Commercial Boiler Market Size and Share: In-Depth Assessment of the Global Industrial Heating Equipment Landscape
The 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 essential equipment used in facilities to provide space heating, domestic hot water, and process steam. They are used widely in various commercial buildings like hospitals, hotels, offices, educational institutions, retail stores, food industries and more. Commercial boilers offer benefits like higher efficiency, lower operating cost, easier installation and maintenance. They prove vital for comfort heating and various industrial processes.
Market key trends:
One of the key trends witnessed in the commercial boiler market is increased efficiency requirements. With growing need to conserve energy and reduce carbon footprint, regulators across regions have implemented stricter norms regarding boiler efficiency. This has prompted manufacturers to focus on developing modern condensing and non-condensing boiler models with thermal efficiencies over 80-85%. Advanced technologies like modulating controls and condensing heat exchangers are helping commercial boilers achieve higher efficiencies. Their ability to conserve fuel and lower energy bills is a major driver for adoption.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low due to high capital requirements and established brands. Bargaining power of buyers: Buyers have high bargaining power due to the availability of several product options from different manufacturers. Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of substitute materials. Threat of new substitutes: The threat of new substitutes is moderate due to the emerging alternate heating technologies. Competitive rivalry: High due to presence of major players.
SWOT Analysis
Strength: Wide product portfolio and technical expertise. Weakness: High operational costs and vulnerability to economic cycles. Opportunity: Growing demand from commercial sectors and replacement of aging boilers. Threats: Stringent regulations and rising raw material prices.
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 energy demands from the industrial and commercial sectors. Regionally, Asia Pacific dominate the market and is expected to maintain its dominance during the forecast period, growing at the fastest CAGR of around 5%, attributed to rapid industrialization and urbanization.
Key players operating in the commercial boiler market incorporate 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.
The global commercial boiler market size for 2023 is US$ 2.02 Bn. Regional analysis, Asia Pacific region is the fastest growing market for commercial boilers, mainly due to rapid industrialization and growth of the manufacturing sector in economies like China and India.
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