Europe Boiler Market Analysis

 Europe Boiler Market Analysis

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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.