Commercial Boiler Market: Current Analysis and Forecast (2021-2027)

Report Description

Global Commercial Boilers Market was valued at US$ 1.9 billion in 2020 and is anticipated to reach US$ 2.4 billion by 2027 displaying a CAGR of 3.6% over the forecast period (2021-2027). Commercial boilers are pressurized systems that burn combustible fuel or use electricity to heat water that is used to provide heating in the building. Some types of boilers use the hot water itself, while others rely on water that has been turned to steam. Inside the boiler, the burners or electric coils generate heat that is transferred to the water by the heat exchanger. A Commercial boiler is made by key five key accessories namely as burner, combustion chamber, heat exchanger, controls, and exhaust stack, among others. The growing preference for cost-efficient heating systems in commercial establishments has propelled the demand for Commercial Boilers all over the world. For instance, as per Energy.gov & Statista, the unit sales of non-condensing and condensing commercial boilers in North America has risen from 69,000 units in 2014 to 73,000 units in 2020. Commercial boiler efficiency levels are expressed in a percentage, called an AFUE rating (Annual Fuel Utilization Efficiency). The higher the AFUE rating, the more efficient the boiler system and the more it will cost. However, the more efficient the system, the less it will cost to heat the building on a day-to-day basis.

Structure of Heat Supply Technologies

Increased adoption of highly efficient and cost-effective systems, Growing establishment of new commercial and residential buildings and Cost benefit associated with Commercial boilers are some of the major drivers of the market. However, High up-front Capital associated with installation of Commercial Boiler acts as major restraining factor for the market growth.

Insights Presented in the Report

“Amongst fuel type, Natural Gas segment dominated the market in 2020.”

Based on fuel type, the market is segmented into Natural Gas, Oil, Coal, and Others. The Natural Gas segment is expected to grow at a significant rate during the forecast period as natural gas improves the overall efficiency and reduces the harmful gases emission.

“Amongst technology, Non-Condensing segment dominated the market in 2020.”

Based on technology, the market is segmented into Condensing, & Non-Condensing. In 2020, the Non-Condensing segment dominated the Commercial Boiler Market. Condensing boilers can increase the efficiency of a building’s steady-state heating efficiency from 6% to 18% over standard boiler systems, depending on how the condensing boilers are designed, operated, and the efficiency of the existing boilers.

“Amongst capacity, Less than 10 MMBtu/hr segment dominated the market in 2020.”

Based on capacity, the market is segmented into Less than 10 MMBtu/hr, 10-50 MMBtu/hr, & More than 50 MMBtu/hr. Less than 10 MMBtu/hr segment is expected to witness a considerable growth  during the forecast period owing to their easy installation along with cost effectiveness over its available counterparts. Developers of a new 32-story, 900,000 square foot, mixed-use high-rise in Boston installed a hybrid configuration of six condensing boilers and two conventional boilers.

“Amongst end-user, hospital end-user segment dominated the market in 2020.”

Based on end user type, the market is classified into Offices, Hospitals, Educational Institutions, Lodging, and Others. Currently, hospital segment dominated the market owing to the rising investments in advanced healthcare infrastructure & subsequent rise in the demand of heat systems such as blower, geysers, and others in the healthcare facilities for functioning of required heating operations of the indoor spaces.

“Asia Pacific represents as the largest market in the Global Commercial Boilers Market.”

For a better understanding of the market adoption of Commercial Boiler, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. North America dominated the market in 2020. For instance, as per Energy.gov, the unit sales of non-condensing and condensing commercial boilers in North America has risen from 69,000 units in 2014 to 73,000 units in 2020. Some of the major players operating in the market include Robert Bosch, A.O. Smith Corporation, Cochran Limited, Cleaver-Brooks, Fulton Boiler Company etc. Several M&A’s along with partnerships have been undertaken by these players to boost their presence in different regions.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional & country-level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future of the Global Commercial Boilers were the three major steps undertaken to create and analyze the adoption of Commercial Boilers across various segments globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the boiler industry. Post assumption and validation of market numbers through primary interviews, we employed a bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of the Commercial Boilers through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Commercial Boilers, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are fuel type, technology, capacity, and end-users. Further regional & country-level analyses were conducted to evaluate the overall adoption of the Commercial Boilers in the global context.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Commercial Boilers. Further, we conducted factor analysis using dependent and independent variables such as growing commercial and residential establishments and the need for water heating technologies and cost effectiveness commercial boiler over its counterpart. Historical trends and their year-on-year impact on the market size and share was analyzed. Demand and supply side scenario was also thoroughly studied.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Market, and market shares of the segments and company. All the required percentage split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and subsegments across the major regions globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of Commercial Boilers across the major markets
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Commercial Boilers Market in terms of services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Commercial Boilers Market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of fuel type, technology, capacity, and end-users.

The main objective of the Commercial Boilers Market Study

The current & future market trends of Commercial Boilers were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a regional & country level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Commercial Boilers in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of fuel type, technology, capacity, end-users
• Defined analysis of the regulatory framework for the Global Commercial Boilers industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the Commercial Boilers for the major regions & countries
• Major regions studied in the report include North America (US, Canada, Rest of North America), Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe), Asia Pacific (China, Japan, India, Australia, Rest of Asia-Pacific), and Rest of World
• Company profiles of the Commercial Boilers Market players and the growth strategies adopted by them to sustain in the fast-growing market

Deep dive regional & country level analysis of the industry