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

Commercial Steam Boiler Market Size

The global commercial steam boiler market was valued at USD 4.7 billion in 2024 and is expected to reach USD 9.4 billion by 2034, growing at a CAGR of 7.1% from 2025 to 2034. Increasing spending on commercial infrastructure including offices, retail stores, and healthcare facilities in key geographies will foster industry potential.
 

Government authorities and key industry players are introducing supportive policy frameworks toward transition from coal and oil-fired to gas and electric models to curb carbon emissions will propel the adoption of steam boiler units. Growing integration of IoT monitoring systems in this boiler system enables energy productivity, uptime, and efficiency in diverse commercial sectors, thereby stimulating industry growth.
 

For citation IEA notes that the investments aimed at transitioning energy systems are now compatible with the U.S. integrated net-zero 2050 emission target. This transition is intended to maximize economic value while achieving environmental sustainability.
 

Stricter enforcement of norms including ASME and EN toward replacement of traditional heating boilers with modern high-efficient units will bolster the industry dynamics. In addition, ongoing regulations and supportive incentives particularly for modernization of educational, healthcare, and government facilities will facilitate product deployment.
 

Commercial buyers are increasingly adopting modular steam boiler systems owing to scalability, ease of installation, and effective response to varying load requirements. Additionally, these systems support servicing without the need for total plant shutdowns which is beneficial for critical infrastructure redundancy.
 

For instance, the U.S. EPA put in place National Emission Standards for Hazardous Air Pollutants guidelines pertaining to the emission risks of pollutants from industrial and commercial boilers. These regulations foster the adoption of cleaner technologies and strengthen compliance with environmental legislation.
 

The government’s attention towards providing rudimentary healthcare services will lead to the development of additional healthcare centers in rural regions, which in turn will improve the business trajectory. The growing focus on dealing with the consequences arising from greenhouse gas emissions is escalating the need for energy-efficient boilers units.
 

Commercial Steam Boiler Market Trends

The industry is gaining prominent growth fueled by increasing shifts toward electrification and rising demand for constant and dependable steam supply across healthcare sectors for heating, humidification, and sterilization. In addition, the growing public and private investments in the healthcare industry along with the booming pharmaceutical industry will strengthen the business prospects.
 

Continuous development of urban heating zones withing emerging economies which require centralized heating systems, thereby fostering overall business growth. Energy systems that serve multiple facilities simultaneously deploy for process and space heating will further escalate the industry momentum.
 

For reference, in India’s Union Budget 2023-24, they augmented coverage under the Ayushman Bharat scheme to surpass 500 million people which is the largest allocation of public healthcare spending in any nation. The Amrit Kaal initiative also boosted the healthcare innovation market to 7 billion USD in FY 2023 which accelerated investment in digital health, AI diagnostic tools, and other emerging medical technologies.
 

Surging incorporation of digitalization technologies in these heating systems which offers remote access capabilities, predictive maintenance functions, and real time monitoring & analysis, further boosts the demand for commercial boiler units. Furthermore, academic institutions and large-scale public educational facilities often utilize steam for heating, cooking, and for laundry services, thereby accelerating industry growth.
 

Rapid growth of biomass steam boiler systems as renewable energy option in agriculture and rural commercial establishments which will strive for economic, ecologically friendly heating solutions, thereby stimulating industry scenario. The adoption of digital platforms which facilitate remote monitoring of steam pressure, water quality, and combustion efficiency will drive the demand for these units.
 

For instance, Skanska won the bid for constructing Lee's New Hospital and Medical Services Building in November 2024 for USD 435 million. The project is located at Fort Myers; Florida and it consists of a five-story hospital of approximately 416,000 square feet as well as a medical office building of 125,000 sq ft which houses an outpatient surgery center.
 

Commercial Steam Boiler Market Analysis

• The commercial steam boiler industry was estimated at USD 4, 4.3, and 4.7 billion in 2022, 2023 and 2024 respectively. Based on fuel, the industry is segmented into natural gas, oil, coal, electric, and others. The industry is gaining momentum propelled by their improvements including reduced environmental impact, enhanced energy efficiency, and lower heating costs required for performing operations.
   
• The natural gas commercial steam boiler market is projected to reach over USD 4 billion by 2034. The industry is observing robust growth propelled by their high thermal efficiency, lower emissions, and operational flexibility. The availability of pipeline infrastructure and liquefied natural gas (LNG) imports are increasingly favoring the business environment.
   
• For instance, the U.S. possesses a sophisticated natural gas pipeline system of 3 million miles that connects producers and storage facilities to consumers. In 2022, the U.S. provided approximately 29.2 trillion cubic feet of natural gas to 78.3 million users throughout the country.
   
• The oil commercial steam boiler market was valued over 1 billion in 2024. These heating systems are increasingly favored driven by the new regulations relating to the environment along with the increasing cost of fuel. These systems enable a high turn ratio to control the steam flow accurately in response to demand changes which boost to advancing the industry further.
   
• The coal fueled commercial steam boiler market will witness a growth rate of over 1.5% till 2034. These fuel sources are the most affordable and easiest fuel sources to obtain, further increasing the demand for high-capacity boilers in developing areas. Moreover, it maintains reliable output regardless of shifts in supply or load, which enables remarkable thermal inertia.
   
• For reference, the International Energy Agency states that global expenditure on energy in 2023 reached USD 2.8 trillion, of which USD 1.7 trillion was spent on new energy technologies that include renewables, nuclear power, low-emission fuels and modern infrastructure for renewable energy.
   
• An electric commercial steam boiler market will exceed USD 2 billion by 2034. These boiler systems are becoming more popular on account of their zero emissions onsite, simple maintenance, installation, and ease of use particularly in urban buildings including offices, educational institutions, and healthcare facilities.
   

• Based on application, the industry is segmented into healthcare facilities, offices, lodgings, retail stores, educational institutions, and others. The healthcare facilities segment captured 26.6% of market share in 2024. The continuous growth of healthcare infrastructure in developing economies on account of surging demand for steam sterilization, space heating, and similar routine activities in hospitals, clinics, and diagnostic centers.
   
• An educational institution’s commercial steam boiler market will register at a CAGR of over 6.5% till 2034. This growth is driven by rising investments in school infrastructure, especially in developing countries. The construction and private sectors are investing more in the educational systems which has increased the need for economic heating systems.
   
• For instance, in January 2025, Proclamation by The Biden-Harris Administration articulated that The Hemlock Semiconductor is going to be granted funding up to an amount of USD 325 million in direct funding for commercial fabrication facilities under The CHIPS Incentives Program’s funding opportunity.
   
• The lodgings commercial steam boiler market is projected to reach over USD 900 million by 2034. Rising global tourism and the increased pace in the construction of hotels and resorts in tandem with their captivating elegance, further driving the need for dependable and efficient systems of heating for the guests’ comfort and the hotel’s operations.
   
• An office’s commercial steam boiler market was valued at over USD 900 million in 2024. Increasing shifts toward open cubicles and the flexibility in the workspace is escalating the need for heating systems which are mechanically efficient and easy to adapt to changes, thus these heating systems become a vital part of modern office systems technology.
   
• For citation, Canada has disclosed various projects in the energy sector with potential investment figured at USD 632.6 billion in September 2024. There are 504 major projects which are either under construction or planned to be started within the next 10 years.
   
• The retail store’s commercial steam boiler market is projected to register at a CAGR of over 6.5% till 2034. The industry is fueled by considerable private funding towards construction of new shopping centers and the renovation of older ones. Continual evolution of retail spaces to meet customer needs facilitates the accurate regulation of indoor temperatures, thereby augmenting business prospects.
   

• The U.S. commercial steam boiler market was valued at USD 727.4, 771.9, and 816.1 million in 2022, 2023 and 2024 respectively. The country is seeing an upward trajectory driven by an increase in national energy policy coupled with a flourishing tourism industry. Federal policies require stricter control of emissions which in turn will increase interest in low-NOx burners and more efficient combustion techniques.
   
• North America commercial steam boiler market will witness a CAGR of over 6.5% till 2034. The consistently smooth flow of projects in health care facilities, alongside the initiatives set forth by the government for large scale commercial constructions, and positive policies framework will improve the business environment.
   
• For instance, the Government of Canada and its partners have contributed over USD 26 million toward the development of integrated healthcare systems. As a result of this investment, it is expected that the coordination of care will be improved, patient outcomes will be optimized, and the provision of health services across the country will be maintained in a sustainable manner.
   
• The Europe commercial steam boiler market was valued over USD 2 billion in 2024. The region is observing significant growth propelled by the shift toward low-emission and high-efficiency systems. In addition, the growing environmental policies and decarbonization goals instituted by the EU will proliferate the business momentum.
   
• The Asia Pacific commercial steam boiler market accounted for over 20% revenue share in 2024. The increasing commercial activities along with surging investments in highly efficient heating systems across the region will sway the business dynamics. Further, the introduction of tax benefits aimed at subsidizing the adoption of energy conserving technologies which operate optimally under extreme climate conditions and low fuel usage will boost industrial activity.
   
• For citation, in February 2024, Germany legally fortified its net-zero emissions goal to 2045 having received backing from the parliament, government, and the constitutional court. This will further fast track the decarbonization processes that are already present within the country as well as cause deep investment and shifts economically in the transition to a low carbon economy.
   
• The Middle East & Africa commercial steam boilers market is poised to grow at a CAGR of over 6.5% till 2034. The ongoing adoption of advanced boiler technologies including condensing and hybrid systems will positively sway the product deployment. Moreover, smart technologies and IoT systems will further enhance sustainability efforts in the region.
   
• The Latin America commercial steam boiler market is set to reach over USD 350 million by 2034. The addition of modern controls to previously installed boiler systems alongside the newer requirements for safe boiler operation in critical safety regions will increase the demand for these units. Moreover, the availability of ‘ready to use’ project solutions will enhance the opportunities of the area.
   

Commercial Steam Boiler Market Share

• The top 5 players including Babcock & Wilcox, Lochinvar, VIESSMANN, Bosch Industriekessel, and Burnham Commercial hold a share of about 45% in the commercial steam boiler business. The industry is highly competitive and dynamic due to technological developments, energy efficient regulations, and an increased emphasis on environmentally friendly heating systems.
   
• Bosch Industriekessel focuses on the commercial steam boiler segment specializing in high-technology systems with low emissions, intelligent controls, and high steam generation efficiency. The company is gaining a prominent foothold owing to its strong R&D, tailored system configurations, and robust global service networks.
   
• Lochinvar possesses a competitive edge in the commercial steam boiler market with their advanced heating solutions that are both energy efficient as well as technologically sophisticated. The firm exploits its knowledge of both condensing and non-condensing boiler systems across a variety of applications throughout the North America region.
   

Commercial Steam Boiler Market Companies

• In 2024, Babcock and Wilcox Enterprises recorded revenue of USD 717.3 million, generated from environmental, renewable and thermal segments. The company’s overall performance was driven by the Thermal segment which yielded USD 497.9 million, clearly validating the demand for sophisticated thermal solutions in the industrials markets.
   
• In the year 2024, Bosch Industriekessel’s parent company Robert Bosch reported revenues of approximately USD 100.1 billion, out of which USD 8.7 billion was spent on research and development aimed at innovation throughout its value chain. The company also reported USD 3.4 billion EBIT from operations which reflects good profitability and well-managed business discipline execution.
   
• Vapor Power’s parent company Thermon revenue was USD 498.2 million in 2024 fiscal year which shows its diversified operations across industrial heating solutions. Additionally, the continued emphasis on engineered heating systems and lifecycle services deepened market penetration and enhanced sustainable revenue opportunities.
   

Major players operating in the commercial steam boiler industry are:

• Babcock & Wilcox
• Bosch Industriekessel
• Burnham Commercial
• Clayton Industries
• Cleaver-Brooks
• Columbia Heating Products
• FERROLI
• Fulton
• Hoval
• LAARS Heating Systems
• Lochinvar
• PARKER BOILER
• Precision Boilers
• Sellers Manufacturing
• Smith Hughes Company
• Superior Boiler
• Vapor Power International
• VIESSMANN
• WM Technologies
• York-Shipley
   

Commercial Steam Boiler Industry News

• In February 2025, Babcock & Wilcox announced that its subsidiary, Babcock & Wilcox Construction, received contracts for critical maintenance and servicing activities at several power generation facilities in North America, amounting to USD 35 million. These contract awards increase BWCC’s already strong project pipeline and raise its construction services backlog to more than USD 160 million as the company enters 2025.
   
• In May 2024, Cleaver-Brooks was acquired by Miura, a Japan’s based boiler manufacturer. The firm pointed out the strategic alignment with Miura’s partnership, emphasizing that this collaboration will improve its engineering skills and product portfolio. The emphasis of this merger integration is the further advancement in the development of sustainable boiler room solutions while upholding service quality.
   
• In February 2023 Weil-McLain introduced its 2023 commercial boilers claiming synergy of efficiency and compliance. The recently designed LGB Steam Series 3 and Water Series 88 Steam Type Boilers were superbly enhanced to steam generating capability 1,000,000 and 1.5 million BTU's respectively and sustained growth in dependable long life operational capabilities.
   
• In January 2023, Clayton Industries incorporated 600-horsepower E Series boilers at its corrugation plant as well as custom steam solutions. E Series models include steam fired generators and fully modulated automatics, from 150-2,000 BHP. Supporting custom steam solutions, in E Series models, the company seeks to enhance its foothold in the region that precipitated this shift.
   

The commercial steam 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 - 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 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