Heating Equipment Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

Heating Equipment Market Highlights

• Global heating equipment market revenue is poised to garner USD 68.3 billion by 2032 with a CAGR of 5.8% from 2023 to 2032
• Asia-Pacific heating equipment market value occupied around USD 16.9 billion in 2022
• North America heating equipment market growth will record a CAGR of more than 6.5% from 2023 to 2032
• Among product, the heat pumps sub-segment generated more than USD 25.5 billion revenue in 2022
• Based on application, the residential sub-segment generated around 68% market share in 2022
• Development of innovative heating solutions catering to specific consumer needs, such as remote monitoring and control features is a popular heating equipment market trend that fuels the industry demand

The development of mechanical devices that provide affordable means of achieving the intended heating environment has been fueled by the growing need for energy-efficient heating systems. Thanks to the quick development of technology, heating equipment may now lower carbon emissions in an efficient and environmentally responsible manner. These systems may be divided into central heating systems and unit packages, each of which fulfils a certain purpose. Because unit packages are self-contained, they are frequently used in small-scale and residential applications. On the other hand, big commercial buildings with limited outdoor air access typically use central heating systems. Additionally, a variety of construction requirements have a significant impact on the heating equipment industry, impacting elements like environmental sustainability and energy efficiency. With growing consumer demand for eco-friendly heating options, the industry is primed for more development and growth.

Global Heating Equipment Market Dynamics

Market Drivers

• Increasing demand for energy-efficient heating solutions
• Technological advancements leading to more effective heating equipment
• Growing awareness and concern about carbon emissions
• Expansion of construction activities, particularly in residential and commercial sectors

Market Restraints

• Regulatory challenges and compliance requirements
• High initial investment costs for advanced heating systems
• Limited accessibility to renewable energy sources in certain regions

Market Opportunities

• Rising adoption of smart heating technologies for improved energy management
• Expansion into emerging markets with growing infrastructure development
• Integration of renewable energy sources such as solar and geothermal for heating applications

Heating Equipment Market Report Coverage

Heating Equipment Market Insights

The primary driver of investment in the heating equipment industry is the demand for energy-efficient alternatives. Increasing energy and environmental standards have prompted many industrial and business organizations to install efficient heating facilities on their premises. Investments in this industry have also been fueled by the growing demand for remote access control systems. With the emergence of sophisticated heating equipment equipped with sensors for remote control, investment in heating equipment has further expanded. However, the lack of differentiation between products intensifies competition among market players, thereby limiting new entrants into the heating machinery industry. Nevertheless, in future years, growth opportunities could emerge through the development of new product segments within the industry.

Government-led initiatives to promote power efficiency across various sectors, combined with technological advancements, are expected to drive the market forward. In the heating equipment industry forecast period, increased expenditure in the construction industry is also anticipated to boost product demand. Additionally, sector development is expected to benefit from initiatives such as Leadership in Energy and Environmental Design (LEED). In the United States, the demand for industrial furnaces is expected to rise due to increasing industrial renovations and refurbishments. Furthermore, a stringent regulatory framework is expected to drive market growth in the nation over the heating equipment market forecast period. The global market is highly competitive, with major companies focusing on reducing overall product costs by leveraging advanced technology and streamlining assembly processes.

Companies are investing in research and development to develop efficient systems, remote surveillance equipment, and control systems to enhance their market position. Government initiatives such as the Climate Action Program (COP21) are promoting the transition to greener practices and are expected to drive the development of energy-efficient products. Manufacturers are also required to comply with U.S. Department of Energy (DOE) regulations for air conditioning and heat pumps energy conservation requirements. Rising disposable incomes have led to increased demand for high technological standards and comfortable residential solutions in both advanced and developing countries, further driving demand. Additionally, the increasing number of restructuring operations is projected to positively impact market development due to easy access to loans or economic support.

Heating Equipment Market Segmentation

The worldwide market for heating equipment is split based on product, fuel type, application, and geography.

