Residential Boiler Market by Fuel Type (Gas Fired, Oil Fired, and Others), Technology (Condensing and Non-Condensing), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global Residential Boiler Market Analysis

The global residential boiler market is estimated to garner $13,849.4 million in the 2021-2028 timeframe, increasing from $8,381.4 million in 2020 at a CAGR of 6.4%.

Market Synopsis

Government involvement and advanced technology incorporations are anticipated to fuel the residential boiler market growth.

However, the availability of substitutes in the local markets is a growth-limiting factor for the industry.

Based on regional examination of the market, the Asia-Pacific residential boiler market is expected to grow at a 7.6% CAGR by generating a revenue of $3,508.1 million in the review time.

Residential Boiler Overview

Residential boiler is a self-contained low-pressure container used for supplying hot water or steam. These systems are majorly designed and developed for space heating of homes. It uses various fuels majorly natural gas and oil for steam generation and hot water. Growing utilization of renewable sources for hot water and heating spaces is generating demand for solar panels and geothermal boilers.

Impact Analysis of COVID-19 on the Global Residential Boiler Market

The COVID-19 emergency period had an undesirable impact on the global residential boiler market owing to severe disturbance of supply networks and services globally. Nevertheless, in post lockdown period, the global market is anticipated to witness significant growth as there is rise in demand for residential boiler particularly in European and American countries. Furthermore, some of the significant manufacturers are adopting different tactics such as collaborations to gain more market share in the overall industry. For example, in August 2020, Carrier, global leader in HVAC systems manufacturing, collaborated with ServiceTitan to accelerate commercial and home service industries. ServiceTitan software will provide various features to carrier such as cloud based pricebook sync, instantly deliver leads with seamless warranty process to enhance customer base across the globe.

Government Involvement and Development by Manufacturers Anticipated to Drive the Market

Government involvement in setting up standards for energy utilization for heating, ventilation and air conditioning systems is anticipated to accelerate the market growth in the analysis period. In 2020, the U.S. department of energy (DOE) initiated efforts to determine energy conservation standards and regulations for boilers and water heater manufacturers. As per DOE, the standards for consumer boilers would result in major energy savings and would be economically and technologically feasible for every customer. This aspect is estimated to provide additional support to manufacturers to develop and design new innovative boilers to save energy and money. Such factors are estimated to impel the industry growth in the analysis period. Moreover, manufacturers are continuously concentrating on new technologies for boiler coatings to offer instant heating as well as corrosion resistance to develop energy efficient boilers. For example, A.O. smith, a leading manufacturer in water treatment and boilers, is continuously updating blue diamond glass coating technology to combat sediment and scale & residue build-up on the surface of the boiler tank due to hard water. Such factors are anticipated to accelerate the residential boiler market growth in the analysis time.

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Availability of Alternatives is Expected to Restrain the Market Growth

The availability of alternatives to residential boilers especially for gas fired boilers like solar thermal panels and IR heating panels are estimated to hamper the growth of the industry during the analysis time.

Rising Utilization of Novel Technologies to Create Huge Investment Prospects

Rising incorporation of new technologies like internet of things (IoT) to design energy efficient boilers is estimated to propel the growth opportunities for the market in the coming years. The IoT has led to the intelligent and smart homes through linking all aspects of the house from lighting or entertainment to the heating, ventilation, and air conditioning (HVAC) systems of the home. Residents are searching for innovative technology for controlling their home to save money and energy by setting IoT to their boilers or water heaters. Such factors are projected to impel market growth in the upcoming time.

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Source: Research Dive Analysis

The gas fired sub-segment accounted for a leading market share in 2020, is expected to reach for a revenue of $8,008.5 million by 2028, and grow at 6.7% CAGR during the review period. This command over the market is majorly attributed to high utilization of gas fired boilers due to less energy utilization and less emissions compared to coal- and oil-fired boilers. Furthermore, rise in greenhouse gas emissions and their harmful impacts on the environment is generating demand for effective and renewable boilers like natural gas boilers and solar panels, which is estimated to propel the market growth in the future period.

Source: Research Dive Analysis

The condensing sub-segment of the global residential boiler market is predicted to have a profitable growth and surpass $11,072.2 million by 2028, with the highest CAGR of 6.6% during the review time. Wide utilization of condensing boilers owing to benefits associated with these boilers such as increased efficiency, improved control, and comfort while operating condensing boilers are estimated to drive sub-segment industry growth in the review time.

Source: Research Dive Analysis

The Market for Residential Boiler in Europe to be the Most Dominant

The Europe residential boiler market accounted $3,098.6 million in 2020, is anticipated to maintain its command, and produce a revenue of $4,881.9 million by the end of 2028. This dominance is mainly attributed to rising demand for most reliable and effective boilers from residents to meet the required environment regulations, Europe having some of the most cold countries in the world. This factor is predicted to impel the industry growth in the review time.

The Market for Residential Boiler in Asia-Pacific to be the Fastest Growing

The share of Asia-Pacific residential boiler market is predicted to grow at the highest CAGR of 7.6% and account for $3,508.1 million by 2028. The rising urbanization in developing countries and economic developments in countries like India and China is creating demand for smart homes like controlling of HVAC systems via smartphones which is directly expected to impel the market growth in the Asia-Pacific region.

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Competitive Scenario in the Global Residential Boiler Market

Collaborations and mergers are the most common strategies followed by the leading players in the market.

Source: Research Dive Analysis

The key global residential boiler market players are Robert Bosch GmbH, Lennox International, A. O. Smith, Ariston Thermo SpA, SPX Corporation, Viessmann Manufacturing Company Inc., DAIKIN INDUSTRIES, Ltd., Thermax Limited, NORITZ Corporation and Burnham Holdings, Inc.

Porter’s Five Forces Analysis for Residential Boiler Market:

• Bargaining Power of Suppliers: Residential boiler market has a high number of suppliers. Further, growing demand for space heating systems and accessibility of replacements and possibility for the new participants into the market are delivering the bargaining power of suppliers to be moderate.
• Bargaining Power of Consumers: Residential boiler market has a huge number of customers and product dependence is expected to be high. But, users are constantly adopting eco-friendly designs like solar water heaters are generating moderate negotiation power of consumers. 
• Threat of New Entrants: The market needs moderate investments for the developing of most reliable and cost-effective heating systems but, high brand dependence among the customers is a key risk factor for the new players.
  These aspects resulting moderate for the new entrants into the industry. 
• Threat of Substitution: Huge availability of the alternatives foe the water heater or boilers particularly for LPG boilers like heat pumps and solar powdered heating systems are resulting a high risk of substitutes.
• Competitiveness in the industry: Residential boiler industry contains a huge number of major industry players. These participants are concentrating on new product launches to rise their market share in the global industry.
  Thereby, the competition in the market is high.