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The industry is becoming renewables

KyungDong Navien has a strong legacy of innovation. Founded in 1978, the company became the first manufacturer in Asia to develop a condensing boiler in 1988. Since entering the U.S. market in 2006, Navien has established itself as the leading brand in both gas tankless water heaters and gas condensing boilers. Building on this global success, the company expanded into the UK market in 2014.

In 2026, Navien has big ambitions and is actively targeting the global renewables market.

“Our business goal is to turnover $4bn a year globally, across Korea and all overseas markets, by 2028,” Yong-bum Kim says. “It’s a big number, but we’re confident in achieving that. We’re traditionally a boiler manufacturer, but the future of the industry is renewables. The industry is coming together – and so are the products.”

“Take the NWP500-50 premium Heat Pump Water Heater that we’ve launched in the US,” he continues. “We’re taking plumbing aspects and combining those with renewables. The hydronic part is where the innovation gains are.”

Navien invests heavily in innovation, he emphasizes: “When we were the first to bring condensing boilers into the market, and the first to bring in condensing water heaters, it wasn’t because legislation told us to, it’s because we had the technology to do so. That has driven our success in the US, UK and domestically here in South Korea. Our technology has changed the heating industries in those countries.”

Products that drive innovation

With a worldwide focus on decarbonization, the way we heat our homes and buildings is changing. Fossil fuel-burning appliances are being replaced by renewable systems, and installers and their customers are searching for the most efficient solutions. Manufacturers are bringing new products to the market that installers and consumers have never seen before, and that require education on how to fit and operate.

“At Navien, we only launch products that are different to what’s currently in the market,” Yong-bum Kim explains. “New technology and new ways of thinking. The Navien NPF is a great example of this. In a traditional furnace, the flame heats up the heat exchanger, but this technology can be noisy, and as the metal expands and contracts, it puts pressure on it which can lead to cracks.

“Using our experience of wet heating systems, we’ve come up with a new solution, the Hydro Furnace. The flame heats up water and that heat is used to provide the space heating, which is more efficient than a traditional furnace. This technology has launched in the US now and we are receiving great feedback.”

There are other good examples, Kim says, such as Navien’s heat pump water heater:

“Currently we are the market leader for condensing gas water heaters. The other option for the US is electric. Our heat pump water heater is much more efficient than an electric water heater, saving in energy costs and carbon emissions. We’ve designed the products with installers in mind, so the pipework is easy to access from above, and it’s a great looking unit that will help towards decarbonation.”

But Navien is also moving into new areas, he says – ones that complement the manufacturing experience in heating and hot water: “We know that water quality is an issue in the US and UK. Hardness and imperfections in the water can cause damage to things like boilers, showers, and heat pumps, which can potentially lower their lifespan. That’s why we’re excited to launch our WEC (water treatment system). This is new for Navien and it took six years from the start of Research and Development to production.”

Production has now begun and the first units are selling already, he says. But there are added benefits beyond efficiency, he adds: “The product removes impurities from the water, and the feedback we’ve had already from US customers is that it’s leaving their skin feeling fresher. This is technology that US installers may not be used to, and is a huge opportunity for their businesses.”

The global market

Traditionally, the trades have worked in defined areas: electric, heating, plumbing, and air conditioning, for example. Now, these areas are coming together and overlapping, and the industry is evolving with it.

“If you look at the global renewables market, compared to the global heating and plumbing market, the renewables market is much larger,” Yong-bum Kim says, “This is creating lots of opportunities for manufacturers and installers. It’s happening here in South Korea, the US, UK, Europe, and worldwide. Our buildings have always needed heating, and more now need cooling as well. With the focus on electrification of heat, and renewable technology, you can see these industries and products start to overlap.”

He cites the heat pump as an example of the trend: “It’s a traditional renewables product, but you need to combine it with the heating and plumbing products, the hydronic part of the system. It’s also powered by electricity, so renewables engineers, heating and plumbing engineers and electrical engineers all have interest in that product. Where the innovation comes from, and where the efficiency gains can be made, is in the hydronic part of those products. The heat pump unit itself, with the compressor technology, can only be so efficient, and they are already at the limit of what they can achieve. In the plumbing market, every manufacturer has their own distinctive components and technology, like the heat exchanger and burner. This is what we’ve invested in, it’s what makes our products unique and drives performance. And that’s why, as a traditional boiler manufacturer, we can incorporate our innovations with traditional HVAC solutions – we can make something that’s more efficient, easy-to-use and easy to install and maintain.”

The role of installers

As the industry moves from heating to renewables, with all the opportunities for growth that it presents, where does this leave the role of installers?

“Installers are our most important customers,” Yong-bum Kim explains. “We manufacture products, but that product isn’t complete until it’s running efficiently in someone’s home, and it’s the installers who do that. We want to partner with installers to help them do their job as easily as possible – through market-leading products, training, educating installers on our products, aftersales support, and whatever else they need.”

He points to the global trend towards electrification of heat: “Look at the growing heat pump market: It’s an electrical product so electricians can work on it, it’s renewable so renewables professionals can work with them, it’s a heating product so needs a heating engineer, and it uses running water, so needs a plumber. It’s exciting because we’re talking to more tradespeople, and you can see how the industry is evolving into more of renewables industry, which uses multiple different trades.”

What it comes down to in the end, is evolution, Kim says:

Evolution is not new to us. In South Korea, we played a major role in leading the market transition toward mandatory condensing boilers, which became legislation in 2020. It was a long and demanding journey, requiring both technological innovation and close collaboration with policymakers and the market. Despite the challenges, we overcame every stage of the process, and that experience continues to shape our confidence as we support similar market transitions in countries such as the UK.

And, again the installer is a crucial element in this evolution: “Installers are vital to this. As a manufacturer it is important for us to support them with market-leading technology, innovation, and training to equip them for whatever the future holds. We have big aspirations for our business, and we want to work with installers so they can make the most from this opportunity too.”