COMMERCIAL BOILER MARKET ANALYSIS

The Global Commercial boiler market size is estimated to be valued at US$ 2.02 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.3% from 2023 to 2030.

The Global Commercial boiler market has been witnessing a steady growth over the last few years owing to the number of factors, such as expansion of commercial tourism infrastructure, surge in adoption of energy efficient solution, and the rise in the demand for compact design of the steam boiler. Additionally, new trend such the increase in consumption of natural gas are also gaining popularity.

Global Commercial boiler Market: Regional Insights

Based on geography, the Global Commercial boiler market is segmented into Aisa Pacific, Europe, Latin America & Middle East, and North America. At present, the Europe is expected to hold leading position in the global commercial boiler market over the forecast period. Growth in demand from businesses, hospitals, educational institutions, tourism, and others, as well as the cheap investment cost of natural gas and other fuels, are driving the worldwide global commercial boiler market. Commercial boilers are widely used to heat water in cold areas. An increase in demand for space heating in both residential and commercial buildings, as well as the growth of the industrial sector, are likely to drive the worldwide commercial boilers market. Furthermore, an office is the market's top revenue producer and is likely to retain its dominance during the projection period.

Figure 1. Global Commercial boiler Market Share (%) in terms of Value, By Region, in 2022

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Global Commercial boiler Market Drivers:

Expansion of commercial tourism infrastructure

High summer temperatures and harsh winter temperatures characterize these states, resulting in highly seasonal space heating demand. Mountain states are anticipated to experience considerable development in the Global Commercial boiler industry due to rise in disposable income and increased number of tourists throughout the winter season. Due to a steady hot water demand from the hotel sector, the region's growing tourism sector is projected to make way for industry expansion. Moreover, as the educational sector in the state develops, there will be a greater demand for efficient heating systems in the institutions, which is expected to complement the deployment of Global Commercial boiler systems. For instance, The Ministry of Tourism Of India is set to host the First Global Tourism Investors Summit in 2023 in collaboration with Central Ministries and State/UT Governments. This mega event aims to highlight investment and trade opportunities while providing a platform for international investors to discover India's diverse tourism products and services.

Surge in adoption of energy efficient solution

Energy-efficient solutions are expected to experience higher demand in the future. Energy-efficient boilers are required to lower future operating expenses, capital investment, and utility system expenses, Business boiler performance is an important factor in commercial facilities' efforts to reduce utility expenditures. The efficiency of a boiler is determined by the proportion of heat output to the amount of fuel used for maintenance and engineering operations in various industries, businesses aiming to deliver efficient boiler performance. Traditional heating systems have an efficiency of 56% to 70%, according to the U.S. Department of Energy, which is a significant loss in energy savings. Modern boilers and water heaters, on the other hand, have an efficiency of over 80%, which results in significant energy savings when utilized by a large number of people.

Global Commercial boiler Market Opportunities:

Rise in the demand for compact design of the steam boiler

Convenient space is the major cause of concern for plant installations and existing plant expansions. Components such as the boiler, economizer, super-heater, and air preheater in process industries should have a compact design to maximize space use. With capacity installations, there is less room on the floor for utility devices. The necessity to maximize space has resulted in a significant demand for steam boilers with compact designs and low fuel use. Boiler manufacturers are focused on promoting steam boilers that are customized for different process requirements in various industries such as offices, hospitals, educational institutions, and lodging.

Global Commercial boiler Market Trends:

Growth in Infrastructure

Commercial properties are the major lifeline of economy and increased the demand of various amenities. One of the major factors responsible for the growth of the Global Commercial boiler market is rise in demand for offices, showrooms. Rise in the demand for heat systems such as blower, geysers, and others in offices led to increase in demand for commercial boiler, which drives the growth of the Global Commercial boiler market. Major healthy factors of hot water led to increase in demand in boilers in offices and creates ample of opportunities for the growth of the Global Commercial boiler market. Many offices of pharmaceutical, pathology requires hot water for their initial sampling process which also act as the growth factor for Global Commercial boiler market. In addition, increase in work from home jobs day by day limit the market growth. Moreover, surge in comfort level of people owing to the increase in demand for Global Commercial boiler in offices, is projected to drive the Global Commercial boiler market growth from 2021 to 2030.

