The global electric fireplace market size is anticipated to reach USD 2,480.5 million in 2024. It is set to grow at a CAGR of 4.1% during the assessment period to reach a value of USD 3,710.7 million by 2034. The market is further projected to witness a Y-O-Y growth rate of 3.7% in 2024.
Electric fireplaces are heating devices that are designed to replicate the appearance of traditional wood or gas fireplaces while offering users with the convenience and efficiency of electric heating. They produce heat by using LED flame effects and are being accepted by the population as they are energy efficient and do not adversely affect the environment.
These systems are often regarded as a clean and economical way of producing heat, without the use of wood, thereby becoming appealing in urban settings and areas having stringent environmental policies.
| Attributes | Description |
|---|---|
| Estimated Global Electric Fireplace Market Size (2024E) | USD 2,480.5 million |
| Projected Global Electric Fireplace Market Value (2034F) | USD 3,710.7 million |
| Value-based CAGR (2024 to 2034) | 4.1% |
Electric fireplaces are available in various styles, including built-in, wall-mounted, free standing, and fireplace inserts. Increasing consumer demand for eco-friendly home heating appliances is estimated to propel growth in the coming decade.
Another key factor fostering expansion is growth in the number of residential buildings worldwide. The United Nations published that 55% of the world’s population currently resides in urban areas and the percentage is further predicted to increase to 68% by 2030.
The demand for electric fireplaces is likely to be 1.5 times higher than the current value by 2034. This increased adoption is likely to be attributed to energy efficacy and reduced carbon emissions of these automated fireplaces in the face of energy costs and rising environmental concerns.
Innovations in technology assist in enhancing the design, performance, and reliability of these smart fireplaces, thereby making them extra appealing to homeowners, interior designers, and hospitality enterprises. For instance, Dimplex provides their consumers with innovative smart fireplaces containing Opti-Myst technology that creates realistic flame effects while maintaining energy efficiency.
Such automated fireplaces are not only highly functional but also enhance the aesthetics of homes. Smart fireplaces equipped with features like Wi-Fi control and voice activation are effective in improving comfort.
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The table below exhibits the anticipated CAGRs for the global electric fireplace market over semi-annual periods ranging from 2023 to 2024. The analysis provides organizations with a better understanding of the growth over the year by divulging crucial shifts in performance and growth patterns of the industry. The first half (H1) of 2023 spans from January to June. The second half or H2 includes July to December.
Figures projected in the table show the growth rate for each half from 2023 to 2024. The industry is anticipated to grow at a CAGR of 3.7% in the first half (H1) of 2023. The second half of the same year is predicted to witness a substantial increase in the growth rate at a CAGR of 4.1%.
| Particular | Value CAGR |
|---|---|
| H1 | 3.7% (2023 to 2033) |
| H2 | 4.1% (2023 to 2033) |
| H1 | 3.8% (2024 to 2034) |
| H2 | 4.3% (2024 to 2034) |
Moving in the proceeding period, from H1 2024 to H2 2034, the CAGR is estimated to decrease to 3.8% in the first half (H1) and then spike to 4.3% in the second half (H2). The market is anticipated to witness an increase of 10 BPS while in the second half, there was an increase of 20 BPS.
Easy Installation and Low Maintenance Drive Popularity
Rising popularity of electric fireplaces can be attributed to the ease of installation and the minimal maintenance involved compared to traditional fireplaces. There is an increasing interest in DIY models of automated fireplaces that don’t require intervention of specialists for installation, thereby enabling their assembly without engineering training.
These systems don’t user logs or other types of firewood, thereby reducing their risk of fire breakouts. Bulbs are the primary items in these devices that require replacement every few years.
Increasing Focus on Energy Efficiency Fosters Adoption
Increasing energy prices and environmental problems has led to the adoption of energy-efficient appliances. Electric fireplaces, which offer high energy efficiency by converting electricity into heat, are hence becoming a preferred choice.
According to the United States Department of Energy, electric heating devices, including fireplaces, can achieve efficiency levels of up to 99%. A study by the Electric Fireplace Association highlighted that consumers using smart fireplaces in conjunction with zone heating strategies reduce energy consumption by 30%.
Homeowners in cold climates can also avoid relying on full central heating systems by using automated fireplaces as supplemental heat sources, further cutting down energy bills and lowering environmental impact.
Growing Urbanization is Propelling Demand for Space-saving Smart Fireplaces
Urbanization is gradually shifting the trend toward impact and efficient home heating methods, thereby raising the popularity of smart fireplaces, especially in small homes. Such units allow for flexible installation, and are considered ideal for busy urban dwellers who live in apartments and condos.
