Commercial Boiler Market Size – By Fuel, By Capacity, By Technology, By Product, By Application, Analysis, Share, Growth Forecast, 2025 – 2034

Commercial Boiler Market Size

The global commercial boiler market was valued at USD 14.7 billion in 2024 and is expected to reach USD 28.8 billion by 2034, growing at a CAGR of 6.8% from 2025 to 2034. The increasing push toward smart city developments as well as the efficient city integration combined with surging urbanization will catalyze the need for these boilers.
 

The advancement toward carbon emission concern in addition to the promotional electrification and hybrid heating systems will define the product scape. Rising expansion in district heating networks coupled with the increasing use of modular & packaged boilers in commercial establishments will augment the business dynamics.
 

Ongoing advancements in boiler technology including digital controls, IoT integration, and predictive maintenance solutions will enhance system reliability and operational efficiency. Furthermore, the expansion of district heating networks and the growing preference for modular and packaged boilers in commercial facilities will shape the industry dynamics.
 

Enhanced public expenditure in the healthcare sector together with substantial investments from both private and public entities will benefit the business environment. The growing use of these units for space heating, water heating, and sterilization of autoclave equipment will boost the industry prospects.
 

Commercial Boiler Market Trends

These systems are already widely used in commercial buildings comprising of schools, universities, federal institutions, and airports will boost growth in the boiler market. Increased government spending into the healthcare industry, as well as the significant contributions from the public and private sector, will continue to fuel industry growth.
 

The transition from fossil fuels to low-carbon energy sources along with the accelerated adoption of clean technologies, is set to expand the market. The modernization of commercial buildings and increasing consumer demand for energy efficient heating systems will further stimulate business growth. These systems are also efficient and easy to maintain, perform reliably, and are low maintenance which are important drivers of commercial boiler market growth.
 

Rising government investments in the healthcare sector, coupled with substantial funding from public and private stakeholders, will create a favorable business landscape. Expanding applications of these systems for space heating, autoclave sterilization, and water heating will further strengthen industry growth.
 

For instance, in 2023, Canada focused about USD 25 million towards improving health care service delivery by enhancing the integration of systems through problem solving research. This initiative incorporates digital health, chronic illness, and mental health services. An impact hub alongside thirteen research teams will promote the adoption of policies and enhance patient care. This investment further illustrates Canada’s focus on healthcare system improvement.
 

The adoption of multiple boiler systems due to the strict carbon emission regulations imposed by the government along with the increased emphasis on reliability will help in evolving the market. The systems are advantageous with respect to lower installation cost, reduced time for setup, and high efficiency in operation which increases the growth rate of the commercial boiler market.
 

The increasing expenditure on infrastructure along with a booming real estate sector will initiate growth in business. Furthermore, the intensifying focus on green building construction as well as the growing scope of the commercial sector will enhance the market opportunities. The growing consumption of energy efficient heating appliances will drive the growth of new boiler technology adoption.
 

Commercial Boiler Market Analysis

• The commercial boiler industry was valued at USD 12.4, 13.6 & 14.7 billion in 2022, 2023 and 2024 respectively. Based on fuel, the market is segmented into natural gas, oil, coal, electric and others. The expanding need for heating equipment in remote and off-grid premises, in line with a growing shift toward compact and space saving boilers is set to enhance the industry growth.
   
• The natural gas commercial boiler market will grow at a CAGR of 6% through 2034, owing to abundant supply of natural gas and the existing government policies encouraging low emission fuel use. Furthermore, replacing traditional boiler systems with new ones in these facilities will boost growth in this sector as well.
   
• The oil commercial boiler market was valued at USD 3.5 billion in 2024, the vast availability of oil reserves from different countries and growing investment in infrastructure will boost business expansion considerably. These boilers are utilized in applications which have limited access to natural gas infrastructure such as remote areas, aged structures, and off grid installations.
   
