Residential Boiler Market Expected to Reach $12.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Residential Boiler Market," The residential boiler market size was valued at $7.6 billion in 2021, and is estimated to reach $12.5 billion by 2031, growing at a CAGR of 5.2% from 2022 to 2031.

Residential boiler is a heat generating device, which uses heat produced from combustion of fuel sources such as coal, natural gas, oil, and through direct electricity, thereby generating steam for air heating and water heating applications. The main components of residential boiler include shell, furnace, grate, heating surface, mounting accessories, water & fuel system, and other accessories. Residential boiler finds its application in residential for air heating, water heating, heat for food processing, and others. Fuels used for residential boilers are in solid, liquid, and gaseous forms.

Increase in demand for residential boilers from residential applications, including homes, farmhouses, holiday homes, apartments, and others to keep homes warm and heat water is anticipated to drive the growth of the global residential boiler market. In addition, the rapidly growing construction industry in developing economies, such as China, India, Africa, and others, is expected to propel the growth of the residential boiler market. However, rapid growth of the renewable energy industry along with emerging renewable alternatives, such as solar, for heating systems is projected to restrain the growth of the residential boiler market in the coming years.

By type, the fire tube boiler segment held the highest market share of about 62.0% in 2021 and is expected to maintain its dominance during the forecast period. This is attributed to the rise in demand for boilers for space heating and water heating applications from residential applications. In addition, there is increase in demand for hot water and warm air from cold weather areas in North America and Europe, which is expected to fuel the growth of the fire tube boiler segment in the coming years.

By technology, the condensing segment holds the largest share, in terms of revenue, and is expected to maintain its dominance during the forecast period. This growth is attributed to the rise in awareness of utilization of energy-efficient heating products and less fuel consumption. Condensing boilers offer benefits, such as less cost, less space, reduction in carbon footprint, high efficiency, and others, which are anticipated to fuel the market growth during the analyzed time frame.

By fuel type, the gas fired segment holds the largest share, in terms of revenue, and is expected to grow at a CAGR of 5.9%. This is attributed to the rise in demand for gas fired residential boilers, which possess advantages, including clean heating, comfortable, eco-friendly, quiet operation, cost-effective, safe operation, energy saving, and others.

The residential boiler market forecast is analyzed across four major regions such as North America, Europe, Asia-Pacific, and LAMEA. Europe garnered the dominant market share in 2021 and is anticipated to maintain the residential boiler market trend during the forecast period. This is attributed to numerous factors such as presence of huge consumer base and the existence of key players in the region. Moreover, climatic changes and cold weather in the region are anticipated to contribute the global residential boiler market growth in Europe.

The global residential boiler market analysis covers in-depth information of the major industry participants. The key players operating and profiled in the report include Ariston Thermo SpA, Bradford White Corporation, Burnham Holdings, Inc., Ferroli S.P.A., Lennox International, Noritz Corporation, Robert Bosch GmbH, Slant/Fin Corporation, SPX Corporation, and Viessmann Manufacturing Company, Inc.Other players operating in the value chain of the global residential boiler market are AC Boilers SpA, Saudi Boiler, Parker Boiler, A.O. Smith, and others.

Impact of COVID-19 outbreak on the market

The outbreak of COVID-19 has negatively impacted various industries and countries across the globe. Attributed to the lockdown imposed, globally, decrease in the growth rate of industries, such as construction & building, transportation, oil & gas, and energy sectors, has been witnessed. This has further declined the need for heating appliances, which, in turn, is expected to hamper the growth of the residential boiler market in the next one year. In the Europe region, economies, such as Germany, France, Spain and, Italy, are following stringent measures, such as attaining social distance and limiting movements, to prevent the spread of coronavirus, thereby resulting in shutdown of production facilities.

Key findings

• In 2021, the fire tube boiler segment accounted for majority of the share of the global residential boiler market and is expected to maintain its lead during the forecast period.
• In 2021, the condensing technology segment accounted for about 87.25% of the share in the global residential boiler market and is expected to maintain its dominance till the end of the forecast period.
• The gas fired segment accounted for 71.3% market share in 2021 and is anticipated to grow at a rate of 5.4% in terms of revenue, increasing its share in the global residential boiler market.
• Condensing technology is the fastest-growing technology segment in the Asia-Pacific residential boiler market 
• The Asia-Pacific region is expected to grow at the fastest rate, registering a CAGR of 5.7% over the forecast period.
• In 2021, Asia-Pacific dominated the global residential boiler market with more than 40% of the market share in terms of revenue.