Rise in popularity for low initial investment and maintenance cost products

Various business entities, such as public assemblies, motels, offices, schools, institutions, shopping center, and healthcare facilities, use these boilers. Low initial investment and maintenance costs, convenience of installation, and the ability to generate quick hot water and steam are just a few of the advantages of using low-capacity boilers over other available options. Furthermore, compact size, ease of maintenance, and long service life are some of the important aspects that are helping 10 MMBtu/hr Global Commercial boiler systems gain market share. Increased investment in the commercial sector across the country is expected to drive the demand for energy-efficient space heating solutions, resulting in market growth. Hence, it is expected that the demand for Global Commercial boiler market will rise in future.

Global Commercial boiler Market Restraints:

High cost involved in installation

The cost of steam boilers differs due to the design characteristics and differing levels of after-sales service. In comparison to regular steam boilers, budget steam boilers have shorter lifespans, fewer warranties, and less customer service. Recent developments in metals and technology has improved the boilers and made them able to perform better. The cost of installing a steam boiler system is an important factor, it is one of the most important investments a manufacturing firm can make. The cost of installing steam boilers accounts for 15-20% of the entire boiler cost. This cost is expected to remain the same since the the high level technical expertise involved in the operation of steam boilers and separate construction of boiler houses in the utility area.

Global Commercial boiler Market Segmentation:

The Global Commercial boiler market report is segmented into fuel type, technology, capacity, end-user industry and region

Based on fuel type, the market is segmented into natural gas, oil, coal and others. Out of which, natural gas is expected to dominate the global market over the forecast period and this is attributed to since natural gas is used frequently as compared to solid fuel. Natural gas also improves the overall efficiency and reduces the harmful gases emission. Therefore, government also supports the use of natural gas fired combustion boilers.

Under the Technology segment, a non-condensing boiler features a single heat exchanger chamber through which hot gases from the burner flow to heat the water within the exchanger's walls before exiting the chimney. 

Based on capacity type, during the projection period, the less than 10 MMBtu/hr category is expected to increase at a high rate. The industry's expansion is being driven by the ease of installation and cost efficiency over its competitors.

End-user industry in the worldwide Global Commercial boiler market, hospitals had the highest revenue share. Increased need for heat systems such as blowers, geysers, and others in offices led to an increase in demand for commercial boilers, which acted as the primary driver for the industry.

Figure 2. Global Commercial boiler Market Share (%) in terms of Value, By Fuel Type, in 2022

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Global Commercial boiler Market: Key Developments

• On 27 November 2022, O. Smith a water heater company Voltex® AL (anti-leak) hybrid electric heat pump water heater. For businesses and homeowners looking for a highly efficient, intuitive, and user-friendly device, this unit introduces a first-of-its-kind water heating solution with integrated leak detection, smart connectivity, and upgraded water connections.
• On 8 June 2022, O. Smith acquires Water Treatment Solutions Provider Atlantic Filter Corporation. This will expands A.O Smith capabilities in Florida and beyond.
• In year 2022, Bosch expands existing heat pump production network in Germany. This plant plant has solely produced hot water storage tanks for combination with various Bosch Thermotechnology products. This helped Bosch to expand the business in Tranås, Sweden, and Aveiro, Portugal.

Global Commercial boiler Market: Key Companies Insights

The Global Commercial boiler market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the Global 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.

*Definition: A Global Commercial boiler is a pressurised system that creates heat by burning combustible fuel to heat homes and businesses. A commercial boiler's components include a burner, combustion chamber, heat exchanger, controls, and exhaust stacks. These add-ons are critical for the proper operation of a commercial boiler. Furthermore, heaters are frequently used to heat structures like as schools, workplaces, apartment complexes, and hospitals. Commercial boilers can run on either gas or oil and produce either hot water or steam. Radiators, baseboard units, or fan coils circulate warm water or steam.