Condensing Gas Boiler Market Analysis, Size, and Forecast 2025-2029: North America (US and Canada), Europe (France, Germany, and UK), APAC (Australia, China, India, Japan, and South Korea), and Rest of World (ROW)

Condensing Gas Boiler Market Size 2025-2029

The condensing gas boiler market size is valued to increase by USD 5.24 billion, at a CAGR of 5.1% from 2024 to 2029. Increasing focus on energy efficiency will drive the condensing gas boiler market.

Major Market Trends & Insights

• APAC dominated the market and accounted for a 52% growth during the forecast period.
• By Product Type - Wall hung gas boilers segment was valued at USD 9.57 billion in 2023
• By End-user - Residential segment accounted for the largest market revenue share in 2023

Market Size & Forecast

• Market Opportunities: USD 46.17 million
• Market Future Opportunities: USD 5241.40 million
• CAGR from 2024 to 2029 : 5.1%

Market Summary

• The market has experienced significant growth in recent years, driven by the increasing demand for energy-efficient heating solutions. These advanced boilers, which recover heat from the exhaust gases that would otherwise be lost, offer improved efficiency levels compared to traditional non-condensing models. Despite the initial high cost of manufacturing condensing gas boilers, their energy savings and environmental benefits have made them a popular choice for businesses and homeowners alike. Innovations in condensing gas boiler design continue to push the boundaries of efficiency, with some models achieving efficiencies of up to 98%. Integration of renewable energy sources and condensate management systems, along with combustion air management, are future trends.
• These advancements not only reduce greenhouse gas emissions but also lower operating costs for consumers. However, challenges remain. The high upfront investment required for condensing gas boilers can be a barrier to entry for some consumers. Additionally, the need for proper installation and maintenance adds to the overall cost. As the market continues to evolve, addressing these challenges will be crucial for driving further growth. In conclusion, the market is poised for continued expansion, fueled by the demand for energy-efficient heating solutions. With advancements in design and technology, these boilers offer significant energy savings and environmental benefits, making them a smart investment for businesses and homeowners alike.

What will be the Size of the Condensing Gas Boiler Market during the forecast period?

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How is the Condensing Gas Boiler Market Segmented ?

The condensing gas boiler industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Product Type
  • Wall hung gas boilers
  • Floor standing gas boilers
• End-user
  • Residential
  • Commercial
  • Industrial
• Fuel Type
  • Natural gas
  • LPG
  • Biogas
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • UK
  • APAC
    • Australia
    • China
    • India
    • Japan
    • South Korea
  • Rest of World (ROW)

By Product Type Insights

The wall hung gas boilers segment is estimated to witness significant growth during the forecast period.

The market continues to evolve, with innovative technologies and designs shaping the landscape. Condensing gas boilers, a popular choice for homes, offer significant advantages, including thermal inertia reduction and air-fuel ratio control. These boilers integrate advanced systems like condensate drain pumps, boiler lifespan extension mechanisms, and Pressure relief valves. Remote boiler monitoring, water heating efficiency, and gas valve modulation are other key features, driven by Boiler Control algorithms and condensing boiler technology. Heating system upgrades and optimization, enabled by premix burner technology, reduce carbon emissions and enhance energy efficiency. smart home integration, boiler safety systems, system diagnostics, and boiler pressure regulation are essential safety measures.

Energy consumption monitoring and energy efficiency standards ensure long-term savings. Thermal efficiency improvements, boiler combustion optimization, smart boiler controls, and boiler maintenance schedules further optimize performance. For instance, modern condensing gas boilers can achieve up to 95% efficiency, significantly reducing energy consumption.

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The Wall hung gas boilers segment was valued at USD 9.57 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 52% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in the Asia Pacific (APAC) region is experiencing notable growth due to the increasing emphasis on energy efficiency and environmental concerns. With thermal efficiencies of up to 98% and reduced fuel consumption, condensing gas boilers are gaining popularity in both residential and commercial sectors. The APAC market's expansion is further driven by regulatory initiatives aimed at decreasing greenhouse gas emissions and encouraging the adoption of energy-efficient technologies.

For instance, India intends to reduce its economy's greenhouse gas emission intensity by 33-35% by 2030. The high-performance capabilities of condensing gas boilers make them an attractive option for consumers and businesses seeking to minimize their carbon footprint and save on energy costs.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market is experiencing significant growth due to the increasing demand for energy efficiency and reduced emissions in the heating sector. Condensing gas boilers are recognized for their ability to optimize efficiency by recovering heat from the exhaust gases, reducing nox emissions, and improving boiler condensate management. Advanced boiler control algorithms and efficient domestic hot water systems are essential features that contribute to the high-performance levels of these boilers. Preventing boiler scale buildup and ensuring boiler safety features and regulations are met are critical aspects of maintaining the longevity and effectiveness of condensing gas boilers. Integrating renewable energy with gas boilers through hybrid systems is another trend that is gaining popularity in the market.

Monitoring and controlling boiler parameters, advanced boiler combustion technology, and energy-efficient boiler installation are all essential components of high-efficiency gas boiler operation. Troubleshooting common boiler problems and reducing energy consumption through accurate calculation of boiler heating load and system performance evaluation are essential for maintaining optimal boiler performance. Comparison of boiler efficiency ratings and implementation of maintenance and repair procedures are crucial for extending the lifespan of condensing gas boilers. Overall, The market is driven by the need for energy efficiency, reduced emissions, and advanced technologies to meet the evolving demands of the heating sector.

What are the key market drivers leading to the rise in the adoption of Condensing Gas Boiler Industry?

• The market's primary catalyst is the growing emphasis on energy efficiency. This trend, driven by increasing awareness and regulatory pressures, is shaping business strategies and consumer preferences alike. 

• Condensing gas boilers have gained significant traction in various sectors due to their energy efficiency and environmental benefits. These advanced systems incorporate additional components to recover heat from exhaust gases, reducing the need for excessive gas and energy consumption. Traditional gas boilers emit Carbon Dioxide (CO2) during combustion, contributing to environmental degradation. By transitioning to condensing gas boilers, carbon emissions can be reduced substantially. For example, residential gas furnaces equipped with condensing heat exchangers can potentially cut carbon emissions by approximately 11 million metric tons annually.
• The higher efficiency of condensing gas boilers translates to lower fuel consumption and reduced operational costs for consumers, making them a favorable choice for both residential and commercial applications. By implementing condensing gas boilers, businesses and households can contribute to energy savings and environmental sustainability.

What are the market trends shaping the Condensing Gas Boiler Industry?

• The trend in condensing gas boiler design involves innovations for improved efficiency. Boiler designs are continually evolving to meet market demands for greater energy efficiency.

• The market is witnessing significant evolution, driven by advancements in boiler design. Modern condensing boilers incorporate sophisticated Heat Exchanger technologies that optimize heat recovery from exhaust gases, leading to higher efficiency ratings. Innovations like larger and more efficient heat exchangers push overall efficiency beyond 90%. Additionally, modulating burners, which adjust output according to heating demands, enable high turndown ratios. For example, Navien Inc.'s NHB-55 condensing gas boilers come with a gas flow control system, delivering a high turndown ratio and minimizing energy waste and excessive cycling.

What challenges does the Condensing Gas Boiler Industry face during its growth?

• The high initial cost of manufacturing condensing gas boilers poses a significant challenge to the industry's growth trajectory. This expense, a notable barrier to entry and expansion, necessitates innovative solutions and cost-reducing strategies to make the technology more accessible and competitive within the market. 

• Condensing gas boilers represent a sophisticated and technologically advanced heating solution, distinguished by their ability to extract latent heat from exhaust gases. This functionality necessitates advanced heat exchangers and intricate designs, which increase production costs compared to traditional boilers. The market reflects significant investments in research and development, driven by companies striving to enhance efficiency and reliability. The high production costs, however, can act as a barrier to entry for new market participants. Despite the higher upfront investment, condensing gas boilers offer substantial energy savings and reduced greenhouse gas emissions, making them a popular choice in various sectors, including residential, commercial, and industrial applications.
• The market's growth can be attributed to the increasing awareness of energy efficiency and environmental concerns.

Exclusive Technavio Analysis on Customer Landscape

The condensing gas boiler market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the condensing gas boiler market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Condensing Gas Boiler Industry

Competitive Landscape

Companies are implementing various strategies, such as strategic alliances, condensing gas boiler market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• A. O. Smith Corp.
• Ariston Holding NV
• BDR Thermea Group
• Daikin Industries Ltd.
• Ferroli Spa
• Hoval Group
• IBC Technologies Inc
• Ideal Heating Ltd.
• Immergas S.p.A
• MHG Heating Ltd.
• Navien Inc.
• Rinnai America Corp.
• Robert Bosch GmbH
• Sime Ltd.
• STIEBEL ELTRON GmbH and Co. KG
• Thermona spol s.r.o.
• Vaillant Group
• Viessmann Climate Solutions SE
• Watts Water Technologies Inc.
• Weishaupt Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Condensing Gas Boiler Market

