Residential Boiler Market Trends

Growth Drivers

• Growing Construction Activities - Public residential construction investments in the US saw a considerable rise in value between 2002 and 2021. In 2021, the public sector invested about USD 10 billion in residential development projects. Hence, owing to the growing construction activities, the demand for residential boilers is anticipated to increase the growth of the market.

• Rising Government Spending on Hydrogen Fuel - In India, the expedition would cost a total of about USD 3 billion, according to the ministry. The government granted about 3 million, the first such allocation, for 2023–2024, the first year of the seven-year programme, with the goal of increasing the nation's output of green hydrogen.

• Growing Concern for Green-House Emission - Greenhouse gas emissions from enterprises and houses were 13% in 2020, owing mostly to the use of fossil fuels for heating, the usage of some items containing greenhouse gases, and waste disposal.

• Surge in Disposable Income - Since the disposable income of the population increases, they tend to spend more on making quality life which also includes purchasing house. Hence, large number of people is estimated to spend more on housing. The typical American spends about 36% of their gross income on housing.

• Growing Trend of Private Homes - In 2022, the homeownership rate in the US increased marginally to reach its highest level since 2011. The percentage of homes with owner occupants was about 64% in 2022. Hence, owing to the growing trend of private homes the market is estimated to grow. Apart of residential buildings, boilers could also be placed in private homes. Private house most of the time is situated in area where central heating system is unavailable. Hence, the demand for residential boilers is estimated to increase. Boilers or furnaces are used to heat the majority of American homes in order to keep their spaces warm.

Challenges

• High Cost of Production
• Boost in Use of Renewable System - When hydrogen is burned, harmful nitrogen oxides (NOx) and steam are also produced. Similar to carbon dioxide, hydrogen influences other pollutants rather than the climate directly. Hence, the demand for renewable method of heating is growing. Solar thermal systems, often known as solar water heating systems, use the sun's heat to warm the water in the home. The system makes use of collectors, which are solar panels mounted on your roof. Sun heat is captured by the panels and used to warm water in a cylinder. This is known for causing less pollution. Hence, this factor is estimated to hinder the growth of the market.
• Maintenance Cost is High