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The commercial boilers market size is forecast to increase by USD 3.96 billion, at a CAGR of 4.36% between 2023 and 2028. Market expansion hinges on multiple factors, such as the escalating requirement within the hospitality sector, advancements in boiler technology, and the burgeoning opportunities in emerging markets. Conversely, impediments to market growth include the rise of the boiler rental industry, the accessibility of technology facilitating the retrofitting of existing boilers to meet emission standards, and the presence of alternatives. Despite the promising trajectory driven by these growth catalysts, overcoming these challenges is essential for sustained market progression. Addressing the expansion of the boiler rental sector necessitates strategic differentiation and value proposition enhancement. Furthermore, leveraging technological solutions for emissions compliance upgrades can mitigate regulatory risks. Additionally, innovation and diversification efforts can help counteract the allure of substitute products, ensuring continued relevance and competitiveness in the market.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Market Customer Landscape
The market encompasses a wide range of heating solutions for various industries, including educational institutions, hospitality, warehouses, and retail stores. Modern boiler systems adhere to building energy codes, utilizing energy-efficient accessories such as heat exchangers and burners. These systems cater to diverse fuel sources, including gas and oil, and provide hot water and steam for numerous applications. Industrial boilers, a significant segment of the market, employ advanced technologies to optimize energy efficiency and reduce carbon footprint. Safety is a paramount concern, with safety relief valves and other accessories ensuring the safe operation of pressurized systems. The market continues to evolve, incorporating the latest innovations in heating systems, such as energy-efficient boilers and home automation systems, to enhance overall system performance and efficiency. Electricity and water heating are also integral components of the market.
Increasing demand from the hospitality sector is driving the market. In the commercial sector, energy savings are significant due to the high frequency of hot water usage in establishments such as offices, hospitals, educational institutions, lodging facilities, and urban centers. Building energy codes mandate the implementation of modern heating systems, including energy-efficient boilers, to reduce carbon footprints and operating costs. These can utilize various fuels, such as natural gas, fuel oil, or electricity, to generate heat for water or steam, which is then distributed through radiators, baseboard units, fan coils, and heat exchangers. Commercial infrastructure, including shopping complexes, warehouses, storage facilities, retail stores, and public assembly buildings, also relies on water heating and water treatment.
Further, the adoption in the hospitality sector is driven by the increasing number of commercial projects and the growing demand for sustainability. Safety relief valves are essential components of these systems to ensure safe operation with combustible fuels. Data analytics plays a crucial role in optimizing the performance of these heating systems, reducing energy consumption, and minimizing maintenance costs. The growing emphasis on energy efficiency and the rising awareness of the environmental impact of energy usage further fuel the market. Therefore, increasing investment in the hospitality sector is expected to significantly increase the demand, which is expected to drive the growth of the focused market during the forecast period.
One of the key trends in the global market is the increasing use of smart devices. In the commercial sector, the shift towards modern heating systems is a significant trend in the global market. Building energy codes and sustainability requirements have driven the demand for energy-efficient ones in commercial establishments such as offices, hospitals, educational institutions, lodging, and urban centers. These establishments rely on various heating systems, including gas, oil, hot water, steam, radiators, baseboard units, fan coils, and heat exchangers, to maintain optimal indoor temperatures. The integration of home automation systems and smart technologies has revolutionized water heating and treatment processes. Energy-efficient boilers with advanced firmware, algorithms, and learning abilities help minimize a commercial project's carbon footprint while reducing operating costs. Natural gas and fuel oil boilers have been replaced by electric resistance coils and water treatment products in some applications.
Moreover, safety relief valves are essential components to ensure safe and efficient combustion. The increasing use of smart devices in the global electrical equipment sector has led to the development of smart thermostats and sensors for boilers. These systems enable data analytics, energy efficiency, and low maintenance costs, making them an attractive option for commercial infrastructure, shopping complexes, warehouses, storage facilities, retail stores, and public assembly buildings. In conclusion, the market is witnessing substantial growth due to the increasing focus on energy efficiency, sustainability, and operating costs in various commercial sectors. The integration of smart technologies and home automation systems is a major trend that is expected to continue shaping the market in the coming years. Such factors will increase the market growth during the forecast period.
The growth of the boiler rental sector is a key market challenge. In the commercial sector, the demand for heating systems, including steam and hot water, fluctuates significantly. While the baseload capacity is sufficient for most periods, seasonal peak loads exceed this capacity. To cater to these peak demands and ensure business continuity during boiler maintenance or unexpected breakdowns, industries are increasingly turning to boiler-on-rent services. This trend poses a challenge to the growth of the global market as establishments opt for energy-efficient in-house boilers for their base load needs and rent boilers for peak loads. Building energy codes and modern heating systems, such as home automation systems, are driving the adoption of energy-efficient boilers in commercial establishments.
