The global residential furnace market is estimated to grow at a CAGR of nearly 6.8% during the forecast period. Increasing demand for indoor heating solutions and a significant rise in residential construction activities across the globe. As per the US Census Bureau, in the US, in February 2020, building permits for privately?owned residential units were 1,464,000, which is 13.8% more than the rate of 1,287,000 February 2019. The demand for residential construction is also increasing in emerging countries, including India and China owing to the rapid urbanization and significant population base in these countries. The growing residential construction is encouraging the adoption of heating and cooling equipment to reduce the level of energy consumption. 

As per the Energy Information Administration (EIA), in the US, space heating and water heating account for approximately two-thirds of energy use in the homes. This, in turn, leading the adoption of residential furnaces which is one of the crucial energy-efficient equipment for space and water heating. With the growing consumers’ choices for equipment that reduce environmental impact and offer significant long-term savings for energy cost, the builders are focusing on marketing their homes with highly efficient equipment. Due to consumer pressure, in the US, the federal Energy Star program is offering incentives to promote the use of more efficient equipment. As a result, there is an emerging adoption of residential furnaces for energy-saving and reduce carbon footprint. 

Market Segmentation

The global residential furnace market is segmented based on product and application. Based on the product, the market is classified into the gas furnace, electric furnace, oil furnace, wood furnace, and hybrid furnace. As per the Government of Canada, forced-air furnace certified by ENERGY STAR, fueled by oil uses 9% less energy and fueled by gas uses 6% less energy, on average, as compared to a standard model. Homeowners significantly rely on natural gas as it is a safe, clean, affordable, and energy-efficient choice. It costs less as compared to electricity, from 50%-70% lower, which can greatly reduce water and heating costs. Based on the application, the market is classified into single-family and multi-family.

Residential furnace finds its significant application in single-family homes

Single-family homes are being significantly adopting furnaces as central heating is common in single-family homes. Two furnaces are being significantly used in a single home that offers an equal quantity of heat without adding wear and tear on the heating system. A gas furnace is a significantly used space and water heating equipment in single-family homes. In single-family homes, the contractor and homeowner are accountable to opt for space and water heating equipment. For the new construction of single homes, the builder is accountable for the selection of space and water heating equipment. Rising awareness regarding energy-efficient solutions among consumers and builders are primarily contributing to the demand for residential furnaces in single homes.

Global Residential Furnace Market Share by Application, 2018 (%)

Regional Outlook

Geographically, the market is segmented based on four major regions, including North America, Europe, Asia-Pacific, and Rest of the World (RoW). North America is anticipated to hold a potential share in the market owing to the increasing demand for energy-efficient solutions coupled with the government initiatives to offer subsidies for Energy Star certified products. Increasing adoption of space heating and cooling equipment in the region is primarily driving the demand energy-efficient furnace in the homes.

Asia-Pacific is estimated to witness potential growth during the forecast period owing to the increasing adoption of heating, ventilation, and air conditioning (HVAC) equipment coupled with rising urbanization and awareness regarding energy-efficient solutions in the region. A significant rise in the residential construction industry is driving the demand for gas, oil, and electric furnaces in the region.

Global Residential Furnace Market Growth, by Region 2019-2025

Market Players Outlook

The major players operating in the market include Daikin Industries Ltd., Carrier Global Corp., Ingersoll Rand, Inc., Whirlpool Corp., and Johnson Controls, Inc. The market players are constantly focusing on gaining major market share by adopting mergers & acquisitions, geographical expansion, product launch, and partnerships and collaborations. For instance, in February 2017, Ingersoll-Rand plc plans to acquire the business of Thermocold Costruzioni S.r.l, a manufacturer and distributor of HVAC systems and solutions for commercial, residential, and industrial buildings in Europe. With this acquisition, Ingersoll-Rand plc aims to strengthen its portfolios and take the benefit of the market opportunity in Europe. In addition, it will widen the distribution of Thermocold technologies across the globe where demand is significantly rising. Due to the support from Ingersoll Rand and Trane, Thermocold will be able to better provide service to new and current customers. 

The Report Covers

• Market value data analysis of 2018 and forecast to 2025.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global residential furnace market. Based on the availability of data, information related to products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.