Commercial Boiler Market Size, Share, and Trends 2024 to 2034

The global commercial boiler market size accounted for USD 3.26 billion in 2024, grew to USD 3.4 billion in 2025 and is projected to surpass around USD 5.01 billion by 2034, representing a healthy CAGR of 4.40% between 2024 and 2034.

  • Last Updated : October 2024
  • Report Code : 1465
  • Category : Machinery and Equipment

Commercial Boiler Market Size and Forecast 2024 to 2034

The global commercial boiler market size is estimated at USD 3.26 billion in 2024 and is anticipated to reach around USD 5.01 billion by 2034, expanding at a CAGR of 4.40% between 2024 and 2034.

Commercial Boiler Market Size 2024 to 2034

Key Takeaways

  • Europe dominated the commercial boiler market in 2023.
  • By fuel, the natural gas segment dominated the market in 2023.
  • By technology, the non-condensing segment led the market in 2023.

Europe  Commercial Boiler Market Size and Growth 2024 To 2034

The Europe commercial boiler market was valued at USD 1.24 billion in 2024 and is predicted to hit around USD 1.93 billion by 2034, at a CAGR of 4.52% from 2024 to 2034.

Europe Commercial Boiler Market Size 2024 To 2034

Based on the region, the Europe segment dominated the global commercial boiler market in 2022, in terms of revenue and is estimated to sustain its dominance during the forecast period. The majority of building constructions in the UK, such as healthcare facilities and educational institutions, rely heavily on low-pressure heating systems.

Commercial Boiler Market  Share, By Region, 2023 (%)

On the other hand, the North America is estimated to be the most opportunistic segment during the forecast period. Due to strong expansion in the industrial sector and attempts to minimize emissions in the region, the North America is becoming an emerging region in terms of commercial boiler use.

Commercial Boiler Market Growth Factors

The commercial boilers are pressure systems that heat water for building heating by burning combustible fuels or using electricity. Some boilers use hot water directly, while others use steam-generated water. The heat exchanger transfers heat from the burners or electric coils inside the boiler to the water. The combustion chamber, heat exchanger, burner, and other components make up a commercial boiler. The expanding demand for commercial boilers has been fueled by the growing preference for cost-effective heating systems in commercial enterprises around the world.

The natural gas is utilized more frequently in commercial boilers than solid fuel because natural gas enhances overall efficiency and minimizes dangerous gas emissions. As a result, the government is encouraging the use of natural gas-fired combustion boilers.

In extremely cold countries, commercial boilers are widely used to heat water. The global commercial boilers market is expected to fuel by an increase in the demand for space heating in both commercial and residential buildings, as well as the expansion of the industrial sector. The increased commercial sector investments in the development of economically and environmentally friendly infrastructure are also expected to propel the global commercial boilers market.

The global commercial boilers market is hampered by high boiler production costs. These boilers are very difficult to maintain and install. It must be addressed by the users. The commercial boilers require cylinders with large diameters. The heat radiated by commercial boilers radiators is unbearable. 

The global commercial boilers market is expected to rise significantly, owing to rising investments to meet rising energy demand and a fundamental change toward integration of high efficiency heating systems. The expanding healthcare sector, as well as the growth of existing commercial facilities, will influence product acceptance positively. Several government initiatives aimed at expanding green building will boost the commercial boilers market growth during the forecast period.

Although the regulatory standards enforced at the federal, state, and municipal levels frequently overlap and differ, this impacts the market growth. And, as the government continues to tighten down an emission from commercial boilers, it’s more crucial than ever for businesses and organizations to ensure that their systems are up to standards.

The commercial boilers market is influenced positively by a demand for energy efficiency in the commercial sectors. The key market players are interested in solutions that will save them money in the long run while also addressing a wide range of requirements. The combustion, controls, and thermal efficiency are all being improved.

In addition, the commercial boilers market is continuing to expand its product offerings into new areas. A large portion of this drive is due to the healthcare business in particular. The industry experts predict that the commercial boilers industry will expand significantly in response to rising demand for hot water in these facilities, as well as linens and cleaning.

