Heating Equipment Market

Global Heating Equipment Market Size (2024 to 2029)

The global heating equipment market size is expected to reach USD 56.3 billion by 2029 from USD 45.61 billion in 2024, registering a CAGR of 4.3% from 2024 to 2029.

Heating equipment is electrical storage equipment designed, used, and intended to supply heat for a structure. Heating equipment includes systems such as heat pumps, boilers, and furnaces to carry out the heating process. A boiler is a closed vessel that generates power by heating water or liquid and has wide applications in healthcare, manufacturing, and food services. At the same time, a heat pump is a device used to cool or warm storage spaces by transferring heat and is widely used in residential and commercial industries. A furnace is used in the central heating system of steel and heavy metal industries.

Global Heating Equipment Market Drivers:

The growing emphasis on clean energy worldwide is primarily propelling the growth of the global heating equipment market. The governments of several countries have been putting focus on clean energy and investing significant amounts in clean energy projects. In the coming years, the number of clean energy projects and investments in the development of clean energy infrastructure are expected to increase, which is predicted to drive substantial demand for heating equipment and contribute to the global market growth.

The growing demand for heating equipment in end-user industries is driving the growth of the heating equipment market. The demand for heating equipment in end-user industries such as oil & gas, heavy metal, and the construction industry is growing exponentially. Heating equipment is seeing substantial demand from the energy industry, especially from extremely cold countries such as Germany, Norway, Canada, and Russia are supporting the global market growth. Countries such as India, and China have been taking several initiatives to promote green energy, which is expected to aid the global market growth. The major market participants have been investing in R&D to develop energy-efficient heating systems that can be controlled and monitored remotely, which is providing lucrative opportunities for the heating equipment market growth. Several favorable government policies like the Climate Action Programme are raising awareness about developing systems that reduce fossil fuel usage. Further, an increase in the adoption of popular cutting-edge technology such as geothermal heat pumps provides a major opportunity for the growth of the heating equipment market in the forecast period.

The growing investments in power generation, increasing number of construction activities in Asia-Pacific and European regions, and rising awareness for energy-efficient heating systems are favoring the growth of the heating equipment market. Factors such as rapid industrialization, residential and small business-oriented heating equipment, along favorable government policies are anticipated to fuel the growth rate of the heating equipment market growth over the forecast period.

Global Heating Equipment Market Restraints:

Stiff competition among key market players is hampering the growth of the heating equipment market. The established prime players are stagnating the market growth, and becoming monopoly price setters is curtailing the heating equipment market in the forecast period. The increase in awareness about energy efficiency products is also impeding market growth. Further stringent government regulations implementation for environmental pollution acts is restraining the heating equipment market growth. In addition, the alarming usage of fossil fuels in heating equipment is hampering the market expansion in the concerned frame of time.

Impact of COVID-19 on the global heating equipment market:

The world witnessed a sharp decrease in the commercial and manufacturing industries due to the lockdown. The emergence of COVID-19 has even caused a shortage of raw materials, supply chain disturbances, and limited production of essential goods with a low rate of workforce has negatively impacted the global markets. Further, a supply & demand mismatch and import & export limitations have disrupted the markets worldwide. In addition, the vital businesses in commercial and non-commercial industries had scraped down their project temporarily or permanently. The outbreak has humanitarian and economic implications on global markets, including the heating equipment market. The pandemic has affected the construction, heavy metal, oil & gas, and manufacturing industries, which in turn affected the heating equipment market. However, positive growth is anticipated post covid owing to a rise in activities of the manufacturing and processing industries.

REPORT COVERAGE:

This research report on the global heating equipment market has been segmented and sub-segmented based on the product, application and region.

Global Heating Equipment Market - By Product:

• Heat Pumps
• Furnaces
• Boilers
• Unitary Heaters
• Others

Based on product, the heat pumps segment held 36.1% of the global market share in 2023 and is anticipated to account for the largest share of the global market during the forecast period. The heat pumps have the ability to transfer heat at low operational cost-effectively. Heat pumps are widely used in commercial, residential, and industrial sectors for water heating and have wide application of heat pump technology to reduce greenhouse gas emissions, which are contributing to the growth of the heat pump segment in the global market. The growing integration of AI in heat pump control systems for optimal energy consumption, increasing emphasis on renewable energy, government incentives and eco-friendly HVAC systems are further fueling the growth rate of the heat pumps segment in the global market.

The furnaces segment was the second biggest segment in the global market in 2023 and is anticipated to showcase lucrative growth during the forecast period owing to wide preference & less maintenance in heavy metal industries, and having quick heating capacity.

Global Heating Equipment Market - By Application:

• Residential
• Commercial
• Industrial

Based on application, the industrial segment led the market in 2023 and is anticipated to hold the largest share of the heating equipment market during the forecast period. The heating equipment is widely used in mining, power generation, automotive, and food & beverage industries and is supporting the growth of the industrial segment in the global market. The rise in manufacturing industries in developing countries such as India, Brazil, and China, the rise in government investments in energy-efficient systems and the increase in demand for smelting in processing and manufacturing industries are propelling the growth of the industrial segment in the global market.

Global Heating Equipment Market – By Region:

• North America
• Europe
• Asia Pacific
• Latin America 
• Middle East and Africa

The Asia-Pacific region dominated the market in 2023, accounting for 33.5% of the global market share and is expected to grow at a healthy CAGR during the forecast period. Factors such as rapid urbanization, increasing disposable income, rising need for heating solutions in cold climates and government initiatives for clean energy are propelling the heating equipment market growth in APAC. China had 57.4% of the APAC market share in 2023 and is expected to play a dominating role in the APAC market throughout the forecast period.

North America is another promising regional market for heating equipment worldwide and held 27.9% of the global market share in 2023. The growth of the North American market is majorly driven by the rising emphasis on energy efficiency, replacement of outdated heating systems, stringent energy efficiency regulations, rapid adoption of smart HVAC systems and increasing retrofitting activities are fueling the growth of the North American market. The U.S. captured 79.7% of the North American market in 2023 and the growth of the U.S. market is majorly driven by the increasing number of HVAC system upgrades and rising adoption of geothermal heating systems in U.S. homes.

The European region is anticipated to register prominent growth during the forecast period. The increasing repair and renovation activities in the construction and heavy metal industries, the growing automotive industry in the European region, rise in gas prices have propelled demand for energy-efficient heating systems are driving the growth of the European market. The rise in subsidies and the installation of heat pumps in residential spaces are further contributing to the growth rate of the European market.

The LAMEA region is predicted to witness the fastest CAGR in the global market during the forecast period.

KEY MARKET PLAYERS:

Companies playing a dominating role in the global heating equipment market include Danfoss Group, Carrier Global Corporation [United Technologies Corporation], Trane Technologies plc (Ingersoll-Rand plc), Raytheon Technologies Corporation, Lennox International, Inc., Rotex Heating Systems GmbH [Daikin Industries, Ltd.], Robert Bosch GmbH, Ingersoll-Rand Plc, Johnson Controls, Uponor Corporation, Emerson Electric Co., Honeywell International Inc., Schneider Electric SE, Siemens AG, Mitsubishi Electric Corporation and Nortek, Inc.

RECENT HAPPENINGS IN THE MARKET:

• In 2023, An exploding demand for giant heat pumps is observed in the current season. MANES’s biggest heat pump, having a total heat capacity of 48 megawatts, has registered a large number of sales.
• In 2022, Panasonic launched a new product in Japan. The product has a heat pump and hot water storage unit to maintain a constant temperature. It also has the additional feature of saving electricity by utilizing heat from the bathwater.