Residential Boiler Market Size, Share & Trends Analysis Report By Type (Water Tube Boiler, Fire Tube Boiler, Electric Boiler), By Technology (Condensing, Non-condensing), By Fuel Type (Coal Fired, Gas Fired, Oil Fired, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global residential boiler market was valued at USD 9.23 billion in 2023. It is expected to reach USD 17.33 billion in 2032, growing at a CAGR of 7.23% over the forecast period (2024-32). The demand for residential boilers is primarily driven by the need for space heating in homes, especially in colder regions. Boilers provide efficient and effective heating solutions for maintaining indoor comfort during the winter months, driving market growth.

A residential boiler is a heating device that produces heat for space heating and water heating applications. A domestic boiler's capacity can be expanded for occasional use in commercial settings. Hot water boiler systems are the norm for residential boiler systems. Natural gas is the fuel that is most frequently used in residential boilers. Propane, more expensive than natural gas, can be used as a substitute fuel in places where natural gas is not readily available. Residential boilers also heat water for cooking and bathing. The market for residential boilers is expected to expand due to rising demand for space and water heating systems and strict government regulations regarding carbon emissions.

Market Dynamics

Market Driving Factors

Rising Demand for Space and Water Heating Systems

The residential boiler market is anticipated to expand due to the demand for air and water heating applications from residential areas, including homes, apartments, vacation homes, farms, and other structures. Additionally, it is anticipated that increased wall-hung residential boiler purchases in North America and Europe will fuel the market growth during the forecast period. In addition, rising demand for gas-fired residential boilers and growing environmental consciousness about the need for energy-efficient heating systems are anticipated to drive market expansion in the ensuing years.

Quickly Expanding Residential Construction

The residential boiler industry has experienced significant growth over the past few decades due to improvements in product manufacturing techniques. This can be attributed to urbanization's rapid growth, which has increased the demand for modern, highly efficient residential boilers that meet emission-related regulatory standards. Rapid urbanization led to an increase in residential construction activities, which increased the demand for residential boilers to meet the needs of consumers in homes in cold climate regions for both air and water heating. This factor is anticipated to fuel the expansion of the residential boiler market share during the forecast period. The demand for residential boilers that can heat the air and the water is also increasing, which presents potential growth opportunities for the market in regions like Asia-Pacific, the Middle East, Latin America, and Europe. A significant factor driving the global market is the alarming increase in air pollution brought on by the combustion of coal and other conventional fuels.

Market Restraining Factors

High Cost

Boilers and furnaces are the most frequently used heating systems in residential settings. Boilers cost two to three times as much to buy, install, and repair as furnaces do. Additionally, the cost of replacing a boiler is higher than that of a furnace. As a result, switching from an old heating system to a boiler heating system is more expensive, which is predicted to restrain the market growth during the forecast period. Additionally, because high-efficiency residential boilers require more complex technology and costly installation, they are more expensive to repair and maintain, which is expected to impede the market growth.

Key Market Opportunities

Technological Advancements

Residential boiler R&D is expected to increase, providing critical players with the chance to develop and enhance the efficiency of their products and keep up with the global market's pace. The demand for the most energy-efficient residential boilers is also anticipated to increase as residential consumers' awareness of high energy efficiency, bill savings, safety, and reducing carbon emissions increases. This factor has drawn the focus of major manufacturers to the creation and development of sustainable products, propelling the market's growth over the forecast period.

Regional Analysis

Europe Dominates the Global Market

The global residential boiler market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Europe is the most significant shareholder in the global residential boiler market and is expected to grow at a CAGR of 5.9% during the forecast period. Europe's top revenue producers include nations like Germany, France, the UK, Italy, and Spain. During the forecast period, a rise in residential consumers' demand for space and water heating is anticipated to expand the global market. In 2019, Germany had the largest market share for residential boilers, followed by the UK and Italy. This is explained by Germany's hegemonic position in the European construction market. Additionally, it is anticipated that there will be a rise in investments in environmentally friendly energy sources like natural gas and other renewable energy sources during the forecast period. The demand for gas-fired and electric residential boilers is increasing in Europe due to increased investments in low-carbon electricity generation, which is anticipated to fuel market expansion in the coming years.

Asia-Pacific is expected to grow at a CAGR of 6.10%, generating USD 4,365.67 million during the forecast period. The major Asian-Pacific market growth drivers are China, Japan, India, South Korea, and Australia. In addition, the Asia-Pacific region's rapid population growth and economic expansion drive the residential boiler sector's expansion. The market in Asia-Pacific is anticipated to grow due to increased demand for space heating and water heating from residential users, including homeowners, renters, apartment dwellers, farmers, and others. In the following years, the market for residential boilers is expected to grow due to the recent rapid development of residential construction and building infrastructure in developing nations like India, China, and Japan. Additionally, during the analyzed time frame, the residential boiler market share is anticipated to grow due to increased government regulations and public awareness of reducing carbon emissions in the Asia-Pacific region.

North America's top producer and consumer of residential boiler is the United States. Canada and Mexico are two different nations with significant market potential in the area. Due to the high demand from residential consumers, the residential boiler market is steadily expanding. Residential boiler demand has increased in the North American region due to the rising population and air and water heating consumption, further accelerating market expansion during the forecast period. Additionally, growing environmental pollution awareness brought on by carbon and greenhouse gas emissions is anticipated to fuel the residential boiler market's growth in the ensuing years.

LAMEA is one of the crucial areas gaining the most significant percentage of market share in the market because of the industry's quick expansion. South Africa, Saudi Arabia, and Brazil are the three largest markets. Increased construction activity is seen in Latin America and the Middle East and Africa due to rising populations and rapid urbanization. The expansion of the building and construction sector in nations like the UAE, Saudi Arabia, and Brazil is also anticipated to boost demand for electricity and heating systems, which will fuel demand for boilers and propel the market's expansion in the ensuing years.

Segmental Analysis

The global residential boiler market is segmented by type, technology, and fuel type.

Based on type, the global market is bifurcated into water tube boilers, fire tube boilers, and electric boilers.

The fire tube boiler segment is the highest contributor to the market and is expected to grow at a CAGR of 5.9% during the forecast period. In a fire tube boiler (a type of home boiler), gases are passed through tubes encircled by water that is supposed to evaporate. It is further divided into the locomotive, scotch marine, Cochran, simple vertical, and Cornish and Lancashire boiler. Even though it is the oldest boiler, low and moderate-pressure steam is still produced using this boiler type. Fire tube boilers are more frequently used in residential applications than water tube boilers because they are less expensive, easier to maintain, suitable for use with impure water, and have other benefits. During the forecast period, the demand for boilers for space heating and water heating applications from residential applications is anticipated to grow faster.

A residential boiler known as a "water tube boiler" circulates gases over the outer surface of the tubes that carry water. The subcategories are Babcock and Wilcox boilers, Stirling boilers, and Yarrow boilers. Water tube boilers are the most common type of boiler used to generate high-pressure steam. This boiler system produces steam more quickly by breaking up the water into tiny pieces. Compared to other types of tubular boilers, the heating surface of a water tube boiler is very efficient. The residential boiler market is anticipated to expand during the forecast period due to increased demand for heating equipment for residential uses such as space heating, water heating, and other services.

Based on technology, the global market is bifurcated into condensing and non-condensing.

The condensing segment owns the highest market share and is expected to grow at a CAGR of 5.9% during the forecast period. Condensing boilers are typically powered by oil and natural gas and are intended to increase energy efficiency and produce heat from the condensation of water vapor. These boilers use waste gases to replenish lost heat. Condensing boilers have lower costs, smaller footprints, and higher efficiency. The primary factor propelling the growth of the condensing segment during the forecast period is the rise in awareness of the use of energy-efficient heating products and less fuel-consuming products.

Natural gas and fuel oil are primary and secondary fuels for non-condensing boilers. They offer dependable and effective home heating over the long term if properly maintained. The temperature in this type of boiler is high to avoid water vapor condensing in the flue gases. It is only suitable for use in residential applications because it is less efficient than a condensing boiler. During the forecast period, residential customers' demand for space and water heating is anticipated to expand the residential boiler market.

Based on fuel type, the global market is bifurcated into coal-fired, oil-fired, and gas-fired.

The gas-fired segment is the highest contributor to the market and is expected to grow at a CAGR of 6.0% during the forecast period. Natural gas, coke oven gas, coal gas, and producer gas are some of the gaseous fuels used in home boilers. In many gas-fired residential boilers, natural gas is used. Ethane, hydrogen, helium, carbon dioxide, nitrogen, hydrogen sulfate, and water vapor are all present in trace amounts. When there is an electrical outage, power is produced by burning natural gas in larger apartments using boilers. Gas-fired residential boilers have benefits such as energy efficiency, quiet operation, cost-effectiveness, comfortable heating, and clean heating, among others. These benefits are anticipated to boost residential consumers' demand for gas-fired boilers, which is expected to drive the market's growth during the forecast period.

Different types of oil fuels, such as gasoline, kerosene, synthetic oil, and others, are burned in an oil-fired residential boiler to produce hot gas. The boiler produces steam by evaporating water using the hot gases produced. These oil fuels are advantageous because they burn entirely and have a high calorific value. In the residential sector, oil-fired boilers are increasingly used for space and water heating applications. This is anticipated to fuel the residential boiler market's growth during the forecast period.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• May 2024 - Innovator of high-efficiency water heaters and boilers, Lochinvar, launched the LECTRUSTM Light Commercial Electric Boiler. Along with helping the sector transition to electrification and decarbonization, this ground-breaking technology offers clients flexibility. The in-house designed and manufactured LECTRUS is Lochinvar's first electric boiler. This product is appropriate for both home and commercial use, with kW capabilities varying from 15 kW to 150 kW.
• January 2024 - The NEX R1 and NEX R2 water heaters, which are solely powered by home PV systems, were introduced by German heating system supplier Nexol Photovolthermic AG. The boilers include one or two 1,500 W heating elements and are outfitted with in-house designed Nexol Energy Controllers.