• For instance, Canada has issued new regulations to reduce emissions in the oil and gas sectors by 35% in 2024. The goal of the government is to incentivize producers to reinvest their profits into climate positive endeavors. As oil and gas still stand as the predominant sources of pollution in the country, substantial reductions in emission figures are essential in the fulfillment of the national climate goals.
   
• The coal commercial boiler market is expected to reach over USD 1 billion by 2034; these boilers are commonly deployed in facilities with direct access to coal resources, particularly in regions where coal remains a dominant energy source.
   
• The market for electric commercial boilers is expected to grow at a CAGR of over 12% through 2034, rising foreign investments in the development and expansion of commercial infrastructure along with the increasing replacement of traditional heating systems will augment the product penetration.
   

• Based on application, the market is segmented into offices, healthcare facilities, educational institutions, lodgings and retail stores, the office commercial boiler market was accounted over USD 5.5 billion in 2024, the ongoing modernization of commercial properties and the push toward sustainable heating technologies will boost the industry growth.
   
• Healthcare facilities application for commercial boiler market holds a share of 26.5% in 2024, ongoing expansion of healthcare infrastructure, coupled with the development of new hospitals and diagnostic centers, will accelerate product adoption. Rising demand for steam to support a diverse range of applications within this sector will further drive market growth.
   
• Educational institution commercial boiler market was valued at USD 1.6 billion in 2024, rising foreign investments and ongoing collaboration between regional governments to enhance school infrastructure in developing nations will further drive industry growth.
   
• For instance, in 2023, the Ministry of Education in South Korea advanced its digital learning strategy by committing USD 69.3 million through 2026 to enhance classroom infrastructure. An additional USD 43.2 million will support AI-driven education by equipping 6,000 schools with monitoring systems for AI textbooks and training 1,200 digital tutors.
   
• Lodging commercial boiler market is expected to reach USD 3.1 billion by 2034, the booming tourism industry coupled with the rapid expansion of hotels and resorts, will accelerate the deployment of commercial boilers in the sector. Stringent government regulations along with rising consumer spending, will further enhance business growth.
   
• The retail stores commercial boiler market will grow at a CAGR of 6.5% till 2034. The retail sector is poised for significant expansion, driven by substantial private investments in the development of new outlets. Additionally, shifting climatic conditions and the increasing emphasis on maintaining optimal indoor temperatures will further accelerate business growth.
   
• Based on capacity, the market is segmented into ≤ 0.3 - 2.5 MMBtu/hr, > 2.5 - 10 MMBtu/hr, > 10 - 50 MMBtu/hr, > 50 - 100 MMBtu/hr and > 100 - 250 MMBtu/hr. The ≤ 0.3 - 2.5 MMBtu/hr, commercial boiler industry was accounted for over USD 1.5 billion in 2024, wide scale utilization of these units across wide tandem of commercial establishments along with increasing infrastructural investments will favor the business scenario.
   
• > 2.5 - 10 MMBtu/hr commercial boiler market will grow at a CAGR of over 6.5% through 2034, these compact units offer significant benefits, including easy installation, low maintenance costs, and the capability to deliver instant hot water, which will further accelerate product adoption.
   
• > 10 - 50 MMBtu/hr commercial boiler industry was valued at over USD 3 billion in 2024, the ongoing modernization of healthcare facilities, coupled with a thriving real estate sector, will further propel business growth. The growing adoption of these boilers across retail stores, offices, nursing homes, schools and other commercial establishments will drive market demand.
   
• For instance, in 2024, the European Investment Bank reinforced its commitment to education infrastructure by extending a USD 109 million framework loan to Infestations bank des Landes Brandenburg (ILB). This initiative aims to modernize and digitalize nurseries, schools, and vocational institutions across Brandenburg, fostering enhanced learning environments and technological advancement.
   
• > 50 - 100 MMBtu/hr commercial boiler market is expected to reach USD 8.3 billion by 2034, these capacity boilers are set to experience substantial growth, driven by the rising demand for centralized heating and cooling in large commercial buildings such as warehouses, hospitals, and shopping malls.
   
