Space Heating Boilers Market Size, Share & Trends Analysis Report By Operation (Gas-fired Space Heating Boilers, Electric Space Heating Boilers), By Application (Residential, Commercial), By Type, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global space heating boilers market size was estimated at USD 27.4 billion in 2022 and is anticipated to grow at a compounded annual growth rate (CAGR) of 3.4% from 2023 to 2030. Rising awareness of environmental issues and the need to reduce greenhouse gas emissions have driven a strong emphasis on energy-efficient and environmentally friendly space heating boiler solutions. Governments globally have been implementing regulations and incentives to encourage the adoption of more efficient and cleaner space heating boiler technologies.

Space heating boilers are appliances used to provide heat for indoor spaces in residential and commercial buildings. These space heating boilers are a crucial part of the heating system and are responsible for generating and distributing heat throughout the building. They can operate using various fuel sources, including natural gas, oil, propane, electricity, and biomass. They use fuel combustion or electrical resistance to generate heat. Modern space heating boilers are equipped with sophisticated control systems that regulate the boiler's operation and maintain the desired indoor temperature. These controls can optimize energy efficiency and ensure safe and reliable operation. These aforementioned factors are expected to drive the demand for space heating boilers in the coming years.

Growing demand for sustainable buildings coupled with the growing adoption of high-efficiency space heating systems are expected to drive the demand for space heating boilers in the U.S. in the coming years. Various green building certifications, including LEED (Leadership in Energy and Environmental Design) and Energy Star, have gained popularity in the U.S. These recognize buildings that meet high standards of energy efficiency and sustainable design, incentivizing developers and investors to invest in such projects.

Federal, state, and local governments have been offering incentives and implementing regulations to encourage sustainable building practices. These incentives may include tax credits, grants, and rebates, making sustainable building investments more financially attractive. Additionally, many companies in the U.S. have set sustainability targets, including reducing carbon footprints and increasing energy efficiency. Investing in sustainable buildings aligns with these goals and can help companies demonstrate their commitment to environmental responsibility.

Sustainable buildings often have lower operating costs due to reduced energy consumption and efficient designs. Investors recognize the potential for long-term cost savings and increased property value. The availability of green bonds and other forms of sustainable finance has facilitated investments in environmentally friendly projects, including sustainable buildings. These factors are expected to drive the demand for space heating boilers in the coming years.

Energy-efficient space heating boilers offer various benefits compared to traditional, less efficient boiler systems. These are designed to extract more heat from the fuel they burn, resulting in reduced energy waste and lower energy consumption. With reduced energy consumption, energy-efficient space heating boilers can significantly lower operating costs for commercial spaces and homeowners. The initial investment in an energy-efficient space heating boiler is often offset by long-term savings.

Overall, investing in an energy-efficient space heating boiler not only brings cost savings and environmental benefits but also enhances comfort, reliability, and property value. When choosing an energy-efficient space heating boiler, it's essential to consider factors like the size of the property, the heating load, and the available fuel options to ensure the best fit for the user’s specific needs.

Operation Insights

The gas-fired space heating boilers operation segment led the space heating boilers market and accounted for 74.0% of the revenue share in 2022. The gas-fired space heating boilers vary depending on several key considerations such as the demand, adoption, and utilization of gas-fired space heating boilers in residential and commercial industries. Stringent energy efficiency regulations and environmental standards set by governments are expected to further drive the market demand.

The price of natural gas, as a primary fuel for gas boilers, plays a significant role in their adoption. When natural gas prices are competitive or lower compared to other energy sources, companies are more likely to choose gas-fired space heating boilers to benefit from cost savings. Further, gas-fired space heating boilers that offer high performance and reliability are preferred by companies.

The electric space heating boilers operation segment is expected to witness a CAGR of 5.6% over the forecast period. As a backup heat source for solar applications and applications requiring particular temperature settings, it is perfect for radiant systems. For instance, the AT Series electric boiler, which has a sophisticated microprocessor control and load managing controller, is a 100% efficient, small wall-hung boiler. The cast iron heat exchanger in the AT Series is a tried-and-true one-piece, and it comes with a 20-year limited warranty.

Application Insights

The commercial application segment led the market with a revenue share of 55.2% in 2022. Since water carries thermal energy quickly and maintains heat longer than air, commercial space heating boilers are inherently energy efficient. They also have a lower risk of developing system leaks since they use pipes rather than ductwork, which uses less energy. Since heat is properly dispersed throughout the area because boilers employ thermal radiation techniques to heat the structure. As long as the heating system is suitably balanced for the necessary heating load, they also operate continuously for extended periods, giving residents steady heat. These aforementioned factors are expected to drive the demand for space heating boilers for commercial application over the forecast period.

The AAON BL Series Packaged Boiler Outdoor Mechanical Room is factory engineered with pre-engineered pumping, piping, and controls in one quick connect package to save time and money at the work site. The BL Boiler is intended for indoor or outdoor application; it can be installed in a conventional mechanical room or moved to the building's exterior to make the most of available inside space. Further, the boiler is a minimum of 88% thermal efficient.

The residential application segment is anticipated to witness a CAGR of 3.6% over the forecast period. Space heating boilers used for residential applications are an essential part of home heating systems. They are designed to provide hot water and/or central heating for houses, apartments, and other residential properties. These aforementioned factors are anticipated to propel the demand for space heating boilers for residential applications in the coming years.

Type Insights

The condensing space heating boilers type segment led the market and accounted for 90.4% of the global revenue share in 2022. These are superior to non-condensing space heating boilers as they are energy efficient. Up to 30% of a boiler's heat is practically lost before condensing space heating boilers were invented since it was expelled directly into the flue pipe. Condensing space heating boilers also employ a Flue Gas Heat Recovery System to recycle waste heat from the flue to warm the cold water entering the boiler, which allows them to operate at a greater efficiency level.

Traditional boilers typically do not achieve efficiency levels over 55% - 65%. However, non-condensing space heating boilers can achieve up to 78% efficiency (the proportion of useful heat). Condensing space heating boilers, on the other hand, can achieve up to 90% - 99% efficiency. By installing a condensing space heating boiler in a domestic space, the user can save up to 1,200 kg of carbon emissions annually. Condensing space heating boilers are an ideal alternative heating technology since they considerably cut fuel costs and carbon footprint.

The non-condensing space heating boiler type segment is anticipated to witness a CAGR of 2.4% over the forecast period. Since non-condensing space heating boilers are typically less expensive to fix, doing so can result in immediate financial savings. Condensing space heating boilers can save more money, though, because of their longer lifespans and increased fuel efficiency. Owing to this, even though condensing space heating boiler prices are more, they ultimately prove to be the best option. These aforementioned factors are anticipated to propel the demand for space heating boilers in the coming years.

Regional Insights

Europe region dominated the market in 2022 by accounting for a revenue share of 64.7%. The region has been at the forefront of promoting energy efficiency in the commercial and residential sectors. Stringent regulations and directives, such as the Energy Efficiency Directive (EED) and the Energy Performance of Buildings Directive (EPBD), have pushed businesses to invest in high-efficiency boilers. This has driven the demand for condensing boilers and other advanced technologies that offer better energy performance.

North America, particularly the U.S., and Canada, has stringent energy efficiency regulations and standards. These regulations have driven the demand for high-efficiency commercial space heating boilers, including condensing space heating boilers, which help end-users to reduce energy consumption and operating costs. Further, the growth of the commercial construction sector in North America has created a demand for heating systems, including commercial space heating boilers, in newly constructed buildings and renovated properties.

Asia Pacific region is expected to witness a CAGR of 4.0% over the forecast period. The ongoing urbanization and infrastructure development in the region have resulted in the construction of commercial buildings, shopping complexes, and other commercial facilities. These new constructions require modern and efficient heating systems, boosting the demand for space heating boilers for commercial applications in this region.

Efforts to improve energy infrastructure in the Central & South America region have resulted in increased installations of heating systems, including space heating boilers, for commercial and residential applications. Further, ensuring a stable and reliable energy supply is crucial for the region's economic development. Space heating boilers provide a dependable heating solution, especially in regions with cooler climates or specific industrial processes. These factors are anticipated to drive the demand for space heating boilers in the coming years.

Key Companies & Market Share Insights

The manufacturers adopt several strategies, including geographical expansions, product launches, and mergers & acquisitions, to enhance market penetration and cater to the changing technological requirements of various applications, such as commercial and residential. For instance, Bosch launched the commercial boiler series, the Condens 7000 WP, in April 2022. The new series, with a fresh design, is made to make installation more time-efficient and convenient. When compared to comparable models, it can reduce installation times by an average of 60%. It also provides the highest production. Some prominent players in the global space heating boilers market include:

• Rheem Manufacturing

• Ingersoll-Rand Plc

• Daikin Industries, Ltd.

• Lennox International

• Viessmann Group

• Vaillant Group

• ECR International, Inc.

• AAON

• Mitsubishi Electric Corporation

• Ariston Thermo USA LLC

• Superior Boiler

• HKS Lazar sp. z o.o.

• Lochinvar

• Ideal Heating

• Baxi

• Navien

• Biasi UK Ltd

Space Heating Boilers Market Report Scope

Global Space Heating Boilers Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and analyzes the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global space heating boilers market report based on operation, application, type, and region:

• Operation Outlook (Revenue, USD Billion, 2018 - 2030)

  • Gas-fired Space Heating Boilers

  • Electric Space Heating Boilers

  • Oil-fired Space Heating Boilers

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Residential

  • Commercial

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Non-condensing Space Heating Boiler

  • Condensing Space Heating Boiler

• Region Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • Sweden

    • UK

    • Spain

    • Finland

  • Asia Pacific

    • China

    • Japan

    • Australia

    • India

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE