bills.

• Energy efficiency is a key parameter impacting the commercial boiler demand, with condensing boilers exhibiting improved energy efficiency compared to traditional boilers.

A commercial boiler is a pressurised system that is used to provide heating in a non-domestic or commercial building. Using the power of electricity or by burning combustible fuel, the boiler provides hot water or steam which enters the radiators. From the radiator, the heat is disbursed throughout the building to maintain a comfortable atmosphere.

The commercial boiler market is being aided by increased demand for heating in commercial establishments to perform a range of applications. They are highly energy efficient and can operate on a wide range of fuels, including natural gas and coal, and come in varying capacities. Modern heating systems also offer energy saving benefits and can be utilised by multiple industries for achieving improved efficiency during various processes and operations.

Key Trends and Developments

Innovations in boiler size and usage; integration of water softener systems and IIoT technology; and boilers facilitating low NOx (nitrogen oxides- NO and NO2) emissions are the major trends impacting the demand for commercial boilers

Commercial Boiler Market Trends

Nowadays, commercial boilers are being equipped with wi-fi connectivity features, which enables businesses to monitor and control operations remotely. The industrial internet of things is also enabling boiler manufacturers to research about new product components and provide customers with the latest and most advanced systems. The growing technological integration to enhance product performance and efficiency is a prominent trend in the commercial boiler market.

Besides, the growing demand for boilers that support lower emissions is encouraging manufacturers to collaborate, design, and launch improved products. Superior Boiler is an American company based in Kansas. Its partnership with Jericho Energy Ventures Inc., announced in October 2023, will allow the company to deliver the Dynamic Combustion Chamber boiler, a zero-emission, hydrogen-fueled boiler, to all the lower 48 states in the US, along with other markets. This innovative boiler is highly energy efficient and produces zero carbon dioxide emissions. Such partnerships or strategies are expected to allow companies to capitalise on this opportunity and become an important supplier of eco-friendly steam for various industrial and commercial applications.

Market Segmentation

“Global Commercial Boiler Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Condensing technology is expected to significantly contribute to the commercial boiler market revenue, supported by its improved efficiency rates

The condensing technology holds a significant portion of the commercial boiler market share. This technology offers greater energy saving benefits, as boilers running on this technology take up additional heat by condensing the water vapour in the gases. As a result, a boiler using gas as a fuel and operating on condensing technology has the capability to deliver extremely high-efficiency levels, as much as 99%. It thus allow users to save on gas bills as well.

Based on fuel types, natural gas is expected to witness an increased demand due to its several advantages

Natural gas is one of the leading fuel types in the commercial boiler market. Its popularity can be attributed to its advantages such as high heat value, negligible ash content, and economic benefits.

Other fuel types such as oil, coal, and biofuels, can also be used to power commercial boilers. The availability of fuel at the location of installation of commercial boilers guides end users’ fuel choice. Further, two fuels can also be used in the same boiler if the need for a secure supply is important.

Gas is majorly used as a main fuel and oil as an alternative, wherein oil is delivered through road tankers and gas is transferred via the gas distribution system. The environmental cost associated with natural gas is relatively less as its CO2, NOx and SO2 emissions are low. Besides, biofuels such as lean gases, sewage gases and biogases, can also be used in commercial boilers.

Competitive Landscape

The market players are focusing on cross-industry collaborations to offer improved heating solutions for diverse sectors, integrating latest technologies while offering energy saving benefits

Other notable players in the commercial boiler market are Superior Boiler, Cleaver-Brooks Company, Inc., Parker Boiler Co., Patterson-Kelley, LLC, Fulton Boiler Works, Inc., and Energy Kinetics, among others.

Commercial Boiler Market Analysis by Region

The Asia Pacific commercial boiler market is expected to be a key revenue generator over the forecast period. This is because of the expansion and development of commercial establishments in the region that demand higher number of heating systems for improved operations. Further, with India and China emerging as key manufacturing hubs, the demand for commercial boilers is likely to receive a big boost.

North America is expected to witness an uptick in the demand for commercial boilers. This trend can also be observed in Europe. In Latin America, countries like Brazil and Argentina are witnessing rapid infrastructural development, supported by growing industrialisation and urbanisation, which drives  the installation of commercial boilers.

Key Highlights of the Report