PUBLISHER: Grand View Research | PRODUCT CODE: 1588443
PUBLISHER: Grand View Research | PRODUCT CODE: 1588443
The global warm air furnace market size is expected to reach USD 10,900.7 million by 2030, registering to grow at a CAGR of 3.4% from 2025 to 2030 according to a new report by Grand View Research, Inc. Increasing construction spending, as well as growing demand for highly energy-efficient heating solutions, are expected to drive demand for warm air furnaces across the globe. Furthermore, favorable government measures such as incentives for the installation of energy-efficient warm air furnaces are expected to benefit the market.
The U.S. construction activity increased by over 6% yearly in 2021 and 2022 after a 1.9% drop in 2020. The demand for single-family homes is the main factor driving the rapid residential construction. The strong demand for home remodeling and upgrading is still present because of increased discretionary household spending. A large portion of this growth will come from a significant rise in spending on residential building construction. The demand for warm air furnaces in the residential application segment is expected to be driven by the expanding residential sector in the U.S.
Furnaces use heat to circulate hot air using ducts throughout residential spaces due to the presence of drastic temperature changes. Furthermore, in the year 2022, the U.S. Energy Information Administration (EIA) reported that 538,000 of the 911,000 new single-family homes had forced-air furnaces installed.
The minimum Annual Fuel Utilization Efficiency (AFUE) standard governs furnace efficiency in the U.S. Seasonal efficiency is estimated using AFUE, which averages peak and part-load conditions. In addition to estimating the amount of electricity required by the air handler, inducer fan, and controls, AFUE accounts for start-up, cool-down, and other operating losses that happen under actual operating conditions. The higher the AFUE, the furnace or boiler is more efficient. These aforementioned factors are expected to drive the demand for warm air furnaces in the coming years.
Commercial warm-air furnaces must have a capacity of at least 225,000 Btu/hr. They are intended to supply hot air via a duct system. In practice, commercial furnaces are the gas or propane heating parts of bundled roof-top units that are utilized in small to medium-sized business buildings. As condensing technology allows for energy savings from warm air furnaces, condensing furnaces extract additional heat by condensing the water vapor in the gases and achieve 90% or greater efficiency levels. These aforementioned factors are projected to increase the warm-air furnace demand in the forecasted years.