Heating Equipment Products

• Heat Pumps
• Unitary Heaters
• Space Heating Boilers
• Warm Air Furnace
• Others

According to heating equipment industry analysis, the heat pumps segment held the largest share of the market, valued at around USD 14 billion in 2022. Heat pumps are popular due to their efficient operation at low operating expenses. Furnaces are also widely used for their fast heating capacity and ease of replacement. Electric furnaces boast reduced maintenance requirements, safer emissions, and affordability. The increased demand for upgraded heating devices that meet regulatory requirements is expected to gain traction in the next seven years, driving sector development over the forecast period.

Boiler products are utilized for various applications including water heating, electricity generation, cooking, and hygiene. They are commonly employed in commercial, institutional, industrial, and educational sectors. The anticipated increase in residential boiler usage is expected to drive consumer demand in the coming years. The sector is expected to generate significant profits due to the manufacturing of sophisticated heating systems for residential and commercial buildings. Additionally, the increased demand for electrically powered products is expected to drive sector development over the forecast period due to easy installation and low emissions.

Heating Equipment Fuel Types

• Fossil Fuel
• Electric

The fossil fuel sector is anticipated to have the highest share in the heating equipment market. Because of their extensive availability and well-established infrastructure, fossil fuels continue to dominate the heating business, even in spite of the growing emphasis on renewable energy sources. The Fossil Fuel category continues to lead because of variables including cheaper beginning prices and better heating capacity, even if electric heating systems are becoming more popular owing to their efficiency and environmental friendliness. Furthermore, there is still a significant need for fossil fuel-based heating equipment in areas with a plentiful supply of fossil fuels and a sparse infrastructure for electric heating. As a result, it is projected that the fossil fuel category will continue to rule the heating equipment market.

Heating Equipment Applications

• Industrial
• Commercial
• Residential

The residential sector of the heating equipment market is the largest. The main cause of this is the high demand for heating solutions in residential structures, such as flats, single-family houses, and condos. The popularity of heating appliances like heat pumps, boilers, and furnaces is still strong because people value comfort and ease. Further contributing to the ongoing growth of the residential heating equipment market are variables including urbanization, population growth, and rising disposable incomes. This market is expected to increase further as a result of residential consumers choosing more contemporary and environmentally friendly heating systems as well as placing a greater emphasis on energy efficiency and environmental sustainability.

The industrial sector accounted for the significant share of revenues in 2022 and is expected to grow from 2023 to 2032, exhibiting the fastest CAGR. Heating systems find widespread usage in industries such as energy, mining, automotive, and food & drink. Rapid industrialization, particularly in the Asia-Pacific region, is a key factor positively impacting sector development. Furthermore, increased demand is anticipated to result from favorable public policies and tax incentives promoting the installation of energy-efficient products. The rising product demand is also expected to drive segment development in processing, manufacturing, and smelting in the coming years.

Heating Equipment Market Regional Outlook

North America

Heating Equipment Market Regional Analysis

In terms of heating equipment market analysis, Asia-Pacific became the biggest regional market in 2022, and it is anticipated that it will continue to be dominant in the years to come. The building industry's quick rebound in the area, along with rehabilitation and repair projects, is expected to fuel demand in the housing sector for cutting-edge, small-scale heating solutions. Furthermore, the Asia-Pacific automobile sector is anticipated to experience a notable surge in demand for these items.

The fastest regional CAGR, of almost 6.5%, is anticipated to occur in North America between 2023 and 2032. Because there are more residential and commercial structures in the region, it is anticipated that the market in the emerging countries would rise.

Moreover, it is anticipated that greater awareness of the application of these goods will propel market expansion. Mandatory public rules and incentives for power efficiency alternatives are also expected to stimulate market development in the commercial and industrial sectors. Extensive R&D activities and rapid industrialization are also expected to propel the growth of the environmentally friendly alternative market.

Heating Equipment Market Players

Some of the top heating equipment companies offered in our report includes Daikin Industries Ltd., Mitsubishi Electric Corporation, Bosch Thermotechnology, Vaillant Group, Johnson Controls International plc, Trane Technologies plc, Ingersoll Rand, United Technologies Corporation (Carrier), Lennox International Inc., Rheem Manufacturing Company, Honeywell International Inc., Danfoss, A. O. Smith Corporation.