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North American Commercial Boiler Market Primed for Growth

May 31, 2022
Canada predicted to emerge as a major revenue hub through 2028.

The North America commercial boiler market is set to carve out a profitable growth trajectory over 2022-2028. Lately, several contenders in the industry have fine-tuned their growth strategies. To establish a strong position in the industry, many companies are adopting a series of steps including acquisitions, mergers, and partnership agreements.

Quoting an example, in January 2022, Mestek Canada, Inc., announced taking over Transom Corporation. The move would support continuation of the company’s history of manufacturing and engineering hydronic heating and cooling systems for industrial, commercial, and residential applications.

The adoption of similar strategies by major players is expected to drive industry expansion over the forthcoming years. As per a recent report published by Global Market Insights Inc., North America commercial boiler market is expected to record USD 2.2 B in revenue by 2028.

Babcock and Wilcox Enterprises, Siemens, Burnham Holdings, Cleaver-Brooks, The Fulton Companies, Precision Boilers, Viessmann Climate Solutions, Columbia Boiler Company, Vapor Power International, and others are some of the leading participants in the industry.

Favorable Regulatory Policies

The formulation of strict regulatory policies in Canada is expected to open a host of business avenues for regional commercial boiler manufacturers. Citing an instance, the country’s Energy Efficiency Regulations set up minimum performance standards for energy efficiency. The rules would help in the elimination of the least efficient solutions from the Canadian market.

Some of the heating and cooling equipment subject to these regulations include commercial gas water heaters, commercial boilers, heat pumps, and light air conditioners. The enforcement of similar regulations is expected to incentivize commercial boiler installation in Canada.

North American countries are upgrading testing standards through various amendments. One such instance is the NRCan (Natural Resources Canada) Amendment 15 to Canada’s Energy Efficiency Act. The amendment was introduced for updating the reporting and testing standards for four product categories. These include oil-fired boilers, gas furnaces, gas boilers, and gas fireplaces.

Condensing boilers condense only if they operate at temperatures that are conducive for condensing. Therefore, practicing designers, licensed professionals, and skilled tradespeople will be in high demand to ensure maximum boiler efficiency.

Similar amendments are expected to drive the demand for superior commercial boiler systems over the estimated period.

New Products

Over the recent years, North America commercial boiler market has registered an upsurge in the introduction of new products. Numerous regional players are taking a keen interest in the development of solutions that are suitable for use in various applications.

For instance, Viessman’s Vitocrossal 300 CA3B is equipped for catering to a range of commercial applications. The boiler can be used for buildings with small elevators or narrow entrances. As cited by the company, the system could be seamlessly integrated into building management systems.

To sum up, the industry is expected to register an increase in investments for the development of sustainable buildings for the reduction of greenhouse gas emissions. This is likely to be supplemented by the escalating requirement for space heating across the commercial sector. These aspects are set to create favorable ground for business owners across the North America commercial boiler market through the ensuing years.

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