• The > 100 - 250 MMBtu/hr commercial boiler market will grow at a CAGR of 6.5% till 2034. Increasing infrastructure investments, modernization of heating systems, and stringent emissions regulations will promote the shift toward cleaner fuels and will fuel the product landscape.
   

• U.S. commercial boiler market was estimated at USD 1.9, 2.1 & 2.2 million in 2022, 2023 and 2024 respectively. Stringent energy efficiency regulations, rising investments in commercial infrastructure and increasing demand for space and water heating solutions will foster the business landscape.
   
• North America commercial boiler market will witness at a CAGR of 6% up to 2034. Extreme weather conditions coupled with rising investments in construction activities within the region will drive product adoption. Growing demand for space heating, prolonged cold seasons and modernization of existing commercial infrastructures are reinforcing the industry outlook.
   
• The Asia Pacific commercial boiler market is set to reach over USD 8.3 billion by 2034, fueled by the introduction of supportive government policies and financial incentives for clean energy adoption.
   
• For instance, in 2025, the Australian government reinforced its commitment to universal healthcare by allocating USD 8.5 billion to strengthen Medicare. This investment aims to enhance primary care accessibility, ensuring that citizens receive timely medical attention while emphasizing value-based healthcare models to improve patient outcomes and system efficiency.
   
• The Europe commercial boiler market is poised to grow at a CAGR of over 7% in 2034, owing to the strict emission regulations aligned with national sustainability targets. Ongoing infrastructure advancements fueled by a revitalized construction sector will further accelerate the product deployment.
   
• For instance, in 2024, the European Investment Bank (EIB) reinforced Spain’s education sector by extending a USD 109 million loan to the Government of Catalonia. This funding will support the renovation and expansion of public schools, enhancing learning environments while integrating sustainability measures to improve energy efficiency across educational facilities.
   
• The Middle East & Africa commercial boiler has a market share of 4%. Governments are emphasizing energy efficiency and emission reduction, prompting the adoption of advanced boiler technologies, including low-NOx and condensing systems. Additionally, the rising investments in district heating and industrial facilities are further stimulating product demand.
   
• The Latin America commercial boiler market is poised to grow at a CAGR of 5% in 2034. Growing emphasis on sustainability will encourage the integration of renewable energy sources, including biomass and solar-assisted boilers. Ongoing urbanization, industrialization and government incentives for cleaner heating technologies will support market expansion.
   
• For instance, in 2024, Brazil launched the National Energy Transition Policy, aiming to attract USD 400 billion in green economy investments over the next decade. This initiative integrates key government policies to accelerate clean energy adoption, strengthen Brazil’s leadership in renewables, and drive sustainable industrial growth through wind, solar, biofuels, and hydrogen development.
   

Commercial Boiler Market Share

• The top 5 players including A.O. Smith, Babcock & Wilcox, Babcock Wanson, Bosch Industriekessel and VIESSMANN together holds share of about 40% in the commercial boiler industry. A.O. Smith reported segment earnings of USD 707.5 million in 2024, with a segment margin of 24%, compared to USD 726.7 million and 24.9% in 2023.
   
• Bosch Industriekessel is ready for significant growth which puts it in the lead position of the boiler industry. With perpetual improvement of the heating systems, heightened energy productivity, and advanced emissions control technologies, the company is still leading the changes in the industry and continues to foster innovations making it a global standard setter for multifaceted and eco-friendly high efficiency systems.
   
• Viessmann is one of the leading manufacturers in heating, industrial, and refrigeration systems with great reputations worldwide. They are well known for their sustainable and high-efficiency boiler solutions. The company continues to develop state of the art boiler technologies which, in turn, support the company’s vision of innovation, sustainability, carbon reduction, and renewable energy.
   

Commercial Boiler Market Companies

• A.O. Smith made a report on the segment earnings and claimed a profit of USD 707.5 million which included a segment margin of 24.0% in 2024. In comparison, the 2023 report showed profits equal to USD 726.7 million with a segment margin of 24.9%. The decrease in earnings and margins were said to be affected by the decreased sales volumes and investment in strategic marketing activities.
   
• Miura America’s cumulative earnings for the nine month period amounted to USD 1.16 billion which is 62.3 percent higher compared to the previous year in 2024. The operating profit increased by 46.2 percent to USD 152.2 million. Moreover, profits earned before income tax expenditure bonds rose by 41.9 percent to USD 173.9 million.
   
• Babcock & Wilcox Enterprises has reported revenue of USD 651.1 million in the first three quarters of 2024, demonstrating the company's strong market position. The operations of the company are divided into Babcock & Wilcox Renewable, Babcock & Wilcox Environmental as well as Babcock & Wilcox Thermal. The leading contributor among them was the Babcock & Wilcox Thermal segment which generated revenue of USD 350.3 million during the first nine months of the year, thus strengthening its critical position in the growth of the company.
   

Major players operating in the commercial boiler market are:

• A.O. Smith
• AERCO
• Ariston Holding
• Atlantic Boilers
• Babcock & Wilcox
• Babcock Wanson
• Bosch Industriekessel
• Bradford White Corporation
• BURNHAM COMMERCIAL BOILERS
• Clayton Industries
• Cleaver-Brooks
• Columbia Boiler Company
• FERROLI
• Fonderie Sime
• FONDITAL
• Fulton
• Hurst Boiler & Welding
• Miura America
• PARKER BOILER
• PB HEAT
• Precision Boilers
• Vaillant Group
• VIESSMANN
• Weil-McLain
• WOLF
   

Commercial Boiler Industry News

• In October 2024, AERCO’s CFR condensing boiler won the AHR Innovation Award in the Heating category as a result of its unique Category I vent condensing boiler. This stainless steel condensing boiler has inexpensive retrofitting capabilities since it does not require costly venting systems. As with all AERCO products, CFR has high energy savings of up to 87.6% while effortlessly complying with local regulations. There innovation assists in building decarbonization and makes adoption of high efficiency heating solutions a breeze.
   
• In June 2024, Babcock Wanson Group disclosed that Ambienta bought majority shares in the company which is a considerable milestone in the company's growth strategy. Babcock Wanson is expected to benefit from Ambienta’s knowledge in sustainable investments, which will further enhance innovation in resource efficiency and pollution control. The company is ready to broaden its presence on the market while deepening its eco-friendly business endeavors.
   
• In May 2024, Miura Co. has competently acquired Cleaver-Brooks, which is a leading manufacturer and solution provider for boilers. The acquisition, combined with their experience and involvement in our business, will allow us to continue providing exceptional service and unparalleled sustainable boiler room solutions.
   
• In March 2024, Hurst Boiler & Welding Co. signed a contract with Nationwide Boiler Inc. making Nationwide Boiler the independent representative for goods and services of Hurst Boiler in California and in the Houston, Texas region. This enabled customers to have access to Hurst’s feedwater equipment, boilers, and custom-engineered solutions across multiple industries.
   

The commercial boiler market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume (Units), capacity (MMBTU/hr) & revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Fuel

• Natural Gas
• Oil
• Coal
• Electric
• Others

Market, By Capacity

• ≤ 0.3 - 2.5 MMBtu/hr
• > 2.5 - 10 MMBtu/hr
• > 10 - 50 MMBtu/hr
• > 50 - 100 MMBtu/hr
• > 100 - 250 MMBtu/hr

Market, By Technology

• Condensing
• Non-Condensing

Market, By Product

• Hot Water
• Steam

Market, By Application

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

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Poland
  • Italy
  • Spain
  • Austria
  • Germany
  • Sweden
  • Russia
• Asia Pacific
  • China
  • India
  • Philippines
  • Japan
  • South Korea
  • Australia
  • Indonesia
• Middle East & Africa
  • Saudi Arabia
  • Iran
  • UAE
  • Nigeria
  • South Africa
• Latin America
  • Argentina
  • Chile
  • Brazil