When it comes to keeping our homes warm and cozy during winter, home heating is an absolute necessity.
In fact, this industry in the US keeps growing at a steady pace. But, what type of heating system do Americans prefer? What are the latest trends? Who are the key competitors?
In this article, we’ll answer those questions and take a closer look at the numbers behind the home heating industry and see why it’s worth paying attention to.
Read on to learn 18 interesting facts about the home heating industry!
Home Heating Industry Statistics:
- The home heating industry in the US is currently worth $10.8 billion and is expected to grow even more in the next 5 years, reaching $13.9 billion by 2028.
- Despite its typically warm climate, the Southern region of the US is the leader in the home heating industry, with a market share of 34.24%. This is mainly because this region has a higher population density than other parts of the country. This means that there are more homes that require heating systems.
- In the Southern region of the US, electricity is the primary source for staying warm, while in the Midwest, natural gas is more common. In the Northeast, fuel oils are the main source of heat despite being expensive and inconvenient, and in rural areas, propane is more commonly used.
- Samsung, Systemair, Johnson Controls Inc., Zehnder, Bosch, and Rheem Manufacturing are the key players in the home heating industry. They’re focused on investing in R&D initiatives to improve existing products and develop new ones with minimal environmental impact.
- Although global warming is associated with higher temperatures, it can also cause disruptions in weather patterns that can lead to colder winters in some regions. This will increase the demand for home heating equipment not only in the US, but in other parts of the world too.
Home Heating Distribution Channel:
- The offline distribution channel holds 62.4% of the market share and is expected to grow by 1.7 billion in the next 5 years (2022-2027), mainly because consumers prefer to have a hands-on experience with a product before purchasing it.
- Although people seem to prefer buying home heating systems directly in the store, the online distribution channel is also expected to grow 5.11% by 2027 due to the convenience of e-commerce and the availability of online discounts.
Home Heating User Statistics:
- In 2020, almost all Americans (95%) reported having a space heater.
- In 2021, 47% of Americans used natural gas to heat their homes and 40% opted for electricity. The remaining 12% get their warmth from either propane or oil.
- Space heating can significantly impact your energy consumption. In fact, it accounts for about 45% of American families’ energy bills.
- Furnaces are the most common home heating system in the US. Although most of them are gas-based, the electric furnace industry is expected to grow by 5.5% by 2025. This is mainly because people can save up to 30% on their utility bills with these types of furnaces. This trend is also accelerated by recent policy proposals in NY, which have announced plans to ban natural gas in new buildings.
- 71% of Americans have home heating systems that are over 5 years old, while the other 29% have equipment that’s over 15 years old.
- Americans who use natural gas for heating paid 28% more in heating costs compared to the 2021/22 winter because of the increase in heating costs.
- The recent increase in electricity and natural gas prices has resulted in 20% of Americans (26.2 million households) missing or making late payments on their utility bills. Since people are trying to manage their energy costs and save money, cost-efficient home heating systems are gaining popularity.
Home Heating Trends
- Thanks to the versatility of heat pumps (they can cool and heat your home), this market is expected to grow by 9.4% by 2027.
- The demand for geothermal heat pumps is also expected to grow because they have low operating costs and can reduce energy use by 60%.
- The demand for heat pumps is expected to increase more in the western region of the US, as personal incomes in Colorado and Utah increased by 5.9% and 5.7% respectively.
- Home heating systems contribute to 38% of greenhouse gas emissions in the US, making it another reason why there will be an increase in the adoption of sustainable and smart technologies.
That about covers it!
As you probably noticed, the home heating industry is huge and keeps growing by the year, as 95% of Americans use space heaters to stay warm and cozy during the winter.
I hope this piece has helped you gain a better understanding of the industry and its expected trends for the next five years.
Thank you so much for taking the time to read this article. If you found it interesting, please make sure to check out our other related posts.
Have a wonderful day!