by The global commercial boiler market is estimated to be valued at US$ 2.02 Bn in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Commercial boilers are equipment used to generate steam or hot water for various applications in commercial sector such as hospitals, schools, office buildings, hotels etc. The advantages of using commercial boilers include high efficiency, low running costs, durability, and lower emissions. With growing construction and infrastructure sector worldwide, the demand for space heating and hot water production has increased significantly in commercial sector. Commercial boilers are increasingly being replaced with efficient condensing boilers which offer energy savings of around 15-20%.
Market key trends:
One of the key trends in commercial boiler market is growing adoption of condensing boilers. Condensing boilers extract additional energy from flue gases by condensing water vapor in the exhaust gas, thereby improving the overall efficiency. Stringent regulations regarding carbon emissions from commercial buildings have further boosted replacement demand for condensing boilers. Continued replacement of aging commercial boilers with new efficient models is expected to drive market growth over the forecast period.
Porter’s Analysis
- Threat of new entrants: The commercial boiler market requires large initial investments and has strong economies of scale. This makes the threat from new entrants low.
- Bargaining power of buyers: The commercial boiler market has several buyers in various industries like healthcare, hospitality, education etc. This increases their bargaining power.
- Bargaining power of suppliers: A few large companies dominate the supply of commercial boilers. This gives them strong bargaining power over buyers.
- Threat of new substitutes: Though other heating solutions exist, boilers have established themselves. However, the threat from new energy-efficient substitutes is moderate.
- Competitive rivalry: The commercial boiler market has numerous global and regional players. This leads to high competitive rivalry.
Key Takeaways
The global commercial boiler market is expected to witness high growth, exhibiting CAGR of 4.3% over the forecast period, due to increasing demand from the construction industry for heating solutions in buildings.
Regional analysis
North America is expected to dominate the commercial boiler market during the forecast period. The growth in this region can be attributed to rising industrial activities and ongoing infrastructure development projects. Asia Pacific is expected to exhibit the fastest growth owing to growing construction activities in India and China.
Key players
Key players operating in the 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. A.O Smith captured the largest market share in 2022 owing to its wide product portfolio and global distribution network.
