Through 2025, boiler sales in Western Europe will be bolstered by EU efforts to promote replacement of older boilers with more energy-efficient models, according to a new Freedonia Group analysis:
- Western Europe has historically been a particularly large market for central heating boilers, with regional demand accounting for 34% of the global total in 2020.
- High demand is driven by the region’s cool climates, high levels of development, and building practices that have made boilers the dominant form of heating technology.
However, the study also notes that boilers in Western Europe are rapidly losing share in the heating equipment market to heat pumps, a process that is expected to be ongoing throughout the 2020s:
- The shift toward heat pumps has been driven by the strong environmental profile of these products, which has led to them being supported by various government incentive schemes.
- In order to keep pace and mitigate further regulatory pressure, boiler suppliers must continue to invest in improving the energy efficiency of their products.
Asia/Pacific Region to Account for Majority of Boiler Market Gains Through 2025
The Freedonia Group forecasts demand for boilers to increase 3.5% per year to $16.0 billion in 2025. Boilers are the primary heating equipment installed in residential and nonresidential buildings around the world, with the US and Canada being the main exception. The dominance of boilers in the global heating market stems from boilers being:
- preferred in areas where electricity is expensive or not universally available, or where supplies are unreliable
- widely used in regions where the existing architecture incorporates pipes and radiators rather than the ductwork needed for forced air heating equipment
- preferred in many cases for performance reasons as some people prefer radiant heating over forced air types, believing the heat it provides to be more comfortable and even (i.e., without cold spots)
The Asia/Pacific region is expected to account for 55% of global sales growth. China will represent a large share of that figure as building construction activity in the country rises, although boilers are expected to face increasingly stiff competition from heat pumps.
Want to Learn More?
Global Central Heating Boilers is now available from the Freedonia Group. This study examines demand for boilers by market and global geographic region. Historical data (2010, 2015, and 2020) and forecasts for 2025 and 2030 are presented for central heating boiler demand in current US dollars (including inflation) and units at the global, regional, and country regions.
Central heating boilers include:
- cast iron and steel types
- district heating boilers, including large-scale boilers and series of large-scale central boilers that generate hot water to provide heat for an industrial complex or a densely populated urban area
Data are segmented by residential and nonresidential markets:
- residential (e.g., single-family houses; apartment or condominium (i.e., multifamily) buildings; manufactured homes)
- nonresidential (e.g., institutional buildings; office and commercial structures; industrial facilities; other nonresidential structures such as airport and bus terminals, recreational buildings, police stations, firehouses, etc.)