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Heating Equipment Market Poised To Hit $57.88 Billion By 2030 With A 5.9% CAGR
The heating equipment market has experienced significant growth in recent years. This market is set to increase from $43.44 billion in 2025 to $46.07 billion in 2026, advancing at a compound annual growth rate (CAGR) of 6.1%. Key contributors to its historical expansion include urbanization and the rise in residential construction, a strong demand for indoor thermal comfort, various industrial process heating needs, the widespread availability of fossil fuel-based heaters, and the continuous growth of commercial buildings.
The heating equipment market is anticipated to exhibit substantial growth in the upcoming years. Its valuation is set to reach $57.88 billion by the year 2030, demonstrating a compound annual growth rate (CAGR) of 5.9%. Factors contributing to this growth during the projected period include the shift towards electrifying heating systems, more stringent energy efficiency regulations, increased use of smart thermostats, the need to replace outdated heating infrastructure, and the expansion of industrial automation. Key trends observed within this forecast timeframe encompass a move towards energy-saving heating options, the increasing uptake of electric heating devices, the incorporation of intelligent heating management systems, a rise in residential heating modernizations, and the broader application of industrial heating solutions.
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Heating Equipment Market Development Factors: What’s Supporting Demand?
The increasing need within the construction sector is anticipated to drive expansion in the heating equipment market moving ahead. The construction sector encompasses entities involved in building, upkeep, and restoration of infrastructure. An expanding construction sector utilizes heating equipment, including heat pumps, for climate control in both substantial and moderately sized structures. As an illustration, the Office for National Statistics (ONS), a UK government department, reported in November 2024 that the worth of new construction work in Great Britain reached a record peak of £139,029 million ($152,932 million) in 2023, representing a 4.2% rise. This surge was propelled by increments in both the private sector by £2,050 million ($2,255 million) and the public sector by £3,578 million ($3,936 million). Consequently, the rising demand in the construction industry is stimulating the expansion of the heating equipment market.
Heating Equipment Market Segment Breakdown: Which Categories Lead On Revenue?
The heating equipment market covered in this report is segmented –
1) By Product: Heat Pumps, Furnaces, Boilers, Unitary Heaters, Other Products
2) By Technology: Air Source, Water Source, Ground Source
3) By Application: Residential, Commercial, Industrial
Subsegments:
1) By Heat Pumps: Air Source Heat Pumps, Ground Source Heat Pumps, Water Source Heat Pumps,
2) By Furnaces: Gas Furnaces, Electric Furnaces, Oil Furnaces
3) By Boilers: Residential Boilers, Commercial Boilers, Industrial Boilers
4) By Unitary Heaters: Electric Unitary Heaters, Gas Unitary Heaters, Hydronic Unitary Heaters
5) By Other Products: Radiant Heating Systems, Infrared Heaters, Portable Heaters
Heating Equipment Market Transformation Trends: What Innovations Are Driving Change?
Leading companies in the heating equipment market are innovating by introducing new products, such as high-temperature heat pumps, aimed at expanding their customer reach, increasing sales, and boosting revenue. These high-temperature heat pumps function as heating and cooling solutions, designed to operate efficiently across elevated temperature ranges. For instance, in September 2023, Carrier, a US-based manufacturer and distributor of heating, ventilating, and air conditioning (HVAC) systems, unveiled a new line of high-temperature heat pumps, featuring capacities from 30 kW to 735 kW, which utilize hydrofluoroolefins as the refrigerant. Beyond simply extracting heat from ambient air and the ground, these heat pumps are also engineered to capture and repurpose wasted heat from a diverse array of sources. These sources encompass data centers, leisure facilities, hotels, restaurants, process water, flue gases, and sewage systems. Within this product portfolio, the 410 kW AquaForce 61CA air-source heat pump can achieve temperatures as high as 82°C. The AquaForce 61CW-Z water-source heat pump offers a power range from 410 kW to 735 kW, reaching temperatures up to 92°C. The third product, the AquaForce 61CWD water-source heat pump, covers a power range of 110 kW to 540 kW and is capable of attaining temperatures up to 120°C. The smallest unit in the range is the AquaSnap 61CG water-source heat pump, with a capacity varying from 30 kW to 130 kW, which can be expanded to 390 kW through cascading.
Heating Equipment Market Leading Players And Competitive Positioning
Major companies operating in the heating equipment market are Danfoss A/S, United Technologies Corporation, Trane Technologies plc, Lennox International Inc., Robert Bosch GmbH, Johnson Controls, Emerson Electric Co., Honeywell International Inc., Siemens AG, Daikin Industries Ltd., Uponor Corporation, Mitsubishi Electric Corporation, Nortek Inc., Carrier Global Corporation, LG Electronics Inc., Panasonic Holdings Corporation, Samsung Electronics Co. Ltd., Rheem Manufacturing Company, A.O. Smith Corporation, Bradford White Corporation, Navien Inc., Rinnai Corporation, Viessmann Werke GmbH & Co. KG, Fujitsu General Ltd., Gree Electric Appliances Inc. of Zhuhai, Haier Group Corporation, Midea Group Co. Ltd., Nortek Global HVAC LLC, Ruud Manufacturing Company, Goodman Manufacturing Company L.P., York International Corporation
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Heating Equipment Market Geographic Spread And Regional Opportunities
Europe was the largest region in the heating equipment market in 2025. The regions covered in the heating equipment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
