U.S. Heating Equipment Market Report

U.S. Heating Equipment Market Analysis By Product (Heat Pumps, Furnaces, Boilers, Unitary Heaters, Others), By Application (Residential, Commercial, Industrial), Competitive Landscape, And Segment Forecasts, 2018 - 2025

  • Published Date: Mar, 2017
  • Base Year for Estimate: 2016
  • Report ID: GVR-1-68038-418-5
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 87

Industry Insights

The U.S. heating equipment market size was valued at USD 2.91 billion in 2015 and is projected to grow at a CAGR of 5.6% from 2016 to 2025. Increasing investment in real estate and rapid industrialization is projected to drive demand over the forecast period.

Growing preference for energy efficient certified product is anticipated to be one of the major factor influencing growth over the forecast period. Rising energy consumption in the industrial and residential sector is projected to drive the preference for solutions that reduce overall operational cost and improve energy savings.

U.S. heat equipment market by product, 2014 - 2025 (USD Million)

U.S. heat equipment market

The market is further facilitated by the U.S. federal and state policies which provide tax credits, rebates, and supplementary incentives to support energy efficient system installations and encourage the usage of renewable energy sources. Residential buyers in the U.S. can qualify for energy property credit, which allows residents to claim 10% of the cost of labor, professional preparation, and cost of installation.

Growing construction spending coupled with increasing repair & replacement activities is predicted to boost heating solutions growth. The construction sector in the U.S. is focused on developing sustainable and energy efficient structures. The Leadership in Energy & Environmental Design (LEED) is a recognized green building certification program that is established by the U.S. Green Building Council (USGBC).

LEED focuses on reducing energy consumption by designing and developing energy efficient projects. HVAC systems must comply with the requirements outlined by New Buildings Institute, Inc.’s publication titled “Advanced Buildings: Energy Benchmark for High Performance Buildings.” Such policies have further enabled development and installations of environmentally sustainable solutions.

Product Insights

The heat pumps segment accounted for 33% of the total revenue in 2015 and is expected to grow at the highest CAGR from 2016 to 2025. Heat pumps are used for temperatures with moderate warming and cooling requirements. It can provide equivalent area conditioning at one-fourth operating cost than conventional HVAC systems.

Furnaces are the most common equipment used in the residential sector. The furnaces segment is projected to grow at a CAGR of 5.4% over the forecast period, on account of its high energy efficiency, easy availability of replacement parts, and quick warming capability.

According to the Consortium for Energy Efficiency (CEE), furnaces are widely used as domestic heating systems in the U.S., with 50% of households relying on natural gas furnaces for primary space warming. Moreover, furnaces cater for 52% of total yearly residential gas consumption and 78% of annual residential gas consumption.

Boilers are used for various applications such as water heaters, power generation, cooking, central heaters, and sanitation. They are extensively preferred in the commercial, institutional, industrial, as well as educational sector.

Boilers are further segmented into two broad categories namely, water boilers and steam boilers. Hot water remains essential to daily requirements in kitchens and laundries. Increasing population & rapid development of housing projects is expected to augment water boilers growth over the coming years. Steam boilers have been gaining preference in domestic and industrial segment owing to ample consumption of steam in the industrial and commercial sector.

The demand for boilers with the capacity of <10 MMBtu/hr was valued at USD 158.8 million in 2015. Boilers with the capacity ranging from 10-50 MMBtu/hr are generally used in residential, commercial and industrial applications. They find major application in the food industry and other manufacturing units.

Application Insights

The industrial segment is likely to account for 59% of the revenue by 2025. Heating systems are widely used in the mining, automotive, and food & beverage industry. Increasing investment in developing the manufacturing sector of the U.S. is projected to influence demand over the coming years positively.

U.S. heating equipment market share by application, 2015 (%)

U.S. heat equipment market

The U.S. residential sector is anticipated to grow at a CAGR of 5.4% from 2016 to 2025. Increasing repair & renovation activities are expected to drive the demand for upgraded technologies in the residential sector.

Competitive Insights

Key players include Robert Bosch LLC, United Technologies Corporation, Emerson Electric, Ingersoll-Rand Plc, Lennox International, American Heating Company Inc., Johnson Controls Inc., Honeywell International Inc., Burnham Holdings, Inc., and Rheem Manufacturing Company Inc.

Companies have invested in expanding production capabilities and acquiring certifications to cater to increasing market demand. They also comply with various energy efficiency requirements stated by regulatory authorities.

Report Scope



Base year for estimation


Actual estimates/Historic data

2014 - 2016

Forecast period

2017 - 2025

Market representation

Revenue in USD Million and CAGR from 2016 to 2025

Country scope


Report coverage

Revenue forecast, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization

Segments covered in the report

This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented U.S. heating equipment market on the basis of product and application.  

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

    • Heat pumps

    • Furnaces

    • Boilers

      • U.S. boilers market product outlook

        • Water boilers

        • Steam boilers

      • U.S. boilers market size outlook

        • <10 MMBtu/hr

        • 10-50 MMBtu/hr

        • 50-100 MMBtu/hr

        • 100-250 MMBtu/hr

        • >250 MMBtu/hr

      • U.S. boilers market technology outlook

        • Water tube boilers

        • Fire tube boilers

    • Unitary heaters

    • Others

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

    • Residential

    • Commercial

    • Industrial

Key questions answered by the report
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