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The space heaters market size is estimated to grow at a CAGR of 5.56% between 2022 and 2027. The market size is forecast to increase by USD 2,444.52 million. The growth of the market depends on several factors including the growth in expenditure on essential items in emerging nations, the benefits of space heaters and the growing demand for propane space heating products
This space heaters market report extensively covers market segmentation by application (residential, commercial, and industrial), product (fan heaters, convection heaters, radiant heaters, and ceramic heaters) and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growth in expenditure on essential items in emerging nations drives market growth. The rise in per capita income will fuel the market for space heaters in developing countries. An expansion in the adoption of electrical and technologically advanced products is seen in developing markets, particularly among the higher-income segments.
However, with the enhanced scope for high-priced space heaters, small players are introducing new products to capitalize on the rising purchasing power of consumers. The other factor in the growth of the market in focus is the thriving e-commerce industry in developing economies. For example, in countries such as China and India, the fast-growing e-commerce sector is a significant driver for the home appliance market. The rising GDP per capita and the purchasing power parity (PPP) in developing economies are anticipated to drive the growth of the space heaters market during the forecast period.
Increasing demand for highly efficient, energy-saving, and safe domestic heating appliances is an emerging trend shaping market growth. Due to the highly efficient and energy-saving features of these products, the demand for safe domestic heating appliances is increasing. The desire for comfort and luxurious life among individuals is one of the factors that lead to increased investment in domestic appliances, including heating appliances.
However, product improvement is one of the prime factors for the healthy growth of the domestic heating appliances market. For the growth of domestic heating appliances, APAC is one of the important markets. Rising income levels of households lead to more investment in domestic appliances, including heating appliances such as space heaters. For instance, some of the energy-saving and highly efficient space heaters that are available in the market include Dyson AM09 by Dyson Ltd. (Dyson), DeLonghi Compact Ceramic Electric Heater by DeLonghi, Vornado AVH2 and Holmes HFH436 by Jarden Corp. (a subsidiary of Newell Brands Inc.). Thus, the growing availability of energy-efficient space heaters, due to their demand, is anticipated to boost the growth of the space heaters market during the forecast period.
High operational costs of space heaters are the major challenge hindering market growth. Space heaters are frequently comprised of high operational costs as they need a steady supply of electricity for heating. In the case of a gas room heater, the average operational cost ranges between USD 250 and USD 300. Similarly, the operational cost of a reverse cycle AC ranges approximately between USD 200 and USD 250.
However, it costs around USD 800-USD 850 on average per year to operate electric space heaters with no installation charges and are available at comparatively lower costs, their high operational cost can have a substantial adverse impact on consumer purchasing decisions. companies need to develop new advanced technologies to make electric space heaters more energy-efficient with lower operational expenses. Apart from the price of the product, the user has to bear the cost of electricity and maintenance costs. Therefore, the high operational costs associated with space heaters are anticipated to reduce the adoption of these products, thereby hindering the growth of the space heaters market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Space Heaters Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Crane USA - The company offers a space heater called Crane Mini Fireplace heater.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the residential segment will be significant during the forecast period. The residential segment of the global space heaters market is anticipated to experience steady growth during the forecast period. Energy efficiency is a significant driver for the residential segment.
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The residential segment was valued at USD 2,877.13 million in 2017. Numerous consumers consider space heaters as a cost-effective solution for supplemental heating in specific rooms, particularly during colder months. It allows customers to heat only the areas they need, bypassing the energy wastage associated with central heating systems. Energy-efficient models support lower heating costs and environmental impact, making them appealing to budget-conscious and environmentally-conscious customers. Residential space heaters are developed to be portable and easy to function. Modern space heaters come equipped with different features such as programmable timers, adjustable thermostats, remote controls, and smart connectivity options. Changes in lifestyles, including advanced remote work arrangements, have impacted residential heating preferences. These factors are anticipated to drive the growth of the residential segment of the space heaters market during the forecast period.
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Europe is estimated to account for 33% of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Space heating accounts for approximately 70% of building energy needs in the region. With new development and innovations like smart space heaters in the market, the market will see significant growth coming from high-income segments as these consumers invest in home automation and smart homes connected with the Internet of Things. Moreover, the growing demand for energy-efficient products is further driving the demand for space heaters, which are known to consume much less energy than their traditional counterparts. With the increasing consumer demand for energy-efficient electrical appliances, companies are increasingly delivering value-added electronic appliances, including space heaters with multiple functionalities, which assist in saving both time and money and improve efficiencies. Such factors are expected to drive the growth of the market during the forecast period.
COVID-19 in 2020, European countries, such as UK, Germany, and France, implemented multiple standards to restrict the spread of the disease. This included nationwide lockdowns and travel restrictions. Consumers have already turned to online shopping platforms for purchasing space heaters, leading to the growth of e-commerce sales. The Russia-Ukraine war has adversely affected both the market demand and production of electronic appliances, such as space heaters. Trade routes from APAC countries to the West, where most electronic appliances products are produced, have been cut off by the conflict. This is expected to hinder the production capacity and supply of major vendors of space heaters across the region. Therefore, once the sanctions against Russia are removed, and trade activities return to normalcy, the regional space heaters market is anticipated to experience growth during the forecast period.
The space heaters market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Space Heaters Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.56% |
Market growth 2023-2027 |
USD 2,444.52 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.5 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 33% |
Key countries |
US, Canada, China, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Crane USA, Daikin Industries Ltd., Dr. Infrared Heater, Duraflame Inc., Dyson Group Co., Energy Wise Solutions, HomeVision Technology Inc., Honeywell International Inc., Lasko Products LLC, Mill International AS, Newell Brands Inc., OPOLAR, Optimus Enterprise Inc., Rinnai Corp., Stadler Form Aktiengesellschaft, SUNHEAT International, Sunpentown International Inc., Vornado Air LLC, DeLonghi Group, and MIDEA Group Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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