Furnaces Market

Furnaces Market Overview

The global Furnaces Market size was valued at USD 22.32 billion in 2023 and is predicted to reach USD 69.03 billion by 2030 with a CAGR of 4.3% from 2024-2030. The market for furnaces encompasses a wide range of equipment used for heating, melting, and heat treatment processes across various industries. 

These devices efficiently generate and distribute heat through ductwork or piping systems, ensuring thermal comfort and facilitating various industrial processes. With a variety of features tailored to meet heating needs effectively, furnaces incorporate high-performance heating elements fuelled by electricity, gas, or oil, guaranteeing consistent warmth. 

These heating systems continue to play a pivotal role in meeting heating requirements across diverse applications, offering reliability, efficiency, and comfort in an increasingly interconnected world.

Market Dynamics and Trends

The global expansion of urban population is driving the furnaces market demand, as increased urbanization requires more advanced heating systems to support growing infrastructure needs in residential, commercial, and healthcare settings. 

According to recent report published by the World Bank, in 2023, more than half of the global population resided in urban areas and projections indicate that by 2045, the urban population will grow by 1.5 times. Such growth in urbanization increases the demand for efficient thermal systems, notably furnaces, to meet the heating needs of the expanding urban population.

Moreover, rising investments in clean energy globally further drives the growth of adoption of high-efficient heating equipment, as these systems ensure reduction in energy consumption and lower carbon emissions, thereby driving the demand for furnaces that align with renewable energy sources. 

The International Energy Agency states that investment in clean energy across the world reached USD 560 billion in 2022. With such growth in global funding towards the adoption of clean energy, the demand for energy efficient thermal solutions is on rise, driving the furnaces market growth.

Furthermore, the growing real estate industry driven by the rise in global construction projects further drives the demand for furnace filters to efficiently meet the heating needs and enhance building performance in new structures and developments. 
In Q1 of 2024, global Construction Activity Index marked a rating of +15, representing an increase from +10 of 2023 Q1 reading. This increasing construction activity drives the need for efficient and advanced heating solutions, thereby fuelling the furnaces market expansion.

However, high initial investment associated with upgrading to energy-efficient furnaces is a major factor restraining the growth of the furnaces market. On the contrary, incorporation of furnaces with smart technologies and automation is anticipated to create an ample growth opportunity of the market in forthcoming years. 

By incorporating automation technologies such as sensors, IoT connectivity, and artificial intelligence algorithms, furnaces can dynamically adjust to real-time changes, thereby enhancing their efficiency and performance.

Market Segmentations and Scope of the Study

The furnaces market report is segmented on the basis of type, installation, end-user and region. On the basis of type, the market is divided into gas furnaces, oil furnaces, electric furnaces, and dual-fuel furnaces. Based on installation, the market is categorised into standalone furnaces, furnaces integrated into HVAC systems, and portable furnaces. Based on end-user the market is segmented into residential, commercial, and industrial. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and Rest of The World (RoW).

Geographical Analysis

North America region dominates the furnaces market share during the forecast period due to the growing government initiatives in the region aiming at promoting energy efficient technologies in heating systems. 

Energy Star states that, the government of U.S. provides various initiatives including tax credits for making energy-efficient home improvements, including USD 1,200 for improvements made to furnaces, boilers, or central air conditioning systems. 

This initiative not only encourages homeowners to adopt environmentally friendly technologies but also stimulates market demand for energy-efficient furnaces as consumers seek to maximize their tax benefits while reducing energy costs and environmental impact.

Moreover, rapid growth of urbanization across the region significantly drives the demand for furnaces to meet the heating requirements efficiently. For instance, 86% of total population of U.S resided in urban areas in 2023.  Such acceleration of urbanization leads to increased demand for heating solutions such as furnaces, particularly in densely populated urban areas for reliable and efficient heating systems to maintain comfort and well-being. 

On the other hand, Asia-Pacific is expected to show a steady rise in the furnaces market during the forecasted period due to the expansion of construction industry in the region. For instance, in 2022, the construction industry emerged as a significant factor of China's economy, boasting a total output value of USD 4.34 trillion. As construction activities continue to flourish, the demand for furnaces is expected to rise, propelled by the need for efficient heating solutions in residential, commercial, and industrial developments. 

Moreover, the adoption of renewable energy sources in the region is significantly boosting the growth of the furnaces market, as the increasing prevalence of these energy sources drives up the demand for furnaces that efficiently harness and utilize renewable energy. 

According to the latest report published by the International Energy Agency, the expansion of renewable energy capacity in China is anticipated to grow nearly 2,400 GW by 2027. Such growth in renewable energy adoption drives demand for sustainable heating solutions.

Competitive Landscape

Various market players operating in the furnaces industry includes Andritz AG, Carbolite Gero Ltd. (Dutch Verder Group), Epcon Industrial Systems LP, Gasbarre Products Inc., International Thermal Systems, Ipsen International GmbH, LÖCHER Industrieofen- und Apparatebau GmbH, Nutec Bickley, Seco/Warwick SA, Thermal Product Solutions and others. These companies are adopting various strategies such as collaboration and product launches to remain dominant in the market.  

For instance, in June 2023, Andritz AG collaborated with Sheffield Forgemasters to provide seven new car bottom furnaces for the UK's largest open die forge. The product, equipped with rail-mounted 'car-bottoms', technology and regenerative flat flame burners ensure optimal efficiency and homogeneous heating while enabling significant gas consumption savings. 

Moreover, in May 2022, Ipsen USA launched Turbo2Treater vacuum furnace in Italy. The product aimed to support the company's growth in the automotive sector and its expansion into aerospace.

Key Benefits

• The report provides quantitative analysis and estimations of the furnaces industry from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future furnaces market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the roles of stakeholders.

Furnaces Market Key Segments

By Type

• Gas Furnaces

• Oil Furnaces

• Electric Furnaces

• Dual-Fuel Furnaces

By Installation

• Standalone Furnaces

• Furnaces integrated into HVAC systems

• Portable Furnaces

By End-User

• Residential

• Commercial 

• Industrial

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The U.K.

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• Rest of the World (RoW)

  • Latin America

  • Middle East 

  • Africa

Key Players

• Andritz AG

• Carbolite Gero Ltd. (Dutch Verder Group)

• Epcon Industrial Systems LP

• Gasbarre Products Inc.

• International Thermal Systems

• Ipsen International GmbH

• LÖCHER Industrieofen- und Apparatebau GmbH

• Nutec Bickley

• Seco/Warwick SA

• Thermal Product Solutions

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 22.32 Billion
Revenue Forecast in 2030	USD 69.03 Billion
Growth Rate	CAGR of 4.3% 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Urban population expansion is driving the market growth. Energy efficiency initiatives are propelling the growth of the market. Adoption of renewable energy is significantly driving the market growth.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.