Residential Furnace Market Research Report By Fuel Type (Gas Furnaces, Electric Furnaces, Oil Furnaces, Propane Furnaces), By Application (Single-Family Homes, Multi-Family Homes, Commercial Buildings, Industrial Buildings), By Efficiency (80% AFUE or Less, 80.1% - 89.9% AFUE, 90.0% - 94.9% AFUE, 95.0% AFUE and Above), By Technology (Conventional Furnaces, Condensing Furnaces, Modulating Furnaces, Variable-Speed Furnaces), By Installation Type (New Installations, Replacement Installations, Retrofit Installations) and By Regional (North Ame

Global Residential Furnace Market Overview

The Residential Furnace Market Size was estimated at 17.9 (USD Billion) in 2022. The Residential Furnace  Industry is expected to grow from 18.47(USD Billion) in 2023 to 24.5 (USD Billion) by 2032. The Residential Furnace Market CAGR (growth rate) is expected to be around 3.18% during the forecast period (2024 - 2032).

Key Residential Furnace Market Trends Highlighted

Advancements in home automation and smart technology are shaping the residential furnace market significantly, with increasing integration of smart thermostats and IoT devices that enhance energy efficiency and remote control.

Government regulations promoting energy conservation and environmental sustainability are driving demand for high-efficiency furnaces, fostering the adoption of products that reduce carbon emissions and align with green building standards.E-commerce platforms and online retailers are gaining traction in the market, offering convenient access to a wide range of furnace models and brands, catering to the growing preference for online shopping.

Technological innovations such as variable-speed blowers, modulating gas valves, and advanced combustion systems are enhancing the performance, durability, and comfort levels of residential furnaces, responding to consumer demands for optimal heating solutions.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Residential Furnace Market Drivers

Increasing Demand for Energy-Efficient Solutions

As energy costs continue to rise, homeowners are increasingly looking for ways to reduce their energy consumption. Residential furnaces are a major source of energy consumption in homes, so there is a growing demand for energy-efficient furnaces. Energy-efficient furnaces can help homeowners save money on their energy bills and reduce their carbon footprint. This is a key driver of growth in the Residential Furnace Market Industry, as more and more homeowners are looking for ways to save money and reduce their environmental impact.

Rising Popularity of Smart Home Technology

Smart home technology is becoming increasingly popular, and this is also having a positive impact on the Residential Furnace Market Industry. Smart furnaces can be controlled remotely, which makes it easier for homeowners to manage their energy consumption. Smart furnaces can also be integrated with other smart home devices, such as thermostats and smart speakers. This allows homeowners to create a more efficient and comfortable home environment.

Government Regulations and Incentives

Government regulations and incentives are also playing a role in driving growth in the Residential Furnace Market Industry. Many governments are implementing regulations that require new homes to be equipped with energy-efficient furnaces. Governments are also offering incentives, such as tax breaks and rebates, to homeowners who purchase energy-efficient furnaces. These regulations and incentives are helping to make energy-efficient furnaces more affordable for homeowners, which is further driving growth in the market.

Residential Furnace Market Segment Insights

Residential Furnace Market Fuel Type Insights  

The Residential Furnace Market segmentation by Fuel Type is one of the most important and beneficial techniques to understand the market dynamics, potential growth, and competitive landscape. Gas furnaces are the most popular and represented residential furnaces, and there is no wonder that they generate over 55% of the Residential Furnace Market revenue in 2023. Such popularity is the result of the high availability of natural gas, which is an affordable and perfect energy source. Moreover, it is possible to speak about certain environmental friendliness and the regular usage of new technologies to increase its efficiency and reduce operation costs.Electric furnaces are another popular type of residential furnaces, and their share is approximately 25%. It is expected because of the increasing electrification, numerous government incentives to use only certified and energy-efficient equipment, and the role that is currently paid to environmental sustainability. Electric furnaces benefit from on-demand heat generation and can be developed to be operated along with solar panels and other renewable power sources. The role of oil furnaces has decreased in the market with 15% of the share, which is associated with the increasing concerns with environmental pollution and the lower role of oil today.The role of propane furnaces, which can be used to support the main heating system, has increased and is estimated at 5% of the Residential Furnace Market. The Residential Furnace Market is expected to demonstrate stable growth in the near future due to the increasing construction works and requirements for energy-efficient equipment. The influence of technological advancements should not be undermined. The major companies in the industry invest in research and development to be able to meet the increased demands of customers.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Residential Furnace Market Application Insights   

The Residential Furnace Market is segmented by Application into Single-Family Homes, Multi-Family Homes, Commercial Buildings, and Industrial Buildings. The single-family homes segment held the largest share of the Residential Furnace Market revenue, with a market size of around USD 6.15 billion in 2023. This segment has dominated the market due to the rising construction of new residential buildings and the need for better heating systems in the houses. The multi-family homes segment is expected to witness faster growth due to the increasing urban population and the rising number of apartment buildings and condos.The commercial buildings segment is also expected to grow at a steady pace as businesses and new establishments increasingly focus on energy efficiency and creating comfortable environments for workers. The industrial buildings segment is expected to witness comparatively slower growth due to the limited presence of furnaces or heating systems in industrial warehouses and factories. Overall, the Residential Furnace Market is expected to grow at a steady pace due to the rising demand for energy-efficient and durable heating solutions across all segments.

Residential Furnace Market Efficiency Insights  

The efficiency segment of the Residential Furnace Market is categorized based on Annual Fuel Utilization Efficiency (AFUE) ratings. Here's an overview and insights for each sub-segment '80% AFUE or Less' Furnaces with AFUE ratings of 80% or less are considered less efficient and are gradually being phased out in many regions due to stricter energy regulations. Their market share is declining. '80.1% - 89.9% AFUE' Furnaces in this range offer moderate efficiency and account for a significant portion of the market. They provide a balance between energy savings and affordability.'90.0% - 94.9% AFUE' These furnaces are highly efficient and are becoming increasingly popular as homeowners prioritize energy efficiency. Their market share is expected to grow in the coming years. '95.0% AFUE and Above' Furnaces with AFUE ratings of 95% or higher are the most efficient models available. They offer substantial energy savings but typically come with a higher upfront cost. Their market share is growing, albeit at a slower pace. The Residential Furnace Market segmentation based on efficiency provides insights into consumer preferences and regulatory trends toward energy efficiency.As governments and organizations emphasize reducing carbon emissions, the demand for high-efficiency furnaces is projected to rise, driving market growth in the coming years.

Residential Furnace Market Technology Insights  

The residential furnace market is segmented into technology, fuel type, and distribution channels. By technology, the market is segmented into conventional furnaces, condensing furnaces, modulating furnaces, and variable-speed furnaces. Conventional furnaces are the most common type of furnace and are less efficient than other types. Condensing furnaces are more efficient than conventional furnaces and can recover heat from the exhaust gases. Modulating furnaces can adjust their output to match the heating needs of the home, which can save energy.Variable-speed furnaces are the most efficient type of furnace and can operate at different speeds to match the heating needs of the home. In 2023, the condensing furnaces segment accounted for the largest share of the residential furnace market, and it is expected to continue to grow at a steady rate in the coming years. The growing demand for energy-efficient appliances is driving the growth of the condensing furnaces segment.

Residential Furnace Market Installation Type Insights  

The installation type segment of the Residential Furnace Market holds significant importance, impacting overall market growth and dynamics. Among the key installation types, new installations account for a substantial share of the market, driven by the increasing construction of residential buildings and the rising demand for energy-efficient heating solutions. Replacement installations also contribute significantly to market growth as homeowners replace aging or inefficient furnaces with newer, more advanced models. Retrofit installations, on the other hand, represent a growing segment as homeowners seek to upgrade existing furnaces with modern features and technologies to enhance energy efficiency and comfort levels.The Residential Furnace Market is expected to continue witnessing steady growth in all installation types, with new installations leading the way. Market segmentation insights like these are crucial for industry players to understand the evolving market landscape and target specific segments for growth and innovation.

