Global Residential Heating Equipment Market Overview
As per MRFR analysis, the Residential Heating Equipment Market Size was estimated at 102.13 (USD Billion) in 2022. The Residential Heating Equipment Market Industry is expected to grow from 104.62 (USD Billion) in 2023 to 130.0 (USD Billion) by 2032. The Residential Heating Equipment Market CAGR (growth rate) is expected to be around 2.44% during the forecast period (2024 - 2032).
Key Residential Heating Equipment Market Trends Highlighted
Various factors are propelling the changes that are being witnessed in the market of residential heating equipment. Heat demand is subject to influences such as the rise in energy efficiency regulations, a push towards reducing carbon emissions, and supporting technologies. There is a coming trend of eager consumer pursuit of energy-efficient and eco-friendly heating, necessitating manufacturers to produce new products. People can control, supervise, manage or regulate appliances with the support of smart home systems and the utilization of the Internet. It also presents new market opportunities due to the increasing adoption of renewable energy, such as geothermal and solar heating.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Residential Heating Equipment Market Drivers
Increasing Demand for Energy-Efficient Solutions
The growing concerns about environmental sustainability and the growing costs of energy have contributed to the notable demand for energy-efficient residential heating equipment. Mostly, heating systems that cut energy consumption and avoid housing with a massive carbon footprint are becoming increasingly popular among consumers. Therefore, the higher adoption of such innovative technologies as high-performing furnaces and heat pumps that ensure energy efficiency is the driving force behind the Residential Heating Equipment Market Industry’s expansion.Besides, various governments around the world have been implementing regulations and providing incentives for the installation of energy-efficient heating technologies.
Technological Advancements and Innovation
The Residential Heating Equipment Market Industry is constantly evolving, driven by technological advancements and innovation. Manufacturers are investing heavily in research and development to introduce new and improved heating systems that offer enhanced efficiency, comfort, and convenience. The emergence of smart heating technologies, such as programmable thermostats and remote monitoring systems, is transforming the way consumers manage their heating systems.These advancements are creating new opportunities for market growth and differentiation.
Rising Disposable Income and Urbanization
Another driver is increasing disposable income. As people’s incomes grow, they are likely to invest more in the appliances and equipment they need to lead comfortable and efficient lives, including heating equipment. Furthermore, there is a trend towards the growth of cities. Living in cities oftentimes requires central heating, and as such, the demand for heating equipment increases as the number of urban residents goes up.
Residential Heating Equipment Market Segment Insights
Residential Heating Equipment Market Fuel Type Insights
Fuel Type Segment Overview In 2023, the Residential Heating Equipment Market revenue was equal to 104.62 billion USD. The Residential Heating Equipment Market segmentation by fuel type provides some insights into the relative prevalence of heating sources within the market. According to IBIS World, natural gas accounts for approximately 45% of the market, holding a dominant position in the segment due to its relatively cheap and abundant supply, as well as its suitability for heating furnaces, heating equipment, boilers, and other devices.Heating oil is the second most prominent fuel type, accounting for 25% of the market as of 2023, which, however, presents some risks to this source of fuel, as it is steadily going out of use due to its negative impact on the environment and the expanding availability of alternative sources of energy. Propane has approximately a 15% market share and is a relevant source of fuel for heating needs in residential and commercial properties. Once again, this fuel type is extremely handy in areas with no access to gas pipelines, as the source is easily portable.Electricity seems to be a species with a large development potential because heating equipment associated with an electricity source is rapidly gaining traction among citizens and households, and heating equipment is expected to grow as a whole, driven by the support schemes of the government and the rise of renewable sources. Another type of fuel with a relatively short life span that is still popular in rural regions and regions with forestry is the use of wood as a source of fuel. As of 2023, it has processed up to 10% of its position on the global market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Residential Heating Equipment Market Equipment Type Insights
Equipment Type Segment Insight and Overview The Residential Heating Equipment Market segmentation by Equipment Type includes Furnaces, Boilers, Heat Pumps, Stoves, and Fireplaces. In 2023, the Furnaces segment held the largest market share of around 38.6%. This dominance is attributed to their high efficiency, ability to heat large spaces, and cost-effectiveness. Boilers are expected to witness significant growth over the forecast period, owing to their increasing adoption in cold regions and growing demand for energy-efficient heating solutions.Heat Pumps are gaining popularity due to their dual functionality of heating and cooling, as well as their energy-saving capabilities. Stoves and Fireplaces, while accounting for a smaller market share, continue to be preferred for their aesthetic appeal and supplemental heating capabilities.
