Heating Appliances Market Size, Share & COVID-19 Impact Analysis, By Fuel Type (Natural Gas, LPG, and Butane/Propane), By End-user (Residential (Space Heating Appliances, Cooking Appliances, Clothes Drying, and Gas Water Heaters) and Commercial (Space Heating Appliances, Water Heaters, and Cooking Appliances)), and Regional Forecasts, 2023-2030

The global heating appliances market size was valued at USD 51.38 billion in 2022. The market is projected to grow from USD 53.25 billion in 2023 to USD 67.58 billion by 2030, exhibiting a CAGR of 3.46% during the forecast period. North America dominated the heating appliances market with a market share of 34.47% in 2022.

People essentially use devices to fulfill their cooking, water heating, and space heating needs. Heating appliances, including water heaters, ovens, cloth dryers, and others are available in different heat generation capacities based on their usage in commercial and residential areas. The rising usage of such devices for residential, industrial, and commercial purposes is expected to drive the heating appliances market growth. From a manufacturing standpoint, smart technology-based control systems in heating appliances will trigger product demand in the coming years.

COVID-19 IMPACT

Shut Down of Production Sites due to Lockdown Restrictions to Limit Market Growth

During the COVID-19 period, governments imposed lockdown restrictions and social distancing norms to avoid coronavirus infection spread. These governmental restrictions posed challenges to the key players, including Hitachi Ltd., Electrolux AB, Daikin Industries Ltd., and others in managing their production and supply chain operations, impacting the market growth amid the pandemic.

As a result of the inefficiency in the supply chain, the manufacturing and production of heating appliances (gas fuel-based), such as gas cooktops, gas heaters, and gas ovens, suddenly stopped and retail store sales worldwide crumbled, resulting in a decline in product demand. For instance, Rinnai Corporation, a leading Japanese gas appliance manufacturer, reported 1.7% decline in its total sales revenues and reached USD 3.13 million in 2021 due to COVID-19 related lockdown restrictions globally.

LATEST TRENDS

Restaurants’ Preference for Safer Natural Gas-fired Appliances to Create Newer Market Avenues

The growing popularity of safer gas-powered cooktops among hotel chefs and rising hotel & restaurant infrastructural settings will offer new growth opportunities. These commercial facilities prioritize cost-effective natural gas-powered sources for heating, cooking, and other functions, increasing demand for natural gas-powered appliances such as cooktops, ovens, and water heaters. Additionally, the wide availability of gas stoves of different shapes with multiple burners further supports the product demand globally.

Natural gas infused with hydrogen can be used as a clean energy source to produce heat, fulfilling the rising demand for clean-energy fuel sources among consumers globally.

According to the U.S. Environmental Protection Agency (EPA) data, the production volume of transportation-purpose Renewable Natural Gas (RNG) in the U.S. increased from 404 million gallons in 2019 to 503 million gallons in 2020. This aspect will significantly reduce the carbon footprint globally as renewable energy sources, such as natural gas and clean LPG, produce low carbon dioxide emissions while burning. These sources are less toxic than coal and other fossil fuels due to lower carbon-related emissions. Therefore, increasing emphasis on renewable-gas-powered sources will boost renewable natural gas consumption worldwide.

DRIVING FACTORS

Manufacturers' Provision of Innovative Gas-powered Appliances to Fuel Market Growth

Companies are implementing cost-cutting strategies and focusing on improving product offerings to diversify their presence geographically. These companies’ efforts will support the market growth. For instance, in December 2021, Xiaomi Corporation, an electronic goods maker, released MIJIA Zero Cold Water, a gas water heater product in China. The water heater is being marketed as the brand's first zero-cold water gas water heater.

Additionally, government initiatives to improve energy efficiency across global industrial businesses and technological advancements are encouraging manufacturers to prioritize innovative and efficient household appliances such as heating products. These factors will attract customers to fulfill their ever-increasing household necessities of heating and cooking applications and boost product consumption worldwide. Besides, rising consumer demand for smart home appliances and growing consumer preference for buying smart housing facilities will drive the growth of the heating appliance (gas fuel-based) market.

Growing Installation of Energy-efficient Heating Systems to Favor Market Expansion

The rising household population’s demand for energy efficient and cost-effective gas-powered appliances, such as water heaters, dryers, cooktops, and others, is mainly driving the market growth. Additionally, shifting consumer preference from electric appliances to energy-efficient gas-powered ones requiring lesser repair and maintenance costs will further support the product demand.

The growing popularity of natural gas-powered heating products, such as water heaters, ranges, and burners, for various heating and cooking applications, is surging demand. As per the U.S. Energy Information Administration (EIA)'s Winter Fuels Outlook 2021 report, nearly half of the U.S. households that use natural gas-powered appliances are likely to spend 30% more than the winter in 2020.