Residential Furnace Market Regional Insights  

The Residential Furnace Market is segmented into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023 and is expected to continue to dominate the market throughout the forecast period. The growth of the North American market is attributed to the increasing demand for energy-efficient heating solutions and the presence of major manufacturers in the region. Europe is the second-largest market for residential furnaces, followed by APAC. The APAC market is expected to grow at the highest CAGR during the forecast period due to the increasing urbanization and rising disposable income in the region.South America and MEA are relatively smaller markets for residential furnaces, but they are expected to grow at a steady pace in the coming years.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Residential Furnace Market Key Players And Competitive Insights

Major players in the Residential Furnace Market industry are continuously investing in research and development to launch innovative products and enhance their offerings. Leading Residential Furnace Market players are focusing on expanding their product portfolio and geographical presence through acquisitions and partnerships. The Residential Furnace Market development has been fueled by increasing demand for energy-efficient solutions and rising consumer awareness about environmental sustainability. This competitive landscape is expected to remain dynamic as new entrants and innovative technologies continue to emerge.Lennox International is one of the leaders in the Residential Furnace Market. The company offers a wide range of residential furnaces, including gas furnaces, oil furnaces, and electric furnaces. Lennox International is known for its innovative products and its commitment to customer satisfaction. The company has a strong distribution network and provides excellent customer service.Carrier is another leading player in the Residential Furnace Market. The company offers a wide range of residential furnaces, including gas furnaces, oil furnaces, and electric furnaces. Carrier is known for its high-quality products and its focus on energy efficiency. The company has a strong brand reputation and a loyal customer base. Carrier has a presence and is committed to providing its customers with the best possible products and services.

Key Companies in the Residential Furnace Market Include

• AmanaewparaBryant


• Goodman


• Mitsubishi Electric


• Payne


• Heil


• York


• ICP


• Lennox


• Coleman


• Trane


• Rheem


• Daikin


• Friedrich


• Carrier

Residential Furnace Market Industry Developments

The residential furnace market is projected to reach USD 24.5 billion by 2032, growing at a CAGR of 3.18% from 2024 to 2032. The increasing demand for energy-efficient and sustainable heating solutions is driving the market growth. Government regulations and incentives promoting energy efficiency are also contributing to the market expansion. Additionally, technological advancements, such as smart thermostats and IoT-enabled furnaces, are enhancing user convenience and driving market growth. Key players in the market include Carrier, Lennox, Trane, Rheem, and Goodman. Recent developments include the launch of high-efficiency gas furnaces with AFUE ratings of up to 98% and the growing adoption of heat pump furnaces that offer both heating and cooling capabilities.

Residential Furnace Market Segmentation Insights

• Residential Furnace Market Fuel Type Outlook
  
  
  
  • Gas Furnaces  
  
  
  • Electric Furnaces  
  
  
  • Oil Furnaces  
  
  
  • Propane Furnaces  
  
  
  
  


• Residential Furnace Market Application Outlook
  
  
  
  • Single-Family Homes  
  
  
  • Multi-Family Homes  
  
  
  • Commercial Buildings  
  
  
  • Industrial Buildings  
  
  
  
  


• Residential Furnace Market Efficiency Outlook
  
  
  
  • 80% AFUE or Less  
  
  
  • 80.1% - 89.9% AFUE  
  
  
  • 90.0% - 94.9% AFUE  
  
  
  • 95.0% AFUE and Above  
  
  
  
  


• Residential Furnace Market Technology Outlook
  
  
  
  • Conventional Furnaces  
  
  
  • Condensing Furnaces  
  
  
  • Modulating Furnaces  
  
  
  • Variable-Speed Furnaces  
  
  
  
  


• Residential Furnace Market Installation Type Outlook
  
  
  
  • New Installations  
  
  
  • Replacement Installations  
  
  
  • Retrofit Installations  
  
  
  
  


• Residential Furnace Market Regional Outlook
  
  
  
  • North America  
  
  
  • Europe  
  
  
  • South America  
  
  
  • Asia Pacific  
  
  
  • Middle East and Africa