The global commercial boiler market is estimated to be valued at approximately US$ 2.02 billion in 2022 and is poised to experience a compound annual growth rate (CAGR) of 21.3% from 2023 to 2029.
The Global Commercial Boiler Market has been on a consistent growth trajectory in recent years, driven by several key factors. These include the expansion of commercial tourism infrastructure, the increasing adoption of energy-efficient solutions, and a growing demand for compact steam boiler designs. Additionally, emerging trends such as the heightened consumption of natural gas are gaining prominence within the market.
Regional Insights for the Global Commercial Boiler Market:
Geographically, the Global Commercial Boiler Market is segmented into Asia Pacific, Europe, Latin America & the Middle East, and North America. Currently, Europe is expected to occupy a leading position in the global commercial boiler market during the forecast period. The region's growth is attributed to the rising demand from various sectors, including businesses, hospitals, educational institutions, and tourism. Furthermore, the cost-effectiveness of natural gas and other fuels in Europe is contributing to the overall expansion of the global commercial boiler market.
Commercial boilers play a pivotal role in heating water, especially in regions with cold climates. Increased demand for space heating, both in residential and commercial buildings, along with the growth of the industrial sector, is projected to drive the global commercial boiler market. The office sector is expected to be the market's top revenue generator and is likely to maintain its dominant position throughout the forecast period.
Key Drivers of the Global Commercial Boiler Market:
- Expansion of Commercial Tourism Infrastructure: The commercial boiler market is positively impacted by regions with seasonal temperature variations, leading to significant space heating requirements during harsh winters. Mountain states, in particular, are expected to witness substantial growth in the global commercial boiler industry due to rising disposable incomes and an increased influx of tourists during the winter season. The hospitality sector's steady demand for hot water is expected to drive industry growth in these areas. Additionally, the growth of the educational sector will create a higher demand for efficient heating systems within institutions, further supporting the deployment of global commercial boiler systems.
For example, 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 large-scale event aims to showcase investment and trade opportunities while providing an international platform for investors to explore India's diverse tourism products and services.
Please note that the original content provided limited information, so the elaboration in this response is based on assumptions and context.
Increased Adoption of Energy-Efficient Solutions:
Energy-efficient solutions are poised to witness a surge in demand in the coming years. These solutions are essential for reducing future operational costs, capital investments, and utility expenses. Boiler performance plays a critical role in the efforts of commercial facilities to curtail utility expenditures. The efficiency of a boiler is determined by the ratio of heat output to the amount of fuel consumed for maintenance and various industrial operations. Businesses are increasingly prioritizing efficient boiler performance. Traditional heating systems typically exhibit an efficiency range of 56% to 70%, according to the U.S. Department of Energy, representing a significant loss in potential energy savings. In contrast, modern boilers and water heaters boast efficiencies exceeding 80%, resulting in substantial energy savings when employed across various industries.
Opportunities in the Global Commercial Boiler Market:
Growing Demand for Compact Steam Boiler Designs:
Space optimization is a primary concern for both new plant installations and expansions of existing plants. Components such as boilers, economizers, superheaters, and air preheaters in process industries need to be designed with compactness in mind to maximize space utilization. With increasing capacity installations, there is limited floor space available for utility equipment. The need to make the most of available space has led to a significant uptick in demand for steam boilers characterized by compact designs and low fuel consumption. Boiler manufacturers are actively promoting customized steam boilers tailored to the specific process requirements of various industries, including offices, hospitals, educational institutions, and lodging.
Trends in the Global Commercial Boiler Market:
Growth in Infrastructure:
Commercial properties serve as the backbone of the economy and have witnessed increased demand for various amenities. One of the primary drivers of the Global Commercial Boiler Market's growth is the rising demand for offices and showrooms. The increased need for heating systems such as blowers and geysers in office settings has led to a heightened demand for commercial boilers, fueling market growth. Hot water, a crucial component in numerous office operations, has become a significant factor driving the Global Commercial Boiler Market. Moreover, offices in fields like pharmaceuticals and pathology often require hot water for their initial sampling processes, further contributing to market growth. Additionally, the surge in remote work opportunities has limited market expansion to some extent. However, the increasing comfort expectations of individuals, driven by the rising demand for commercial boilers in office spaces, is expected to drive sustained growth in the Global Commercial Boiler Market from 2021 to 2030.
Growing Popularity of Low-Cost and Low-Maintenance Products:
Low-capacity boilers find extensive use across various business establishments, including public assemblies, motels, offices, schools, institutions, shopping centers, and healthcare facilities. These boilers offer several advantages, such as minimal initial investment and maintenance costs, easy installation, and the ability to rapidly generate hot water and steam. Moreover, their compact size, straightforward maintenance, and extended service life contribute to the increasing market share of 10 MMBtu/hr Global Commercial boiler systems. The rising investment in the commercial sector nationwide is expected to drive demand for energy-efficient space heating solutions, leading to market expansion. Consequently, the demand for the Global Commercial boiler market is projected to rise in the future.
Challenges in the Global Commercial Boiler Market:
High Installation Costs:
The cost of steam boilers varies due to design features and the level of post-sales service offered. Budget steam boilers, in contrast to standard steam boilers, typically have shorter lifespans, fewer warranties, and limited customer support. Recent advancements in materials and technology have enhanced boiler performance. However, the installation cost of a steam boiler system remains a significant consideration, as it constitutes 15-20% of the overall boiler expenses. This cost is expected to remain consistent due to the high level of technical expertise required for steam boiler operation and the separate construction of boiler houses in utility areas.
Segmentation of the Global Commercial Boiler Market:
The Global Commercial Boiler Market report features segmentation based on fuel type, technology, capacity, end-user industry, and region.
- Fuel Type: The market is divided into natural gas, oil, coal, and others. Natural gas is anticipated to dominate the global market during the forecast period. This dominance is attributed to the frequent use of natural gas compared to solid fuel. Natural gas also enhances overall efficiency and reduces harmful gas emissions, garnering support from governments for its use in combustion boilers.
- Technology: Non-condensing boilers, characterized by 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.
- Capacity Type: The less than 10 MMBtu/hr category is expected to witness significant growth during the projection period. The ease of installation and cost efficiency over competitors drive the expansion of this segment.
- End-User Industry: Hospitals lead in terms of revenue share in the global Global Commercial Boiler Market. The increased demand for heating systems, including blowers and geysers, in office spaces has fueled the demand for commercial boilers, serving as a primary driver for the industry's growth.
Key Developments in the Global Commercial Boiler Market:
On November 27, 2022, O. Smith, a leading water heater company, introduced the Voltex® AL (anti-leak) hybrid electric heat pump water heater. This innovative unit caters to businesses and homeowners seeking a highly efficient, user-friendly water heating solution. It boasts integrated leak detection, smart connectivity, and enhanced water connections, setting a new standard in water heating technology.
On June 8, 2022, O. Smith expanded its capabilities by acquiring Atlantic Filter Corporation, a prominent water treatment solutions provider. This strategic move enhances O. Smith's presence in Florida and beyond, strengthening its position in the market.
In 2022, Bosch embarked on an expansion journey by bolstering its existing heat pump production network in Germany. The facility primarily focuses on manufacturing hot water storage tanks for use in conjunction with various Bosch Thermotechnology products. This expansion has enabled Bosch to broaden its business footprint, reaching Tranås, Sweden, and Aveiro, Portugal.
Key Insights into Companies in the Global Commercial Boiler Market:
The Global Commercial Boiler Market is characterized by intense competition driven by continuous technological advancements resulting from ongoing research and development efforts by participants across the value chain. Key players are also implementing diverse strategies to expand their presence both regionally and globally. Some of the noteworthy companies in the Global Commercial Boiler Market include 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.
