NEW YORK, Jan. 26, 2023 (GLOBE NEWSWIRE) — Here are some interesting takeaways from a recent IndexBox report on the US heating equipment market.
The US heating equipment market is forecast to grow from $2.9B in 2022 to $3.4B in 2030, rising at a CAGR of 2% during that period. Construction activity in the US is forecast to see weak growth by the end of the coming decade. This will stimulate demand for heating equipment, as buildings require heating systems to be installed. However, volatile raw material prices and competition from substitute products are expected to restrain market growth during the forecast period, IndexBox says in its latest report.
View a sample report and free data online
The main current trends in the market include the rising demand for energy-efficient and cost-effective heating solutions; stringent government regulations regarding emissions, and the increasing awareness of the benefits of using renewable energy sources. The residential sector is the largest consumer of heating equipment, accounting for more than half of total demand.
Government initiatives and incentives are expected to drive the adoption of these products, providing opportunities for manufacturers to introduce more advanced and cost-effective products. Additionally, the growing trend of smart homes and buildings is likely to increase the need for connected heating systems, which offer a range of benefits such as improved efficiency, convenience, and safety.
The rising popularity of electric vehicles (EVs) is likely to drive demand for charging infrastructure, including charging stations with integrated heating systems that are designed to keep batteries warm in cold weather. This is expected to create new opportunities for manufacturers in the heating equipment market.
The growing tourism sector is also stimulating market growth. With a surging number of people traveling for business and leisure, the demand for comfortable accommodation, which includes proper heating and cooling facilities, is also increasing.
Heating Equipment by Type
On the basis of product type, the market is segmented into boilers, heat pumps, unit heaters, infrared heaters, and others. Regarding basis of end-use industry, the market is divided into residential, commercial/hospitality/institutional (HCI), industrial/manufacturing/process (IMP), transportation/automotive (TRN), agriculture/food & beverage (AF&B), retail outlet/service station (ROS), healthcare/pharmaceuticals (HCP), and other segments.
Energy Consumption in the US
In the United States, space heating is responsible for about 45% of all residential energy consumption and nearly 12% of the total country’s energy consumption according to the Energy Information Administration (EIA). The majority of American homes (68%) use natural gas for their main source of heat while another 27% use electricity, 5% use fuel oil or kerosene, and 3% use wood or other biomass including corn stoves.
As houses have become more energy efficient over time, total space heating consumption has decreased even as the number of households has increased. In 2015, U.S. homes consumed about 22% less energy for space heating than they did in 1993, even though there were about 38 million more households in 2015 than in 1993. This decrease is largely due to improved building construction and increased appliance efficiency standards that began taking effect in the early 1990s, according to the EIA analysis.
Despite this overall drop in consumption, growth in the number of households using space-heating equipment is projected to increase the total figure of consumed energy slightly over the next few decades as shown in EIA’s Annual Energy Outlook 2018 (AEO2018) Reference case projections. In the AEO2018 Reference case, total U.S. residential consumption of energy for space heating rises from 21 quadrillion British thermal units (Btu) in 2016 to 23 quadrillion Btu in 2050. Natural gas is projected to remain the most common fuel used, but its share of total consumption is expected to decrease slightly from 61% in 2016 to 53% in 2050 as other sources become more popular.
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
Carrier Corporation, Nortek Inc., United Technologies Corporation, Honeywell International Inc., Lennox International, Rheem Manufacturing Company, Trane
U.S. – Heating Equipment (Except Warm Air Furnaces) – Market Analysis, Forecast, Size, Trends and Insights