Boiler Shortages and Manufacturing Lead Times Drive Growth for the U.S. and Canadian Steam Boiler Rental Market

Press Release, Trends & Insights

SAN ANTONIO, TX, June 26, 2023 -- A new analysis by Verify Markets shows the North American Boiler Rental Market valued at roughly $575.0 million in 2022. The market is mature, fragmented, and regionalized by specialty rental companies like WARE, Inc., Nationwide Boiler, Wabash Power Equipment and, more recently, Atlas Copco Specialty Rental. Currently, the boiler rental market has very little direct exposure to the largest general equipment rental companies. Atlas Copco's 2019 market entry with the acquisition of Powerhouse has been a turning point as a major multinational industrial brand entered the North American market. Verify Markets expects further consolidation in the years to come, mirroring other specialty rental equipment categories.

Since the last time Verify Markets researched the boiler rental industry in 2017, the costs of boilers have nearly doubled. Amidst the pandemic, steel (often used in boiler construction) prices were up 50.0 percent. These higher steel prices have since gone down, but similar to the automotive industry, boiler OEMs have not passed the lower steel prices down to the customer, leading to a general acceptance for the new higher boiler costs.

Supply chain issues have caused delays in new manufacturing capacity for boilers. The lead time for a new piece of machinery is close to 1 year. Accordingly, customers are often required to rent when boilers require maintenance and/or replacement. Since the COVID-19 pandemic, there have been shortages in boiler elements; like pumps, electrical components, chipsets, etc. Rental companies and customers are encouraged to buy manufacturing capacity in advance to secure their necessary burners and boilers. With a limited supply of boilers available for purchase, companies are turning to rentals to meet their immediate needs.

Opportunities and Trends in Fire Tube, Water Tube, and Hydronic Boilers

temporary heating rental market by segment

Fire Tube Boilers are known for their durability and efficiency. Despite being one of the oldest designs, they continue to be in high demand due to their simplicity of design, ease of operation, and low cost of maintenance. The rental market for fire tube boilers remains strong due to their versatility and ability to handle a wide range of pressures.

Water Tube Boilers, on the other hand, are recognized for their high efficiency and capability to generate steam at high pressure and temperature. They're particularly suitable for heavy-duty operations, making them a popular choice for industries like power generation, petrochemicals, and district heating. Renting water tube boilers can help companies tackle peak loads without needing large capital investments, providing a substantial boost to the boiler rental market. 

Hydronic Boilers offer unique benefits, including efficient heating and a compact design. This type of boiler transfers heat through water, making it a possible choice for space heating in hospitals, commercial and multi-family buildings, and for process heating applications in the food & beverage industry.

The steam boiler rental market in the U.S. and Canada is ripe with opportunities, driven by a mix of industry demand, rising equipment costs, fleet shortages, and long lead times for parts and maintenance. A well-funded capital group with the right technical know-how and fleet mixture could prosper and thrive within the boiler rental market.

More detailed information and a complete market analysis on the North American boiler rental industry is available in Verify Markets’ report entitled 2023 - North American Boiler Rental Market.