North American Heating Equipment Market Size, Share & Trends Analysis Report By Product (Heat Pump, Furnace, Boiler), By Application (Residential, Commercial, Industrial), And Segment Forecasts, 2018 - 2025

Industry Insights

The North American heating equipment market size was estimated at USD 7.02 billion in 2017. It is expected to expand at a CAGR of 5.6% from 2018 to 2025. Rising need for energy-efficient heating equipment coupled with rapid industrialization and renovation and repair activities in the residential sector is anticipated to drive the market in the upcoming years.

Increase in energy consumption, as well as strict environmental regulations, have positively influenced the demand for certified energy-efficient products. The rising energy bills encourage many commercial and industrial organizations to switch to effective as well as efficient heating equipment on their sites.

The market is also likely to register strong growth on account of the constant replacement of existing heating equipment that is at the end of their operational lifespan. Also, the growing consumption of fossil fuels such as coal, oil, and natural gas to meet heating requirements is harmful to the environment. Growing awareness about climate change and greenhouse gas emissions are expected to boost the demand for energy-efficient products and technologies.

Growth of the housing and construction sector for single and multi-unit dwellings is expected to boost the product demand over the years to come. Changing spending habits and increasing spending capacity of consumers are projected to increase the revenue of restaurants and other commercial establishments, which, in turn, is expected to drive the product demand from the commercial sector.

The market is highly competitive owing to the lack of product differentiation as well as several other factors such as technology, price, geographic presence, product performance, and customer service. However, the development of an innovative and new product segment in the market is likely to propel the market growth in near future.

Product Insights

Heat pumps are used in spaces with moderate heating and cooling requirements. Heat pumps can provide equivalent area conditioning at one-fourth operating cost than conventional heating or cooling equipment. The heat pump is a low/zero-carbon technology and provides energy-efficient heating and cooling, thereby driving its demand. The revival of the housing industry coupled with increased economic activity in the construction segment is anticipated to boost the heat pumps market.

The electric furnace is projected to gain a significant market share in the forthcoming years due to increased energy efficiency and low maintenance cost of the product. Furnaces are used for high-temperature heating requirements. The heat required for a furnace can be supplied directly by burning fuel, electricity, and induction. It can be employed for household and industrial processes. However, with technological developments, the efficiency of industrial furnaces has upgraded from 10% to 50% through waste heat recovery methods. This has made utilization of furnaces in the industrial segment more viable. This is likely to foster demand from the industrial sector over the forecast period.

Changing market dynamics in the oil and gas sector further supports the use of fuel-fired water boilers. Steam boilers have been gaining preference in domestic and industrial segments owing to the extensive application of steam. Growth in end-user industries, such as paper and building material, refineries, pharmaceutical, and food processing, is expected to augment product demand.

Application Insights

The demand for heating equipment from the industrial application is projected to expand at the highest CAGR over the forecast period. Such equipment is widely used in mining, oil and gas, ferrous and non-ferrous processing, marine, aviation, and food and beverage industries. Favorable government policies and tax rebates offered on installing energy-saving products are expected to augment the product demand from the industrial sector. District heating solutions are expected to gain prominence over the years to come.

In North America, equipment such as furnaces, boilers, and heat pumps are extensively used. Electric portable heaters and natural gas fireplaces are mostly used as secondary heating equipment across residencies. Growing household energy insecurity is projected to be a significant factor necessitating the use of energy-efficient equipment in the residential sector. Rising repair and renovation activities carried out in North America are projected to be the major factors fueling demand from the regional residential sector over the forecast period.

Regional Insights

In 2017, the U.S. emerged as the largest market for heating equipment. The implementation of favorable government policies is projected to drive the demand in near future. Installing an energy-efficient heating system may qualify the buyer for several tax credits. Tax rebates are also offered for using renewable systems such as geothermal heat pumps.

In 2017, Canada emerged as the second-largest region in the North America heating equipment market. Provinces such as Ontario and Quebec have a highly concentrated business of heating equipment owing to high population density and proximity to residential and commercial downstream markets. Climatic conditions and growing repair and replacement activities are projected to play a vital role in driving regional product demand.

North America Heating Equipment Market Share Insights

The market is highly competitive with more than 80 companies competing based on prices, technology, industry experience, distribution channels, and service agreements among other factors. Key players focus on product differentiation and new product development with considerable investments in R&D activities to introduce environment-friendly and energy-efficient products to acquire maximum market share and to gain a competitive advantage over others.

In terms of remote accessibility, ease of operation, and energy efficiency of such equipment is anticipated to influence continuous product development in the future. Bringing innovation in the ongoing products as well as setting up new distribution channels are some of the key strategic initiatives adopted by the companies.

Some of the leading market players include United Technologies Corporation; Whirlpool Corporation; Johnson Controls; Honeywell International Inc.; Nortek Holdings; and Daikin Industries Ltd. Other notable players include Siemens Corporation, Mitsubishi Electric Corporation, Lennox International, and Danfoss.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the North America heating equipment market report on the basis of product, application, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Heat Pumps

  • Furnaces

  • Boilers

  • Unitary Heaters

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Residential

  • Commercial

  • Industrial

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico