Analysis by Type (Water Tube, Fire Tube, and Electric); by Technology (Condensing, and Non-Condensing); and by Fuel Type (Coal Fired, Oil Fired, and Gas Fired) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global residential boiler market is estimated to garner a revenue of ~USD 14 Billion by the end of 2035 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 8 Billion in the year 2022. The growth of the market can be attributed to growing shift of people to urban areas that require boilers for residential purposes. Around 4.4 billion people, or 56% of the world's population, reside in cities. By 2050, approximately 7 out of 10 people would live in cities, with the urban population predicted to more than double from its current level. Hence, owing to this, the construction activities are estimated to boost further driving the market growth.
Moreover, in urban areas, there has been a growing shift in lifestyle preferences among people. Also, a large number of people living in urban area demand for more comfortable space. Hence, the preference for residential boiler is anticipated to increase. Additionally, the energy efficiency of any heating system, including boilers, is one of the most crucial aspects to take into account. A higher grade indicates that more of the energy is used to heat the house and less is lost or wasted. High-efficiency appliances benefit the environment and could also help users save money on their utility costs each month. Therefore, the government is also encouraging population to adopt residential boilers and boosting spending on hydrogen fuel which is estimated to drive the market growth over the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 8 Billion |
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Forecast Year Market Size (2035) |
~ USD 14 Billion |
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Regional Scope |
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Growth Drivers
Growing Construction Activities - Public residential construction investments in the US saw a considerable rise in value between 2002 and 2021. In 2021, the public sector invested about USD 10 billion in residential development projects. Hence, owing to the growing construction activities, the demand for residential boilers is anticipated to increase the growth of the market.
Rising Government Spending on Hydrogen Fuel - In India, the expedition would cost a total of about USD 3 billion, according to the ministry. The government granted about 3 million, the first such allocation, for 2023–2024, the first year of the seven-year programme, with the goal of increasing the nation's output of green hydrogen.
Growing Concern for Green-House Emission - Greenhouse gas emissions from enterprises and houses were 13% in 2020, owing mostly to the use of fossil fuels for heating, the usage of some items containing greenhouse gases, and waste disposal.
Surge in Disposable Income - Since the disposable income of the population increases, they tend to spend more on making quality life which also includes purchasing house. Hence, large number of people is estimated to spend more on housing. The typical American spends about 36% of their gross income on housing.
Growing Trend of Private Homes - In 2022, the homeownership rate in the US increased marginally to reach its highest level since 2011. The percentage of homes with owner occupants was about 64% in 2022. Hence, owing to the growing trend of private homes the market is estimated to grow. Apart of residential buildings, boilers could also be placed in private homes. Private house most of the time is situated in area where central heating system is unavailable. Hence, the demand for residential boilers is estimated to increase. Boilers or furnaces are used to heat the majority of American homes in order to keep their spaces warm.
Challenges
The global residential boiler market is segmented and analyzed for demand and supply by fuel type into coal fired, oil fired, and gas fired. Out of which, the gas fired segment is anticipated to grow significantly over the forecast period. The growth of the segment can be attributed to growing government stringent rules to control pollution. For instance, by 2026, the UK government wants to outlaw the installation of conventional gas boilers in residential buildings and replace them with "hydrogen ready" heating systems. Since the housing stock is responsible for about a fifth of the UK's greenhouse gas emissions, replacing gas-fired boilers is a crucial component of the country's goal to attain net zero emissions by 2050. Natural gas is used in many gas-fired residential boilers. Energy efficiency, quiet operation, economic effectiveness, comfortable heating, and clean heating are just a few advantages of gas-fired residential boilers. These advantages are estimated to increase residential consumers' demand for gas-fired boilers, which would fuel the segment’s expansion throughout the course of the forecast period. Moreover, in larger apartments with boilers, natural gas is burned to generate electricity during power outages. Hence this factor is also estimated to boost the growth of the segment.
The global residential boiler market is also segmented and analyzed for demand and supply by type into water tube, fire tube, and electric. Out of which, the fire tube segment is anticipated to garner the highest revenue by the end of 2035, backed by growing disposable income, along with volatile climatic condition. Smaller industrial facilities with lower operating pressures frequently employ fire tube boilers as they are a more affordable option to water tube boilers. Moreover, a fire tube boiler's key benefits include its straightforward design, small size, and straightforward ability to adapt to sudden changes in steam demand. Also, since there is less pressure in a fire-tube boiler, there is less possibility of explosion. Hence, the adoption is estimated to increase since this tubes are safer is use, and it is predicted to boost the segment’s growth in the market.
Our in-depth analysis of the global residential boiler market includes the following segments:
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By Type |
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By Technology |
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By Fuel Type |
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The Europe residential boiler market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035, backed by growing construction project in this region, along with rising investment in the environmentally energy sources, which include natural gas and more. Moreover, early projections from the EEA show that about 20% of the energy used in the EU in 2021 came from renewable sources. Despite the fact that conditions and consumption habits were different in the two years, this is the same as the level that was seen in 2020. Additionally, approximately 39% of the heating in Europe is provided by boilers designed specifically for each building, which burn natural gas to heat the water before piping it into the radiators in the buildings. Further, constant drop in temperature is also estimated to increase the demand for residential boilers. Buildings in German use an additional about 64 GWh of natural gas per day for every degree that the outside temperature drops. Hence, all these factors are estimated to drive the market growth in this region over the forecast period. Additionally, availability of hydrogen energy storage system is also estimated to drive the market in this region.
The Asia Pacific residential boiler market, amongst the market in all the other regions, is projected to grow with the highest CAGR during the forecast period. The growth of the market in this region can be attributed to rising demand for space heating and water heating, along with rapid growing population and economic expansion. Further, owing to the growing population large number of construction activities are estimated to be carried out since they are demand more space. Moreover, growing government regulations and rising public awareness regarding carbon emission and initiatives to reduce it is also estimated to boost the growth of the market in this region. Also, there has been rapid growth in real estate line which is boosting the purchase of properties among people further also influencing the market growth.
Additionally, the market in North America is also estimated to have a significant growth over the forecast period. This growth is estimated to be influenced by availability of key producers and large consumer in United Nation for residential boilers. Moreover, severe weather conditions, such as below-freezing temperatures, and the rapid uptake of heating systems in the industrial sector would drive up product demand. Additionally, the residential boiler market is predicted to expand over the next years as a result of rising environmental pollution awareness spurred on by carbon and greenhouse gas emissions.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The major factors driving the growth of the market are growing construction activities, rising government spending on hydrogen fuel, growing concern for green-house emission, and others.
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2035.
Ans: High cost of production, boost in use of renewable system, and, maintenance cost is high estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Europe region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Pricer, SES-imagotag, Samsung Electro-Mechanics, E Ink Holdings Inc., and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, technology, fuel type, and by region.
Ans: The fire tube segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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