PUBLISHER: Grand View Research | PRODUCT CODE: 1654613
PUBLISHER: Grand View Research | PRODUCT CODE: 1654613
The global heating equipment market size is estimated to reach USD 216.3 billion by 2030, registering a CAGR of 8.0% from 2025 to 2030, according to a new report by Grand View Research, Inc. The market for heating equipment is anticipated to be driven by technology advancements along with government initiatives to improve energy efficiency across industries. Further, the rising construction spending is also predicted to have a positive impact on product demand.
According to U.S. EPA, commercial construction spending rose from USD 120.10 billion in September 2022 to USD 125.87 billion in October 2022, while lodging and hotel construction spending in the U.S., increased to USD 21.85 billion and USD 89.97 billion in September 2022 and October 2022, respectively. Rising construction spending in the U.S., coupled with maintenance & replacement operations related to heating equipment, is anticipated to fuel the demand for energy-efficient heating solutions. These aforementioned factors are anticipated to drive the demand for the market.
The construction industry in the U.S. focuses on the development of sustainable and energy-efficient buildings. Furthermore, Leadership in Energy and Environmental Design (LEED) is a green building certification system developed by the U.S. Green Building Council (USGBC) that focuses on increasing energy consumption to lessen the environmental impact of excessive energy usage. These factors are expected to drive the demand for heating equipment over the forecast period.
Moreover, buildings are directly and indirectly responsible for approximately one-third of the global energy and process-related carbon dioxide emissions. The reduction in the contribution of buildings and building construction activities to carbon dioxide emissions necessitates the requirement of emission controls throughout the entire value chain. In the U.S., the only requirements for these emission controls are voluntary LEED and EDGE certification and compliance with emission reduction legislation.
The installation of energy-efficient heating equipment entitles buyers of this equipment to a number of tax breaks. Tax breaks are also available to promote the usage of renewable energy equipment such as heat pumps in the country. The Energy Policy Act of 2005 (EPACT) of the U.S. provides tax deductions to firms for enhancing the energy efficiency of commercial buildings. Additionally, the provisions under EPACT have been extended by the Emergency Economic Stabilization Act of 2008. Various tax deductions are offered through different acts in the U.S., including the Deduction of the Cost of Energy-efficient Property Installed in Commercial Buildings and the Extension of Energy Investment Tax Credits. Thus, the presence of various tax credits on heating equipment is further anticipated to propel market expansion over the forecast period.
Heating equipment players seek new product launches, investments, mergers & acquisitions, and partnerships, among others, to develop advanced and innovative solutions. For instance, in June 2022, to meet the anticipated 2023 Department of Energy (DOE) minimum efficiency criteria, Carrier Corporation introduced two-stage air conditioners and PerformanceTM series 17 two-stage heat pumps.