The Global Residential Boiler Market Anticipated to Generate a Revenue of $13,849.4 Million, Growing at a CAGR of 6.4% from 2021 to 2028Download Sample Reports Overview
The global residential boiler market is estimated to be valued at $13,849.4 million by 2028, surging from $8,381.4 million in 2020 at a noteworthy CAGR of 6.4%.
Impact Analysis of COVID-19 on the Residential Boiler Market
The global residential boiler witnessed a negative impact due to the novel COVID-19 pandemic lockdown across the globe. During the emergency time, major providers have experienced partial suspension of activities and services because of government regulations and lockdown guidelines. However, major industry leaders are conducting several campaigns to reach more customers by introducing their innovative products. For example, in October 2020, Vaillant Group, a leading heat pumps and ventilation systems provider, conducted an international campaign called “#whywait” to introduce climate protection through environmentally friendly heating technologies. In this campaign, the company has introduced their energy saving and eco-friendly ventilation and heating systems to increase the utilization of renewable energies by creating awareness about environmental and energy efficient Vaillant products. This factor is estimated to have considerable effect on the global residential boiler market growth in 2020.
Global Residential Boiler Market Services Market Analysis
Stringent government regulations on the carbon emissions are estimated to drive the growth of the market in the forecast time. Most of the government bodies are initiating activities to minimize carbon emission by reducing the utilization of fossil fuels like coal for water heating. For example, in 2020, the government of Canada invested about $15 billion in about 60 various programs and policies including clean power projects by minimizing fossil fuels consumption, rising the production of low carbon fuels like hydrogen, renewable natural gas and bio-crude, energy efficiencies at home and many other programs. Such factors are predicted to drive the utilization of effective residential boilers for home heating to save money and energy, which is estimated to accelerate market growth in the review time. In addition, rising utilization of new technologies like self-cleaning to minimize the frequency of boiler tanks cleaning is estimated to boost the market growth in the forecast years. Boiler tanks need to be flushed or cleaned every 6-9 months. However, self-cleaning tanks consist of special dip tube which stirs the water at the boiler tank bottom to prevent sediment from settling and minimize scaling. This system utilizes on demand boilers for kitchen use. Such factors are predicted to enhance the growth of the industry in the review time.
High cost associated with residential boilers especially for wifi or artificial intelligence connectivity boilers since they require more components or sensors is anticipated to hamper market growth in the review time.
Constant growth in the water heater or boiler technology to provide most effective and highly energy efficient boilers is anticipated to drive the industry growth in the near future. For instance, air source heat pump boilers or water heaters is an innovative technology, which replaces traditional use of electric or gas heating element with heat pumps to minimize the energy utilization for the heating.
Global Residential Boiler Market, Segmentation
The global residential boiler market is segmented based on fuel type, technology, and region.
The fuel type segment is further divided into oil fired, gas fired and others. In these all sub-segments, the gas fired residential boiler sub-segment is estimated to experience a significant growth and is anticipated to rise at a faster rate of 6.7% CAGR by the end of forecast time 2021-2028.
More reliability and longer life span of the boilers are encouraging the customers to adopt gas fired boilers to minimize service cost compared to other traditional boilers like coal. This is estimated to propel the industry rise in the forecast timeframe.
The technology segment is further segmented into non-condensing and condensing. The condensing residential boiler is expected to be the most lucrative sub-segment and is expected to account for $11,072.2 million revenue by the end of forecast time.
Increasing customer awareness about usage of cost effective and energy efficient home heating products are creating demand for condensing boilers due to it requires less space as well as minimize carbon emission because less fuel consumption. Such factors are estimated to boost the growth of the industry in the review time.
The Asia-Pacific residential boiler market generated for $1,038.5 million in 2020 and is predicted to produce a revenue of $3,508.1 million by the end of 2028, at a 7.6% CAGR.
Increasing demand for residential boiler across Asia-Pacific countries especially in China, Japan and India due to rising requirement of domestic heating systems especially in region’s cold places, which is predicted to drive the industry growth in the coming years. Government efforts to support sustainable water heating systems to minimize environmental pollution caused by fossil fuels combustion is further estimated to rise demand for renewable energy source boilers, is also predicted to drive industry growth in the forecast time.
Key Players in the Global Residential Boiler Market
Some of the leading 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
- Burnham Holdings, Inc.
Coupled with the company profiles of the major players in the global market, the report also includes the Porter’s five forces model that provides deep information into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Residential Boiler Market
- Bargaining Power of Suppliers: The major companies in residential boiler business are huge in number. However, emerging of innovative alternatives like solar powdered heating systems are resulting moderate bargaining power of suppliers.
- Bargaining Power of Buyers: Increasing consumer demand for effective heating systems, but accessibility of alternatives due to high cost of the boilers are impacting the market growth.
These factors are resulting in moderate bargaining power of buyers.
- Threat of New Entrants: Moderate initial investments are required for the new participants into the residential boiler industry. However, high brand loyalty among the consumers is a major challenge for new players.
As a result, the threat of the new entrants is moderate.
- Threat of Substitutes: Presence of high number of substitutes for residential boiler especially for gas fired systems like solar panels and geothermal heating systems are resulting high threat of substitutes.
- Competitive Rivalry in the Market: The companies operating in the global residential boiler are opting for various growth strategies to rise their position in the industry. Various companies are launching several energy effective products in the market to reinforce their services demand.
Therefore, competitive rivalry in the market is high.