How Has the Heating Equipment Market Size Evolved in Recent Years?
The heating equipment market has seen considerable growth due to a variety of factors.
• In recent years, the heating equipment market has experienced significant growth. It is projected to expand from $41.37 billion in 2024 to $44.28 billion in 2025, reflecting a compound annual growth rate (CAGR) of 7.1%.
Factors contributing to this growth in the historic period include an increase in residential and commercial construction activities, the refurbishment and modernization of old heating systems, escalating energy costs and an emphasis on energy efficiency. The surge in the use of renewable and clean energy sources, as well as the demand for comfort and improved indoor air quality in buildings, also play a role in this market expansion.
What are the Market Size and Expected Growth Rates for the Heating Equipment Market?
The heating equipment market is expected to maintain its strong growth trajectory in upcoming years.
• Over the next couple of years, the heating equipment market is predicted to witness significant growth, burgeoning to a size of $57.08 billion by 2029, with a compound annual growth rate (CAGR) of 6.6%.
Several factors can be credited for this anticipated growth in the forecast period including an increasing focus on smart and connected heating solutions, the integration of heat pumps and geothermal heating systems and adoption of hybrid heating systems for optimal efficiency. The customization of heating solutions to suit unique building requirements and the adoption of district heating and combined heat and power (chp) systems also contribute to this increase. Key trends that can be expected to dominate the forecast period include high-efficiency condensing boilers, the integration of smart thermostats and controls, multi-purpose heat pumps, hydronic and radiant heating systems, and biofuels and biomass heating solutions.
What Are The Essential Drivers Behind The Growth Of The Heating Equipment Market?
The heating equipment market is projected to grow due to the increasing demand in the construction sector. This sector encompasses entities involved in the construction, maintenance, and repair of infrastructure. Heat pumps and other heating equipment are utilized in the burgeoning construction industry to heat and cool mid to large scale buildings. For example, the Office for National Statistics, a UK government agency, reported in November 2023 that there was a rise of £18,161 million ($19.96 million) in new construction activities in 2022. This includes a 16.8% growth in private sector projects and a 13.1% increase in public sector projects. Hence, the escalating demand in the construction industry is propelling the heating equipment market's expansion.
How Is The Global Heating Equipment Market Divided Into Key Segments?
The heating equipment market covered in this report is segmented –
1) By Product: Heat Pumps, Furnaces, Boilers, Unitary Heaters, Other Products
2) By Technology: Air Source, Water Source, Ground Source
3) By Application: Residential, Commercial, Industrial
Subsegments:
1) By Heat Pumps: Air Source Heat Pumps, Ground Source Heat Pumps, Water Source Heat Pumps,
2) By Furnaces: Gas Furnaces, Electric Furnaces, Oil Furnaces
3) By Boilers: Residential Boilers, Commercial Boilers, Industrial Boilers
4) By Unitary Heaters: Electric Unitary Heaters, Gas Unitary Heaters, Hydronic Unitary Heaters
5) By Other Products: Radiant Heating Systems, Infrared Heaters, Portable Heaters
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What Trends Are Reshaping The Future Of The Share Market?
Innovative technological developments are becoming an increasingly popular trend within the heating equipment industry. Predominant businesses in the field are adopting new technologies, such as injection technology, to maintain their competitive edge. For example, in November 2023, Mitsubishi Electric Corporation, a Japanese electronics firm, introduced the Ecodan R290 Heat Pump. Designed for quiet operation, this promotes a tranquil home environment while facilitating more effective energy use and individualized comfort through multi-zone control. It provides dependable heating even under severe conditions, maintaining elevated heating temperatures of up to 75°C at outdoor temperatures as low as -15°C, which is equivalent to conventional gas boilers. This functionality enables efficient home heating and sufficient hot water for larger households.
Who Are the Key Players in the Heating Equipment Market?
Major companies operating in the heating equipment market include:
• Danfoss A/S
• United Technologies Corporation
• Trane Technologies plc
• Lennox International Inc.
• Robert Bosch GmbH
• Johnson Controls
• Emerson Electric Co.
• Honeywell International Inc.
• Siemens AG
• Daikin Industries Ltd.
• Uponor Corporation
• Mitsubishi Electric Corporation
• Nortek Inc.
• Pentair plc
• Nexans S.A.
• Carrier Global Corporation
• Lucky Gold star Electronics Inc.
• Panasonic Holdings Corporation
• Samsung Electronics Co. Ltd.
• Whirlpool Corporation
• Rheem Manufacturing Company
• A.O. Smith Corporation
• Bradford White Corporation
• Navien Inc.
• Rinnai Corporation
• Viessmann Werke GmbH & Co. KG
• Fujitsu General Ltd.
• Gree Electric Appliances Inc. of Zhuhai
• Haier Group Corporation
• Midea Group Co. Ltd.
• Nortek Global HVAC LLC
• Ruud Manufacturing Company
• Goodman Manufacturing Company L.P.
• York International Corporation
What are the Regional Insights into the Heating Equipment Market?
Europe was the largest region in the heating equipment market in 2024. The regions covered in the heating equipment market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
