North America & Europe Unit Heater Market Growth Opportunities and Forecast by 2030

The unit heater market was valued at US$ 2.38 billion in 2022 and is anticipated to reach US$ 3.75 billion by 2030; it is estimated to register a CAGR of 5.9% from 2022 to 2030.

Analyst Perspective:

North America is considered a technologically advanced region due to a positive outlook toward modern technologies, high GDP per capita, favorable government policies, and vast industrialization capacity. The increasing adoption of heating solutions in commercial and industrial facilities and the rising installation of connected HVAC systems are the key factors propelling the unit heater market growth in the region. The market players are offering advanced unit heaters for new HVAC systems and retrofit sensing solutions for existing systems to improve their performance. The COVID-19 crisis has severely affected North America, and the containment measures imposed by governments of various countries adversely affected the production capacities of the unit heaters market players in 2020. However, with relaxations in containment measures and reduced infection rates, the market is witnessing a significant rise in the demand for unit heaters. Europe has encouraged technological advancements; the region's growth is characterized by high GDP and GDP per capita, vast industrialization, well-established construction infrastructure, and an elevated standard of living. The region is one of the prominent markets for unit heaters as many countries have cold climates for long periods. Western Europe and Nordic countries account for a larger share of the total sales of advanced HVAC systems, such as unit heaters, than Eastern Europe.

Technological advancements play a crucial role in unit heater market growth. Major manufacturers such as Qubino and Armstrong are working on integrating intelligent technologies in their unit heaters. Heating equipment offered by Qubino features easy scheduling, remote access, energy tracking, color touchscreen, and sensor technologies. Manufacturers such as Goodman Manufacturing Company and Nortek also focus on integrating the Internet of Things (IoT) and artificial intelligence (AI) in their unit heaters. Amana—a heating, ventilation, and air conditioning (HVAC) equipment manufacturing company—integrates intelligent communication technology in unit heaters to automate operations to offer a better consumer experience with high comfort. Furthermore, incorporating smart thermostats, Bluetooth connectivity, Wi-Fi connection, and intelligent circuit boards is expected to raise the demand for smart unit heaters during the forecast period. For instance, unit heaters integrated with AI and machine learning are better at understanding the consumer usage pattern and evaluating the usage time and duration, which eliminates the user's requirement to operate the unit heater physically. Thus, integrating smart technologies with unit heaters is expected to become a significant trend in the unit heater market during the forecast period.

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North America & Europe Unit Heater Market: Strategic Insights

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Market Overview of Unit Heater Market:

In North America, the implementation of heating equipment is backed by large-scale investments from the commercial sector. The US, Canada, and Mexico are prominent economies in North America. Major unit heater manufacturers are focusing on offering energy-efficient products that offer optimal heating, exhibit low maintenance and operational costs, and operate with decreased emission levels. For instance, in August 2023, Modine announced the launch of a new electric infrared product line. With this new product offering, Modine is expanding its portfolio of energy-efficient and low-emission heating solutions for a wide range of commercial and residential applications. According to the US Department of Energy, several states in the US are adopting state efficiency standards for unit heaters, which would further encourage the production of energy-efficient unit heaters.

Design in heating systems, such as advancements in LED lighting, sensors, digitalization, remote control, advanced connectors, and other technologies, have the utmost importance in the electronics industry. The unit heater manufacturers focus on modularity, ease of use, quick access, and easy maintenance. They focus on integrating these features in the unit heaters to provide an intelligent management system. For instance, Robur offers a smart combined and dynamic design that can adjust and control up to 100 gas unit heaters. The user can access the system through the ModBus network connected to the PC. Several companies operating in the unit heater market are taking several other strategic initiatives to strengthen their market position. For instance, Nortek Global HVAC (NGH)—a parent company of Reznor HVAC—signed a partnership agreement with Tom Barrow Company (TBCo). The agreement focuses on sales of Reznor HVAC products in Florida.

Germany, France, Italy, Russia, and the UK are major economies in Europe. The commercial sector comprises real estate buildings, malls, hotels, restaurants, motels, hospitals, commercial facilities, and community places. It plays an essential role in the progress of the GDP in European countries. These factors are bolstering the demand for unit heaters. Additionally, the unit heaters in Europe are highly advanced and fitted with modern energy-saving technologies that contribute to achieving sustainability goals in all sectors. The European Union supports the development of several digital solutions and technologies through various initiatives, leading to a green and digital transformation across the region.

Market Driver of Unit Heater Market:

Increased Demand for Energy-Efficient Heaters to Drive Growth of Unit Heater Market

Major unit heater manufacturers focus on offering energy-efficient products that provide optimal heating, exhibit low maintenance and operational costs, and operate with decreased emission levels. For instance, Modine Manufacturing Company launched a new unit heater named Affinity, which features a dual heat exchanger, power exhauster, and separated combustion chamber, emitting less CO2 levels and increasing the overall heating efficiency.

