U.S. Commercial Heating Equipment Market Size, Share & Trends Analysis Report By Product (Heat Pump, Furnace), By Building Floorspace, By End-use (Hospitality, Offices), By Region, And Segment Forecasts, 2024 - 2030

Research Methodology

A three-pronged approach was followed for deducing the U.S. commercial heating equipment market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for U.S. commercial heating equipment market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of U.S. commercial heating equipment market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

U.S. Commercial Heating Equipment Market Categorization:

The U.S. commercial heating equipment market was categorized into four segments, namely product (Heat Pump, Furnace, Boiler, Unitary Heaters), building floorspace (Up to 5,000 sq. ft., 5,001 to 10,000 sq. ft, 10,001 to 25,000 sq. ft, 25,001 to 50,000 sq. ft, 50,001 to 100,000 sq. ft, above 100,000 sq. ft), end-use (Retail Shops, Offices, Healthcare Facilities, Hospitality, Schools & Educational), and region (Northeast, Southeast, Midwest, Southwest, West)

Segment Market Methodology:

The U.S. commercial heating equipment market was segmented into product, building floorspace, end-use, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The U.S. commercial heating equipment market was analyzed at a regional level.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

U.S. commercial heating equipment market companies & financials:

The U.S. commercial heating equipment market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• Carrier Corporation - Carrier Corporation provides heat pumps, air conditioners, boilers, furnaces, air purifiers, humidifiers, dehumidifiers, ventilators, air scrubbers, thermostats, UV lamps, energy services, and building controls to retail, commercial, transport, and food service sectors. It was acquired by United Technologies Corporation in 1979, however, it was separated into a separate business in April 2020.

• Rheem Manufacturing - The company manufactures products for water heating, heating & cooling, pool & spa heating, commercial refrigeration, and home enhancement. It is one of the largest manufacturers of water heating products in North America. The company makes water-heating products for commercial and residential applications. It sells its products through various brands including Rheem, Ruud, Richmond, Raypak, HTPG, Eemax, Ecomsmart, and IBC. The company has a presence in North America, South & Central America, Asia Pacific, Middle East & Africa and Latin America. It offers a line of cooling, heating, and water heating products with a 50% reduction in greenhouse gas footprint by 2025.

• Lennox International Inc. - It operates through three business segments, namely residential heating & cooling, refrigeration, and commercial heating & cooling. The company offers furnaces, heat pumps, air conditioners, indoor air quality equipment, packaged heating and cooling systems, comfort control products, and replacement parts. It also offers unitary air and heating conditioning equipment, controls, applied systems, installation and service of commercial HVAC equipment, and variable refrigerant flow commercial products through the commercial HVAC systems segment. The company offers condensing units, fluid coolers, unit coolers, air handlers, air-cooled condensers, process chillers, controls, and compressed racks through the refrigeration segment.

• Ingersoll-Rand Plc - The company operates its business through two segments, namely climate and industrial. The industrial segment offers products and services that enhance energy efficiency, operations, and productivity. It includes power tools, compressed air & gas systems, fluid management systems, material handling systems, and utility & low-speed consumer vehicles. The climate segment provides energy-efficient products and services including heating, ventilation & air conditioning (HVAC) systems, and others.

• Daikin Industries, Ltd. - The company offers air-conditioning systems, room heating and heat pump hot water supply systems, room air conditioning systems, packaged air-conditioning systems, and air conditioning systems for plants, facilities, and office buildings. It also provides low and medium air conditioning systems, water chillers, air purifiers, humidity-adjusting air processing units, marine-type container refrigeration systems, and air handling units. The company’s chemical products include fluoroplastics, fluorocarbons, fluorinated oils, mold release agents, water and oil-repellent products, dry air suppliers, and semiconductor etching products.

• Johnson Controls, Inc. - The company designs, manufactures, and offers solutions that enhance the operational efficiencies of buildings and various systems related to the automotive industry. It supplies building control systems, building automation, HVAC equipment, seating and interior systems, and integrated facility management services. It operates through four business segments, namely Building Solutions EMEA/LA, Building Solutions North America, Building Solutions Asia Pacific, and Global Products.

• Robert Bosch GmbH - The operations of the company are divided into four business sectors: Industrial Technology, Mobility Solutions, Consumer Goods, and Energy and Building Technology. The company has operations covering over 130 locations across the globe. As of 2021, its geographical revenues for the Americas, Europe, and Asia Pacific were 16%, 53%, and 31%, respectively.

• Viessmann Group - The company is a renowned producer of refrigeration, heating, and industrial equipment. Climate solutions, industrial solutions, refrigeration solutions, and investment are the four business segments of Viessmann Group. It produces heat pumps ranging from 1.7 to 2000 KW that use a ground source, a water source, or an air source. Viessmann also provides unique commercial refrigeration systems, such as cold rooms, refrigerated cabinets, and accessories, as well as a broad range of services for the hotel, food retail, and catering industries.

• Emerson Electric Co. - The company offers engineering services and solutions for a broad range of commercial, consumer, and industrial applications. It operates through three business segments, namely Automation Solutions, Tools & Home Products, and Climate Technologies. Tools & Home Products and Climate Technologies segments together comprise the company’s Commercial & Residential Solutions business.

• Mitsubishi Electric Corporation - The company is engaged in designing, manufacturing, and selling electrical and electronic equipment. It operates through six business segments, namely Energy & Electric Systems, Industrial Automation Systems, Information & Communication Systems, Electronic Devices, Home Appliances, and Others. The company markets and sells its products through distributors, retailers, and dealers. It offers its solutions to various industries including education, healthcare, manufacturing, government, hospitality, and pharmaceuticals. The company’s major subsidiaries are Mitsubishi Electric Home Appliance Co., Ltd., Mitsubishi Electric Consumer Products (Thailand) Co., Ltd., and Mitsubishi Electric Air Conditioning Systems Europe Ltd.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

U.S. Commercial Heating Equipment Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2023, historic information from 2018 to 2023, and forecast from 2024 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

U.S. Commercial Heating Equipment Market Report Assumptions:

• The report provides market value for the base year 2023 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.