Heating Equipment Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 42.88 Billion |
| Market Size (2029) | USD 55.40 Billion |
| CAGR (2024 - 2029) | 5.26 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Heating Equipment Market Analysis
The Heating Equipment Market size is estimated at USD 42.88 billion in 2024, and is expected to reach USD 55.40 billion by 2029, growing at a CAGR of 5.26% during the forecast period (2024-2029).
The requirement for energy-efficient heating equipment has resulted in the development of mechanical devices that can deliver cost-effective heating, assisting the market's expansion. With quick technological advancement, heating equipment provides cost-effective choices for lowering carbon emissions, boosting the heating equipment market forward. These systems are classified as either self-contained packages of units or core systems.
- Significant expansion in the global construction industry is one of the important reasons driving the market's favorable outlook. Furthermore, the growing need for energy-efficient heating systems is propelling market expansion. Heating equipment is extensively utilized in places with freezing temperatures to raise ambient temperatures with low environmental impact. Technological breakthroughs, like integrating linked devices with the Internet of Things and artificial intelligence, are also driving growth. These technologies allow users to regulate heating equipment remotely via smartphones and wearable devices. Product developers are also creating new and self-contained heating equipment units for residential and small business complexes.
- The rapidly expanding petrochemical and chemical industries in developing nations such as India and China are expected to increase demand for industrial boilers. The market demand is likely to climb further due to increased investment in mega power projects worldwide. These vessels are frequently employed in the chemical and petrochemical sectors, which account for the majority of industrial boilers in this application area.
- According to the US Environmental Protection Agency, new boiler restrictions are intended to reduce environmental emissions on a massive scale. Currently, more than 88 percent of significant source boilers can fulfill emission regulations with annual tune-ups, but the remaining 12.0 percent will require refurbishment or replacement to reduce harmful emissions, which is expected to offer opportunities for manufacturers throughout the forecast period.
- The growing demand for energy-efficient devices has been driving the deployment of technology, such as heat pumps, to provide end users with significant potential to contribute to renewable energy and climate targets across various regions in the world. The ability of the heat pump to provide a synergy between the decarbonization on the supply side and the technology on the demand side is being exploited to make a significant contribution to reducing the emission of CO2.
- Heat pumps, being a versatile technology, can provide space heating, cooling, and warm water, all from one integrated unit, thus, providing energy efficiency. Furthermore, these devices can be used in conventional/hybrid renewable systems and accumulate surplus electricity with the help of active thermal mass elements. They are also known to integrate and optimize the performance of various energy resources in the electricity grid.
- On the flip side, governments in developed countries have enacted stringent emission requirements to control pollutants discharged into the environment, influencing heating equipment efficiency, operating costs, and market growth. According to the Environmental Protection Agency, the United States government has established rules for controlling particulate matter, sulfur dioxide, and nitrogen oxide emissions from industrial boilers.
- Furthermore, the International Energy Agency encourages the usage of technology such as selective catalytic reduction (SCR), flue gas desulfurization (FGD), and fabric filters to reduce emissions from industrial boilers through its Clean Energy Technology Programme. Furthermore, one of the significant issues that industrial boiler manufacturers confront is the necessity to enhance efficiency and steam quality to meet market demand. Such stringent regulations could hinder the market's growth in the short run.
- The construction industry is often considered a key indicator of a country's economic development, and therefore, fluctuations in macroeconomic indicators such as GDP growth, inflation, interest rates, and government spending can have a direct impact on the construction industry. Factors like rising raw material costs due to inflation, higher interest rates leading to less borrowing by builders are anticipated to negatively impact the growth of the studied market during the forecast period.
Heating Equipment Market Trends
Heat Pump is Expected to Hold a Major Market Share
- Energy is a critical power source in homes, hospitals, and schools. However, its manufacturing and use result in significant greenhouse gas emissions. As a result, major economies worldwide are attempting to minimize their reliance on nonrenewable energy sources while progressively shifting toward renewable energy sources to limit greenhouse gas emissions. Heat pump technology is a viable way to reduce greenhouse gas emissions. Aerothermal and geothermal heat pumps offer an energy-efficient solution to space heating.
