Commercial Boiler Market Size, Share & COVID-19 Impact Analysis, By Fuel (Natural Gas, Coal, Oil, and Others), By Technology (Condensing, Non-Condensing), By End-user (Educational Institutions, Healthcare Sector, Offices, Hospitality, and Others), and Regional Forecast, 2021-2028.

The global commercial boiler market size was USD 4.17 billion in 2020 and is projected to grow from USD 3.98 billion in 2021 to USD 5.55 billion by 2028, exhibiting a CAGR of 4.9% during the forecast period from 2021-2028. The global impact of COVID-19 has been unprecedented and staggering, with the worldwide boiler industry witnessing a negative demand across all the regions. Based on our analysis, the market exhibited a lower growth of about -9.3% in 2020 than average year-on-year growth during 2017-2019. The market’s growth and demand are expected to return to pre-pandemic levels once the pandemic is over.

The growth is mainly driven by the rise in many commercial buildings and increased safety for heating equipment. In addition, the boiler manufacturer is using safety relief valves in current and new boilers to release excessive pressure and improve efficiency & performance, driving the market growth.

This boiler is a pressurizing system that burns combustible fuel or uses electricity to heat water used to provide heating. These boilers are used in various educational institutions, offices, the healthcare sector, hospitality, and others such as warehouses & storage facilities, retail stores, and public assembly buildings.

COVID-19 Impact: Manufacturing Restraints of Heating and Water Treatment Products to Impede Market Progress

The outbreak of COVID-19 has hampered this market by restricting the manufacturing operation of essential water heating and water treatment products. Various government bodies worldwide have imposed the strict lockdown, which resulted in the shutdown of different commercial projects. As a result, operations in commercial building sectors such as offices, educational institutions, and the hospitality industry have impacted the market.

LATEST TRENDS

Growing Adoption of Energy-Efficient and Cost-Effective Water Systems to Support Growth of Boilers

The growing penetration of highly cost-effective and energy-efficient systems to meet the water storage & heating requirements across commercial facilities will favor these kinds of boiler products during the forecast period. Various technologies have been adopted by these boiler manufacturers, such as growing digital system integration for effective control & monitoring capabilities, ease of installation, and low acquisition costs, driving the market's growth.

Establishment of New Commercial Sectors to Propel Market Growth

The establishment of the new commercial sector such as offices, healthcare, and educational institutions is expected to propel these boilers worldwide. For example, from April 2021 to June 2021, more than 17,200 new companies were set up in India. Therefore, these new companies will propel the commercial sector, supporting the commercial boiler market growth.

Driving Factors

Rising Demand from Healthcare Sector is expected to Drive Growth

The healthcare sector uses these boilers for cleaning, sterilizing, and space heating. The up-gradation of healthcare infrastructure is the primary priority among policymakers worldwide, continuously driving the new investment in the healthcare sector. The exponential surge in hospital admission owing to the pandemic of COVID-19 has further accelerated the investment in the healthcare sector. The rising demand for installing a new boiler system and upgrading existing boilers will propel the growth of boilers.

Growth of Connected Controls to Boilers Will Boost Product Adoption

Boiler manufacturers are continuously doing research and producing technology-driven products. Today, the boilers are growing due to their connected controls, which are Wi-Fi accessible and allow the consumer to control the boiler. Connected controls boilers are gaining popularity among consumers as they can control home heating or cooling, which traditional boilers don’t provide. For Example, Bosch Thermotechnology has launched industry-first connected boilers, which can be connected through laptops or tablets and allow multiple heating systems to be monitored or controlled.

Restraining Factors

High Maintenance Cost of these Boilers will Hinder the Market

One of the most prominent factors hindering the market is frequent cleaning and maintenance throughout the forecast period. Although regular cleaning will improve the performance and efficiency of the boiler, it will also add the additional maintenance cost, which is expected to decline the sale of boilers worldwide.

SEGMENTATION

By Fuel Analysis

Natural Gas as a Fuel is Set to Lead Market Owing to its Combustion Process

Based on fuel, the market is segmented into natural gas, coal, oil, and others. The natural gas segment is expected to lead the market because the combustion of natural gas produces mainly carbon dioxide and water, and they don’t affect the environment. Natural gas causes the least pollution compared to oil and coal as fossil fuel; in addition, natural gas has a high calorific value which means that natural gas presents the highest amount of heat during the combustion process. The government worldwide is also supporting natural gas usage compared to solid fuels because natural gas improves the overall efficiency and reduces the harmful emission of gases to the environment.