RESTRAINING FACTORS

Shifting Consumer Preference from Gas Appliances to Electric Appliances to Restrain Market Growth

Customers opt for electric household appliances due to shifting energy consumption habits and increased awareness of environmental pollution. Shifting consumer preference toward electric appliances from gas appliances will limit the product revenues globally. Additionally, the higher cost of repairing and maintaining residential purpose gas heating products, such as ovens, water heaters, and others, limits the product demand worldwide.

Nowadays, furnaces, water heaters, and other industrial device manufacturers, such as Carrier Corporation, Benko Products Inc., and Inductotherm Corp., require huge R&D investments in the production process of these systems. This factor will likely pose challenges to these manufacturers in offering newer heating devices, limiting the market growth. Furthermore, growing consumer preference for IoT-based ovens and water heaters will restrain the market growth.

SEGMENTATION

By Fuel Type Analysis

Natural Gas Segment Holds a Major Share due to its Cost-Effectiveness over its Counterparts

Based on fuel type, the market is segmented into natural gas, LPG, and propane/butane. Natural gas-powered appliances emit lower emissions than non-renewable fuels and burn cleaner than other sources such as coal and other fossil fuels. Higher electricity costs associated with heating accessories and rising household consumer preference for low-cost gas appliances primarily surge the demand for natural gas-powered products. The natural gas segment holds a major global domestic heating appliances market share, owing to its widespread usage for generating electricity and cooking purposes in homes.

Nowadays, farmers use air and water heating technologies to handle harvest drying and storage tasks. Natural gas's abundant availability will help harvesting methods for grain drying and other agricultural needs.

Moreover, households and commercial settings, such as hotels & restaurants, manufacturing sites, and others, increasingly use ovens and heaters to fulfill their food preparation, water, and space heating needs. Therefore, the growing residential and commercial housing facilities will surge natural gas consumption as a fuel for heating.

The LPG segment is mainly driven by the cost-effectiveness of LPG-powered appliances over counterparts. Additionally, increasing LPG-based appliances’ demand among hotels & restaurants is further supporting the LPG segment growth.

Barbeque settings mainly use propane or butane-powered grillers to cook food dishes. Therefore, an increasing number of barbeque shops will drive the propane/butane segment growth.

By End-user Analysis

Growing Residential Infrastructural Settings Result in THE Residential Segment to Hold a Leading Position

In terms of end-user, the heating appliance (gas fuel-based) market is segregated into residential and commercial.

Residencies increasingly use gas appliances to fulfill their water and space heating needs. Therefore, growing residential infrastructural settings are further driving the residential segmental growth. According to the U.S. Census Bureau statistics, new residential housing sales in the U.S. increased from nearly 770,000 housing units in January 2020 to 1,000,000 units in January 2021. Additionally, the increasing number of middle-income population groups and their spending on energy-efficient home appliances, such as gas cooktops, gas stoves, and other gas-based cooking appliances, support the residential segmental revenues.

The residential segment can be sub-segmented into various product types such as space heating equipment, cooking appliances, cloth dryers, and gas water heaters. The space heating equipment segment holds a major share in the residential segment due to significant household consumer demand for space and water products. Easy consumers’ accessibility to energy-saving gas water heaters makes the gas water heaters segment grow at a faster rate from 2022-to 2029.

The commercial segment holds a considerable share of the global market owing to the fast-paced infrastructure development that requires the adoption of heating devices in the industrial sector. Besides, the rising hotel occupancy rate will increase the hospitality consumer demand for air and water heating products, thereby driving the commercial segment growth. According to the England occupancy survey conducted by the National Tourism Agency, the U.K.'s government hotel room occupancy rate increased from 37% in January 2016 to 45% in January 2020.

Nowadays, farmers utilize air and water heating technologies to conduct storage and crop drying operations daily. As a result, increasing farmers’ income and spending on heating technologies will drive the product consumption rate among agricultural industries.

Commercial establishments, such as hotels and hospitals, are increasingly adopting cooking appliances and water heaters to reduce utility costs associated with cooking and water heating. This factor makes the commercial segment generate considerable product revenues.

The commercial segment can be sub-segmented into various product types such as space heating equipment, water heaters, and cooking appliances. The space heating equipment segment dominates the commercial segment due to its widespread usage in industrial facilities to fulfill their space heating needs.  

REGIONAL INSIGHTS

Based on geography, the global market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The North America market is primarily driven by the increasing millennial population spending on cooking & baking appliances and smart home accessories. Also, the region’s growth is driven by the rising U.S. and Canadian population’s preference for replacing their existing appliances. Large home sizes allow Canadian and the U.S. households to buy large-sized appliances. This factor results in a considerable North American population’s demand for large-sized heating devices.

