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The space heaters market in North America is estimated to grow at a CAGR of 4.18% between 2022 and 2027. The size of the market is forecast to increase by USD 383.59 million. The growth of the market depends on several factors, including growth in expenditure on essential items, benefits of space heaters, and growing demand for propane space heater products.
This report extensively covers market segmentation by product (fan, convection, radiant, and ceramic heaters) and application (living room, basement, offices, bedroom, and bathroom). 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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The growth in expenditure of essential items is notably driving the market growth, although high operational costs may impede the market growth. 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 growing expenditure on essential items is notably driving North America's Space Heaters Market. Increasing per capita income drives the North American heating market. The North American market is seeing increased adoption of electrical and technologically advanced products, especially among high-income consumers. With the increase in dual-income households, more and more people are choosing home appliances. As the range of expensive space heaters expands, smaller players are introducing new products to take advantage of increasing consumer purchasing power. Another factor boosting market growth is the booming e-commerce industry in North America. For example, in countries such as Canada and Mexico, the rapidly growing e-commerce sector is a major driver of the consumer electronics market and continues to accelerate North America's space heaters market. Consumer electronics and appliances are already coveted categories. Growth in GDP per capita and purchasing power parity (PPP) in the North American economy are also key factors driving the growth of the market, which is expected to grow at the same rate during the forecast period.
Along with this, space heaters are an effective and convenient way to keep a room warm in the winter, and it comes with various advantages. It is inexpensive and does not require complicated installation procedures. In contrast, the cost of installing a central heating system in a home that already has proper plumbing is very high, around USD 6,000 to USD 8,000. However, space heaters are reasonably priced at USD 30-USD 300. These products have a high heating capacity and are energy efficient.
The increasing demand for highly efficient, energy-saving, and safe domestic heating appliances is a key trend influencing North America's space heaters market. The high efficiency and energy-saving properties of these products have increased the demand for safe home heating systems. This demand is particularly higher in urban markets, especially in tier 1 cities than in rural and low-tier cities. An individual's desire for a comfortable and luxurious life is one of the factors driving increased investment in home appliances, including heaters. This will enable the growth of the space heater market across North America.
Increased investments in research and development of various home heating appliances are further contributing to the growth of the heating market in North America. Product improvement is also one of the key factors supporting the healthy growth of the North American space heater market. The United States is one of the key markets for the growth of home heating appliances. Increased household income leads to increased spending on home appliances, including heating appliances such as heaters. Therefore, the high availability of energy-efficient space heaters due to high demand is expected to drive the growth of the North American space heater market during the forecast period.
The relatively high operational cost of space heaters is challenging the North America space heaters market. Space heaters often have high operating costs because they require regular electricity for heating. The average running cost for a gas stove is USD 250-USD 300. Similarly, reverse cycle AC running costs are around USD 200-USD 250. However, it costs an average of about USD 800 to USD 850 per year to run an electric stove. It has no installation cost and is relatively cheaper than the alternatives above, but its high running costs can greatly influence a consumer's purchasing decision. Vendors need to develop technology to make electric stoves more energy efficient and reduce running costs. In addition to the product price, users also have to bear the electricity and maintenance costs. Therefore, the high operating costs associated with space heaters are expected to hinder the adoption of these products and hinder the growth of the North American space heater market during the forecast period.
Along with this, solar thermal systems are successfully used in residential applications in several countries. Almost 1.5% of the heating requirements for residential areas are covered by solar thermal systems. Heat-generating appliances in a home account for 62-88% of the energy in the colder months and 35-48% in the warmer months, so there is great potential for solar thermal systems for home heating. North America has successfully developed local manufacturing capacity for solar thermal systems, posing a significant threat to vendors producing alternative heating methods such as electric heaters.
The 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 in North America Customer Landscape
Vendors 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.
Backer Hotwatt Inc: The company offers different resistance heating elements and space heaters such as strip and finned heaters.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the fan heaters segment will be significant during the forecast period. These devices use a series of coils to generate heat. A fan at the front of the unit spins at a set speed, distributing the heat generated by the heating coils throughout the room. The advantage of fan heaters is that they can be used in both cold and warm seasons. Fan heaters are the most popular heating appliances. Additionally, fan heaters come in a variety of shapes and sizes and have many uses in industries such as construction. And while the smaller unit fan heaters are great for office use, the larger tower units can heat an entire living room or bedroom.
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The fan heaters segment was valued at USD 831.66 million in 2017 and continued to grow until 2021. Many fan heaters have a cool surface and are a safer option when children and pets are nearby. Therefore, the increasing availability of a wide range of fan heaters is expected to drive the growth of this segment during the forecast period.
In 2020, the COVID-19 pandemic took a toll on the US economy. The outbreak has forced many government agencies in North America to declare complete lockdowns to stem the spread of the disease. This led to decreased sales of space heaters and disruptions to the supply chain. Most business activities such as construction and other activities have come to a halt, and investment in new residential and commercial premises has declined in the first half of 2020. This impacted sales of space heaters in the region in 2020. However, the market recovered slowly in 2021 as COVID-19 vaccination campaigns surged and the number of actively infected cases declined. This resumed industrial activity and increased the production and supply of space heaters in the area. Therefore, US market growth is likely to recover during the forecast period.
The 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.
Technavio categorizes North America's global space heaters as part of the global consumer electronics market within the global consumer durables industry. The global consumer electronics parent market includes revenue generated by manufacturers of consumer electronics and related products. Household appliances include power and hand tools, including garden improvement tools. The global consumer electronics market is segmented into five segments: large appliances, small appliances, hand tools, power tools, and garden tools. The global consumer electronics market excludes televisions and other audio and video products, which fall under the consumer electronics category, and personal computers, which fall under the technology hardware, storage and peripherals category. Machine tools are excluded from the market, agricultural machinery is classified as industrial machinery, and agricultural machinery and agricultural machinery.
Space Heaters Market In North America Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.18% |
Market growth 2023-2027 |
USD 383.59 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.74 |
Regional analysis |
North America |
Performing market contribution |
North America at 100% |
Key countries |
US, Canada, and Mexico |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ASB Heating Elements Ltd., Backer Hotwatt Inc., Crane USA, Daikin Industries Ltd., Dehumidifier Corporation of America, Devco Heaters, Heatrex, Hi Heat Industries Inc., Honeywell International Inc., Lasko Products LLC, Newell Brands Inc., Pelonis Technologies Inc., Penn Radiant Products, Power Modules Inc., SUNHEAT International, Tempco Electric Heater Corp., TURNBULL SPECIALTIES Ltd., Ulanet, Valad Electric Heating Corp., and Vornado Air LLC |
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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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