Residential Heating Equipment Market Smart Features Insights
The Residential Heating Equipment Market is segmented into various sub-segments, and Smart Features is one of the key segments. It encompasses technologies such as Wi-Fi Connectivity, Temperature Sensors, Remote Control, Automation, and Energy Monitoring. The growing demand for energy-efficient and convenient heating systems is driving the growth of the Smart Features segment. Wi-Fi Connectivity allows users to remotely control their heating equipment from anywhere with an internet connection. Temperature Sensors enable precise temperature control, reducing energy waste.Remote Control provides convenience and ease of use, allowing users to adjust settings from a distance. Automation features optimize heating performance based on usage patterns and schedules, further enhancing energy efficiency. Energy Monitoring capabilities provide insights into energy consumption, empowering users to make informed decisions and reduce their carbon footprint. The Residential Heating Equipment Market revenue for Smart Features is expected to reach USD 10.5 billion by 2024, exhibiting a CAGR of 4.2% during the forecast period.This growth is attributed to increasing consumer awareness about energy efficiency, rising disposable income, and advancements in technology. The segment offers significant opportunities for market players to innovate and develop advanced solutions that cater to the evolving needs of homeowners.
Residential Heating Equipment Market Market Share Insights
The Residential Heating Equipment Market is segmented by fuel type, equipment type, and smart features. The market share is expected to shift toward more efficient and sustainable heating solutions in the coming years. By fuel type, the natural gas segment is expected to hold the largest market share, followed by the electric segment. The growth of the electric segment is attributed to the increasing popularity of heat pumps. By equipment type, the central heating segment is expected to hold the largest market share, followed by the room heating segment.The growth of the room heating segment is attributed to the increasing popularity of portable and space-saving heating solutions. By smart features, the smart thermostat segment is expected to hold the largest market share. The growth of the smart thermostat segment is attributed to the increasing demand for energy-efficient and convenient heating solutions.
Residential Heating Equipment Market Regional Insights
The regional segmentation of the Residential Heating Equipment Market offers valuable insights into the market's dynamics and growth potential. North America is projected to hold a significant market share due to increasing demand for energy-efficient heating solutions in developed countries like the United States and Canada. Europe follows closely, driven by stringent regulations promoting sustainable heating practices and government incentives for renewable energy adoption. The Asia Pacific (APAC) region is witnessing rapid market growth, attributed to rising disposable incomes and urbanization in countries such as China and India.South America and the Middle East and Africa (MEA) regions are expected to experience steady growth, fueled by infrastructure development and increasing electrification rates. In 2023, the Residential Heating Equipment Market revenue was estimated at 104.62 billion USD, and it is projected to reach 130.0 billion USD by 2032, exhibiting a CAGR of 2.44%.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Residential Heating Equipment Market Key Players And Competitive Insights
Major players in the Residential Heating Equipment Market industry are continuously focusing on developing innovative and energy-efficient products to meet the evolving demands of consumers. Leading Residential Heating Equipment Market players are investing heavily in research and development to improve the performance and features of their products. The Residential Heating Equipment Market industry is characterized by intense competition, with key players striving to gain market share through strategic partnerships, acquisitions, and product innovations. The Residential Heating Equipment Market development is driven by factors such as increasing urbanization, rising disposable income, and growing awareness about energy efficiency. Residential Heating Equipment Market Competitive Landscape is expected to remain highly competitive in the coming years as major players continue to invest in product development and marketing strategies to strengthen their market positions.Carrier Global Corporation, a leading player in the Residential Heating Equipment Market, offers a comprehensive range of heating solutions, including furnaces, heat pumps, and air conditioners. The company has a strong global presence and a well-established distribution network. Carrier Global Corporation is committed to sustainability and invests heavily in developing energy-efficient and environmentally friendly products. The company's focus on innovation and customer satisfaction has contributed to its position as a leading player in the Residential Heating Equipment Market.Daikin Industries, Ltd., a competitor in the Residential Heating Equipment Market, is a Japanese multinational corporation that manufactures and sells heating, cooling, and refrigeration systems. The company has a global presence and a wide range of products, including air conditioners, heat pumps, and furnaces. Daikin Industries, Ltd. is known for its advanced technology and energy-efficient products. The company's focus on research and development has resulted in the development of innovative products that meet the needs of consumers. Daikin Industries, Ltd. is expected to continue to be a key player in the Residential Heating Equipment Market as it continues to invest in product development and expand its global presence.
Key Companies in the Residential Heating Equipment Market Include
- Lennox International
- Hisense
- Daikin Industries
- Johnson Controls
- Samsung Electronics
- Viessmann
- Mitsubishi Electric
- Carrier Global
- Gree Electric Appliances
- BDR Thermea Group
- Vaillant Group
- Haier Group
- Midea Group
- LG Electronics
- Trane Technologies
Residential Heating Equipment Market Industry Developments
The Residential Heating Equipment Market is projected to reach USD 130.0 billion by 2032, exhibiting a CAGR of 2.44% during the forecast period (2024-2032). Rising energy prices and increasing awareness about energy efficiency are driving the demand for energy-efficient heating solutions. Additionally, government regulations and incentives aimed at reducing carbon emissions are further propelling the adoption of eco-friendly heating systems. Technological advancements, such as the integration of smart controls and IoT connectivity, are also contributing to market growth. Key industry players are focusing on product innovation and strategic partnerships to gain a competitive edge. Recent developments include the launch of ultra-high-efficiency condensing boilers, heat pumps with advanced refrigerant technologies, and smart thermostats with AI capabilities. The market is expected to witness significant growth in emerging economies, particularly in regions with cold climates, due to rising urbanization and increasing disposable income.
Residential Heating Equipment Market Segmentation Insights
- Residential Heating Equipment Market Fuel Type Outlook
- Natural Gas
- Heating Oil
- Propane
- Electricity
- Wood
- Residential Heating Equipment Market Equipment Type Outlook
- Furnaces
- Boilers
- Heat Pumps
- Stoves
- Fireplaces
- Residential Heating Equipment Market Smart Features Outlook
- Wi-Fi Connectivity
- Temperature Sensors
- Remote Control
- Automation
- Energy Monitoring
- Residential Heating Equipment Market Market Share Outlook
- Residential Heating Equipment Market Share by Fuel Type
- Residential Heating Equipment Market Share by Equipment Type
- Residential Heating Equipment Market Share by Smart Features
| Report Attribute/Metric |
Details |
| Market Size 2022 |
102.13 (USD Billion) |
| Market Size 2023 |
104.62 (USD Billion) |
| Market Size 2032 |
130.0 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
2.44% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Lennox International, Hisense, Daikin Industries, Johnson Controls, Samsung Electronics, Viessmann, Mitsubishi Electric, Carrier Global, Gree Electric Appliances, BDR Thermea Group, Vaillant Group, Haier Group, Midea Group, LG Electronics, Trane Technologies |
| Segments Covered |
Fuel Type, Equipment Type, Smart Features, Market Share, Regional |
| Key Market Opportunities |
Smart home integration Efficient solutions Sustainable technologies Growing demand in developing regions HVAC system advancements |
| Key Market Dynamics |
Increasing demand for sustainable heating solutions Growing awareness of energy efficiency Advancements in smart home technology Rising urbanization Government incentives for energy-efficient heating |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Residential Heating Equipment Market is estimated to be worth USD 104.62 billion in 2023.
The Residential Heating Equipment Market is projected to grow at a CAGR of 2.44% from 2024 to 2032.
North America is expected to account for the largest share of the Residential Heating Equipment Market in 2023.
Rising energy costs, increasing urbanization, and growing demand for energy-efficient solutions are driving the growth of the Residential Heating Equipment Market.
Major competitors in the Residential Heating Equipment Market include Johnson Controls, Lennox International, Carrier, Daikin, and Mitsubishi Electric.
Different types of residential heating equipment include furnaces, boilers, heat pumps, and fireplaces.
Factors that influence the choice of residential heating equipment include climate, energy costs, and the size and type of home.
Trends shaping the future of the Residential Heating Equipment Market include the adoption of smart technology, the growing popularity of renewable energy sources, and the increasing demand for energy-efficient solutions.
Challenges facing the Residential Heating Equipment Market include rising raw material costs, supply chain disruptions, and competition from alternative heating technologies.
Opportunities for growth in the Residential Heating Equipment Market include the expansion of emerging markets, the development of new technologies, and the increasing demand for energy-efficient solutions.