However, natural gas and fuel oil are common combustible fuels used. However, electric resistance coils are gaining popularity due to their energy efficiency and lower operating costs. Data analytics and safety relief valves are crucial components of these systems, ensuring optimal performance and safety. Commercial projects, such as offices, hospitals, warehouses, storage facilities, retail stores, and shopping complexes, require water heating and water treatment products to maintain optimal conditions. The growing emphasis on energy efficiency and sustainability in commercial infrastructure is expected to further boost the demand and related products.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
A. O. Smith Corp.: The company offers commercial boilers such as the A. O. Smith Crest Condensing Boiler.
Burnham LLC: The company offers commercial boilers such as the Alpine Commercial Condensing Boiler.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market share growth by the natural gas segment will be significant during the forecast period. In the commercial sector, building energy codes continue to evolve, prioritizing the implementation of modern heating systems that adhere to sustainability standards. Energy-efficient boilers, which utilize natural gas as a fuel source, are increasingly popular choices for commercial establishments due to their lower carbon footprint and cost-effectiveness compared to oil or electricity-powered alternatives. These boilers, which include radiators, baseboard units, fan coils, and heat exchangers, are employed in various commercial infrastructure such as offices, hospitals, educational institutions, lodging facilities, and urban centers.
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Natural gas was valued at USD 12.02 billion in 2018. The commercial heating market is expected to expand significantly, with natural gas-based boilers accounting for a substantial share. Data analytics plays a crucial role in optimizing the performance of these heating systems. They are integrated with home automation systems, enabling remote monitoring and control, ensuring safety and efficiency. Safety relief valves are essential components of these systems, preventing potential hazards from combustible fuels. In conclusion, the market is witnessing significant growth, driven by the adoption of energy-efficient boilers, building energy codes, and the shift towards sustainable heating solutions. Natural gas, as a fuel source, is a preferred choice due to its affordability, efficiency, and lower carbon emissions. The integration of data analytics and home automation systems further enhances the performance and sustainability of these heating systems.
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APAC is estimated to contribute 45% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The market in the Asia-Pacific (APAC) region is witnessing significant growth due to the integration of digital systems and policymakers' support for infrastructure development. In APAC, the increasing number of hospital admissions and the expansion of commercial buildings, particularly in India, China, Vietnam, and the Philippines, are primary drivers for the market. The implementation of connected controls and the rise of green building codes in commercial buildings further boost the demand for energy-efficient commercial boilers. Two types, condensing and non-condensing, are widely used in APAC. Coal and solid fuel are the primary fuels for industrial boilers, while condensing boilers are preferred for their energy efficiency and cost-effectiveness in commercial applications. The regulatory standards for safety and emissions are stringently enforced, ensuring the installation of boilers with advanced safety accessories and energy-efficient accessories.
Furthermore, heat is a crucial factor in both residential and commercial buildings, and they play a vital role in providing space heating. The combustion process occurs in a burner, which heats the water in the heat exchanger chamber. The exhaust gases are then expelled through the exit flue, and safety accessories and energy-efficient accessories are employed to minimize harmful gas emissions. The market in APAC is expected to remain a significant contributor to the global market due to the region's positive economic scenario and the increasing focus on industrialization and urbanization. The cost-effectiveness and energy efficiency make them an essential component of healthcare facilities and other commercial buildings. Such factors will increase the market growth in this region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market encompasses the production, sales, and distribution of boilers designed for commercial applications. These systems provide thermal energy to heat water or other fluids for various industries and businesses. Boilers come in various types, including fire-tube, water-tube, and electric boilers. The market is driven by factors such as increasing industrialization, growing demand for energy-efficient solutions, and stringent regulations on emissions. Heating systems play a crucial role in commercial establishments, including hospitals, schools, offices, and hotels. The use of modern, high-efficiency boilers contributes to energy savings and reduced carbon footprint. Companies are investing in advanced technologies like condensing boilers and combined heat and power systems to optimize energy usage and minimize waste.
The market is expected to grow significantly due to the increasing demand for reliable and efficient heating solutions. The adoption of renewable energy sources and the integration of smart technologies are also expected to impact the market dynamics. The competition in the market is intense, with key players focusing on innovation, product development, and strategic partnerships to gain a competitive edge. In conclusion, the market is a dynamic and evolving industry, driven by the need for energy-efficient and cost-effective heating solutions. The market is expected to grow steadily, with companies investing in advanced technologies and strategic partnerships to meet the demands of various industries and businesses.
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Market Scope |
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Report Coverage |
Details |
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Page number |
154 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
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Market growth 2024-2028 |
USD 3.96 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.11 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 45% |
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Key countries |
China, US, Germany, Japan, and South Korea |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
A. O. Smith Corp., Burnham LLC, Carrier Global Corp., Clayton Industries, Cochran Ltd., Heating Ontario, Hurst Boiler and Welding Co. Inc., Maxima Boilers Pvt. Ltd., Parker Boiler Co., R.F. MacDonald Co., Robert Bosch GmbH, Slant Fin Corp., SPX Technologies Inc., Superior Boiler, The Cleaver Brooks Co. Inc., The Fulton Companies, Thermodyne Engineering Systems, U.S. Boiler Co., Vaillant GmbH, and Watts Water Technologies Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Fuel Type
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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