Global Market for Residential Space and Water Heating Electrification Estimated to Grow to More Than 140 Million Units by 2033
Government policies designed to reduce greenhouse gas emissions from buildings are one of the biggest market drivers
A new report from Guidehouse Insights evaluates the market for electrifying residential space and water heating in five global regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
The market for electric residential space and water heating is expected to grow over the next decade largely because of growing government and consumer interest in fuel-switching and rising household adoption of reversible room air conditioners. According to a new report from Guidehouse Insights, global shipments of residential electric space heating equipment are expected to grow from 101.5 million units in 2024 to 140.1 million units in 2033, at a compound annual growth rate (CAGR) of 3.6%.
“Market growth is likely to be driven by two primary trends: growing consumer and government interest in switching from fossil fuel powered equipment to electric alternatives and the increasing adoption of air conditioners,” says Hannah Bastian, research analyst with Guidehouse Insights. “However, despite many drivers for home electrification, many barriers still exist that can slow the growth of electric space and water heating equipment sales. For one, most homes in the world rely on fossil fuels for space and water heating, and retrofitting these systems with electric alternatives can be costly and complicated.”
While shipments of electric space and water heating equipment are expected to grow around the world, the types of technologies vary from region to region. The primary drivers and barriers for residential space and water heating electrification also vary from region to region, and often from country to country. Fuel switching tends to be a driver only in countries with strong government policies and robust incentive programs that either require or encourage households to make the switch, however a few select markets are also seeing natural consumer interest in fuel-switching where delivered fuel prices are rising or dependent on foreign imports, or both. Growing cooling demand is also expected to be a major driver in regions where household air conditioning penetration rates are low as many households are likely to purchase their first reversible room air conditioners that can provide both heating and cooling, according to the report.
The report, Residential Space and Water Heating Electrification, analyzes the global market for residential space and water heating with a focus on electric and nonelectric fuel types used in each region. The study provides an analysis of the market drivers and barriers, as well as an overview of the major manufacturers of electric space and water heating equipment around the world. Global market analyses estimate equipment shipments, broken out by fuel type and region, from 2024 to 2033. An executive summary of the report is available for free download on the Guidehouse Insights website.
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* The information contained in this press release concerning the report, Residential Space and Water Heating Electrification, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report