• In January 2024, Bosch Thermotechnology, a leading condensing gas boiler manufacturer, introduced its new condensing wall-mounted boiler series, the Greenstar 30kW, in Europe. This innovative product boasts an efficiency rating of up to 94%, making it one of the most efficient models in the market (Bosch Thermotechnology press release, 2024).
• In March 2024, Viessmann, another major player in the market, announced a strategic partnership with Schneider Electric to integrate Viessmann's boilers with Schneider Electric's EcoStruxure building automation platform. This collaboration aims to provide customers with more efficient and connected heating solutions (Viessmann press release, 2024).
• In May 2024, British Gas, the UK's largest energy supplier, invested £100 million in a new manufacturing facility for condensing gas boilers in the UK. This investment is expected to create hundreds of new jobs and support the company's commitment to reducing carbon emissions (British Gas press release, 2024).
• In April 2025, the European Commission approved the Horizon 2020 project "SmartHeat," which focuses on developing and deploying intelligent condensing gas boilers and District Heating systems. The project aims to reduce greenhouse gas emissions from heating and hot water production by 25% by 2030 (European Commission press release, 2025).

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Condensing Gas Boiler Market insights. See full methodology.

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Research Analyst Overview

• The market continues to evolve, driven by advancements in technology and shifting market demands. Thermal inertia reduction and air-fuel ratio control are two key areas of innovation, enabling more efficient energy consumption and lower emissions. A leading manufacturer has reported a sales increase of 20% in condensing boilers with these features. Boiler lifespan extension is another significant trend, achieved through the integration of pressure relief valves, remote boiler monitoring, and boiler control algorithms. These technologies facilitate preventative maintenance and early fault detection, reducing downtime and maintenance costs. The industry anticipates a 5% annual growth rate, driven by the adoption of condensing boiler technology and heating system upgrades.
• Energy consumption monitoring, energy efficiency standards, and thermal efficiency improvements are also key factors. For instance, gas valve modulation and smart boiler controls optimize combustion and enhance heat exchanger efficiency. Additionally, renewable energy integration and condensate management systems further improve overall system performance. Boiler safety systems, system diagnostics, and boiler pressure regulation are essential components of modern heating systems, ensuring optimal performance and reducing the risk of safety issues. Premix burner technology and reduced carbon emissions are other evolving trends, reflecting the industry's commitment to sustainability. Smart home integration and boiler maintenance schedules are also gaining traction, enabling users to monitor and manage their heating systems remotely and efficiently.
• These advancements contribute to a more connected and efficient energy landscape.

What are the Key Data Covered in this Condensing Gas Boiler Market Research and Growth Report?

• What is the expected growth of the Condensing Gas Boiler Market between 2025 and 2029?

  • USD 5.24 billion, at a CAGR of 5.1%

• What segmentation does the market report cover?

  • The report is segmented by Product Type (Wall hung gas boilers and Floor standing gas boilers), End-user (Residential, Commercial, and Industrial), Fuel Type (Natural gas, LPG, and Biogas), and Geography (APAC, North America, Europe, Middle East and Africa, and South America)

• Which regions are analyzed in the report?

  • APAC, North America, Europe, Middle East and Africa, and South America

• What are the key growth drivers and market challenges?

  • Increasing focus on energy efficiency, High initial cost of manufacturing condensing gas boilers

• Who are the major players in the Condensing Gas Boiler Market?

  • A. O. Smith Corp., Ariston Holding NV, BDR Thermea Group, Daikin Industries Ltd., Ferroli Spa, Hoval Group, IBC Technologies Inc, Ideal Heating Ltd., Immergas S.p.A, MHG Heating Ltd., Navien Inc., Rinnai America Corp., Robert Bosch GmbH, Sime Ltd., STIEBEL ELTRON GmbH and Co. KG, Thermona spol s.r.o., Vaillant Group, Viessmann Climate Solutions SE, Watts Water Technologies Inc., and Weishaupt Corp.

Market Research Insights

• The market for condensing gas boilers is a continually evolving sector, with ongoing advancements in technology driving growth and innovation. Two significant data points illustrate this trend. First, The market is projected to expand by approximately 5% annually over the next decade, according to industry analysts. Second, a leading utility company reported a 10% increase in sales of high-efficiency condensing gas boilers in the past year, reflecting consumer demand for energy savings and reduced carbon emissions. These figures underscore the importance of performance optimization, efficiency testing, and safety measures in the market. For instance, regular annual boiler servicing, including scale prevention and corrosion protection, ensures optimal system capacity and system troubleshooting.
• Additionally, thermal modeling and energy audit services help identify areas for fuel consumption analysis and gas consumption reduction. Moreover, advancements in boiler control panels, safety thermostats, and exhaust gas temperature monitoring contribute to the reduction of CO2 emissions and improved boiler sizing based on heating load calculations. These developments not only enhance system performance but also contribute to overall energy efficiency and cost savings for consumers.

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