Furthermore, the growing expansion of prominent boiler & heat pump manufacturers, such as U.S. Boiler Company Inc., Superior Boilers Works Inc., and others, will likely support the industry growth. For instance, in September 2021, Superior Boilers Works Inc. installed a 75,000 sq. ft. boiler manufacturing facility at Hutchinson, Kansas, U.S.

Asia Pacific exhibited a substantial market share due to increasing consumer demand for energy-efficient and innovative technology-based appliances to fulfill their basic livelihood. According to the report ‘Residential Energy Conservation Using Energy Efficient Appliances’, published by the International Journal of Innovative Technology and Exploring Engineering (IJITEE), in 2020, per capita annual energy cost savings of water heaters in India reached USD 7.88. Also, the small-living spaces of Japanese and Southeast Asian households facilitate the need for gas cooking appliances to fulfill their cooking needs. These factors drive the consumption rate of such products in the region.

Besides, governmental support in installing natural gas manufacturing facilities will increase the consumption rate of natural gas fuel-based appliances globally. For instance, in January 2020, the Government of India allocated USD 730.38 million to install a 1,656 km natural gas pipeline from Assam, India to other states of North East, India.

The Europe market is mainly driven by easy consumers' accessibility to gas appliances. However, Europe will grow at a lower than stable growth rate due to the shifting household population’s demand from gas-powered appliances to electric appliances. Additionally, renowned European heating solutions manufacturers, such as Electrolux AB, Robert Bosch GmbH, and Ariston Thermo (Ariston Group), continually focus on innovating gas-powered solutions in the European market to attract a broader customer base.

The Middle East & Africa and Latin America markets are mainly driven by the shifting consumer focus toward replacing natural gas-powered appliances. Novo Mercado de Gás, a Brazilian legal framework, is enabling gas foundations to supply alternative gas-powered systems in the country. This aspect allows gas appliance makers to produce energy-efficient gas appliances in Brazil, thereby supporting the appliances consumption rate in Latin America. Nowadays, Saudi Arabian and the UAE are utilizing flame failure detection technology-based systems to safely utilize gas appliances in paper, pulp, and manufacturing industries. This factor will support the sustainability development of the Middle East heating equipment industry.

KEY INDUSTRY PLAYERS

Business Expansion and Product Innovation to Help Fuel the Market Growth

Nowadays, prominent global domestic heating devices market players implement differentiated strategies to adapt to shifting customer shopping trends and stay competitive in the intensely competitive landscape. For instance, in May 2021, Rinnai America Corporation introduced a full line of high and low-intensity infrared heaters to provide customers with efficient, quiet comfort using innovative gas infrared technology. Rinnai's latest additions supplement the company's existing commercial and residential product offerings. The company introduced a series of slide-in ranges that make cooking more convenient and time-efficient.  

List of Key Companies Profiled:

• Hitachi Ltd. (Japan)


• Electrolux AB (Sweden)


• Samsung Electronics Co. Ltd. (South Korea)


• Panasonic Corporation (Japan)


• Robert Bosch GmbH (Germany)


• Haier Smart Home Co. Ltd. (China)


• Honeywell International Inc. (U.S.)


• LG Electronics Inc. (South Korea)


• Inductotherm Corp. (U.S.)


• Rinnai Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS:

• January 2023: Hintastica Private Limited, an Indian non-government company, commenced the manufacturing of heating appliances at its plant in Jadcherla, Telangana, India. The production facility covers nearly 6 acres and can manufacture various appliances, including water heaters.


• January 2023: Samsung Electronics Air Conditioner Europe (SEACE), a Netherlands-based electronic products manufacturer, announced that it would take part in ISH 2023, a trade fair taking place in Frankfurt, Germany, in March 2023. The company will showcase its heat pump solutions and other innovative products at the trade fair.


• January 2022: LG Corporation unveiled AI-based FX washer and gas dryer products that allow people to customize their cloth washing loads. The FX gas dryer and washer analyze the size of the cloth load, fabric type & soil level and dispense detergent quantity as per the cleaning requirements.


• August 2022: Thomson, a France-based consumer electronics company, unveiled various small home appliances, including room heaters, geysers, electric cookers, and irons in the India market.


• March 2022: Panasonic Holdings Corporation, a Japan-based multinational conglomerate corporation, introduced its new solar heat pump in Japan. The new product is air sourced and can be combined with household rooftop solar for heating water.

REPORT COVERAGE

The research report analyzes the market in-depth and highlights crucial aspects such as prominent companies, fuel types, end-users, and regional areas. Besides this, the report provides insights into the market trends and highlights significant industry developments. In addition to the aspects mentioned above, the market outlook has several factors contributing to the market growth.

Report Scope & Segmentation