USD 41.82 Billion
Report ID:
SQMIG20B2079 |
Region:
Global |
Published Date: May, 2025
Pages:
199
|Tables:
94
|Figures:
71
Global Heating Equipment Market size was valued at USD 41.82 Billion in 2023 and is poised to grow from USD 43.62 Billion in 2024 to USD 61.09 Billion by 2032, growing at a CAGR of 4.3% in the forecast period (2025-2032).
This growth is driven due to the demand for energy-efficient solutions rising. As consumers and businesses place a greater value on economical and eco-friendly heating options, advanced technologies like heat pumps, smart thermostats, and infrared heating systems are growing in popularity. Improvements in heating technology increase energy efficiency, reducing operating costs and their adverse environmental effects. As governments enforce more stringent energy regulations and offer incentives for environmentally friendly systems, the market witnesses a rise in the adoption of these innovative, efficient solutions, which further fuels the heating equipment market growth.
What Role Does AI Play in Reducing Heating Costs and Emissions?
By improving energy efficiency, predictive maintenance, and user experience, artificial intelligence (AI) is completely changing the heating equipment market outlook. Artificial intelligence (AI)-powered HVAC systems optimize heating operations by analyzing real-time data, including occupancy, weather, and energy costs. This results in significant energy savings and lower carbon emissions.
Market snapshot - 2025-2032
Global Market Size
USD 41.82 Billion
Largest Segment
Residential
Fastest Growth
Industrial
Growth Rate
4.3% CAGR
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The global heating equipment market is segmented into product, application, end-user industry, and region. By product, the market is classified into heat pump, unitary heaters, warm air furnace, and space heating boilers. Depending on the application, it is divided into residential, commercial, and industrial. According to end-user industry, the market is categorized into construction, healthcare, hospitality, manufacturing, education, and government & military. Regionally, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
As per the 2024 global heating equipment market analysis, the heat pump segment dominated with the largest revenue share of 70.6% driven by its versatility and energy efficiency. Heat pumps' dual function of heating and cooling makes them ideal for year-round use and enhances their appeal. They use environmentally friendly renewable energy, which supports the growing sustainability trends and reduces operating expenses and electricity consumption. Additionally, government incentives and stricter energy regulations have sped up their adoption. With consumers and businesses placing a greater value on energy efficiency and environmentally friendly solutions, heat pumps have become the preferred choice for both residential and commercial heating systems.
Over the course of the forecast period, the unitary heaters category is expected to grow at the fastest rate, with a CAGR of 4.2%. Their energy efficiency, simplicity of installation, and the growing need for reasonably priced heating solutions are the reasons for this growth. Since these systems integrate heating and ventilation into a single unit, they are ideal for residences and commercial buildings seeking efficient temperature control. The trend toward energy-efficient systems and sustainable building practices is consistent with unitary heaters, which offer reduced energy consumption and operating costs. Their versatility, compact size, and ability to maintain a consistent indoor climate make them a popular choice in a range of markets.
Based on the 2024 global heating equipment market forecast, the residential segment had the highest revenue share of 69.4%, primarily due to the increasing demand for efficient and comfortable home heating solutions. As homeowners seek to reduce expenses and their environmental impact, energy-efficient heating systems, such as unitary heaters, heat pumps, and smart thermostats, have become more and more popular. Tighter building regulations and a greater focus on sustainability have also led to a rise in the use of advanced heating technologies. The need for affordable, reliable home heating solutions in a range of climates continues to fuel this market's growth.
The industrial category is anticipated to grow at the fastest rate and reach a CAGR of 7.1% during the forecast period due to growing demand in the manufacturing, chemical, and energy sectors. The need for advanced heating equipment is growing as industries search for efficient and sustainable heating solutions for operations like metal processing, chemical reactions, and power generation. Technological advancements like automation and energy-efficient systems are also driving this growth. Furthermore, because of stricter environmental regulations and the desire for lower energy consumption, industries are investing in innovative, eco-friendly heating solutions, which is driving the market's growth.
