Underfloor Heating Market
Increasing Investment in Construction Industry to Fuel Underfloor Heating Market Growth During Forecast Period
Underfloor heating is becoming more and more popular and being adopted in the colder regions of countries such as the US, China, and India, where fast development in the building sector is fueling the underfloor heating market expansion. Due to the wide range of uses for underfloor heating, such as maintaining a consistent temperature and improving air quality, the existence of semi-desert and desert climatic conditions in many countries worldwide is expected to impact the underfloor heating market growth positively, as during the night in deserts the temperature falls below minus. The growing investment in the construction industry and the increasing spending power of individuals to improve living standards are projected to favor the underfloor heating market. The construction industry stands as a foundation of economic growth and societal progress. It plays a pivotal role in shaping the physical landscape of communities, fostering job creation, and propelling innovation. In today’s rapidly evolving world, infrastructure demands are outpacing the pace of investment, economic potential, and quality of life. Thus, several governments and other entities across the world are investing in the construction industry—both in the commercial and residential sectors. For instance, as of October 2023, Single-family homebuilding in the US had a robust resurgence in September 2023, driven by demand for new construction amid a lack of previously owned homes. However, the surge in mortgage rates, reaching the highest level in almost 23 years, could potentially slow down this momentum.
According to the US Commerce Department, single-family housing starts, which make up the majority of homebuilding, rose by 3.2% to a seasonally adjusted annual rate of 963,000 units in September. This figure was revised from the previously reported 933,000 units in August 2023. Overall, housing starts increased by 7.0% to 1.358 million units in September 2023, slightly below economists’ expectations. The US government provides support to the construction sector by enhancing the competitiveness of American building goods, chemicals, and metals in global markets.
The Indian construction sector has grown at a rate of 11% annually since 2012. Currently, it accounts for 18% of the Indian economy’s total output. The real estate output is likely to touch US$ 1 trillion by 2030. The growth in the real estate sector can be attributed to the rising housing demand and developments taking place in the commercial, retail, hospitality, and warehousing sectors. Underfloor heating has various applications in residential and commercial sectors. It transforms homes and commercial infrastructures into luxurious and sophisticated infrastructure by providing comfort and warmth during the colder months. Thus, the rising investment in the construction industry and improving living standards drive the growth of the underfloor heating market.
Underfloor Heating Market: Industry Overview
The underfloor heating market is categorized on the basis of type, installation, application, and geography. Based on type, the underfloor heating market is segmented into hydronic system components and electric system components. By installation, the underfloor heating market is segmented into new and retrofit. Based on application, the underfloor heating market is categorized into residential and commercial. The underfloor heating market, based on geography, is categorized into North America, Europe, Asia Pacific, and the Rest of the World.
Increased demand for underfloor heating in North America’s cold zones is predicted as a result of the building & construction industry’s rapid rise in developed nations such as the US, Canada, and Mexico. Moreover, various players across the region are providing underfloor heating in response to the comfort and convenience in the kitchens and bathrooms by providing warm floors. In February 2020, Mysa Smart Thermostats, a Newfoundland-based smart-home tech company, announced the launch of Electric underfloor heating. The launched product provides households across North America with greater control over their electricity bills by helping them use energy more efficiently.
The North American climate is known to be intensely cold, and the region’s extreme polar location, such as Alaska (USA), Northern Canada, and Greenland, is colder. Thus, the people located in the region need warmth in winter. The governors of 25 states of the US formed a coalition in order to reach 20 million deployed heat pumps by 2030. In response, 4.8 million heat pumps were installed in the US in 2020. Heat pumps are energy efficient and act as replacements for fossil fuel-powered furnaces and air conditioners. They use electricity to transfer heat, as opposed to generating heat, and they can either heat a building when it is cold outside or cool a building when it is hot outside. Compared to a gas boiler, heat pumps reduce greenhouse gas emissions by 20% and are also energy efficient. The governors of the states are focusing on the sustainable heating of the residents, along with the focus on greenhouse gas emissions. The underfloor heating connected to a boiler or heat pump is a convenient option. Thus, the government initiatives and cold climate across North America will propel the growth of the underfloor heating market.
Underfloor Heating Market: Competitive Landscape and Key Developments
Danfoss, Emerson Electric Co., nVent, Uponor Corporation, REHAU Ltd., Resideo Technologies Inc., Watts, Schneider Electric, Robert Bosch GmbH, and Daikin are among the leading market players profiled in the Underfloor Heating market report. Several other essential market players were also analyzed for a holistic view of the market and its ecosystem. The report provides detailed market insights, which help the key players strategize their market growth. A few developments are mentioned below:
- In September 2023, Schneider Electric announced the inauguration of its latest manufacturing facility in Texas as part of a substantial investment of US$ 300 million in US manufacturing. This strategic initiative aims to create approximately 400 new job opportunities, resulting in a significant increase in the company’s workforce in El Paso, reaching a total of around 1,500 employees by the end of the year.
- In August 2023, Daikin Europe N.V. introduced the Daikin Altherma 3 R MT, an advanced mid-temperature refrigerant split heat pump. This innovative addition expands the existing Daikin Altherma 3 heat pump range, specifically designed to replace traditional fossil fuel boilers. The launch of this product aligns perfectly with Daikin’s strategic objective of facilitating the decarbonization of heat in Europe.
