U.S. 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 Forecasts, 2024-2032

Market Overview

The Global U.S. Residential Boiler Market Size Will significantly Grow At a CAGR of 4% By the Forecast Period.

Residential boilers are primarily used for space and water heating purposes. The boilers market in the U.S. is registering higher growth due to several key factors, such as changing demographics, rising disposable income, and volatile climatic conditions. The tremendous rise in the number of energy-consuming devices in homes and their varying efficiency drive market growth. Growing energy consumption in the residential sector means higher electricity bills and depleting power resources. Thus, consumers are shifting their preference towards energy-efficient products for higher energy savings, which is expected to positively influence the boiler market.

In U.S. homes, electricity is largely consumed for heating and cooling due to the diverse geographic locations and drastic changes in the climate. The construction sector in the U.S. has been showcasing tremendous growth. Mergers, acquisitions, and new large-scale projects are expected to position this sector on a high growth trajectory in the coming years. As per the data published by the Associated General Contractors of America (AGC), the U.S. construction industry creates nearly USD 1.35 trillion worth of projects every year, employing around 7 million people. The burgeoning growth in household units and flourishing construction sector in the U.S. is anticipated to upsurge the demand for residential boilers.

Market Dynamics

Rising number of housing units across the u.s. to propel the demand for boilers

In the aftermath of the collapse of the housing market in 2007–2008, the U.S. housing market witnessed significant growth in recent years, primarily driven by the ever-growing population, rising disposable income, and the growing desire among the inhabitants to live in a single-family home. Additionally, the decreasing age group of first-time homebuyers across the country is another pivotal factor that positively influences the growth of housing units across the country. In the last decade, the housing unit across the U.S. market surged by approximately 6% from 131.8 million units in 2010 to 139.7 million units in 2019. The below-mentioned info-graph depicts the annual estimates of housing units for the U.S. in the period 2010–2019.

Fluctuating climate and increasing demand for space heating  to drive the market

Temperature change is among the most crucial aspect that drives household energy demand in both developed and emerging economies. As the temperature across the country is continuously rising, it is prompting a need for more efficient and advanced heating and cooling systems across the market. For instance, according to the EPA, since 1901, the average surface temperature across the contiguous 48 states of the U.S. has increased at an average rate of 0.14°F per decade. Since then, in the U.S., adjusting expenditures on the heating and cooling systems of the household is considered one of the simplest ways to respond to climate change.

As per the EIA, in 2019, space heating accounted for 38% of delivered energy in buildings, a larger share than any other end-use. Additionally, the EIA also expects that from 2019 to 2050, the total consumption of delivered energy by the buildings sector will increase by 7% on account of the growing demand for end-use products, including air conditioning, electronics, and water heating.

The growing popularity of renewable alternatives for residential heating purposes may impede the market growth

The rising popularity of renewable energy sources such as solar heating systems and heat pumps has witnessed an increasing interest from household owners in recent years. This recent surge in the popularity of such alternatives is primarily driven by the cost-efficiency of these technologies. Additionally, the changing attitude of the inhabitants across the country, which is now more centered on decreasing their dependency on traditional fuels and switching towards cleaner fuels, is further expected to have a positive influence on the demand for these alternatives.

The government is taking various initiatives in order to boost the growth of renewable energy sources by bringing down the manufacturing cost of PV modules and offering various incentives, such as sales tax exemptions, income tax credits or deductions, and property tax exemptions or deductions for solar energy systems. As individuals get more inclined towards renewable energy sources for energy generation in households, it is very likely to say that the demand for boilers across the sector will witness a fall.

Regional Analysis

Northeast and midwest to hold the largest share in the u.s.'s residential boiler market

Northeast household consumption of boilers is projected to remain high during the forecast period 2017–2029. The growth in the area is attributed to the extreme cold weather and high incomes of consumers. The northeast and Midwest regions consume high levels of energy on average than other regions. Based on power type, natural gas and electric boilers have long been the dominant choice for the region's residential sector. People living in the northeast are considered early adopters and tech-savvy, leading to higher demand for smart homes and IoT-enabled boiler.

Figure: Annual Estimates of Housing Units in the Northeast states of the U.S., 2010–2019 (Units)

Figures recorded by the U.S. Census Bureau states that the annual housing units in the Northeast region were 2,43,29,061 units in 2018 and reached 2,44,35,406 units in the year 2019. Larger homes tend to consume a higher amount of energy when compared to smaller homes. The rising demand for heating oil in the U.S. has significantly impacted the heating oil market. The U.S. imports heating oil from other countries such as Canada to meet the residential sector's ever-growing demand for heating equipment.

Along with the northeast, the Midwest census region is also experiencing a boom in the residential boiler market. The high-frequency rate of massive snowstorms in the region has compelled people to install heating systems. As per the EIA statistics, most of the homes are heated by natural gas and propane in the Midwest; therefore, there is a considerable demand for boilers in the Midwest for heating space and water, fuelled by natural gas and propane. Moreover, the number of blizzards has increased since 1960, as more than 700 blizzards have occurred in the U.S., resulting in the residential boiler market's rapid growth. The below-mentioned info-graph highlights the North American region, which is driving the demand for a residential boiler.

Segmental Analysis

Cost-effective and low maintenance of fire tubes boilers to boost the segmental growth

Fire-tube boilers have been one of the leading boilers' designs for more than a century, and even today, they hold substantial value in the boiler market. Simple design and compact size, coupled with the ability to meet rapid fluctuations in steam demand, are factors that have inclined individuals to install these boilers across their premises.  Additionally, the fact that these boilers operate at comparatively low operating pressure and have low-maintenance costs makes them a cost-effective heating solution compared to the water tube boiler. Moreover, the high capital investment and maintenance cost associated with the water tube boiler and the electric boiler is building a platform for fire tube boilers growth. 

Impact of covid-19

For instance, the market disruption across the value chain and record decline in the global service sector is set to hamper the market growth for NMVE over fiber channel. The decrement in the worldwide GDP and fall in the countries' GDP constitutes a considerable share in the global market to curtail the market's growth perspectives. The current market volatility is also discouraging organizations from making some technological developments in the company jeopardizing the company's financial stability. This scenario and the pessimistic approach of organizations to cope with the current crises restrict the market's growth.

Recent Developments

• In September 2020, Weil McLainunveiled a new ECO® Tec premium residential boiler to diversify the existing product portfolio for the U.S. market
• In June 2020, Rinnailaunched new I-Series boilers for attaining a broader product portfolio for the residential sector
• In June 2018, Ariston Thermo Group unveiled a new residential electric point of use water heaters to improve its existing product portfolio