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As per the 2024 heating equipment market regional forecast, the Asia Pacific market reached its largest share of 43.5% due to factors like growing demand for residential and commercial heating solutions, rapid urbanization, and industrial expansion. The region's expanding middle class and some areas' harsh winters are driving the need for efficient heating systems. Increased energy consumption and government initiatives to improve energy efficiency have also contributed to the rise in popularity of advanced heating technologies. With countries like China, Japan, and India at the forefront, Asia Pacific's strong manufacturing base and growing infrastructure continue to support its dominance in the global market.
The country's quest for smart infrastructure and energy efficiency is propelling the South Korean heating equipment sector. The government increased the scope of its green heating system incentives in 2024 to include district heating upgrades and heat pumps. Demand has increased because of smart city initiatives like Busan Eco Delta City, which feature cutting-edge HVAC systems. Homes and developments are also implementing more ecologically friendly, automated heating systems as awareness of the 2050 carbon neutrality targets increases.
Sustainability is becoming more and more significant in Japan's heating equipment sector. To encourage the installation of heat pumps in homes and businesses, the Ministry of Economy, Trade, and Industry increased the size of its green innovation fund in 2024. The need for low-tech, energy-efficient solutions is also being fueled by the aging population and the expanding use of smart homes. Leading innovators in low-emission heating, such as Daikin and Panasonic, are assisting Japan in reaching its 2050 carbon neutrality target.
With a compound annual growth rate (CAGR) of 8.4% from 2025 to 2032, the North American heating equipment industry is predicted to grow at the fastest rate in the world due to the integration of smart homes and the development of innovative heating technologies like geothermal heating. As consumers increasingly seek convenience, energy efficiency, and control, smart thermostats and connected systems allow for remote heating monitoring and optimization. Furthermore, geothermal heating, which uses the earth's natural heat, is growing in popularity because it is sustainable and reasonably priced. All of these advancements support regional market expansion in the residential and commercial sectors by satisfying the growing demand for high-performing, eco-friendly products.
The US is still a major player, and in 2024, demand will mostly come from residential applications because of federal incentives for smart thermostats and high-efficiency heat pumps. By providing sizable refunds, Inflation Reduction Act programs have increased adoption. Additionally, significant improvements are still being made to antiquated systems in colder areas like the Northeast and Midwest. AI-enabled low-emission heating systems are attracting significant investment from companies like Lennox and Carrier.
The heating equipment industry in Canada is primarily driven by the country's harsh climate and strict environmental regulations. Payments for replacing outdated furnaces with heat pumps were raised in 2024 under the government's "Canada Greener Homes" program, particularly in British Columbia and Ontario. The nation's long-term emissions reduction strategy, which aims for net-zero emissions by 2050, further supports the trend toward electrification of heating in the residential and public infrastructure sectors in 2025.
Europe continues to lead the heating equipment market outlook due to climate regulations and energy efficiency goals. Low-carbon heating systems were encouraged by the EU's updated Energy Performance of Buildings Directive in 2024. Both the residential and commercial sectors have grown as a result of incentives to switch from gas boilers to heat pumps and district heating systems. Additionally, local heating systems are rapidly incorporating intelligent energy management and the Internet of Things.
The 2024 revisions to the Future Homes Standard are causing rapid change in the UK's heating equipment market. The transition from gas boilers to air-source heat pumps has been accelerated by government initiatives such as the Boiler Upgrade Scheme. In cities, zonal heating systems and smart thermostats are becoming more and more popular. In 2025, demand will continue to rise due to increased financing for low-carbon home construction and energy-efficient retrofits.
The "MaPrimeRénov" program, which was extended in 2024 to include greater refunds for condensing boilers and heat pumps, is the main driver of the French heating equipment market. Both the residential and commercial sectors are adopting efficient heating systems due to high power costs and strict environmental regulations. Businesses in France are increasingly investing in hybrid technologies, which combine electric and gas solutions. In 2025, public housing projects will prioritize low-emission heating to help the country reach its carbon reduction targets.
