Commercial Boiler Market Analysis

Commercial Boiler Market Analysis

The high initial investments associated with commercial boilers, owing to their costly nature and high installation as well as labor costs, may restrain industry growth. Commercial boilers cannot be easily replaced or repaired, and the downtime caused by a damaged boiler can prove very expensive. Despite their advertised energy efficiency, high electricity expenses in many nations make commercial boilers a non-viable heating option. In such settings, many consumers turn to coal-fired industrial boilers with immense emission rates, hindering business development further.

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In terms of fuel, the oil segment held over 20% of the global commercial boiler market share in 2022. This growth is attributed to the all-round availability of the resource throughout the globe and its relatively energy efficient nature. Oil-fired boilers also present customers the ability to use renewable fuels for heating purposes. Several companies are now providing heating oil blended with biodiesel to help reduce a region’s dependency on foreign oil while also leveraging a locally available energy source. Such boilers incur a low running cost than even electric boilers.

Many industry players are also capitalizing on the supportive policies introduced by governments to grow the consumer base for their oil-fired commercial boilers, shaping the segment outlook.

In terms of product, the commercial boiler market from the hot water segment is expected to witness nearly 10% CAGR between 2023 and 2032, fueled by tightening building codes and standards that call for more energy efficient heating solutions. Recently, in March 2022, the US DOE introduced new building energy code requirements for Federal buildings to cut down energy use and electrify appliances and equipment in 30% of Federal government-owned building spaces by 2030.

These new building codes are also creating a notable impetus for the substitution of conventional heating systems to meet new energy efficiency provisions and LEED certification guidelines.

North America commercial boiler market valuation is anticipated to surpass over USD 4 billion by 2032, spurred by the region’s increasing construction spending. Recently, in November 2022, the Canadian government announced an investment of more than CAD 2 million (USD 1.4 million) towards energy-efficient residential building projects in Ontario. The extreme weather conditions in the region ensure a steady demand for commercial-grade energy efficient heating solutions, making it an ideal revenue pocket for the market. The market size Boiler in the U.S. is poised to cross USD 5.7 billion revenue by 2032.

As per a September 2022 report published by US EPA, space heating is responsible for more than 42% of the overall energy consumption in US homes and approximately 36% in the country’s commercial spaces. The market size of boiler in Europe is poised to surpass USD 99.5 billion by 2032.