Chinese commercial boiler market expected to recover quickly February 2021

BSRIA will shortly release its latest multi-client report on the Chinese commercial boiler market in 2020. The report will reveal how the coronavirus outbreak in 2020 influenced China’s commercial boiler market and where the market is expected to go in subsequent years. 

Chinese Commercial Gas Boiler Market Size, volume, 2015-2020

Market Trends

• In 2020, the sales volume of China’s commercial gas boiler market is expected to have decrease.
• On one hand, the market decline reflects the downturn from industries severely affected by the COVID-19 outbreak, such as high-end hotels, the entertainment industry, and some public construction projects. The outbreak negatively impacted the economy, and some offline shops and hotels have gone out of business.
• Besides these heavily devastated industries, many other projects have also been delayed or cancelled. In the first half year of 2020, most construction sites or installation projects were delayed or closed to prevent people being in close contact. From the second half of 2020, when the outbreak in Europe became more serious, some orders to China were delayed since some imported boilers could not be shipped on time.
• Although there were many negative factors in 2020, BSRIA believes the long-term market trend of commercial boilers will not be changed by the COVID-19 outbreak.
• In the last 5 years, the commercial boiler market has been driven by an upgrade of low nitrogen boilers, which was ongoing in 2020. At the same time, many cities in China implemented more rigid boiler regulations and nitrogen emission standards. Although the epidemic has hindered the installation process and some projects have been put off to 2021, it is believed that the market will recover fast.

Technology trends in the Chinese commercial gas boiler market

The general view now is that the Chinese commercial gas boiler market will move towards condensing technology in the future.                                Due to the expectation for future growth, an increasing number of competitors are entering this market, which is putting pressure on average sales prices.  

 Condensing boilers have been on the Chinese market for more than 5 years, and as the condensing technology is maturing, customers have started to buy local products instead of imported parts. The top foreign brands, which focus on condensing boilers, are now struggling to maintain their market share, whilst most local condensing boiler manufacturers have gained market shares in volume terms – albeit not the case in value terms.

 In addition to regular multi-client reports, BSRIA’s Beijing office can offer customized studies on HVAC&R related matters, whether it is market-related, or channel, pricing, competitor analysis or customer research on the Chinese market. For other regions, pls contact BSRIA’s Worldwide market Intelligence (WMI).