System Boiler
What is a system boiler?
A system boiler heats your central heating system directly and produces hot water for your cylinder.
An example of a central heating and hot water system layout using a system boiler with an open-vented hot water cylinder:

An example of a central heating and hot water system layout using a system boiler with a pressurised unvented hot water cylinder:

A system boiler, just like a regular (conventional) boiler works on the principle of stored hot water. However, a system boiler differs from a regular boiler in some important respects.
Firstly, many of the major individual components of the heating and hot water system are built into a system boiler, which means that installation is quicker, neater, easier and more efficient.
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SOURCE: Worcester Bosch