- The deployment of heat pumps has increased steadily in the North American region, especially in the United States, due to varied reasons, like the convenience of offering the equipment, climatic conditions, government tax credit benefits, and regulations. Furthermore, the heat pumps have been regulated by the governments in the region for their energy efficiency. For instance, the Department of Energy announced Fan Energy Rating, which sets a minimum airflow efficiency standard for residential furnace fans.
- With the new FER standards, the US DOE estimates that the new standard for furnace fans might save approximately 3.99 quads of energy, minimize carbon pollution by 34 million metric tons, and provides American citizens with savings of more than USD 9 billion in electric bills by 2030. According to new state law,over the next five years, the city of Maine seeks installers to help fulfill the goal of 100,000 heat pumps. Furthermore, the New Ambler heat pump project aims to drastically reduce diesel costs in the villages.
- Heat pump sales in Germany rose by more than 50% for the second year in a row in 2023, according to new figures from Bundesverband Wärmepumpe (BWP). Starting in 2024, some 500,000 new heat pumps are to be installed in Germany every year.
- Furthermore, Eastern Europe has colder climatic conditions in the region, and the demand for heating solutions is significant in these countries such as the Czech Republic, Poland, Bulgaria, and others. Similar to other countries in the region, measures to increase energy efficiency in the heating and cooling sector are on the rise. According to Stratego, which is co-founded by the Intelligent Energy Europe Programme of the EU, an investment of EUR 50 billion during the span of 2010-2050 will save enough fuel to minimize the costs of the energy system. Moreover, as part of this investment, district heating’s share amounted to EUR 5 billion, and individual heat pumps at EUR 15 billion.
- In July 2022, the National Environment Agency (NEA) Singapore reported they are exploring using heat pump water heaters in high-rise residences – condominiums and HDB units. Heat pump water heaters use only 210 watts of power, compared to the approximately 3000 watts used by typical electric or gas water heaters. A user's monthly power expenditures would be significantly reduced by the energy savings from employing a heat pump.
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The Asia Pacific Region is Expected to Witness a High Market Growth
- China's vast geographic area is officially divided into five primary climate zones with different thermal design requirements. Northern China, which comprises the two coldest climate zones, requires space heating in winter. The urban areas depend on district heating systems, whereas rural regions mainly utilize individual household heating systems. Another climate zone with rising demand for heating is the hot summer and cold winter climate zone. Due to historical reasons, there is no public infrastructure or services to provide district heating systems for buildings in this climate zone, and buildings generally lack effective heating services. Therefore, China's northern and southern regions face different heating challenges and need tailored solutions.
- The Asia Pacific will have the highest revenue share. This is primarily due to the rising construction sector in nations such as China and India, which are witnessing substantial infrastructure investments, particularly in retail spaces, commercial office buildings, manufacturing facilities, and metro train lines. Additionally, increased demand for boilers in the thermal power industry is driving market expansion.
- Many of China's households still depend on small coal stoves for heat, which causes air pollution that damages health. To address these problems, the Chinese government launched a five-year "Clean Heating Plan" in 2017 to transition 70 percent of northern households away from coal and toward cleaner heating options. In 2022, as the plan reaches its final year, a novel study by Princeton University researchers offered policy guidance: Increase the usage of heat pumps in rural households. Among the options studied, the researchers found air-to-air heat pumps provide the most air quality, health, and climate benefits.
- China aims for carbon neutrality by 2060 and has engaged in a successful effort to reduce air pollution. According to Denise Mauzerall, professor of civil & environmental engineering & international affairs, replacing coal stoves in urban and rural residences with clean heaters dramatically improves air quality throughout northern China in winter while decreasing premature deaths. Also, given that China plans to be carbon neutral by 2060, "decarbonizing" their power grid or the system that delivers electricity is critical. One way to achieve this is by moving away from coal and toward more non-fossil energy.
