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The condensing gas boiler market size is forecast to increase by USD 4.7 billion at a CAGR of 4.76% between 2023 and 2028. The market is witnessing significant growth due to the increasing focus on energy efficiency and government regulations enforcing the use of high-efficiency boilers. Innovations in condensing gas boiler design, such as advanced combustion systems and smart controls, are driving market growth. However, the high initial cost of manufacturing condensing gas boilers remains a major challenge, limiting their widespread adoption in some regions. To mitigate this challenge, market participants are exploring cost reduction strategies, such as economies of scale and the use of alternative materials. Fossil fuel-based gas condensing boilers are increasingly being adopted due to their ability to reduce greenhouse gas emissions. Overall, the market is expected to continue its growth trajectory, driven by the need for energy efficiency and technological advancements in boiler design. The market report forecast market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
The market is witnessing a shift towards energy-efficient boilers, with gas condensing boilers gaining significant traction. Traditional boilers, which waste heat in the form of flue gases, are being replaced by these advanced boilers that recover heat from flue gases and use it to preheat water, thereby increasing overall efficiency. These boilers are available in various configurations, including combi and system boilers, catering to both residential and commercial heating systems. Environmental regulations are driving the demand for low-emission fuels and energy-efficient heating systems. The adoption of digital controls and advanced technology in gas condensing boilers further enhances their efficiency and ease of use. The central boiler market, which includes gas condensing boilers, is expected to grow steadily due to the increasing space heating demand and the need for sustainable heating solutions. Maintenance costs and the initial investment for gas condensing boilers are higher than traditional boilers, but the long-term energy savings and environmental benefits make up for it. The market for gas condensing boilers is expected to continue its growth trajectory, driven by the need for sustainable heating solutions and increasing environmental standards.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The wall hung condensing gas boilers segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the increasing demand for hot water and space heating solutions with reduced fossil fuel consumption and lower greenhouse gas (GHG) emissions. The adoption of gas condensing boilers, including combi and system boilers, is on the rise as they offer improved efficiency through heat recovery technology. This technology allows the recovery and utilization of heat from flue gases, which is otherwise lost in traditional boilers. Environmental regulations and environmental standards are driving the market, as governments worldwide set targets for energy efficiency and GHG reduction.
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The wall hung condensing gas boilers segment accounted for USD 9.26 billion in 2018. The central boiler market, including natural gas-fired boilers, is transitioning towards low-emission fuels and the use of emissions control technologies. Wall hung condensing gas boilers are popular choices for residential constructions due to their compact designs, easy installation, and flexibility to fit various home layouts and plumbing systems. These boilers are increasingly preferred in new residential constructions and commercial spaces, particularly in regions with high space heating demand and population growth. The chemical, refining, and petrochemical sectors are also adopting energy-efficient boilers to reduce their carbon footprint and meet their energy efficiency targets. Zero-emission buildings are gaining popularity, and the demand for Boiler Control, zero-emission heating systems is expected to increase in the coming years. The installation cost of gas condensing boilers is a significant factor influencing their adoption, but the long-term energy savings and environmental benefits make them a worthwhile investment.
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APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is witnessing significant growth due to the increasing demand for Water Heating systems with high Energy Efficiency. The market is driven by the adoption of Smart Home Concepts, which prioritize carbon emissions reduction and sustainability. Fuel types, such as gas-fired, oil-fired, and coal-fired, are undergoing inorganic development strategies to enhance their product offerings. Manufacturers are focusing on advanced technologies like Hydrogen Fuel integration, Hydronic Heating systems, and consumer-centric designs. Water Tube Boilers and Fire Tube Boilers are popular choices for Residential Boilers, while Electric Boilers and Condensing Boilers are preferred for their energy efficiency. The market is segmented based on fuel types, with Gas Fired Condensing Boilers leading the market due to their lower carbon footprint and cost-effectiveness. The future of the market lies in the integration of renewable energy sources and the development of next-generation boiler technologies. Laars Heating Systems, a leading player, is focusing on innovation and sustainability to cater to the evolving consumer demands and industrial systems requirements. The market is expected to witness growth in the upcoming years, driven by the increasing awareness of Energy Efficiency and the need to reduce Carbon Emissions.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing focus on energy efficiency is notably driving market growth. Condensing gas boilers represent a significant advancement in space heating technology, offering enhanced energy efficiency and reduced greenhouse gas (GHG) emissions compared to traditional fossil fuel boilers. These innovative systems employ heat recovery mechanisms that capture the heat from flue gases, reusing it to preheat incoming water. This results in improved efficiency, as less gas and energy are required to compensate for the heat loss. Traditional boilers contribute to environmental degradation through the emission of carbon dioxide (CO2) during the combustion process. By transitioning to condensing gas boilers, significant GHG reductions can be achieved.
For instance, residential applications utilizing condensing heat exchangers in gas furnaces can potentially reduce carbon emissions by approximately 332 million metric tons over a 30-year period. The adoption of condensing gas boilers offers numerous benefits, including lower fuel consumption and reduced operational costs for consumers. These advantages make them a popular choice for both residential and commercial applications. The market for condensing gas boilers includes various types, such as combi and system boilers, catering to diverse heating demands. The shift towards energy efficiency targets and stricter environmental regulations is driving the demand for energy-efficient heating systems in both the residential and commercial sectors. Natural gas, a low-emission fuel, dominates the central boiler market, with the chemical, refining, and petrochemical industries also adopting condensing gas boilers for emissions control technologies. Thus, such factors are driving the growth of the market during the forecast period.
Innovations in condensing gas boiler design are the key trends in the market. The market is experiencing significant growth due to the adoption of innovative technologies that enhance the efficiency of hot water and space heating systems. Condensing gas boilers, which utilize advanced heat exchanger designs, maximize heat recovery from flue gases, resulting in higher overall efficiency ratings, frequently surpassing 90%. These boilers feature modulating burners that adjust output based on heating demands, ensuring efficient operation at varying loads and minimizing energy waste and excessive cycling.
As population growth and heating demand continue to rise, regulations promoting energy efficiency targets and the use of low-emission fuels in commercial and residential applications are driving the market for energy-efficient boilers. The chemical, refining, and petrochemical sectors, as well as the commercial central boiler market, are also adopting these technologies for emissions control and fuel cost savings. Thus, such trends will shape the growth of the market during the forecast period.
The high initial cost of manufacturing condensing gas boilers is the major challenge that affects the growth of the market. Condensing gas boilers are recognized for their superior efficiency in providing hot water and space heating solutions, surpassing that of traditional fossil fuel boilers. This technology, which recovers latent heat from flue gases, contributes significantly to reducing greenhouse gas (GHG) emissions, making it an environmentally friendly choice. However, the adoption of condensing gas boilers is slower than expected due to their higher upfront costs. The intricate designs, including advanced heat exchangers, necessitate increased production expenses, which can be a deterrent for potential buyers.
Further, the implementation of stringent environmental regulations and the growing demand for energy-efficient heating systems, driven by population growth and increasing heating demand, are expected to fuel the market's growth. The central boiler market, including commercial applications, is also transitioning towards low-emission fuels and the adoption of emissions control technologies. The digital controls and improved efficiency targets further add to the appeal of condensing gas boilers, despite their higher installation costs. The natural gas-fired boiler market, including combi and system boilers, is expected to witness significant growth due to the benefits of condensing technology. The chemical, refining, and petrochemical sectors, as well as the pursuit of zero-emission buildings, are expected to provide ample opportunities for market expansion. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
A. O. Smith Corp. - The company offers condensing gas boilers through its subsidiary Lochinvar such as Crest condensing boiler, which have a thermal efficiency of up to 96.2 percent.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing a shift towards gas condensing boilers due to their energy efficiency and environmental benefits. Traditional boilers, which are non-condensing, waste heat in the form of flue gases. In contrast, gas condensing boilers use heat recovery technology to extract heat from flue gases, increasing efficiency and reducing greenhouse gas emissions. The adoption of gas condensing boilers is driven by increasing heating demand, population growth, and energy efficiency targets. Fossil fuels, including natural gas, continue to dominate the heating market, but regulations aimed at reducing greenhouse gas emissions are driving the demand for low-emission fuels and energy-efficient boilers. The gas condensing boiler market includes various types such as combi boilers and system boilers. While combi boilers provide both hot water and space heating in a single unit, system boilers require a separate hot water cylinder. The installation cost of gas condensing boilers is higher than traditional boilers, but the long-term energy savings and environmental benefits justify the investment. The heating systems market caters to both residential and commercial sectors. Digital controls and emissions control technologies are also gaining popularity in the market. The fired boiler market, including gas and oil-fired boilers, is expected to grow due to the increasing demand for heating in the refining, petrochemical sectors, and zero-emission buildings. Chemical processes in these industries also require heating, making gas condensing boilers an essential technology.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.76% |
Market growth 2024-2028 |
USD 4.7 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.29 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 47% |
Key countries |
China, US, Germany, Japan, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A. O. Smith Corp., Ariston Holding NV, BDR Thermea Group, Daikin Industries Ltd., Ferroli Spa, Hoval Group, IBC Technologies Inc, Ideal Heating Ltd., Immergas S.p.A, MHG Heating Ltd., Navien Inc., Rinnai America Corp., Robert Bosch GmbH, Sime Ltd., STIEBEL ELTRON GmbH and Co. KG, Thermona spol s.r.o., Vaillant Group, Viessmann Climate Solutions SE, Watts Water Technologies Inc., and Weishaupt Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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