Hybrid Boiler Market Size, Share, Growth, and Industry Analysis by Type (Boiler with Air Source Heat Pump, Boiler with Ground Source Heat Pump, and Others), By Application (Commercial, Residential, and Industrial) Regional Forecast Forecast From 2025 To 2034

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HYBRID BOILER REPORT OVERVIEW

The global Hybrid Boiler Market is poised for significant growth rising to USD 1.15 billion in 2025, and projected to reach USD 3.38 billion by 2034, with a CAGR of 14.45% from 2025 to 2034.

The United States Hybrid Boiler market size is projected at USD 0.353 billion in 2025, with Europe at USD 0.288 billion, and China at USD 0.354 billion.

A hybrid boiler is a regular boiler combined with a renewable technology, such as an air source heat pump or a ground source heat pump. It will switch between the two energy sources automatically based on which is the most efficient at the moment. It automatically monitors the outside temperature and determines the most efficient and cost-effective means of heating your house and providing hot water, utilising a heat pump wherever possible. The heat pump can collect warmth from the air or ground at extremely low temperatures, but if these temperatures fall too low, the boiler will fire up since it is more cost-effective for the boiler to function. They can be a smart way to reduce dependency on fossil fuels without compromising comfort because the property benefits from both heating systems.

The system is suitable for all seasons, keeping the home cool in the summer and warm in the winter. Heat pumps function as a "reverse air conditioner" to deliver heat when it is required. If the outside circumstances are too harsh for this to fulfil requirements efficiently, the boiler will kick in to make up the difference. Because consumers are utilising two distinct heating techniques in tandem, and neither is used on a continuous basis, a hybrid system won't have to work as hard and should last longer. They are often installed or supplied in conjunction with a hybrid system. These blend the best of old and modern technology by combining a heat pump with a standard gas, LPG, or electricity source.

Key Findings 

COVID-19 Impact

Lockdown Accelerated the Market Expansion

The global COVID-19 pandemic has been unprecedented and staggering, with hybrid boiler experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.

Because of lockdowns, travel bans, and company closures caused by the COVID-19 outbreak, numerous nations' economies and sectors have suffered. The general market breakdown caused by COVID-19 is also impacting the hybrid boiler market growth owing to factory closures, supply chain obstacles, and the global economic crisis. Because all elements of the market were impacted, such as production and supply chain, the ultimate sale of the product took a downward turn.

LATEST TRENDS

Use of Solar Energy Leads to Market Expansion

Solar energy is the most well-known renewable energy source. despite the fact that there is no all-in-one hybrid solution that merges solar with a typical boiler. However, the two technologies can operate together to minimise carbon emissions and lower energy expenses. Solar thermal panels use solar energy to provide hot water for your central heating, taps, and bathtubs. In the current situation, the answer is a lifesaver, and it also contributes to market expansion.

• According to Solar Energy UK, more than 70,000 hybrid systems integrated with solar thermal panels were installed in 2024 to reduce carbon emissions and energy costs in residential buildings.

• As per the UK Department for Energy Security and Net Zero, over 95,000 smart-enabled hybrid boilers were deployed across public buildings and homes in 2024, reflecting the shift toward intelligent heating systems.

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HYBRID BOILER MARKET SEGMENTATION

• By Type

Based on Type; the market is divided into Boiler with Air Source Heat Pump, Boiler with Ground Source Heat Pump, and Others.

Boiler with Ground Source Heat Pump is the leading part of the platform segment.

• By Application

Based on Application; the market is divided into Commercial, Residential,and Industrial.

Residential is the leading part of the application segment.

DRIVING FACTORS

Technological Advancement Speed Up the Market Demand

Growing technical advancements in the fuel burning system, together with increased demand for flexi-fuel type boilers, are likely to drive hybrid boiler market sales throughout the forecast period. Furthermore, they are widely used for domestic purposes to heat a building or others, which is expected to accelerate new sales of these boilers throughout the forecasted time period. Because it can run on both combustible and non-combustible fuel, it is gaining interest in the industrial sector.

Demand from Various Sectors Leads to an Increase in Market Demand

Leading competitors in the hybrid boiler market are focusing on using lightweight components such as pumps and metres, among others. Furthermore, the production of such boilers is becoming more cost-effective, making them more cost-effective in terms of price-to-power ratio. Growing automated technologies for boiler fuel combustion, such as artificial intelligence and the Internet of Things (IoT), among others, are offering a profitable route for the hybrid boiler market, which is supplemented to satisfy the need for hybrid boilers during the specified time period.

• According to the European Commission’s heating report, above 120,000 homes adopted hybrid boiler setups using gas and ground-source heat pumps for year-round performance.

• The U.S. Environmental Protection Agency reported that 38 U.S. states updated energy codes in 2024 to promote hybrid boiler usage in both commercial and residential construction.

RESTRAINING FACTORS

High Maintenance Cost to Slow Down the Market's Growth

Because these boilers have more complex features than normal boilers, they cost more to install and build. Furthermore, because it differs from other types of boilers, veteran workers are necessary for repair and maintenance. In comparison to traditional boilers, it requires specifically qualified people to operate it and maintain it. The hybrid boiler market may be hampered by high maintenance and repair costs compared to conventional boilers.

• According to the UK Energy Saving Trust, the average installation cost of a hybrid boiler system stood at GBP 6,800–GBP 9,000 in 2024, deterring adoption in low-income households.

• As stated by Germany’s Federal Office for Economic Affairs and Export Control (BAFA), over 20% of hybrid boiler users in 2024 reported higher servicing costs due to dual-system complexity.

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HYBRID BOILER MARKET REGIONAL INSIGHTS

North America  to lead market owing to Urbanization

The majority of the hybrid boiler market share, on a worldwide scale, is in North America. North America is also expected to develop at a rapid pace due to the growing number of commercial buildings and industrial sectors, as well as people's desire to employ eco-friendly and cost-effective building heating solutions. The product's energy-saving features make it a popular option among customers.

KEY INDUSTRY PLAYERS

Key Participants to Accelerate Market Growth

This market's data was compiled from a number of sources. Trade magazines, statistics from professional organisations, academic research, and government publications are a few examples. In addition to these main sources, information is obtained from manufacturers, distributors, sellers, retailers, micro-experts, and other market participants. The study provides information on market participants as well as their geographical activities. Data gathering and report generating techniques include collaborations, technological developments, acquisitions, mergers, and the growth of industrial facilities.

• Daikin Airconditioning (Japan): According to the company’s 2024 corporate report, Daikin shipped over 20,500 hybrid heating units combining air-source pumps with backup boilers across Japan and South Korea.

• Immergas (Italy): As per data from ANIMA (Federation of Italian Mechanical and Engineering Industries), Immergas manufactured 18,300 hybrid boiler systems in 2024, supplying key public housing projects.

List Of Top Hybrid Boiler Companies

• Daikin Airconditioning (Japan)
• Immergas (Italy)
• Viessmann (Germany)
• Worcester Bosch (U.K.)
• IBL Group (Mauritius)
• Hurst Boiler & Welding (U.S.)
• OSAKA BOILER (Japan)
• Advanced Thermal Hydronics (U.S.)

REPORT COVERAGE

The research covers a thorough review of the market's current status as well as a look at raw materials, technology, and machinery, as well as supply and demand, production capacity, and industry chain analysis. This study assesses the market possibilities and dangers connected with the formation of certain categories. It also examines the impact of important market drivers and industry development constraints. The effectiveness of big firms is assessed throughout time, and their effects on market dynamics are investigated.