The Global Commercial Boiler Market was worth US$ 2.4 billion in 2022 and is anticipated to reach a valuation of US$ 3.4 billion by 2028 and is predicted to register a CAGR of 4.6% during 2023-2028.
Market Overview:
A commercial boiler is used to heat the desired substances or for boiling the water, generally for non-residential purposes. These are mostly heated using oil, natural gas, or electricity. These boilers are mostly used in hospitals, factories, colleges, offices, and leisure centers. The size and the required output for the boilers depend on the usage. The commercial boilers are available from 15kW to 1500kW of capacity as per the requirement of the user.
Market Drivers:
Commercial boilers are used for space heating in many industrial spaces. As the population increases, the demand and production of goods increase as well. This results in the development of industries that ultimately drives the commercial boilers' market share to grow.
High investments in the industries by both public and private authorities are leveling up the growth rate of the market. Heavy investments are being made in the commercial boilers market in order to fulfill the demand for energy-efficient commercial boilers. These boilers not only reduce the emission of carbon and other harmful chemicals but also saves the energy bills of the industry.
Strict government regulations regarding the use of sustainable energy sources like biomass fuel and solar energy for commercial boilers heating is driving the growth of the commercial boilers market. As the governments of all nations are implementing and investing in sustainable energy production and usage, the commercial boilers market will further grow in the future.
Market Restraints:
The availability of cost-effective alternatives like solar thermal systems and heat electric heat pumps is the reason for the decline in commercial boilers' market value. The cost-effectiveness and increased efficiency of these alternatives are the restraints for the commercial boilers market growth.
Heavy initial investments are required for the purchase of components and installation. This restricts small businesses from using commercial boilers, which acts as a barrier to the growth of the commercial boilers market. Commercial boilers have a complex structure, and the maintenance procedure is complex and time-consuming. This factor is likely to cause the shares of the market.
Market Opportunities:
Nowadays, hotels and lodges are shifting toward using boilers for space heating as well. This increases the demand for the commercial boilers market. This can act as an opportunity for the growth of the commercial boilers market.
As the market is shifting toward using sustainable energy sources, commercial boilers are also being operated on renewable energy sources like solar energy. Also, the demand for energy-efficient devices is skyrocketing, and thus, the demand for commercial boilers which are energy efficient is increasing day by day. This acts as a big opportunity for the growth of the commercial boilers market.
Thus, it can be concluded that with increased usage in hotels and lodges, the market shift toward sustainable energy and growing demand for energy-efficient devices are opportunities for the growth of commercial boilers' market share.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022 – 2028 |
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Base Year |
2022 |
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Forecast Period |
2023 - 2028 |
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CAGR |
4.6% |
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Segments Covered |
By Fuel, Technology, Capacity, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
A.O Smith, Fulton Boiler Co., Cochran Ltd., Parker Boiler, Bosch Thermotechnology, and Others. |
Market Segmentation:
Natural gas is leading the commercial boilers market with a share of more than 50%. At present, natural gas is the cleanest fuel available. Natural is a cost-effective option and is also available in abundance.
The oil segment stands second in the commercial boilers market, with a share of around 30%. It is used in regions where oil is available in plenty of amounts. Oil is more expensive than natural gas, thus not used as much as it is used.
Coal accounts for the lowest market share in the commercial boilers market, with a market share of less than 20%. The use of coal for heating has reduced extensively in recent times as it emits more harmful pollutants than any other fuel available in the commercial boilers market.
The non-condensing segment is ruling the commercial boilers market with a share of more than 60%. The procedure involved in the installation of non-condensing boilers is simple and inexpensive than the condensing boilers.
The condensing segment of commercial boilers is rapidly growing as it is a more energy-efficient option when compared to non-condensing commercial boilers. The condensing segment accounts for around 38% of commercial boilers' markets share.
The less than 10 MMBtu/hr segment is leading the commercial boilers market with a share of around 40%. The major consumers of these boilers are small and medium-sized businesses. The major usage of commercial boilers in this segment is heating and hot water needs.
The 10-50 MMBtu/hr segment stands in second position in the commercial boilers segment with a share of around 35%. These boilers are majorly used in large commercial complexes and industries for space heating purposes.
The more than 50 MMBtu/hr segment accounts for only 25% of the share in the commercial boilers market. These are mostly used in large industrial settings where heavy-duty operations are being carried out.
The Asia Pacific region is leading the commercial boilers market amongst all the regions over the world with a share of around 35%. The industrial sector is growing rapidly in this region which is one of the biggest reasons for the growth of the commercial boilers market. The rate of migration of people from tier 3 and tier 2 cities to metro cities is also the highest in the Asia Pacific.
The European region accounts for 30% of commercial boilers' markets share. The major purpose of use of commercial boilers in Europe is for space heating. Now with advancements in technology, the commercial boilers' market share will increase.
North America accounts for around 20% share in the commercial boilers' market share. The United States is the biggest consumer in the region. Industrial heating is the main purpose of usage in the region.
Latin America and Middle East & Africa hold the lowest share of the market.
The COVID-19 pandemic had a negative impact on the commercial boilers market as the major usage of the boiler is seen in industries, and all the major industries were shut down during the COVID-19 outbreak. The commercial boiler is also used in commercial buildings and educational institutes, which were completely closed down., There were a lot of gaps in the demand and supply of the raw material required for the production of commercial boilers and also the delivery of produced boilers to consumers. The COVID-19 pandemic has disturbed the global supply chain completely.
Market Key Players:
Frequently Asked Questions
The annual growth of the commercial boiler market is 4.6%.
The region that is leading the commercial boiler market is Asia Pacific.
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