Rising demand for low-noise operations, increasing integration of electric heaters with solar panels, growing use of sensors to automatically adjust the temperature, and elevated efficiency at lower costs are the factors driving the North America and Europe unit heaters market. Manufacturers are focusing on implementing new motor designs by installing low-noise fans, thermostats, remote control options, and screen displays in unit heaters. According to the US Department of Energy, several states are adopting state efficiency standards for unit heaters, further encouraging the production of energy-efficient unit heaters. Hazloc Heaters developed an explosion-proof electric air heater for operations in hazardous conditions to meet US and Canadian certification standards. The heater features a spark-resistant fan assembly in the AMCA 99-10 quality standard.

Further, the increase in demand for energy-efficient equipment in food & beverages, manufacturing, chemicals, pharmaceutical, oil & gas, and other sectors is boosting the unit heater market growth. According to the US Energy Information Administration (EIA), manufacturing accounted for ~77% of industrial energy consumption. In addition, the growing replacement and maintenance of unit heaters are driving the demand for energy-efficient unit heaters in the region.

Segmental Analysis of Unit Heater Market:

Based on product type, the unit heater market is segmented into gas fired, hydronic, electric, and others. The hydronic segment accounted for a major share of the global unit heater market in 2022. Hydronic unit heaters are mainly designed for horizontal and vertical (downward) airflow delivery. They use hot water or steam with low output and increased airflow for high-ceiling applications. The features of such heaters include versatile hanging systems, static and dynamically balanced fans, and enclosed motors. Hydronic unit heaters offer high-flow air circulation and provide extreme heat in a short time over large areas such as manufacturing plants, factories, large commercial and industrial spaces, warehouses, and stores. Modine Manufacturing offers its Power Throw Hydronic (PT) unit heater with a long heat throw and 360-degree rotation; these systems can be installed in low-clearance areas and are available in various sizes. Various manufacturers are focusing on offering hydronic unit heaters with easy installation and repair requirements, along with providing lucrative services to customers. For instance, Sterling HVAC offers easy installation, annual maintenance contracts, and warranty and repair services with its unit heaters.

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Regional Analysis of Unit Heater Market:

North America has established itself as the dominant region in the unit heater market, with a leading market share. Several factors have contributed to the region's strong position in the unit heater market. Firstly, economies in North America such as Canada and the US have several areas that frequently witness low temperatures. The US is the world's largest economy, with a well-developed infrastructure to support varied HVAC applications. Companies operating in the US are adopting new technologies to improve the level of air quality, energy consumption, and performance of HVAC systems. Also, the rising importance of using HVAC systems to mitigate the spread of SARS-CoV-2 on indoor air quality is strengthening market penetration in the country. Moreover, there is a wide presence of market leaders in the US. For instance, Modine Manufacturing Company, in 2020, launched another HVAC enhancement with the addition of an Electronically Commutated (EC) Motor for the company's cabinet unit heater offerings. The new EC motor offers high efficiency and requires low electricity use, low heat waste, and less maintenance. The launch of new products is supporting the unit heater market in the US.

Key Unit Heater Market Player Analysis:

Airtherm (Mestek Inc), Armstrong International Inc, Beacon Morris, Modine Manufacturing Co, KING ELECTRICAL MFG CO, Kroll Energy GmbH, Reznor HVAC (Nortek), Thermon Industries Inc, Trane Inc, and Turbonics Inc are among the key unit heater market players profiled during this market study. In addition to these players, several other important market players were studied and analyzed during this market research study to get a holistic view of the North American and European markets and their ecosystems. The leading unit heater market players focus on feature upgrades, expansion and diversification, collaboration, and acquisition strategies, which enable them to grab new business opportunities.

Key Recent Developments in Unit Heater Market: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies for increasing their unit heater market share. A few recent key unit heater market developments are listed below: 

• In November 2022, Nortek Global HVAC (NGH) announced the launch of three new capacities for the Reznor UEZ condensing gas-fired unit heater. The models are anticipated to supply fuel-efficient heating to ensure cost-effective operation while promoting the safety and comfort of building occupants.
• In May 2021, Nortek Global HVAC (NGH), a leading manufacturer of unit heaters, announced plans to redesign its entire Reznor brand of gas-fired unit heaters for the North America market.
• In October 2019, Modine Manufacturing Company, a leading unit heater manufacturer, announced the release of a new Lodronic low-temperature water heater designed to provide maximum efficiency in a compact, lightweight, energy-saving format.

North America & Europe Unit Heater Report Scope