The commercial boiler market includes a wide range of products used for heating applications in various commercial spaces like hotels, offices, institutions and more. Commercial boilers are designed to provide heating and hot water for large non-residential structures. They operate on different types of fuels like natural gas, oil or electricity and are suitable for applications ranging from small buildings to large campuses. Boilers offer high thermal efficiency and help reduce energy costs significantly compared to electrical heating systems. With growing environmental awareness, the demand for energy efficient and eco-friendly commercial boilers has increased considerably.
The global Commercial Boiler Market is estimated to be valued at US$ 15 Billion in 2023 and is expected to exhibit a CAGR of 4% over the forecast period 2023-2028, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The commercial boiler market is witnessing a rising demand for condensing boilers. Condensing boilers offer energy savings of around 15% compared to conventional boilers by condensing the water vapor in flue gases and extracting additional heat. They work on the principle of condensing flue gases to low temperatures which allows latent heat of water vapor to be condensed and reused. Stringent regulations regarding energy usage and carbon emissions in buildings have further boosted the adoption of these high efficiency condensing boilers. Leading boiler manufacturers have started offering a wide range of reliable and eco-friendly condensing boiler solutions for commercial and institutional customers.
- Threat of new entrants: Low startup costs make threat of new entrants moderate. However, established brands have strong brand recognition and distribution network.
- Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and less differentiation between products. However, customized solutions increase switching costs.
- Bargaining power of suppliers: Component manufacturers have low bargaining power due to availability of substitutes and less differentiation in raw materials. However, intellectual property rights on certain technologies increase power.
- Threat of new substitutes: Threat of substitutes is high due to availability of energy-efficient and eco-friendly heating solutions. However, performance benefits of boilers retain their usage.
- Competitive rivalry: Intense due to global presence of many vendors offering differentiated products. However, large projects require collaboration.
The global commercial boiler market is expected to witness steady growth. The global Commercial Boiler Market is estimated to be valued at US$ 15 Billion in 2023 and is expected to exhibit a CAGR of 4% over the forecast period 2023-2028.
Regional analysis focuses on growth prospects in emerging economies. China, India and other Southeast Asian countries are likely to contribute significantly driven by building construction activities. Favourable energy policies supporting renewable energy adoption will further accelerate replacement demand for green boiler technologies. North America dominates the market currently due to cold climatic conditions and stringent regulations favouring energy-efficient systems. Asia Pacific is expected to be the fastest growing market driven by infrastructure growth and industrialization.
Key players operating in the commercial boiler market are Bosch Thermotechnology, Cleaver-Brooks, Fulton Boiler Works, Hurst Boiler and Welding, Mitsubishi Hitachi Power Systems and Cochran. The market is fragmented with presence of global as well as regional vendors. Most industrial boiler manufacturers also offer commercial boilers. Ease of installation, low maintenance and monitoring capabilities are key factors among buyers.