Heating Equipment Market Size, Share & Industry Analysis, By Product Type (Boilers, Heat Pumps, and Furnaces, Unit Heaters), By Fuel Type (Oil, Natural Gas, Electricity, Biomass, and Others), By Application (Residential, Commercial, and Industrial), and Regional Forecast, 2024 – 2032

The global heating equipment market size was valued at USD 106.34 billion in 2023. The market is projected to grow from USD 110.84 billion in 2024 to USD 171.75 billion by 2032, exhibiting a CAGR of 5.6% during the forecast period.

Heating equipment includes boilers, heat pumps, and others that are used to generate heat and provide it to a wide range of industries, including chemicals, pharmaceuticals, oil & gas, food & beverages, and other manufacturing sectors. Large-capacity equipment is largely required in processing industries, such as refineries and chemical plants. Several end users, including residential and commercial, require reliable and durable heating equipment. Rapidly growing chemical and pharmaceutical projects across various regions is further driving the demand for the equipment. For instance, Singapore started construction of a new vaccine production facility in 2022 and is expected to get completed by 2026. The investment totaled about USD 467 million for the project named Tuas Biomedical Park New Vaccine Production Facility. Rising investment and expansion of manufacturing facilities are further driving the market growth.

Changing climatic conditions and rising demand for space heating solutions are further generating a strong demand for heating equipment across residential and commercial spaces. Regulatory standards and environmental initiatives are further propelling the market share. Residential and commercial property owners are looking for low-emission heating solutions aiding in reduced carbon emissions.

The COVID-19 pandemic had a significant impact on the heating industry due to temporary lockdowns, halts at manufacturing plants, and disruptions in the supply chain. Limited capital availability and contracted investment in the expansion of manufacturing facilities post-pandemic year had impacted the market demand across regions. However, in post-pandemic years, the market has recovered to its pre-pandemic level. The demand has diverted towards energy-efficient and eco-friendly heating solutions.

Heating Equipment Market Trends

Sustainable and Energy Efficient Heating Systems are Gaining Market Traction Across Geographies

Heating solutions are prominently in demand for process heating and power generation across manufacturing industries. Food, chemicals, and textiles are some of the primary sectors demanding hot water and steam. Sustainable initiatives for energy-efficient heating solutions, including boilers, heat pumps, and furnaces, are gaining market demand. Several regulatory bodies are focused on deploying clean and efficient heating systems for industrial, commercial, and residential applications. For instance, the U.S. Department of Energy has introduced the Cold Climate Heat Pump Program, which was launched in 2021 to eliminate its carbon footprint. Similarly, new Seasonal Energy Efficiency Ratio ratings in the U.S. were introduced for HVAC equipment in 2023 to support eco-friendly heating equipment.  

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Heating Equipment Market Growth Factors

Wide Application Across Diverse Industry Sectors to Propel Market Growth

Industrial production processes, residential space, and water heating are generating considerable demand for boilers, heat pumps, furnaces, and others. Oil & gas, chemicals, pharmaceuticals, power plants, food & beverages, packaging, textile, and rubber industries are a few of the prominent sectors catering to the rising demand for heating appliances. Government initiatives, supportive policies, and the establishment of new manufacturing facilities are further surging the market growth. Heating equipment is required for several applications in the pharmaceutical industry, including tempering, polymerization, granulation, powder making, pasteurizing, and others. For instance, The National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL) announced a capital investment of about USD 10 million for 8 biopharmaceutical manufacturing plants in April 2024.

RESTRAINING FACTORS

Fuel Price Volatility and Maintenance Requirements Might Pose Challenge to Market Growth

The market demand is considerably influenced by fuel prices, including oil & gas. Purchasing decisions by consumers and demand for heating systems are largely influenced by fluctuating fuel prices. Heating systems require regular maintenance to enhance equipment performance and safety. Moreover, high installation costs and space requirements further limit the heating equipment market growth.

Heating Equipment Market Segmentation Analysis

By Product Type Analysis

Boilers Led the Market Owing to Their Efficient Heating and Durability

By product type, the market is segmented into boilers, heat pumps, furnaces, and unit heaters.

Boilers to catered to the highest revenue market share among all other equipment in 2023. Boilers find their wide range of industry applications, such as power plants, agriculture, cement production, and the food & beverages industry for heating applications. Boilers are also in demand from commercial buildings, including hotels, offices, and hospitals, for space heating and water supply. The rising application of greenhouse heating to provide warmth to plants and crop yields is further boosting the market demand for boilers.

Heat pumps are expected to experience the highest growth rate during the forecast period across end users, including residential and commercial. The rising trend towards electrification of heat and government support are expected to influence the growth of heat pumps across industries. Heat pumps carry several economic benefits and efficiently deploy heat to several end-use industries.

Furnaces and unit heaters are expected to experience steady growth during the forecast period.

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By Fuel Type Analysis

Natural Gas Leads the Market Demand Owing to its Easy Availability and Reduced Emissions

By fuel type, the market is classified into natural gas, oil, electricity, biomass, and others. Others segment include coal, solar, and geothermal.

Natural gas-powered boilers, furnaces, and heaters are largely used across industries and, therefore, account for the largest revenue market shareholder among other fuel types. Natural gas-powered equipment burns cleanly and requires minimal maintenance. The availability of natural gas and government emission regulations are further enhancing the demand for natural gas-powered heating equipment. Moreover, natural gas is cost-efficient for end users and reduces carbon emissions. 

Electricity-sourced heating equipment to witness the highest growth owing to its lower installation cost and effective heating. Electric heaters and heat pumps are trending across industries as a result of easy installation and reduced cost.

By Application Analysis

Steady Demand from Process Industries and Production Facilities Accounts for Highest Market Share of Industrial Application

By application, the market is classified into residential, commercial, and industrial. The industrial segment is further categorized into food & beverages, oil & gas, energy & power, chemicals & petrochemicals, and others. Other segments include textile, packaging, automotive, aerospace, agriculture, and metal manufacturing.

The industrial segment dominates the heating equipment market. Heating equipment is largely required for oil & gas extraction, chemicals manufacturing, cooking, cleaning, paper, and textile manufacturing. Rising demand for oil & gas, increasing investment in projects across diverse geographic locations to surge the market demand. For instance, the Greater Tortue Ahmeyim (GTA) LNG hub, Mauritania/Senegal, is a new offshore liquefied natural gas project that is commissioned to start in 2024. 

Several other projects in different regions are lined up to start oil & gas extraction in 2024, such as Sangomar Offshore Oil Project, Senegal, Coral Norte, Mozambique, Pecan Field Development, Ghana, Cameia and Golfinho Fields Development, Angola, Baleine Field Development, Côte d'Ivoire, and Agogo Field Development, Angola. The industrial segment is projected to witness the highest growth rate during the forecast period, owing to the establishment of manufacturing facilities and expansion of existing production plants.

Residential and commercial spaces are generating strong demand for space and water heating due to changing climate conditions.

REGIONAL INSIGHTS

By region, the market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East and Africa.

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Asia Pacific to be at the forefront of the heating equipment market share consequently due to large manufacturing facilities, growing industry projects, and increasing investments across industries. Growing manufacturing facilities across the region, regulatory compliance, and government initiatives are a few of the primary factors surging the market demand. For instance, the Indian government has inaugurated 40 greenfield plants for bulk drugs and medical device manufacturing in February 2024. The focus of the Indian government to expand its pharmaceutical manufacturing across the country is subject to boosting the market demand for heating appliances. Automotive, pharmaceutical, oil & gas, chemical, power, food, and textile manufacturing across the region are majorly raising the demand for the product. Asia Pacific region to witness the highest growth during the forecast period of 2024-2032.

Government initiatives and increasing demand for heating equipment across residential and commercial applications further boost the market demand. High demand for district heating in China to further enhance the market for sustainable and energy-efficient heating solutions. According to the International Energy Association, China accounts for about 33% of the global heat consumption, and the industrial sector accounts for about 40% of the total in 2023. Rising demand for efficient and sustainable heating solutions, the market for heat pumps is showing exceptional growth in the country. Several manufacturers and industry users are upgrading their heating equipment as per industry standards, surging the market demand across the country. China’s investment in power plants and other industrial segments influences the demand for industrial heating solutions.

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North American market is witnessing considerable growth, the reason being the growing demand for residential and commercial spaces. The market is boosting the demand for smart heating systems enabled by Internet of Things (IoT) technology. IoT-based heating systems provide greater flexibility and smart controls for end users, positively impacting the market demand. Heat pumps are gaining market traction across residential and commercial industries for space and water heating as a result of extreme climatic conditions.

Europe’s industrial energy demand is growing and influenced by process heating at manufacturing facilities. Growing demand across chemicals, pharmaceuticals, food & beverages, and other manufacturing facilities is driving the volume of sales across the region. Europe dominates the market for heat pumps, owing to regulatory policies, capital expenditure, and reduced carbon emissions. For instance, investment in heat pumps doubled in 2023 in compared to 2020, attracting capital expenditure of about USD 24 Bn in 2023. 

South American market to grow at a significant rate as a result of expanding industrial facilities and investments in infrastructure development across countries, including Argentina and Brazil.

Middle East & Africa showed contradictory demand compared to other regions, but the demand was mainly driven by residential applications followed by industrial and commercial applications. However, the market is also bolstered due to large oil & gas refineries across the region.

KEY INDUSTRY PLAYERS

Capital Investment in New Technologies and Strategic Expansion to Strengthen Presence of Key and Emerging Market Participants

The market is highly fragmented owing to a large number of international and domestic players in the market offering a wide range of heating solutions. Several key market participants are heavily investing in research and development activities, and new product launches enabled with technological innovations. Strategic collaborations, mergers, and acquisitions are further enhancing the presence of market players across geographies. Expansion of production facilities and exhibitions of new equipment at international trade shows are expanding key players’ reach at diverse geographic locations.

List of Top Heating Equipment Companies:

• Siemens AG (Germany)


• Johnson Controls Inc (U.S.)


• Midea Group (China)


• Carrier (U.S.)


• Emerson Electric (U.S.)


• Trane Technologies (Ireland)


• Robert Bosch (Germany)


• Panasonic Holdings Corporation (Japan)


• Mitsubishi Electric Corporation (Japan)


• Danfoss (Denmark)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: Laars Heating Systems, a designer and manufacturer of boilers, acquired Electro Industries Inc. based out of Minnesota, U.S.  Electro Industries Inc. is a manufacturing company that specializes in developing electric boilers, air-to-water heat pumps, duct heaters, and controls. 


• January 2024: Robert Bosch launched a residential air-to-air heat pump for heating purposes. The new inverter ducted split ultra heat pump is projected to provide 100% heating capacity and operational temperature of up to -25 degrees Celcius.


• December 2023: Bradford White Water Heaters released a new Brute XTR commercial boiler and volume water heaters in six different sizes. The sizes range from 399 MBH to 1500 MBH, and they have AHRI certification and high thermal efficiency.


• August 2023:  Navien launched two new products at InstallerSHOW 2023. The new low-noise Monobloc air source heat pump and new H2 hydrogen boiler were introduced to reach net zero emissions by 2050.


• November 2022: Midea Group invested in a new heat pump production base in Italy to expand its market for heating equipment in Europe. The new manufacturing facility is established by investing about USD 62 million in Northern Italy.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product/service types, and leading applications of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, it encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation