Commercial Boilers Market to Reach USD 20.65 Billion by 2031, Driven by Shift Toward Condensing and Electric Systems

Commercial Boilers Market Overview 

According to Mordor Intelligence, the commercial boilers market was valued at USD 16.78 billion in 2025 and is estimated to grow from USD 17.37 billion in 2026 to reach USD 20.65 billion by 2031, registering a CAGR of 3.53% during the forecast period (2026–2031). The commercial boilers market size reflects steady replacement demand, regulatory-driven upgrades, and selective new construction across offices, healthcare, education, hospitality, and data centers. The commercial boilers industry remains closely tied to commercial construction cycles and retrofit programs. Demand from cold-climate regions and mission-critical facilities such as hospitals and data centers continues to support consistent market growth. 

Energy-efficiency mandates, NOx-emission caps, and zero-emission building targets across North America and Europe are shaping the commercial boilers market forecast. Buyers are increasingly evaluating lifecycle performance, fuel flexibility, and digital monitoring capabilities before making procurement decisions. While natural gas systems continue to anchor the installed base due to fuel availability and operating cost advantages, electric and hybrid solutions are gaining attention where electrification policies are accelerating.  

Commercial Boilers Market Growth Drivers Shaping Demand 

Efficiency and Emission Compliance Requirements 

Government regulations focused on efficiency benchmarks and NOx emission reduction are influencing commercial boilers market trends. Compliance deadlines are encouraging building owners to replace aging non-condensing systems with condensing or hybrid alternatives. Public procurement policies that prioritize low-emission equipment are also influencing private-sector specifications. As a result, the commercial boilers market share of condensing and electric-ready models is gradually increasing. Manufacturers are responding with redesigned combustion systems, digital controls, and monitoring tools that help operators maintain compliance while managing fuel consumption. 

Natural Gas Retains Core Market Share 

Natural gas continues to dominate the commercial boilers market share due to widespread pipeline infrastructure and predictable fuel pricing. Many commercial properties rely on established gas networks, particularly in North America and parts of Europe. However, manufacturers are introducing hydrogen-ready gas systems to align with long-term decarbonization roadmaps. These adaptable systems allow facility owners to protect their investment while preparing for potential fuel transitions, sustaining the commercial boilers market size across retrofit projects. 

Retrofit Demand and Hybrid Solutions 

Retrofit activity is creating premium segments within the commercial boilers industry. Building owners seeking phased upgrades are adopting hybrid boiler–heat pump combinations that reduce emissions without requiring complete system replacement. Hydrogen-ready and electric-compatible units are also entering municipal and institutional projects. These solutions reflect practical responses to regulatory signals and contribute to steady commercial boilers market growth in mature economies. 

Heat Pump Competition and Cost Pressures 

Electrification strategies are reshaping the competitive environment. Heat pumps are increasingly included in decarbonization plans, placing pressure on traditional boiler installations. In certain jurisdictions, restrictions on standalone fossil-fuel systems are limiting new gas boiler deployments. At the same time, higher upfront capital expenditure for electric boilers and infrastructure upgrades remains a consideration. The commercial boilers market forecast therefore balances regulatory shifts with real-world cost constraints, particularly in small and mid-sized enterprises. 

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/commercial-boilers-market?utm_source=industrytoday.co.uk  

Commercial Boilers Market Segmentation  

By Fuel Type 

• Natural Gas 
• Oil 
• Coal 
• Biomass 
• Electric 
• Others 

By Technology 

• Condensing 
• Non-Condensing 
• Hybrid Boiler–Heat Pump 
• Others 

By Capacity 

• Less Than 10 MMBtu/Hr 
• 10–50 MMBtu/Hr 
• 50–100 MMBtu/Hr 
• More Than 100 MMBtu/Hr 

By End-User Industry 

• Offices 
• Healthcare 
• Educational Institutions 
• Hospitality and Lodging 
• Others 

By Geography 

• North America 
• Europe 
• Asia-Pacific 
• Rest of the World 

Explore Our Full Library of Technology, Media and Telecom Research: https://www.mordorintelligence.com/market-analysis/technology-media-and-telecom?utm_source= industrytoday.co.uk 

Commercial Boilers Industry Key Players 

• Cochran Ltd. 
• Bosch Thermotechnology (Bosch Thermotechnik GmbH) 
• A.O. Smith Corporation 
• The Fulton Companies 
• Parker Boiler Inc. 

Explore more insights on commercial boilers competitive landscape: https://www.mordorintelligence.com/industry-reports/commercial-boilers-market/companies?utm_source=industrytoday.co.uk  

Conclusion 

The commercial boilers market is positioned for stable expansion through the forecast period, supported by regulatory compliance cycles, retrofit demand, and infrastructure upgrades. While electrification policies and heat pump adoption introduce competitive pressure, the installed base and ongoing need for high-capacity hydronic systems sustain commercial boilers market growth. Natural gas continues to anchor the commercial boilers market size in the near term, while condensing, hybrid, and electric-ready technologies expand their commercial boilers market share in response to efficiency and emission standards.  

Overall, the commercial boilers market forecast reflects balanced growth driven by efficiency mandates, end-user diversification, and gradual technology transition. Manufacturers that align product portfolios with compliance requirements, cost sensitivity, and digital integration will remain well positioned within the evolving commercial boilers market landscape. Regional policy differences ensure that multiple fuel pathways remain relevant within the commercial boilers industry. 

Industry Related Reports: 

United States HVAC Services Market 

The US HVAC Services Market is projected to grow from USD 17.93 billion in 2025 and USD 18.98 billion in 2026 to USD 25.35 billion by 2031, registering a CAGR of 5.90% between 2026 and 2031. Growth is driven by rising demand for energy-efficient HVAC systems, increasing retrofitting and replacement activities in aging buildings, and stricter regulatory standards promoting sustainable heating and cooling solutions. 

Europe Building Automation Systems Market Growth 

The Europe building automation systems market size is estimated at USD 3.96 billion in 2025, USD 4.11 billion in 2026, and is expected to reach USD 4.93 billion by 2031, expanding at a CAGR of 3.71% from 2026 to 2031. Market growth is fueled by increasing adoption of smart building technologies, stringent EU energy efficiency regulations, and growing investments in sustainable infrastructure across commercial and residential sectors. 

South America Facility Management Market Trends 

The South America facility management market reached USD 134.32 billion in 2026 and is projected to advance to USD 161.43 billion by 2031, reflecting a CAGR of 3.75%. Expansion is supported by rising outsourcing trends, infrastructure development across commercial and industrial sectors, and increasing focus on cost optimization and integrated facility services. 

Follow Our Market Research Updates on LinkedIn 

Self Storage Market- https://www.linkedin.com/pulse/self-storage-market-analysis-growth-patterns-vyohc/ 

Robotics Market- https://www.linkedin.com/pulse/robotics-market-outlook-size-growth-industry-l1zlc 

Cybersecurity Market- https://www.linkedin.com/pulse/cybersecurity-market-outlook-trends-growth-industry-ewtxc/ 

Music Market-  https://www.linkedin.com/pulse/global-music-market-outlook-size-growth-key-trends-lel4c/ 

About Mordor Intelligence: 

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. 

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics. 

For any inquiries or to access the full report, please contact: 

media@mordorintelligence.com 

https://www.mordorintelligence.com/ 

Mordor Intelligence, 11th Floor, Rajapushpa Summit, Nanakramguda Rd, Financial District, Gachibowli, Hyderabad, Telangana – 500032, India.