Underfloor Heating Market Expected to Reach $8.1 Billion by 2030

According to a new report published by Allied Market Research, titled, “underfloor heating market" was valued at $5.2 billion in 2023, and is projected to reach $8.1 billion by 2030, growing at a CAGR of 6.7% from 2024 to 2030.

Underfloor heating is a central heating system that provides thermal comfort through conduction, radiation, and convection by installing heating elements beneath the floor surface. There are two primary types electric and hydronic. Electric systems use heating cables, mats, or films, ideal for small areas or renovations due to easy installation. Hydronic systems, suitable for larger areas or new constructions, circulate heated water through pipes embedded in the floor, offering greater long-term efficiency.

The growth trajectory is supported by a combination of factors, including increased urban migration, stringent government regulations aimed at reducing carbon emissions, and the rapid expansion of multi-story residential buildings.

Urban migration is a significant driver of the underfloor heating market. As more people move to urban areas, the demand for efficient and space-saving heating solutions in multi-story residential buildings has surged. Underfloor heating systems, known for their efficiency and ability to distribute heat evenly, are increasingly being adopted in new residential constructions. This trend is particularly pronounced in Europe, where government regulations are promoting the use of renewable energy sources and sustainability in building projects.

Government regulations are another critical factor propelling the adoption of underfloor heating systems. In many regions, particularly in Europe, governments have implemented stringent regulations to reduce carbon emissions and promote energy efficiency. For instance, the European Union has set ambitious targets for reducing greenhouse gas emissions, and the banning of gas boilers in residential buildings by 2025 is one such measure. These regulations are encouraging the adoption of alternative heating solutions, such as underfloor heating, which are more energy-efficient and environmentally friendly.

Energy efficiency is a key advantage of underfloor heating systems. Compared to traditional heating methods, underfloor heating systems provide a more uniform distribution of heat, reducing energy consumption and costs. This efficiency, coupled with growing consumer awareness about the benefits of underfloor heating, is driving market growth. Consumers are increasingly seeking heating solutions that not only provide comfort but also contribute to energy savings and environmental sustainability.

Technological advancements are also playing a crucial role in the growth of the underfloor heating market. Innovations in heating technologies, including the integration of smart home systems, are creating new opportunities for market expansion. Advanced control systems and heating elements are making underfloor heating systems more efficient and user-friendly. For example, smart thermostats allow users to control the temperature remotely, enhancing convenience and energy efficiency. These technological advancements are expected to drive the adoption of underfloor heating systems in both residential and commercial applications.

The rapid development of the construction sector in both developed and developing countries is providing substantial growth opportunities for the underfloor heating market. Government investments in smart cities and green buildings are further boosting the demand for underfloor heating systems. In many regions, there is a growing emphasis on constructing energy-efficient buildings that minimize environmental impact. Underfloor heating systems are an integral part of these green building initiatives, as they help achieve energy efficiency and sustainability goals.

The market is segmented based on product type, system, installation, application, and region. Among these segments, the hydronic segment, which uses hot water to heat the floor, is expected to dominate the market. Hydronic systems are more efficient and have lower running costs compared to electric systems, making them a preferred choice for many consumers. Additionally, the heating system segment, which includes actuators and thermostats, is projected to see significant growth. The increasing demand for comfort in residential and commercial buildings is driving the adoption of these systems.

In terms of installation, new installations are expected to grow faster than retrofit installations. Government initiatives and investments in smart city projects are contributing to the demand for new underfloor heating installations. These projects often involve the construction of new buildings that incorporate the latest energy-efficient technologies, including underfloor heating systems. The residential segment is anticipated to dominate the underfloor heating market size, driven by growing awareness among individuals about the benefits of underfloor heating. However, the commercial and industrial segments are also expected to see substantial growth, as businesses and industries seek to enhance energy efficiency and reduce operational costs.

Regional analysis indicates that Europe is expected to lead the global underfloor heating market. The region's dominance can be attributed to government policies promoting renewable energy and the banning of gas boiler installations in new homes by 2025. The presence of cold countries and the high demand for comfort in residential and commercial buildings are also contributing to the underfloor heating market share growth in this region. North America and Asia-Pacific are also significant markets for underfloor heating systems. In North America, the increasing adoption of heat pumps, especially in colder regions, is driving market growth. In Asia-Pacific, the rapid growth of the construction sector and the presence of cold climate zones are fueling demand for underfloor heating solutions.

Leading companies in the underfloor heating market include Danfoss, Daikin, Emerson Electric Co., Honeywell, Mitsubishi Electric Corporation, Pentair Plc, Robert Bosch, Siemens, Schneider Electric, and Thermosoft International. These companies are focusing on strategies such as new product launches, collaborations, and expansions to increase their market share and maintain a competitive edge. For instance, many of these companies are investing in research and development to innovate and improve their product offerings. Additionally, collaborations and partnerships with other underfloor heating industry players are helping them expand their market presence and reach new customers.

Danfoss, for example, has been at the forefront of technological advancements in the underfloor heating market. The company has developed a range of products that offer enhanced energy efficiency and user convenience. Similarly, Honeywell has introduced smart thermostats and control systems that allow users to manage their heating systems remotely. These innovations are helping companies cater to the evolving needs of consumers and stay ahead of the competition.

Key Findings of the Study:

• On the basis of product type, the hydronics segment emerged as the leader in 2023 and is anticipated to be the largest markets during the forecast period.
• On the basis of end use, the residential segment emerged as the leader in 2023 and is anticipated to be the largest markets during the forecast period.