Warm Air Furnaces Market Size, Share & Trends Analysis Report By Type (Gas Warm Air Furnaces, Oil Warm Air Furnaces), By Application (Residential, Industrial, Commercial), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global warm air furnaces market size was estimated at USD 8.4 billion in 2022 and is expected to grow at a compounded annual growth rate (CAGR) of 3.2% from 2023 to 2030. The growth is expected to be driven by proper conditioning of the air offered by warm air furnace as compared to other heating systems. Furthermore, most warm-air furnaces embed humidification as a feature. This helps eliminate indoor air contaminants and humidity issues that can cause property damage and health issues. These factors are expected to positively impact product demand during the forecast period.Warm air furnaces are high-efficiency appliances with Annual Fuel Utilization Efficiency ratings as high as 99%.

Furthermore, the hydronic and electric heating systems also take longer to heat the area, but warm air furnace offer shorter start times and bring comfort to the entire area in minutes. Furthermore, warm air furnaces are noted for their longevity and dependability, with an average life expectancy of 15-30 years, outliving heat pumps and boilers. These aforementioned factors are anticipated to propel the demand for warm air furnace in the coming years.

The demand for warm air furnaces in the U.S. is driven by various factors such as weather conditions, economic conditions, energy prices, and housing market trends. air furnaces, also known as warm air furnaces, are a popular heating system choice for residential and commercial properties due to their efficiency, relatively lower installation costs, and ability to distribute heat evenly throughout space. These aforementioned factors are expected to drive the demand for warm air furnace in the coming years.

Moreover, modern warm-air furnaces are designed to be more energy-efficient, which appeals to homeowners and businesses looking to reduce their energy consumption and utility bills. In addition, advancements in technology, including variable-speed blowers, electronic ignitions, and smart thermostats, have made forced air furnaces more appealing to consumers. These factors are further anticipated to propel the market demand over the projected period.

The steady growth in home construction and renovation projects has increased the demand for warm-air furnaces which is a popular choice for many of these projects. For instance, according to U.S. Census Bureau, 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. Thus, growing commercial construction is anticipated to drive the demand for warm-air furnaces in the coming years.

The growth of the U.S. warm air furnace market is further aided by federal and state regulations that provide tax credits, rebates, and other incentives to boost energy-efficient system installations and encourage the use of renewable energy sources. These aforementioned factors are expected to drive market demand in the forecast years. The growth is further expected to be boosted by rising building spending and increased maintenance and replacement activity. The building industry in the U.S. is focused on developing environmentally friendly and energy-efficient constructions. The U.S. Green Building Council (USGBC) founded the Leadership in Energy and Environmental Design (LEED) accreditation program. These factors are anticipated to propel the demand for warm air furnace in the projected period.

Type Insights

The gas-warm air furnaces type segment led the market and accounted for 94.4% of the global revenue share in 2022. Gas-warm air furnaces are generally more efficient than electric furnaces. They can convert a higher percentage of the fuel they consume into usable heat, resulting in reduced environmental impact and lower energy costs. These can heat spaces quickly, providing almost instant warmth. This is especially crucial in colder climates, where a rapid response is necessary to maintain comfort. Further, natural gas is often cheaper than electricity, making gas furnaces a cost-effective heating option, particularly in regions with abundant natural gas supplies. These aforementioned factors are expected to drive the demand for gas-warm air furnace in the coming years.

For instance, Lennox International Inc. offers an SLP99V variable-capacity gas furnace which is the most efficient furnace as it offers an efficiency rate of up to 99%. Additionally, it comes with either a 20-year or a lifetime limited warranty. Further, Daikin warm air gas furnace provides efficient and economical heating performance. Moreover, gas-warm air furnaces are known for their reliability and durability. With proper maintenance, they can last for many years, providing consistent and dependable heating.

The oil-warm air furnace type segment is anticipated to witness a CAGR of 2.1% over the forecast period. These effectively spread warm air around a building. A thermostat allows for precise temperature control. When the oil-warm air furnaces are properly maintained, the air produced is not as dry as the air heated by electric or wood-burning systems, and it is odorless. These aforementioned factors are anticipated to propel the demand for warm air furnaces over the forecast period.

The XV80 model from Trane strikes a solid balance between performance and energy economy. Trane's XV80 is rated with an AFUE of up to 85%. Furthermore, the XV80's variable-speed blower distributes heat more uniformly and consistently throughout the area, minimizing hot and cold areas.

Application Insights

The commercial application segment led the market and accounted for 40.1% of the global revenue share in 2022. Warm air furnaces are widely used in commercial applications for heating various types of commercial buildings and spaces. Their versatility, efficiency, and relatively low installation and maintenance costs make them a popular choice for many commercial applications. For instance, warm air furnaces are often used in office buildings to provide centralized heating. They can efficiently heat large open spaces, individual offices, and conference rooms. Further, many retail stores use warm air furnace to keep their spaces warm and comfortable for customers during colder months.

Warm air furnace offer the advantage of quick heating and the ability to integrate with ventilation and air conditioning systems, providing both heating and cooling capabilities in one system (HVAC). They can be powered by various fuels, including natural gas, oil, electricity, or propane, allowing businesses to choose the most suitable option based on their location and energy availability.

The residential application segment is anticipated to witness a CAGR of 3.5% over the forecast period. Warm air furnaces are a common heating option for residential applications. They are widely used in residential spaces to provide central heating. For instance, warm air furnaces are designed to provide heating to the entire house through a network of ducts and vents. They can efficiently distribute warm air to different rooms, ensuring consistent and comfortable temperatures throughout the home. These aforementioned factors are anticipated to propel the demand for warm air furnaces for residential applications in the coming years.

Regional Insights

North America region dominated the market in 2022 by accounting for a share of 54.2% of the global revenue owing to the massive investments by various governments for the development of public infrastructure and the expansion of residential construction. Furthermore, there is rising awareness regarding energy saving across the region which is expected to augment the market demand further.

Due to the rising need for manufacturing facilities in the region's expanding economies, warm air furnace demand is expected to increase significantly throughout Central and South America. Over the projection period, this is anticipated to have a favorable effect on industrial construction, increasing market demand.

Warm air furnaces, though popular in some regions, are not as commonly used in Europe as they are in North America. In Europe, other heating systems are more prevalent due to differences in climate, energy prices, and building construction practices. For instance, Europe generally experiences milder climatic conditions compared to North America, especially in southern and western regions. As a result, the need for constant and intense heating is often lesser. Furthermore, European residential buildings often feature different construction techniques with a greater emphasis on insulation and energy efficiency. These energy-efficient building practices, along with the use of radiant heating systems, reduce the demand for warm-air furnaces.

The Asia Pacific region is expected to witness a CAGR of 3.6% over the forecast period. The warm air furnace market can vary significantly across different countries in the Asia Pacific region, and there might be some areas where warm air furnaces are more prevalent or gaining popularity. Several factors contribute to the popularity of certain heating systems over others in the region, including climate, building construction styles, energy efficiency regulations, and cultural preferences. Many countries in the region are more focused on energy efficiency and sustainable heating solutions, which has led to the popularity of warm air furnace.

Key Companies & Market Share Insights

The manufacturers adopt several strategies, including geographical expansions, product launches, and mergers & acquisitions to enhance market penetration and cater to the changing technological requirements of various applications such as commercial, industrial, and residential. In March 2023, Rheem introduced the all-new EndeavorLine of gas furnaces, split & packaged air conditioners, split & packaged heat pumps, air handlers, and packaged gas electric units. Some prominent players in the global warm air furnaces market include:

• Carrier Corporation

• Mitsubishi Electric Corporation

• Emerson Electric Co.

• Ingersoll-Rand Plc

• Daikin Industries, Ltd.

• Rheem Manufacturing

• Lennox International

• Johnson Controls, Inc.

• Robert Bosch GmbH

• Viessmann Group

• Goodman Manufacturing

• Fujitsu

Warm Air Furnaces Market Report Scope

Global Warm Air Furnaces Market Report Segmentation

This report forecasts revenue growth and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global warm air furnaces market report based on type, application, and region:

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Gas Warm Air Furnaces

  • Oil Warm Air Furnaces

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Residential

  • Industrial

  • Commercial

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • Sweden

    • Spain

    • Finland

  • Asia Pacific

    • China

    • Japan

    • Australia

    • India

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE