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Europe Boiler Market Size
Europe Boiler Market size valued at USD 48.8 billion in 2023 and is projected to expand at more than 8.1% CAGR from 2024 to 2032, driven by the stringent GHG emission control policies by the government.
The global market for boilers is likely to witness 5.5% CAGR and will cross USD 180 billion by 2032. The growing concern to reduce carbon emissions coupled with the region’s energy crisis has bolstered the demand for energy-efficient boilers in Europe. As per the International Monetary Fund, in 2022, the supply of gas by Russia for heating, power, and electricity purposes encountered a sharp decline of over 80%.
To curb the effects of energy crisis and in response to the rising space heating and hot water demand, the government has rolled out supportive policies for increasing the adoption of energy-efficient and renewable heating appliances. In fact, in earlier March 2022, the UK government also announced over £288 million (USD 347 million) in a funding scheme for green heating projects. The EU has set a target of 55% net reduction in GHG emissions by 2030, which calls for energy-efficient heating solutions.
Moreover, advancing a boiler’s efficiency from 56% to 90% using natural gas in an average cold environment will save 1.5 tons of CO2 emission. The rising adoption of advanced heating equipment to save energy is positively contributing to industry growth.
| Report Attributes | Details |
|---|---|
| Base Year: | 2023 |
| Market Size in 2023: | USD 48.8 Billion |
| Forecast Period: | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR: | 8.1% |
| 2032 Value Projection: | USD 99.4 Billion |
| Historical Data for: | 2019 to 2023 |
| No. of Pages: | 556 |
| Tables, Charts & Figures: | 550 |
| Segments covered: | Fuel, Capacity, Application |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Europe Boiler Market Trends
The high installation cost of boilers increases the burden of the initial expenses. Additionally, changing boilers requires maintenance schedules and modification of operation, which may affect product adoption. The high cost is also involved in repairing and replacing the boilers. Due to this reason, many customers in some countries are turning to conventional heat pumps as they are offered subsidies on their purchases which makes the pumps more economical than gas boilers.
Europe Boiler Market Analysis
In terms of fuel, the Europe boiler market from natural gas segment is predicted to observe nearly 8% gains between 2023 and 2032, on account of competitive prices of natural gas. The decline in Russian pipeline supplies due to the energy crisis has led to receding natural gas prices, demanding energy-efficient natural gas boilers. This growth is ascribed to the presence of high-capacity gas distribution networks coupled with robust growth of supply gas networks. In fact, the EU gas network can transport and store large quantities of energy, constituting over 200,000 km of transmission pipelines, over 20,000 compressor and pressure reduction stations, and over 2 million km of distribution network. The abundance of gas reserves has also created a strong demand for natural gas-fired boilers in the region.
Upon burning, natural gas yields fewer emissions than burning petroleum or coal products to generate an equal amount of energy. The tightening guidelines to phase out carbon emissions have increased the adoption of natural gas-fired boilers.
Europe boiler market value from the ≤ 10 MMBtu/hr capacity segment accounted for over USD 39 billion in 2022. This growth is credited to the rising adoption of energy-efficient heating appliances in small-scale commercial units and dwellings. Furthermore, favourable tax credits associated with the deployment of energy-saving technologies that yield high energy output and require less fuel have proliferated the demand for low-capacity boilers in Europe. In fact, in November 2021, the UK government also launched Clean Green Initiative to utilize green technology in developing nations. This growth can also be attributed to improving living conditions coupled with growing disposable income which has increased people’s spending on boilers.
Residential boiler market in Europe is expected to register approximately 8.5% growth rate through 2032, impelled by the rising demand for hot water machines and space heating, specifically from countries with extremely cold temperatures. Almost 50% of the final energy consumed in the UK is for heating purposes which is more than that utilized for transportation and electricity.
Meanwhile, increasing efforts towards saving energy have proliferated the demand for energy-efficient boilers. In September 2022, the UK government announced an investment of £1.5 billion (USD 1.7 billion) to cut bills while improving energy efficiency for around 130,000 households. Such initiatives have created a strong demand for energy-efficient heating systems, elevating segment expansion.
Boiler market in France is anticipated to witness around 8.5% CAGR between 2023 and 2032, owing to heavy investments in the industrial sector. For example, in April 2022, the French government announced an investment of over EUR 5.6 billion (USD 5.9 billion) to cut CO2 emissions of domestic heavy industries as part of the France 2030 national investment plan.
Furthermore, tightening guidelines by the government to cut the deployment of fossil fuels in heating and cooling systems has propelled the demand for energy-efficient boilers. The consistent development of newly constructed structures further creates a strong demand for energy-efficient boilers. The presence of highly skilled energy industry in the country along with increasing government investments is working in favour of the regional market growth.
Europe Boiler Market Share
Top companies operating in the boiler market in Europe are
- Bradford White Corporation
- Clayton Industries
- DAIKIN INDUSTRIES
- Fonderie Sime
- Weil-McLain
- Hurst Boiler & Welding
- Carrier
- Cochran
- Doosan Heavy Industries & Construction
- Forbes Marshall
- IHI Corporation
These firms are emphasizing product innovations to reinforce their market position. For example, in November 2022, VISSEMANN, a German heating systems manufacturer, unveiled its all-new Vitodens boiler range with an enhanced output of 35 kW.
The new product has a modulation range of 1:10 which boosts its seasonal efficiency and its Domestic Hot Water (DHW) output ranges from 2.9 kW to 35 kW and the heating output lies between 3.2 to 32 kW.
Impact of COVID-19 Pandemic
The COVID-19 pandemic affected Europe boiler market negatively on account of an unforeseen halt in supply chain and a direct impact on energy use. However, the region’s energy consumption experienced a substantial rebound in the post COVID-19 era. In fact, as per the European Environment Agency estimates, the region’s final energy consumption encountered a spike of 5% between 2020 and 2021. In addition, favourable government policies on energy bills will bolster the use of heating systems such as boilers.
The Europe boiler market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD” from 2019 to 2032, for the following segments:
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Market Insights, By Fuel
- Natural Gas
- Oil
- Coal
- Electric
- Others
Market Insights, By Capacity
- ≤ 10 MMBtu/hr
- > 10 - 50 MMBtu/hr
- > 50 - 100 MMBtu/hr
- > 100 - 250 MMBtu/hr
- > 250 MMBtu/hr
Market Insights, By Application
- Residential
- Commercial
- Offices
- Healthcare Facilities
- Educational Institutions
- Lodgings
- Retail Stores
- Others
- Industrial
- Food Processing
- Pulp & Paper
- Chemical
- Refinery
- Primary Metal
- Others
The above information has been provided for the following countries:
- France
- UK
- Poland
- Italy
- Spain
- Austria
- Germany
- Sweden
- Russia
Frequently Asked Questions (FAQ) :