Heating Equipment Market Size, Share & Trends Analysis Report By Product (Heat Pump, Unitary Heaters, Warm Air Furnaces), By Application (Residential, Industrial), By Region, And Segment Forecasts, 2023 - 2030

Heating Equipment Market Size, Share & Trends Analysis Report By Product (Heat Pump, Unitary Heaters, Warm Air Furnaces), By Application (Residential, Industrial), By Region, And Segment Forecasts, 2023 - 2030

Heating Equipment Market Growth & Trends

The global heating equipment market size is anticipated to reach USD 216.3 billion by 2030 and is expected to expand at a CAGR of 7.7% from 2023 to 2030, according to a new report by Grand View Research, Inc. The market for heating equipment is anticipated to be driven by technology advancements along with government initiatives to improve energy efficiency across industries. Further, the rising construction spending is also predicted to have a positive impact on product demand.

According to U.S. EPA, commercial construction spending rose from USD 120.10 billion in September 2022 to USD 125.87 billion in October 2022, while lodging and hotel construction spending in the U.S., increased to USD 21.85 billion and USD 89.97 billion in September 2022 and October 2022, respectively. Rising construction spending in the U.S., coupled with maintenance & replacement operations related to heating equipment, is anticipated to fuel the demand for energy-efficient heating solutions. These aforementioned factors are anticipated to drive the demand for the market.

The construction industry in the U.S. focuses on the development of sustainable and energy-efficient buildings. Furthermore, Leadership in Energy and Environmental Design (LEED) is a green building certification system developed by the U.S. Green Building Council (USGBC) that focuses on increasing energy consumption to lessen the environmental impact of excessive energy usage. These factors are expected to drive the demand for heating equipment over the forecast period.

Moreover, buildings are directly and indirectly responsible for approximately one-third of the global energy and process-related carbon dioxide emissions. The reduction in the contribution of buildings and building construction activities to carbon dioxide emissions necessitates the requirement of emission controls throughout the entire value chain. In the U.S., the only requirements for these emission controls are voluntary LEED and EDGE certification and compliance with emission reduction legislation.

The installation of energy-efficient heating equipment entitles buyers of this equipment to a number of tax breaks. Tax breaks are also available to promote the usage of renewable energy equipment such as heat pumps in the country. The Energy Policy Act of 2005 (EPACT) of the U.S. provides tax deductions to firms for enhancing the energy efficiency of commercial buildings. Additionally, the provisions under EPACT have been extended by the Emergency Economic Stabilization Act of 2008. Various tax deductions are offered through different acts in the U.S., including the Deduction of the Cost of Energy-efficient Property Installed in Commercial Buildings and the Extension of Energy Investment Tax Credits. Thus, the presence of various tax credits on heating equipment is further anticipated to propel market expansion over the forecast period.

Heating equipment players seek new product launches, investments, mergers & acquisitions, and partnerships, among others, to develop advanced and innovative solutions. For instance, in June 2022, to meet the anticipated 2023 Department of Energy (DOE) minimum efficiency criteria, Carrier Corporation introduced two-stage air conditioners and PerformanceTM series 17 two-stage heat pumps.

Heating Equipment Market Report Highlights

• The heat pump product segment dominated the market in 2022 by accounting for a share of over 68.2% of the market in terms of revenue. Heat pumps are widely used in regions that require moderate heating and cooling. Heat pumps are also known as two-way air conditioners because they help extract heat from cold outdoors with the help of an electrical system and discharge that heat inside the house. In summer, the operations of a heat pump are reversed, which helps keep the interiors cooler by extracting heat from indoors
• The demand for the residential application segment accounted for a 68.5% share of the global revenue in 2022. The U.S. construction production increased by over 6% yearly in 2021 and 2022, after a 1.9% drop in 2020. The demand for single-family homes is the main factor driving the rapid residential construction. The demand for heating equipment in the residential end-use segment is expected to be driven by the expanding residential sector
• The industrial application segment is expected to witness a CAGR of 6.9% over the forecast period. The variation of weather patterns and intensification of winters across the U.S. are other factors contributing to the use of industrial heating. In the regions, there is a cyclical requirement for heating apparatus that can be utilized to heat, melt, or maintain specific temperatures
• North America region is expected to witness a CAGR of 7.9% over the forecast period. The market for heating equipment is expected to increase as a result of government programs and incentives that encourage the adoption of eco-friendly and energy-saving technologies. Additionally, rising carbon emissions and fluctuating energy costs have prompted customers to utilize renewable heating options, which is anticipated to support the area market's expansion
• Asia Pacific region led the market and accounted for 43.3% of the global revenue share in 2022. The region is characterized by an increasing number of residential and commercial construction, which is anticipated to increase the demand for the market

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