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Residential Boiler Market

Market Study on Residential Boilers Based on Innovations Propelling Growth in the Residential Boiler Sector, and Increasing Concerns About Climate Change and Environmental Sustainability

Market Size and Share Analysis

The global residential boiler market is estimated to value at US$ 17.2 billion by the end of 2031 from US$ 12.2 billion recorded in 2024. The market is expected to secure a CAGR of 5.1% in the forthcoming years from 2024 to 2031.

Attributes

Key Insights

Residential Boiler Market Size (2024E)

US$ 12.2 billion

Projected Market Value (2031F)

US$ 17.2 billion

Global Market Growth Rate (CAGR 2024 to 2031)

5.1%

Historical Market Growth Rate (CAGR 2019 to 2024)

4.7%

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Market Introduction and Key Trends

The market for residential boiler is influenced by several factors such as increasing use of renewable energy sources and focus on sustainability. For the purpose of appealing consumers who care about environment, key players are introducing hybrid systems and biomass boilers, which may be integrated with renewable energy sources including geothermal and solar.

Heat generated from the heating equipment for water heating and space heating application is called as residential boiler. This equipment can be used in commercial applications by increasing its capacity. Fuel used in residential boiler is natural gas. Usually, residential boiler system is also called as hot water system. These boilers are used for different purposes like to heat water for cooking and bathing. Condensing and non-condensing technology are the technologies used for residential boiler systems.

The market for residential boiler is mainly fueled by the government regulations and policies which support energy efficiency. As governments levy high energy efficiency regulations, homeowners need to replace their less efficient and old boilers with efficient and new versions. Modern boilers offer features such as programmable thermostats, remote control capabilities, and zoned heating, enhancing comfort and convenience for homeowners and thereby increasing market demand.

Remote control capabilities, zoned heating and programmable thermostats are some of the key features of modern boilers that enhance comfort and convenience for homeowners and hence fueling market demand. Homeowners often want to replace outdated heating systems with more efficient and new boilers during home renovations or retrofitting projects, fueling market demand. Growth in residential construction activities, particularly in regions experiencing urbanization or population growth, contributes to the demand for boilers in new homes.

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Key Innovations in the Market

  • Increasing Demand for Smart and Connected Boilers
  • Growing focus on energy Efficiency and Sustainability
  • Increasing adoption of Condensing Boilers
  • Notable trend toward incorporating renewable energy sources
  • Preference for compact and space-saving designs
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Key Dynamics Shaping the Market

Increasing Preference Toward Energy-Efficient Products

There is increasing preference toward residential boilers, which run on natural gas. Two factors are promoting the use of fuels with low carbon emissions such as favourable government initiatives and low fuel costs.

Residential boilers account for significant portion of home energy consumption, making them a focal point for regulatory scrutiny. Residential boiler manufacturers are compelled to develop energy-efficient boilers that comply with these regulations, thereby driving innovation and market growth.

Preference for environment-friendly fuel sources which include biogas, solar-powered home boilers, and electricity-based residential boilers is increasing. The sales of residential boilers are projected to witness tailwinds in the upcoming decade with rising legislation and policies on low carbon-emission fuels.

Growing environmental awareness and concerns about climate change are prompting consumers to seek eco-friendly heating solutions. Energy-efficient boilers produce lower greenhouse gas emissions, helping homeowners reduce their carbon footprint. The alignment of energy efficiency with environmental sustainability resonates with environmentally conscious consumers, driving the demand for energy-efficient residential boilers.

Growing Environmental Awareness amid Consumers

There is increasing shift toward eco-friendly heating solutions with growing environmental awareness. Environmentally conscious homeowners prefer energy-efficient boilers with lower emissions to lessen their carbon footprint.

Energy-efficient boilers produce fewer greenhouse gas emissions per unit of heat generated compared to older, less efficient models. By choosing boilers with lower emissions, environmentally conscious consumers can minimize their contribution to climate change and environmental degradation, aligning with their values and beliefs. There are several consumers aspire to lead sustainable lifestyles and go with environmentally responsible selections like home heating in their everyday life. Energy-efficient boilers are the best option for this.

Growing Demand for Space and Water Heating Applications from Residential Sectors

Growing global population leads to higher demand for residential spaces. Urbanization further compounds this trend, with many people residing in densely populated areas where centralized heating systems, often powered by boilers, are common.

Homeowners often opt to upgrade their heating systems as older homes undergo renovation or retrofitting to improve energy efficiency and comfort. Boilers are favored for their ability to efficiently heat both spaces and water, making them a popular choice in such projects.

Homeowners are increasingly seeking heating solutions that minimize energy consumption and reduce utility bills with a growing emphasis on sustainability and energy efficiency. Modern boilers are designed to be highly efficient, thereby appealing to environmentally conscious consumers

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Factors Impeding the Market

Competitive Pressure from Alternative Heating Solutions

The market faces competition from alternative heating solutions such as radiant heating systems, district heating networks and heat pumps. These alternative heating solutions may provide comparable or better energy efficiency, great environmental benefits and lower operating costs, which consequently restrain the market growth.

Volatility in Fuel Price 

Variations in the cost of natural gas, oil, or other fuels needed to run boilers can have an effect on running expenses of homeowners. Customers may find it difficult to estimate and budget for their heating costs as a result of volatile fuel prices, which may prompt them to look into alternate heating options.

Regulatory Compliance and Standards

Manufacturers of boilers may face difficulties in complying with strict emissions laws and energy efficiency standards. Adherence to these guidelines would necessitate expensive adjustments or redesigns, which would affect price and production costs.

Future Opportunities for the Residential Boiler Market Players

Expanding Renewable Energy Integration

The integration of renewable energy sources including biomass, solar thermal and geothermal energy with residential boilers provides opportunities for market expansion. Integrating renewable energy technologies such as solar thermal panels or heat pumps with residential boilers allows market players to diversify their product portfolios. This enables them to cater to a broader range of consumer preferences and energy needs.

Companies are able to develop hybrid heating systems, which combine conventional boilers with renewable energy technologies for providing sustainable heating solutions. These solutions lower carbon emissions along with reducing dependency on fossil fuels.

The Proliferation of Smart Home Technologies

The proliferation of smart technologies provides several opportunities to integrate residential boilers into connected ecosystems. Developing smart boilers equipped with Wi-Fi connectivity, remote control capacity and sensors is easy with the use of technologies to enable homeowners for monitoring and controlling their heating systems through smartphone.

Smart thermostats allow homeowners to control their heating systems remotely via smartphone apps or voice commands. Residential boiler manufacturers can capitalize on this trend by developing boilers that seamlessly integrate with popular smart thermostat platforms, providing consumers with greater convenience and energy savings. Smart boilers equipped with remote monitoring capabilities can alert homeowners and service providers to potential issues or maintenance needs in real-time.

Growing Demand for High-Efficiency Heating Systems

There is increasing demand for high-efficiency heating systems, which can reduce energy consumption as well as operational costs. Innovations in combustion technologies, boiler design and materials provide key opportunities for the market players to develop ultra-efficient systems, which meet stringent energy efficiency set-ups and rules.

Category-wise Analysis

Category

CAGR through 2034

Fire tube boiler

5.9%

Below 24 kW

6.5%

Fire Tube Boiler Segment to Account for the Significant Share

The fire tube boiler segment accounted for the significant market share of about 62.0% in 2021 and is likely to maintain its dominance during in the forthcoming years recording a CAGR of 5.9%. This segment growth is owing to the factors such as the growing demand for boilers for water and space heating applications from residential applications.

Fire tube boilers are generally considered safe to use in residential settings when installed and maintained properly. They have built-in safety features such as pressure relief valves and automatic shut-off mechanisms to prevent accidents.

Fire tube boilers are often more cost-effective than other types of boilers, both in terms of initial purchase price and long-term operating costs. Their simpler design and lower maintenance requirements contribute to lower overall costs for homeowners.

Below 24 kW Capacity Range to Grow Notably for Residential Boiler

Boilers with a capacity range below 24 kW can certainly be sufficient for heating many residential dwellings, particularly smaller homes, apartments, or properties with lower heating demands.  The residential boilers market with output capacities under 24 kW is projected to grow notably due to the increased need for hot water and space heating in small residential areas.

Residential boilers with a power output of 24 kW to 35 kW are estimated to expand at a CAGR of 6.5 % in terms of value in the forthcoming years. Sales of residential boilers with a capacity of 24kW are increasing with the growing demand for compact-sized and high-efficiency boilers.

Region-wise Analysis

Region

CAGR through 2034

Europe

5.9%

Asia Pacific

3.1%

Europe to Account for the Significant Share in the Residential Boiler Market

Europe is the most significant shareholder in the global market and is expected to grow at a CAGR of 5.9% during the forecast period. Europe market accounts for the notable share owing to the factors such as growing demand for residential boiler in developed countries including the United Kingdom, Germany and France. Europe stands out as a key region presenting transformative opportunities for the key manufacturers operating in the market.

Market growth in the region is due to residential boilers installation around various countries. There are a few other factors that contribute greatly to the regional market growth such as extreme climatic conditions in the region. Germany and the United Kingdom are the leading countries in Europe market. Germany market recorded notable market share. The United Kingdom market was also the rapidly growing market in Europe.

Asia Pacific to Exhibit Notable CAGR in the Residential Boiler Market

Asia Pacific Market is projected to secure a CAGR of 3.1% in the forecast period from 2022 to 2030. Both the demographic and economic growth of this region contributes significantly to the residential boiler industry development. China and India are leading the market. China market recorded the significant market share. There is growing demand for residential boilers in China with the rise in construction of new buildings including high-rise complexes and apartments. Another key factor surging the demand for boilers in China is the growing demand for energy-efficient heating systems such as water and space heating.

Followed by China, India was the rapidly growing market in this region. Residential boiler market in India is predicted to grow significantly with growing demand for water and space heating from renters, apartment residents and homeowners.

Competitive Landscape for the Residential Boiler Market

Acquisition, and partnership in the development of the innovative products and the expansion of production capacities are the key growth strategies followed by the key players in the market. Companies are continuously investing in research and development to introduce innovative and energy-efficient residential boiler systems. These innovations include condensing boilers, smart boilers with IoT capabilities for remote monitoring and control, and integration with renewable energy sources such as solar thermal systems.

Top Industry Players Profiled in the Global Residential Boiler Market

  • Groupe Atlantic
  • Bradford White Corporation
  • Robert Bosch
  • Burnham Holdings, Inc.
  • BDR Thermea Group
  • Daikin Industries
  • Robert Bosch GmbH
  • Vaillant Group
  • Ferroli S.P.A.
  • Lennox International
  • Noritz Corporation
  • Unical Ag Spa
  • Lennox International
  • Slant/Fin Corporation
  • SPX Corporation

Recent Developments in the Residential Boiler Market

  • Noritz Corporation developed high-efficiency, stainless-steel boilers, LLC, in March 2021 to reinforce its place in the heating equipment industry. It is an American-based company constructed for developing environment-friendly water heater technology.
  • Worcester Bosch, a key residential boiler player in the market. They have introduced the best evolved Worcester Bosch Greenstar range of condensing boilers that come with features such as reduced carbon emissions and high efficiency.
  • A hydronic heat manufacturing company, Viessmann announced its recently developed product in June 2021 to be introduced at an upcoming event. The new product is estimated to come with compact boilers which provides advanced control and energy efficiency options. The company has also planned to provide sustainable heating solutions with their boilers with the integration of solar thermal technology.

Market Report Scope

Attributes

Details

Forecast Period

2024 to 2031

Historical Data Available for

2018 to 2023

Market Analysis

US$ Billion for Value

Key Regions Covered

  • North America
  • Europe
  • Asia-Pacific
  • The Middle East and Africa
  • Latin America

Key Market Segments Covered

  • Type
  • Technology
  • End User
  • Capacity
  • Region

Key Companies Profiled

  • Groupe Atlantic
  • Bradford White Corporation
  • Robert Bosch
  • Burnham Holdings, Inc.
  • BDR Thermea Group
  • Daikin Industries
  • Robert Bosch GmbH
  • Vaillant Group
  • Ferroli S.P.A.
  • Lennox International
  • Noritz Corporation
  • Unical Ag Spa
  • Lennox International
  • Slant/Fin Corporation
  • SPX Corporation

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Residential Boiler Market Segmentation

By Type

  • Fire Tube
  • Electric Tube
  • Water Tube

By Technology

  • Condensing Boilers
  • Conventional Boilers

By End User

  • Single-Family Homes
  • Multi-Family Buildings
  • Residential Communities

By Capacity

  • Below 24 kW
  • 24kW to 35 kW
  • Above 35 kW

By Region

  • North America
  • Europe
  • Asia-Pacific
  • The Middle East and Africa
  • Latin America

- Companies Covered in This Report -

- Frequently Asked Questions -

Growing demand from residential applications such as farmhouse, apartments and homes for residential boilers is surging the demand.

Some of the key players operating in the market are Groupe Atlantic, Bradford White Corporation, Robert Bosch, and Burnham Holdings, Inc.

The fire tube boiler segment recorded the significant market share.

Increasing demand for natural gas-fueled home boilers are estimated to present opportunities for the market players.

Europe to account for the significant share in the market.

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