Along with Nottingham Forest, Middlesbrough and QPR, the Clarets have been installed among the bookmakers' favourites to reach the Premier League.
And Iwelumo has predicted a bright future for Brian Laws' men following his summer switch from Wolves.
"Burnley is a big club and will be a scalp to be had for everyone else in the Championship," said Iwelumo.
"We are the big boys now and there is expectation there. But we have our own expectations as well.
"There is pressure there, but we are a good bunch and I'm sure we will be able to handle that."