Gas-fired commercial boiler market to record a 3% CAGR over 2018-2024, energy efficiency trends to drive the product penetration
Standing as one of the top-notch energy transition verticals, commercial boiler market is poised to amass substantial gains, with a global installation target of 300,000 units by 2024. Boiler efficiency has been touted as one of the foremost factors determining the overall efficiency of a central heating system. According to the U.S. DOE, commercial infrastructure consumes more than 7 trillion joules of site energy annually. The boiler efficiency also has a major impact on the carbon emissions and cost reduction, owing to which the demand for commercial boilers has observed a sharp uptick globally.
U.S. Commercial Boiler Market Size, By Capacity, 2017 & 2024 (USD Million)
In context of energy efficiency, the ongoing renovation activities of inefficient building infrastructure is providing a substantial impetus to the commercial boiler industry trends. The fraternity has been witnessing a slew of product developments and technological proliferations to develop advanced, efficient, and sustainable equipment. In this regard, condensing boilers have registered a massive demand across the commercial sector, primarily driven by their emission reduction capabilities.
The stringent government regulations mandating the use of energy-efficient systems also bags a major growth credit. Europe, in this regard, has been at the forefront to implement these energy-efficient and sustainability standards. One of the significant measures along these lines have been the Energy Performance of Building Directive by the European Union, which aims to achieve zero carbon emissions from buildings by 2050. As yet another initiative, in 2017, the European Commission launched Voluntary Reporting Framework Level(s) to improve the building sustainability. Driven by such stringent regulations toward energy transition and infrastructural developments, Europe commercial boiler market is slated to witness appreciable proceeds over the coming years.
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Elaborating further on the regional trends, the contribution of the United States toward overall commercial boiler market demand has been rather huge. The nation’s proactiveness and awareness toward realizing an energy-efficient infrastructure in tandem with massive investments toward replacing conventional heating units have been cited as some of the pivotal regional growth drivers. The EPA’s National Emission Standards for Hazardous Air Pollutants (NESHAP) regulating the emissions from commercial and industrial centers in one such profound initiative undertaken by the US government. As per reliable estimates, US commercial boiler market size is slated to surpass an annual installation of 80,000 units by 2024.
It is imperative to mention that amidst the stringent regulatory backdrop, gas-fired commercial boiler industry has witnessed a massive penetration globally. Besides meeting the emission standards, these boilers also have lower maintenance and operational costs which is further fueling its deployment across the commercial sectors. In terms of commercialization, this segment is forecast to record a CAGR of 3% over the coming six years.
While the application landscape of global commercial boiler market is extensive, healthcare sector stands as one of the major contenders with reference to the growing demand for these equipment. Hospitals reportedly have some of the highest energy use ratings for mechanical and heat operations, which vividly indicates the demand portfolio of boilers in this sector. As per reliable sources, healthcare sector accounts for using nearly 5% of the energy in commercial sector. Furthermore, hospitals spend billions of dollars annually as energy costs, which can be drastically improved with the upgradation of boilers. The rising government investments toward improving healthcare infrastructure, which involves the replacement of traditional boilers, will largely boost the deployment of these products, making the healthcare sector as one of the most lucrative application spheres for commercial boiler market.
All in all, with a rather expansive application spectrum and rising ecological needs of the industries, commercial boiler market is overt to record substantial demand in the coming years. In terms of profitability potential, Global Market Insights, Inc. forecasts the worldwide commercial boiler industry to surpass USD 15 billion by 2024.
Author Name : Krithika Krishnan