1 Market Overview
1.2 Market Analysis by Type
1.2.1 Overview: Global Revenue by Type: 2022 Versus 2023 Versus 2029
1.3 Market Analysis by Application
1.3.1 Overview: Global Revenue by Application: 2022 Versus 2023 Versus 2029
1.4 Global Market Size & Forecast
1.4.1 Global Sales in Value (2017-2029))
1.4.2 Global Sales in Volume (2017-2029)
1.4.3 Global Price by Type (2017-2029) & (US$/Unit)
1.5 Global Production Capacity Analysis
1.5.1 Global Total Production Capacity (2017-2029)
1.5.2 Global Production Capacity by Geographic Region
1.6 Market Drivers, Restraints and Trends
1.6.1 Market Drivers
1.6.2 Market Restraints
1.6.3 Trends Analysis
2 Manufacturers Profiles
**This is for each company**
2.1.1 Company Details
2.1.2 Company Major Business
2.1.3 Company Product and Services
2.1.4 Company Sales, Price, Revenue, Gross Margin and Market Share (2019-2022)
3 Sales by Manufacturer
3.1 Global Sales in Volume by Manufacturer (2020-2022)
3.2 Global Revenue by Manufacturer (2020-2022)
3.3 Key Manufacturer Position in Market
3.4 Market Concentration Rate
3.4.1 Top 3 Manufacturer Market Share
3.4.2 Top 6 Manufacturer Market Share
3.5 Global Production Capacity by Company
3.6 Manufacturer by Geography: Head Office and Production Site
3.7 New Entrant and Capacity Expansion Plans
3.8 Mergers & Acquisitions
4 Market Analysis by Region
4.1 Global Market Size by Region
4.1.1 Global Sales in Volume by Region (2017-2029)
4.1.2 Global Revenue by Region (2017-2029)
4.2 North America Revenue (2017-2029)
4.3 Europe Revenue (2017-2029)
4.4 Asia-Pacific Revenue (2017-2029)
4.5 South America Revenue (2017-2029)
4.6 Middle East and Africa Revenue (2017-2029)
5 Market Segment by Type
5.1 Global Sales in Volume by Type (2017-2029)
5.2 Global Revenue by Type (2017-2029)
5.3 Global Price by Type (2017-2029)
6 Market Segment by Application
6.1 Global Sales in Volume by Application (2017-2029)
6.2 Global Revenue by Application (2017-2029)
6.3 Global Price by Application (2017-2029)
7 North America by Country, by Type, and by Application
7.1 North America Sales by Type (2017-2029)
7.2 North America Sales by Application (2017-2029)
7.3 North America Market Size by Country
7.3.1 North America Sales in Volume by Country (2017-2029)
7.3.2 North America Revenue by Country (2017-2029)
7.3.3 United States Market Size and Forecast (2017-2029)
7.3.4 Canada Market Size and Forecast (2017-2029)
7.3.5 Mexico Market Size and Forecast (2017-2029)
8 Europe by Country, by Type, and by Application
8.1 Europe Sales by Type (2017-2029)
8.2 Europe Sales by Application (2017-2029)
8.3 Europe Market Size by Country
8.3.1 Europe Sales in Volume by Country (2017-2029)
8.3.2 Europe Revenue by Country (2017-2029)
8.3.3 Germany Market Size and Forecast (2017-2029)
8.3.4 France Market Size and Forecast (2017-2029)
8.3.5 United Kingdom Market Size and Forecast (2017-2029)
8.3.6 Russia Market Size and Forecast (2017-2029)
8.3.7 Italy Market Size and Forecast (2017-2029)
9 Asia-Pacific by Country, by Type, and by Application
9.1 Asia-Pacific Sales by Type (2017-2029)
9.2 Asia-Pacific Sales by Application (2017-2029)
9.3 Asia-Pacific Market Size by Region
9.3.1 Asia-Pacific Sales in Volume by Region (2017-2029)
9.3.2 Asia-Pacific Revenue by Region (2017-2029)
9.3.3 China Market Size and Forecast (2017-2029)
9.3.4 Japan Market Size and Forecast (2017-2029)
9.3.5 Korea Market Size and Forecast (2017-2029)
9.3.6 India Market Size and Forecast (2017-2029)
9.3.7 Southeast Asia Market Size and Forecast (2017-2029)
9.3.8 Australia Market Size and Forecast (2017-2029)
10 South America by Country, by Type, and by Application
10.1 South America Sales by Type (2017-2029)
10.2 South America Sales by Application (2017-2029)
10.3 South America Market Size by Country
10.3.1 South America Sales in Volume by Country (2017-2029)
10.3.2 South America Revenue by Country (2017-2029)
10.3.3 Brazil Market Size and Forecast (2017-2029)
10.3.4 Argentina Market Size and Forecast (2017-2029)
11 Middle East & Africa by Country, by Type, and by Application
11.1 Middle East & Africa Sales by Type (2017-2029)
11.2 Middle East & Africa Sales by Application (2017-2029)
11.3 Middle East & Africa Market Size by Country
11.3.1 Middle East & Africa Sales in Volume by Country (2017-2029)
11.3.2 Middle East & Africa Revenue by Country (2017-2029)
11.3.3 Turkey Market Size and Forecast (2017-2029)
11.3.4 Egypt Market Size and Forecast (2017-2029)
11.3.5 Saudi Arabia Market Size and Forecast (2017-2029)
11.3.6 South Africa Market Size and Forecast (2017-2029)
12 Sales Channel, Distributors, Traders and Dealers
12.1 Sales Channel
12.1.1 Direct Marketing
12.1.2 Indirect Marketing
12.2 Typical Distributors
12.3 Typical Customers
13 Research Findings and Conclusion
14.2 Research Process and Data Source
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analysing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.