- The regional players are developing new products to cater to a diverse range of customers' requirements. For instance, in March 2022, Panasonic introduced a new device in Japan. The Eco Cute solution comprises a heat pump and a hot water storage tank to save energy by maintaining consistent bathwater temperatures. It also saves electricity at night by utilizing the heat from a household's bathwater. Furthermore, the device conserves energy and water. The product includes a solar charging capability that uses extra power generated and stored by PV sources. It can boil water at any time of day or night using electricity.
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Heating Equipment Industry Overview
The competitive rivalry in the Global Heating Equipment Market is fragmented in nature due to high competition. The high owing to the presence of some key players such as Easco Boiler Corporation, Robert Bosch GmbH, Daikin industries ltd, Klima-Therm, Johnson Controls and many more.
- April 2023: Kanthal and Rath, players in their respective fields – Kanthal in industrial electric heating technology and Rath in high-temperature refractory products, announced a strategic alliance to extend their joint offering in industrial heating technology. Their services will help industries such as steel and petrochemical to make the green transition through close collaboration. The collaboration combines the complementing qualities of both firms, resulting in the market's most extensive choice of sustainable industrial heating solutions. Customers will benefit from Kanthal's experience in heating components and systems and Rath's superior insulation and refractory solutions in a one-of-a-kind combination offering for their industrial heating needs.
- April 2023: UPM, a paper mill company, opted to build new electric boilers to produce heat and steam at its plants in Germany and Finland. The company will install eight new boilers. This effort will enable UPM to phase out the usage of fossil fuels in its mills. The first 50MW electric boiler at the company's UPM Tervasaari paper mill in Valkeakoski, Finland, has already been commissioned. The boiler had been relocated to Valkeakoski from the UPM Kaipola mill in Jämsä, Finland. To improve efficiency, the business plans to build another 60MW electric boiler at the mill later this year. This large-capacity boiler will produce steam and heat for the mill, assisting in both processes.
Heating Equipment Market Leaders
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Robert Bosch GmbH
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Daikin industries ltd
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Johnson Controls
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Easco Boiler Corporation
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Klima-Therm
*Disclaimer: Major Players sorted in no particular order
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Heating Equipment Market News
- April 2023: Vicinity Energy, a national decarbonization player with a diverse portfolio of district energy systems across the United States, announced a collaboration with Augsburg, Germany-based MAN Energy Solutions to develop low-temperature source heat pump systems for steam generation. By 2026, Vicinity intends to create an industrial-scale heat pump complex at its Kendall Station site. This statement is a step forward in Vicinity's aspirations to electrify its businesses and attain net zero emissions. The corporation began its electrification approach in 2022 by disassembling a steam turbine at its Kendall Facility in Cambridge, Massachusetts. Vicinity is replacing it with an industrial-scale electric boiler that will produce carbon-free eSteam for consumers in 2024.
- April 2023: HeatTransformers, based in Utrecht, raised EUR 15 million in Series A funding to quicken the European heat pump installation by establishing offices in Germany and the United Kingdom and expanding its employees. Energy Impact Partners led the round, including existing investors Fair Capital Partners' Impact Fund and ENERGIIQ. HeatTransformers assists customers from the initial inquiry stage by supplying and installing heat pumps.
- April 2022 - Klima-Therm launched the Engie Refrigeration Spectrum Water heat pump, which is ideal for industrial and commercial applications and integration into heat networks and district heating in housing developments. The series' 12 versions have nominal heat outputs ranging from 350 to 3,100kW, a condenser leaving water temperature of up to 65° Celcius, and a choice of four refrigerants: R1234ze, R515B, R513A, and R134a.
- March 2022 - In Japan, Panasonic has launched a new product. The Eco Cute solution incorporates a heat pump and a hot water storage unit to save energy by keeping bathwater temperatures constant. It also helps households save energy at night by utilizing the heat from their bathwater. Furthermore, the device saves electricity and water. The product has a solar charging function that uses excess electricity generated and stored by PV sources. It can use electricity to boil water at any time of day or night.