Region wise, the expansion of commercial boilers market is also taking place. The key market players are moving to address the growing demand for boilers in polar climatic regions around the world in recent years.

Market Scope

Report Coverage Details
Market Size in 2024 USD 3.26 Billion
Market Size by 2034 USD 5.01 Billion
Growth Rate from 2024 to 2034 CAGR of 4.40%
Largest Market Europe
Fastest Growing Market North America
Base Year 2024
Forecast Period 2024 to 2034
Segments Covered Fuel, Technology, Product, Capacity, Application, and Region
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

 

Fuel Insights

Based on the fuel, the natural gas dominates the commercial boiler market during the forecast period. Natural gas is utilized more frequently in commercial boilers than solid fuel because natural gas enhances overall efficiency and minimizes dangerous gas emissions. As a result, the government endorses the use of natural gas-fired combustion boilers. 

On the other hand, the coal is expected to grow at rapid pace during the forecast period. The coal is substantially less reactive than gas or atomized oil since it is a solid fuel. Furthermore, the ash content of coal, which is commonly used in utility boilers, is 200 to 1000 times of oil per British Thermal Unit (BTU) of heat provided.

Technology Insights

Based on the technology, the non-condensing segment dominated the market with highest market share during 2020. A non-condensing boiler features a single heat exchanger chamber through which hot gases from the burner flow to heat the water within the exchanger’s walls before existing through the exit flue.

On the other hand, the condensing segment is fastest growing segment in the commercial boiler market. The energy bills and a smaller carbon footprint are the two main advantages of utilizing a condensing boiler. As condensing boilers are so much more efficient than traditional boilers at converting fuel into useful heat, one can use less fuel to heat water.

Commercial Boiler Market Companies

  • Parker Boiler
  • Fulton Boiler Company
  • Bosch Thermotechnology
  • A.O. Smith Corporation
  • Slant/Fin Corporation
  • Vaillant Group
  • Cochran Limited
  • Superior Boiler Works Inc.
  • Cleaver-Brooks
  • Weil-McLain Solvay S.A.

Key Companies & Market Share Insights

The various developmental strategies such as business expansion, investments, acquisition, new product launches, partnerships, joint venture, and mergers fosters market growth and offers lucrative growth opportunities to the market players. The major market players are investing in technological developments across their boiler technologies in order to meet the needs of the end users, implying a rise in market share. The increasing R&D spending, as well as strategic partnerships and alliances are some of the primary methods used by leading industry players to achieve a competitive advantage in the market.

Segments Covered in the Report

By Fuel

  • Natural Gas
  • Oil
  • Coal
  • Others

By Technology

  • Condensing
  • Non-condensing

By Product

  • Hot Water
  • Steam

By Capacity

  • Less than 10 MMBtu/hr
  • 10-50 MMBtu/hr
  • Others

By Application

  • Offices
  • Healthcare Facilities
  • Educational Institutions
  • Lodgings
  • Retail Stores
  • Others

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
  • MEA
  • Rest of the World

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Frequently Asked Questions

According to Precedence Research, the global commercial boiler market size was reached at USD 3.26 billion in 2024 and is anticipated to surpass USD 5.01 billion by 2034.

The global commercial boiler market is growing at a CAGR of 4.40% from 2024 to 2034.

The major players operating in the commercial boiler market are Parker Boiler, Fulton Boiler Company, Bosch Thermotechnology, A.O. Smith Corporation, Slant/Fin Corporation, Vaillant Group, Cochran Limited, Superior Boiler Works Inc., Cleaver-Brooks, Weil-McLain Solvay S.A..

One of the most important factors that is likely to decrease overall sales of commercial boilers throughout the projection period is the high expense of frequent maintenance and cleaning.

Europe is the largest segment for commercial boiler market in terms of region. Due to technological improvements and increased efforts to reduce emissions of dangerous gases and pollutants, countries in Europe such as Germany, France, and the UK encourage the use of commercial boilers.

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