The 2024 Building Energy Act, which requires that new heating systems be powered by at least 65% renewable energy, is driving growth in the German heating equipment market. Due to substantial government subsidies, the nation has witnessed record-breaking heat pump installations. Leading producers of hybrid and hydrogen-ready heating systems are Viessmann and Bosch. Two major market drivers for 2025 are retrofitting older homes and adhering to energy efficiency regulations.
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Growing Demand for Energy-Efficient Heating Systems
Impact of Urbanization and Construction Boom
High Initial Investment for Advanced Heating Systems
Emission Concerns and Dependence on Fossil Fuels
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In the heating equipment market, which is somewhat consolidated, key players are putting a strong emphasis on sustainability and developing new products. Companies like Daikin and Trane Technologies are investing in heat pump technology, while Bosch Thermotechnology is expanding its smart thermostat integrations. The landscape is also being influenced by mergers and acquisitions. For example, in 2024, Lennox International acquired several smaller HVAC companies to broaden its distribution networks and enhance its market presence in energy-efficient systems.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global heating equipment industry is rapidly evolving as more companies pivot to develop energy-efficient and environmentally friendly technologies. The demand for technologies capable of reducing energy consumption is rising quickly. Urbanization is resulting in more policies focused on decarbonization, while technologies such as smart heating systems and electric heat pumps continue to mature. The high upfront costs and dependency on fossil fuels are two huge challenges. The types of streamlined operations undertaken by large companies will continue to facilitate the introduction of new products as well as calculated acquisitions, particularly around green and smart technologies. Global heating equipment growth is projected to be rapid in North America and Europe, with consumer behaviors changing in the direction of sustainability and automation. Innovation that guides renewable energy into heating systems will continue to positively impact the overall transition to a greener future in heating equipment.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 41.82 Billion |
Market size value in 2032 | USD 61.09 Billion |
Growth Rate | 4.3% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Heating Equipment Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Heating Equipment Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Heating Equipment Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Heating Equipment Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Global Heating Equipment Market size was valued at USD 41.82 Billion in 2023 and is poised to grow from USD 43.62 Billion in 2024 to USD 61.09 Billion by 2032, growing at a CAGR of 4.3% in the forecast period (2025-2032).
In the heating equipment market, which is somewhat consolidated, key players are putting a strong emphasis on sustainability and developing new products. Companies like Daikin and Trane Technologies are investing in heat pump technology, while Bosch Thermotechnology is expanding its smart thermostat integrations. The landscape is also being influenced by mergers and acquisitions. For example, in 2024, Lennox International acquired several smaller HVAC companies to broaden its distribution networks and enhance its market presence in energy-efficient systems.'Daikin Industries, Ltd.', 'Trane Technologies plc', 'Midea', 'Bosch Thermotechnology', 'Carrier Global Corporation', 'Viessmann Group', 'Rheem Manufacturing Company', 'Vaillant Group', 'Johnson Controls International plc', 'Honeywell International Inc.', 'Robert Bosch GmbH', 'Ariston Group', 'NIBE Industrier AB', 'Electrolux AB', 'Glen Dimplex Group'
With energy prices on the rise and environmental concerns becoming more pressing, energy-efficient heating technologies like condensing boilers and heat pumps are gaining traction. Governments across North America and Europe are stepping up incentives and subsidies to help replace outdated systems with more efficient alternatives. Manufacturers are feeling the pressure to innovate, creating high-efficiency, low-emission heating solutions to meet evolving energy and environmental standards.
Transitioning to Intelligent Heating Systems: One of the latest heating equipment industry trends includes transition toward smart heating systems. Smart heating systems and IoT-connected thermostats will change the way consumers manage and optimize indoor spaces. They allow for simple portability and flexibility of connected devices for home automation systems, consumer preferences, and the ability to remotely manage and monitor your settings and modes. The rise of a uniquely attractive user experience and the improvement of on-demand energy tracking will lead to accelerated adoption of smart heating fosters and devices in cities in Europe and the US in 2024, combined with increased energy-conscious consumers.
To what extent is Asia-Pacific developing intelligent heating systems?
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Report ID: SQMIG20B2079
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