Commercial Electric Boiler Market Report 2026

The commercial electric boiler market size has grown rapidly in recent years. It will grow from $1.97 billion in 2025 to $2.17 billion in 2026 at a compound annual growth rate (CAGR) of 10%. The growth in the historic period can be attributed to growth of commercial construction, demand for clean heating solutions, expansion of healthcare infrastructure, rising industrial steam demand, availability of stable electricity supply.

The commercial electric boiler market size is expected to see strong growth in the next few years. It will grow to $3.13 billion in 2030 at a compound annual growth rate (CAGR) of 9.7%. The growth in the forecast period can be attributed to decarbonization of heating systems, growth of renewable electricity generation, stricter emissions regulations, expansion of district heating projects, rising fuel price volatility. Major trends in the forecast period include growing adoption of zero emission heating systems, rising demand for electric boilers in commercial buildings, increasing use of heat pump integrated boilers, expansion of electric boilers in district heating, higher focus on high efficiency and rapid startup systems.

The rising demand for energy-efficient heating solutions is expected to drive growth in the commercial electric boiler market going forward. Energy-efficient heating solutions are technologies and systems designed to use less energy while maintaining the same level of heating comfort, thereby reducing energy consumption, lowering costs, and minimizing environmental impact. This increase is driven by growing regulatory pressure to cut carbon emissions. Commercial electric boilers support energy-efficient heating by providing clean, consistent heat with minimal energy loss, making them well-suited for modern commercial spaces. They reduce dependence on fossil fuels by using electricity, which aids sustainability goals and improves operational efficiency. For example, in September 2024, ElectricHomes, a UK-based electric heating provider, reported that the UK installed 36,799 air source heat pumps and 2,469 ground or water source heat pumps, bringing the total number of MCS-certified installations to 229,618 in 2023 - a 20% increase compared to 2022. Thus, the growing demand for energy-efficient heating solutions is propelling the commercial electric boiler market.

Leading companies in the commercial electric boiler market are focusing on advanced products such as customizable cascade electric heaters to enhance energy efficiency, improve system scalability, and address diverse heating needs across applications. Customizable cascade electric heaters involve connecting multiple electric heating units (boilers) configured to operate sequentially based on demand. For example, in May 2024, Lochinvar, a US-based water heating solutions company, introduced the LECTRUS light commercial electric boiler, offering versatile, sustainable heating with advanced features like a smart system liquid crystal display (LCD) control platform, supporting electrification and decarbonization in various commercial settings.

In January 2024, Laars Heating Systems, a US-based boiler manufacturer, acquired Electro Industries Inc. for an undisclosed sum. Through this acquisition, Laars Heating Systems aims to expand its presence in the electric heating market, broaden its product range to meet rising electrification demands, and strengthen its U.S. manufacturing capabilities by integrating Electro Industries’ expertise in electric boilers and heat pump technology. Electro Industries Inc. is a US-based company specializing in electric boiler manufacturing.

Major companies operating in the commercial electric boiler market are Alfa Laval AB, A. O. Smith Corporation, Viessmann Group, Vaillant GmbH, Cleaver-Brooks Inc., Chromalox Inc., Fulton Boiler Works Inc., Babcock Wanson Group, Lochinvar LLC, Laars Heating Systems Company, Cochran Ltd., Danstoker A/S, Vapor Power International LLC, Precision Boilers LLC, Bosch Thermotechnology GmbH, Elnur UK Limited, Reimers Electra Steam Inc., Sussman Electric Boilers, Thermona spol. s r.o., Flexiheat UK Ltd., ACV International.

North America was the largest region in the commercial electric boiler market in 2025. The regions covered in the commercial electric boiler market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the commercial electric boiler market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The commercial electric boiler market consists of sales of electric steam generators, electric hot water boilers, modular electric boiler systems, integrated control systems, boiler skid packages, expansion tanks, circulator pumps, and pressure relief valves. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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