By Technology Analysis

Non-Condensing Technology to Dominate Global Market Owing to Ease in Installation Process

By technology, the market is segmented into condensing and non-condensing boilers. The non-condensing boilers are anticipated to lead the market due to their energy efficiency, longer life span, and lower price. The non-condensing boiler doesn’t require any expert for installation. Furthermore, the non-condensing boilers have a single unit heat exchanger chamber, which allows the hot gases from the burner, pass through to heat the water within the exchanger's walls before reaching the exit flue. The non-condensing boiler heating temperature is kept high enough to prevent water vapor in the flue gas from condensing, which prevents the boiler from corrosion.

By End-user Analysis

Growing Demand for Hot Water and Steam in the Healthcare Sector to Lead Market

By end-user, the market is segmented into educational institutions, offices, healthcare sector, hospitality, and others. The healthcare sector segments are expected to dominate and fastest-growing users for these boilers. Large quantities of reliable hot water and steam are required for cleaning, sterilizing, and space heating. The demand for heat systems such as blowers, geysers, and others in office premises has increased the demand for these boilers.

REGIONAL INSIGHTS

Geographically, the market is studied across Europe, North America, Asia Pacific, the Middle East & Africa, and Latin America. As per our findings, Asia Pacific dominates the commercial boiler market share during the forecast timeframe. The environmental policy and increasing thermal treatment process in Asia Pacific have led to the highest share. In addition, the growing foreign direct investment in the region has led to increase in commercial buildings, such as the healthcare sector, offices, and others, leading to dominance in the region.

North America is anticipated to witness steady growth, with the U.S. leading the industry landscape in the region. The market in the region will grow owing to changing trends toward replacing or upgrading the existing heating systems and improvement in the operational ability of boilers. The high operating and maintenance cost, rising fuel prices, and stringent government regulations have set the tone for replacing the existing heating system with the energy-efficient heating system in the region.

Increasing focus of government bodies toward reducing carbon emission to the environment and implementing green building codes in Europe augmented the demand for these boilers. High energy efficiency, minimal carbon emission, and low heating cost in the region are critical factors surging the demand for boilers. Latin America is calculated to grow substantially during the forecast period. The need for clean fuel heating systems and increasing investment into the domestic lodging sector are expected to support the market growth.

The Middle East & Africa is likely to observe a steady pace during the forecast period. The growing tourism, hospitality, and healthcare facilities in the Middle East & Africa are anticipated to witness the product demand. South Africa and Gulf Cooperation Council (GCC) are the key nations actively operating in the region.

KEY INDUSTRY PLAYERS

The vital market players are engaged in technological advancements across boiler technologies to cater to the demand of end users, anticipating growth in market share. In addition, the growing R&D investments and strategic partnerships and alliances are some of the key strategies implemented by the players to gain competitiveness in the market. The major players operating in this market are A.O. Smith Corporation, Babcock and Wilcox Enterprises, Bosch Thermotechnology, and others.

List of Key Companies Profiled:

• A.O. Smith Corporation (U.K.)


• Bosch Thermotechnology (Germany)


• Cochran Limited (U.K.)


• Cleaver-Brooks (U.S.)


• Fulton Boiler Company (U.S.)


• Slant/Fin Corporation (U.S.)


• Weil-McLain Solvay S.A. (U.S.)


• Valliant Group (Germany)


• Babcock and Wilcox Enterprises (U.S.)


• Ferroli (Italy)


• Superior Boiler Works, Inc (U.S.)


• Viessmann (Germany)


• Simoneau Group (Canada)

KEY INDUSTRY DEVELOPMENTS:

• June 2021 – Lochinvar, a leading Manufacturer of high-efficiency and water heaters, announces the CREST condensing boiler with Hellcat Combustion Technology, featuring Real-time O2 trim. These boilers can be used in large commercial applications. The Hellcat Combustion Technology helps decrease monitoring and maintenance and extends the boiler's life.


• March 2020 – Viessmann Group, a German manufacturer, has launched a new gas wall-mounted and compact gas boiler from the new vitodens 200 generations, which are cost-effective, high reliability, and consistently high utilization condensing process.

REPORT COVERAGE

The market research report offers qualitative and quantitative insights on the commercial boiler and a detailed analysis of market size & growth rate for all possible segments in the market.

Along with this, the report provides an elaborative commercial boiler market analysis with market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are advancement in technology for commercial boiler by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

REPORT SCOPE & SEGMENTATION