Commercial Boiler Market: Current Analysis and Forecast 2021-2027

Global Commercial Boilers Market was valued at US$ 1.9 billion in 2020 and is anticipated to reach US$ 2.4 billion by 2027 displaying a CAGR of 3.6% over the forecast period (2021-2027). Commercial boilers are pressurized systems that burn combustible fuel or use electricity to heat water that is used to provide heating in the building. Some types of boilers use the hot water itself, while others rely on water that has been turned to steam. Inside the boiler, the burners or electric coils generate heat that is transferred to the water by the heat exchanger. A Commercial boiler is made by key five key accessories namely as burner, combustion chamber, heat exchanger, controls, and exhaust stack, among others. The growing preference for cost-efficient heating systems in commercial establishments has propelled the demand for Commercial Boilers all over the world. For instance, as per Energy.gov & Statista, the unit sales of non-condensing and condensing commercial boilers in North America has risen from 69,000 units in 2014 to 73,000 units in 2020. Commercial boiler efficiency levels are expressed in a percentage, called an AFUE rating (Annual Fuel Utilization Efficiency). The higher the AFUE rating, the more efficient the boiler system and the more it will cost. However, the more efficient the system, the less it will cost to heat the building on a day-to-day basis.
Increased adoption of highly efficient and cost-effective systems, Growing establishment of new commercial and residential buildings and Cost benefit associated with Commercial boilers are some of the major drivers of the market. However, High up-front Capital associated with installation of Commercial Boiler acts as major restraining factor for the market growth.
Insights Presented in the Report
"Amongst fuel type, Natural Gas segment dominated the market in 2020."
Based on fuel type, the market is segmented into Natural Gas, Oil, Coal, and Others. The Natural Gas segment is expected to grow at a significant rate during the forecast period as natural gas improves the overall efficiency and reduces the harmful gases emission.
"Amongst technology, Non-Condensing segment dominated the market in 2020."
Based on technology, the market is segmented into Condensing, & Non-Condensing. In 2020, the Non-Condensing segment dominated the Commercial Boiler Market. Condensing boilers can increase the efficiency of a building's steady-state heating efficiency from 6% to 18% over standard boiler systems, depending on how the condensing boilers are designed, operated, and the efficiency of the existing boilers.
"Amongst capacity, Less than 10 MMBtu/hr segment dominated the market in 2020."
Based on capacity, the market is segmented into Less than 10 MMBtu/hr, 10-50 MMBtu/hr, & More than 50 MMBtu/hr. Less than 10 MMBtu/hr segment is expected to witness a considerable growth during the forecast period owing to their easy installation along with cost effectiveness over its available counterparts. Developers of a new 32-story, 900,000 square foot, mixed-use high-rise in Boston installed a hybrid configuration of six condensing boilers and two conventional boilers.
"Amongst end-user, hospital end-user segment dominated the market in 2020."
Based on end user type, the market is classified into Offices, Hospitals, Educational Institutions, Lodging, and Others. Currently, hospital segment dominated the market owing to the rising investments in advanced healthcare infrastructure & subsequent rise in the demand of heat systems such as blower, geysers, and others in the healthcare facilities for functioning of required heating operations of the indoor spaces.
"Asia Pacific represents as the largest market in the Global Commercial Boilers Market."
For a better understanding of the market adoption of Commercial Boiler, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. North America dominated the market in 2020. For instance, as per Energy.gov, the unit sales of non-condensing and condensing commercial boilers in North America has risen from 69,000 units in 2014 to 73,000 units in 2020. Some of the major players operating in the market include Robert Bosch, A.O. Smith Corporation, Cochran Limited, Cleaver-Brooks, Fulton Boiler Company etc. Several M&A's along with partnerships have been undertaken by these players to boost their presence in different regions.
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- The study includes market sizing and forecasting analysis validated by authenticated key industry experts
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- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
- The study comprehensively covers the market across different segments
- Deep dive regional & country-level analysis of the industry
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Commercial boiler is considered as a pressurized system that uses combustible fuel as the burning medium and generates heat to provide heating for residential and commercial, buildings. The process creates either hot water or steam, depending on the type of boiler. The hot water or steam is circulated via pipes throughout the commercial facility. The water or steam enters radiators or other components that disperse the heat providing the heating that is needed to keep the indoor spaces comfortable. Natural gas is the most common fuel used in commercial boilers. Other kinds of boilers are available that burn fuel oil or that use electric resistance coils to produce heating from electricity. Sales of commercial boilers is expected to increase due to rise in the number of commercial and residential buildings, as well as increased safety rules for heating equipment. However, some of the restraints in the market include high expense of frequent cleaning and maintenance, high production cost required to manufacture Commercial Boilers which are some factors impeding the growth of this market all over the world.
Based on fuel type, the market is segmented into Natural Gas, Oil, Coal, and Others. The Natural Gas segment grabbed XX% market share of the Global Commercial Boiler Market and gathered revenue of USD XX billion in 2020. The segment is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027 as natural gas improves the overall efficiency and reduces the harmful gases emission.
Based on technology, the market is segmented into Condensing, & Non-Condensing. In 2020, the Non-Condensing segment dominated the Commercial Boiler Market and accounted for XX% market share. This segment will witness a considerable CAGR of XX% during the forecast period (2021-2027F) owing to mounting availability of higher efficiency alternatives, coupled with the introduction of stringent emission norms.
Based on capacity, the market is segmented into Less than 10 MMBtu/hr, 10-50 MMBtu/hr, & More than 50 MMBtu/hr. In 2020, the Less than 10 MMBtu/hr segment dominated the Commercial Boiler Market and accounted for XX% market share. This segment will witness a considerable CAGR of XX% during the forecast period (2021-2027F) owing to their easy installation along with cost effectiveness over its available counterparts.
Based on end user type, the market is classified into Offices, Hospitals, Educational Institutions, Lodging, and Others. The Hospitals segment generated revenue of USD XX billion in 2020. The segment is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027 due to rising investments in advanced healthcare infrastructure & subsequent rise in the demand of heat systems such as blower, geysers, and others in the healthcare facilities for functioning of required heating operations of the indoor spaces.
For a better understanding of the market adoption of Commercial Boiler, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. North America constitutes the largest market for the industry and generated revenue of USD XX billion in 2020 owing to rising demand of heating requirements mainly from cold countries such as Canada, U.S., etc.
Some of the major players operating in the market include Robert Bosch, A.O. Smith Corporation, Cochran Limited, Cleaver-Brooks, Fulton Boiler Company etc. Several M&A's along with partnerships have been undertaken by these players to boost their presence in different regions