Product Code: 71490
The underfloor heating market is expected to reach a CAGR of 7.3% during the forecast period (2020 - 2025). The factors such as high demand for cost-effective heating solutions, strong government support, awareness regarding underfloor heating, and a high level of comfort and flexibility offered by underfloor heating systems drive the growth for the market.
- The International Energy Agency (IEA) released a report on energy consumption in buildings estimating that by 2030, the energy used by household appliances will increase with Asia-Pacific being the region with the most prominent growth. Further, the rising awareness about energy efficiency and renewable energy technology has a significant impact on future demand for underfloor heating systems. These energy and heating solutions can achieve substantial carbon savings and help to meet renewable energy targets.
- According to HCL, an estimated 10% of households across the world are likely to be smart homes by 2025. Moreover, the growing quality of new building techniques such as insulation and controls stimulates the underfloor heating systems vendor to come up with new solutions to cater to the increasing demands for customers. For instance, Bosch offers a smart home, room thermostat to operate underfloor heating from anywhere.
- Moreover, the stringent government norms for energy efficiency & standards toward the adoption of electrical & electric appliances emphasize the adoption of sustainable technologies, which fuel up market growth. The new advanced underfloor heating systems boost the replacement rates of the legacy heating systems on account of high operational costs and substantial energy & heat loss. However, slow response time of underfloor heating is one of the factors that are limiting the growth of underfloor heating systems.
- With the outbreak of COVID-19, respective governments worldwide have shut down day-to-day business operations by implementing lockdown. Due to which there are labor shortages and delays in projects which has impacted the global construction & infrastructure industry drastically that results in a decline in product deployment. Hence the market is likely to face challenges till the resurgence.
Key Market Trends
Residential Sector to Drive the Market Growth
- The residential sector holds the maximum market share for the underfloor heating market due to people's rising inclination towards a better standard of living. Moreover, refurbishment activity and smart home initiatives further boost the market growth. The smart home market is anticipated to register a CAGR of 25% over the 2020 - 2025 and is expected to reach USD 246.42 billion by 2025, compared to USD 64.60 billion in 2019.
- Underfloor heating is 15-20% more energy efficient than traditional methods and, therefore, reduces the overall carbon footprint of a building. They are hence considered as an optimal solution for heating the homes. Further, Government advisers have even recommended recently to ban gas boilers installation in new homes by 2025, which stimulates market growth.
- Moreover, the increasing adoption of underfloor heating in the residential sector is due to its advantages over radiators. These include more comfort, adequate heat, less expensive bills, etc. Moreover, the air circulated from underfloor heating is cleaner than the air pushed around by radiators.
- Further vendors are investing in research & development to create better products in the market. For instance, in June 2019, Firebird launched its new Envirofloor underfloor heating range, which is built for both new and refurbishment projects for efficient heating.
Europe Holds Maximum Market Share
- Europe holds the maximum share of the market as the region has a strong presence of underfloor heating vendors such as Robert Bosch GmbH, Siemens AG, Schneider Electric, Nexans S.A., and nVent Electric plc among others. Moreover, Europe has been witnessing an increasing number of players entering the market, owing to the rising inclination for energy-efficient buildings that are enabling companies the potential to gain profit by expanding their sales.
- Further, the region's weather conditions also play a remarkable role in the growth of the market. The U.K. government has also been actively participating in reducing the effects of climate change. This is expected to impact the adoption of underfloor heating systems, thereby affecting the market's growth. Furthermore, the European Commission adopted the Energy Efficiency Directive to establish measures and policies to support the European Union to reach a 20% energy efficiency target by 2020.
- According to the European Commission, in volume, the installed base of smart home and smart building devices in the region will grow to over 980 million units by 2025, when taking into account the energy management and security-based devices. Additionally, the European Union topped the investments in energy-efficient buildings, according to OECD. Therefore, with rise in the investments and emphasis on energy-efficient buildings in the region, the market is likely to hold dominance over the forecast period.
The underfloor heating market is highly fragmented. Majors players in the market are using various strategies such as new product launches, expansions, agreements, partnerships, acquisitions, and others to increase their footprints in this market. Some of the recent development in the market are:
- In January 2020 - Emerson introduced new Warm Tiles ColorTouch WiFi-enabled thermostats. This system is designed with a WiFi-enabled version that gives consumers remote access to their system from a mobile device or web browser. It allows consumers to program their floor's temperature remotely to set their floor warming preferences at any time, whether for a few hours, few days, vacation, or permanently.
- In January 2020 - nVent expanded its alliance with MAPEI, a global leader in the manufacturing of mortars, grouts, adhesives, and chemicals for the building industry. nVent and MAPEI collaborated to develop MAPEI Mapeheat for the US flooring channel. Mapeheat Mat, Mapeheat Membrane, Mapeheat Cable, and Mapeheat Thermostats are a few more products that are likely to be manufactured through this alliance.
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TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 EXECUTIVE SUMMARY
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 High Demand for Cost-Effective Heating Solutions
- 4.2.2 Stringent Building Codes to Reduce Overall Energy Consumption
- 4.3 Market Restraints
- 4.3.1 Slower Response Time of Underfloor Heating Systems Than Radiator Systems
- 4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Industry Value Chain Analysis
- 4.6 Assessment on the Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
- 5.1 By Offering
- 5.1.1 Hardware
- 5.1.2 Services
- 5.2 By Type
- 5.2.1 Electric
- 5.2.2 Hydronic
- 5.3 By Subsystem
- 5.3.1 Heating Systems
- 5.3.2 Control Systems
- 5.4 By Installation Type
- 5.4.1 New Installations
- 5.4.2 Retrofit Installations
- 5.5 By Application
- 5.5.1 Residential
- 5.5.2 Commercial
- 5.5.3 Institutional
- 5.5.4 Industrial
- 5.6 Geography
- 5.6.1 North America
- 5.6.2 Europe
- 5.6.3 Asia-pacific
- 5.6.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Key Vendor Profiles*
- 6.1.1 Uponor Corporation
- 6.1.2 Emersion Electric Co.
- 6.1.3 Honeywell International Inc.
- 6.1.4 Robert Bosch GmbH
- 6.1.5 Danfoss Group
- 6.1.6 Mitsubishi Electric Corporation
- 6.1.7 Siemens AG
- 6.1.8 Schneider Electric
- 6.1.9 Nexans S.A.
- 6.1.10 Amuheat
- 6.1.11 nVent Electric PLC
- 6.1.12 Flexel International Limited
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS