Growing number of commercial establishments like hospitals, warehouses, lodgings, offices, etc. in recent years has increased the application of boilers across these buildings. In addition, stringent energy efficiency norms adopted in commercial establishments have led to a significant surge in the infiltration of advanced boiler systems. These factors are providing lucrative growth prospects for U.S. commercial boiler industry.

The market has observed a forward integration in terms of distribution and after-sales services such as installation, maintenance, retro-fittings, and repairs. Besides, integration of digital monitoring systems for improving the value proposition for the end consumer is further providing a favorable business scenario.

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The business expansion is being further supported by the development of advanced solutions by the market players. For instance, in 2020, the U.S. division of Ariston Thermo, a leading manufacturer of high efficiency water heating systems, announced the launch of its novel EFTU condensing firetube boiler and expanded its portfolio of the ELU Series water tube boilers.

According to Global Market Insights, Inc., U.S. commercial boiler market is expected to record annual installation of more than 69,000 units by 2027, given the prominence of following trends:

Heightened demand for oil-fired commercial boilers

Deployment of oil-powered boilers has been majorly propelled by the increased preference for oil as the fuel due to safety concerns and price volatility. These boilers offer long-term energy cost savings as compared to gas-fired boilers, thanks to the low fuel prices. The ability to deliver cost-friendly heating along with the easier availability of resources is encouraging the companies to use oil as a fuel in commercial heating systems. This will enhance the business space in future.

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Growing adoption of condensing boilers

Burgeoning demand for condensing boilers can be ascribed to their higher efficiency, easy installation and compact design. Application of condensation of water vapors of temperature below 56°C coupled with the integration of a specially designed heat exchanger to cool the steam are some of the benefits offered by the condensing boilers. Another important factor driving the product penetration is the establishment of stringent energy efficiency directives aimed at energy conservation which has increased the replacement rate of traditional boiler technology.

Increasing application across the healthcare sector

Commercial boilers are observing mounting demand across healthcare industry in the U.S. driven by numerous factors such as rising investment towards the revamp of medical facilities and growing consumer expenditure for healthcare facilities. The healthcare settings extensively use the boilers due to frequent requirement of hot water. In addition, rising pervasiveness of chronic diseases and geriatric population has instigated the development of new healthcare facilities, which has subsequently impelled the product penetration.

Rising demand for space heating in East North Central region

Rising demand for space heating in the East North Central area in the U.S. is positively influencing the adoption of boiler systems in the commercial sector. Besides, the region has a strong presence of eminent commercial and business centers. This is further fueling the deployment of boiler systems for heating purposes, especially in the harsh winter conditions. Moreover, increasing investments aimed at the expansion and enhancement of existing commercial facilities is in turn proliferating the U.S. commercial boiler market growth.

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