Heating Equipment Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
-
4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes Products and Services
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Supply Chain Analysis
- 4.4 Government Policies and Regulations
- 4.5 Impact of Macro Economic Trends on the Industry
5. MARKET DYNAMICS
- 5.1 Drivers
- 5.2 Restraints
6. MARKET SEGMENTATION
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6.1 Product Type
- 6.1.1 Heat Pumps
- 6.1.2 Furnaces
- 6.1.3 Unitary Heaters
- 6.1.4 Boilers
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6.2 End User
- 6.2.1 Residential
- 6.2.2 Commercial
- 6.2.3 Industrial
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6.3 Geography***
- 6.3.1 North America
- 6.3.1.1 United States
- 6.3.1.2 Canada
- 6.3.2 Europe
- 6.3.2.1 Germany
- 6.3.2.2 United Kingdom
- 6.3.2.3 France
- 6.3.2.4 Russia
- 6.3.2.5 Spain
- 6.3.3 Asia
- 6.3.3.1 India
- 6.3.3.2 China
- 6.3.3.3 Japan
- 6.3.4 Australia and New Zealand
- 6.3.5 Latin America
- 6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1
- 7.1.2 Daikin Industries Ltd
- 7.1.3 Klima-Therm
- 7.1.4 Robert Bosch GmbH
- 7.1.5 Carrier Global Corporation [United Technologies Corp.]
- 7.1.6 Panasonic Corporation
- 7.1.7 Johnson Controls
- 7.1.8 Lennox International, Inc.
- 7.1.9 Easco Boiler Corporation
- 7.1.10 Ariston Thermo Group
- 7.1.11 Danfoss A/S
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To Availablity**Subject to Availability
***In the final report, Asia, Australia, and New Zealand will be studied together as 'Asia Pacific' and Latin America and Middle East and Africa will be considered together as 'Rest of the World'
Heating Equipment Industry Segmentation
Heating Equipment comprises any equipment designed, utilized, and intended to be used to supply heat for a structure.
The heating equipment market is segmented by product type (heat pumps, furnaces, boilers, unitary heaters), end-user industry (residential, commercial, industrial), geography (North America [United States, Canada), Europe [Germany, United Kingdom, France, Russia, Spain, and Rest of Europe], Asia Pacific [India, China, Japan, Rest of Asia Pacific], Rest of the World. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Product Type | Heat Pumps | |
| Furnaces | ||
| Unitary Heaters | ||
| Boilers | ||
| End User | Residential | |
| Commercial | ||
| Industrial | ||
| Geography*** | North America | United States |
| Canada | ||
| Geography*** | Europe | Germany |
| United Kingdom | ||
| France | ||
| Russia | ||
| Spain | ||
| Geography*** | Asia | India |
| China | ||
| Japan | ||
| Geography*** | Australia and New Zealand | |
| Latin America | ||
| Middle East and Africa |
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Heating Equipment Market Research FAQs
How big is the Heating Equipment Market?
The Heating Equipment Market size is expected to reach USD 42.88 billion in 2024 and grow at a CAGR of 5.26% to reach USD 55.40 billion by 2029.
What is the current Heating Equipment Market size?
In 2024, the Heating Equipment Market size is expected to reach USD 42.88 billion.
Who are the key players in Heating Equipment Market?
Robert Bosch GmbH, Daikin industries ltd, Johnson Controls, Easco Boiler Corporation and Klima-Therm are the major companies operating in the Heating Equipment Market.
Which is the fastest growing region in Heating Equipment Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Heating Equipment Market?
In 2024, the North America accounts for the largest market share in Heating Equipment Market.
What years does this Heating Equipment Market cover, and what was the market size in 2023?
In 2023, the Heating Equipment Market size was estimated at USD 40.62 billion. The report covers the Heating Equipment Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Heating Equipment Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Heating Equipment Industry Report
Statistics for the 2024 Heating Equipment market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Heating Equipment analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Heating Equipment Market Report Snapshots
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