According to the statistics presented by the National Multifamily Housing Council, about 39 million Americans live in apartments. Several people rent these apartments along with electric fireplaces as they have become popular owing to limited space within the houses.
Research conducted by the Association of Home Appliance Manufacturers has shown that among the people living in apartments, over 50% of them prefer automated fireplaces to any other type because of ease of installation and requirement of little space.
Electric heating appliances can be conveniently incorporated into the homes of city dwellers as there is no need for time-consuming reworking or permission seeking to install electric fireplaces. In addition to this, low upkeep and energy consumption appeal to residents who are in search of updated and hassle-free heating equipment.
Rising Demand for Eco-friendly and Sustainable Heating Solutions
Environmental protection has become a global trend and the electric fireplace industry is estimated to benefit from it. With the rising level of carbon emissions, both government bodies and organizations are working toward promoting eco-friendly solutions. Brands are capitalizing on this by informing their consumers of the various heating methods that have less effect on the ozone layer.
Unlike wood burning and gas fireplaces, smart heating appliances don’t have carbon emissions that pollute the environment. They are hence becoming a preferable option for eco-conscious people. The International Energy Agency (IEA) notes that the rise in the use of automated fireplaces over traditional heating methods can be attributed to the measures put by governments to combat climate change.
In markets such as Germany and Canada, where environment protection has been legally enforced, smart fireplaces are aggressively marketed as a cleaner and environmentally safe form of heating. Now that the world is striving hard toward Net Zero targets, appliances that fit within the sustainability ethos are preferred by customers.
Smart heating appliances manufactured by companies like Dimplex and Real Flame are being pitched to the market as appliances that replace wood, gas, and propane steel fireplaces by promises that they will be environmentally safe while still providing heat.
Principal Consultant
The global electric fireplace industry grew at a CAGR of 1.7% during the historical period. It gained a value of USD 2,391.2 million in 2023.
The trends over the historical period show an increasing demand for electric fireplaces as consumers looked for energy-saving and eco-friendly heating systems in residential and commercial places. Another factor that has influenced growth of electric fireplace is the rising trend of eco-sustainability and modern home design principles.
The market, in the COVID-19 pandemic period, however, suffered from demand stagnation as the lockdowns affected global manufacturing and construction activities. When restrictions were lifted and consumers had a renewed appetite to spend on home improvement projects, growth was quickly regained.
The industry is anticipated to reach USD 2,480.5 million by 2024 and is further projected to rise at a CAGR of 4.1% during the forecast period. It is predicted to reach USD 3,710.7 million by 2034.
Growing concern for energy efficiency and the need to reduce CO2 emissions has initiated the use of cleaner heating methods both in residential and commercial buildings. Innovation in smart home technology coupled with the drive toward clean energy is likely to result in a rise in demand for smart fireplaces.
Stringent environmental regulations coupled with increasing energy prices are pushing consumers to switch to energy-efficient alternatives, such as automated fireplaces that provide comfort and sustainablity.
Tier 1 segment consists of reputable organizations that are distinguished based on their stability and brand awareness. These companies have an annual revenue exceeding USD 80 million and capture a significant share ranging from 40% to 45% globally.
The companies are distinguished by their expertise in manufacturing and a broad geographical reach that is underpinned by a robust consumer base. These businesses offer an extensive range of products and utilize state-of-the-art technologies to ensure regulatory compliance. Prominent companies in the Tier 1 segment are Dimplex North America, Twin-Star International, Napoleon Fireplaces, and Amantii Electric Fireplaces.
Tier 2 segment is prominently made of small-scale enterprises operating within the regional sphere. These companies cater to the specialized needs of the industry and have a revenue ranging between USD 30 million and USD 80 million.
They account for a 30% to 35% share of the global industry. They leverage their extensive knowledge in manufacturing to cater to the regional demands and ensure regulatory compliance throughout their supply chains. Businesses in Tier 2 include Montigo Fireplace, Jetmaster, BFM Europe Ltd., and Magic Flame.
Tier 3 segment includes medium-to-small-sized firms that operate at the local level and serve niche markets. These firms have an annual revenue of USD 30 million and are notable oriented toward fulfilling local demands of the industry.
They hold a global share ranging between 25% and 20%. These enterprises have a limited geographical reach, that results in less competition among the players. Tier 3 companies often lack structure and formalization OER Fireplace and Zhejiang Fuerj Electric Science and Technology Co., Ltd. are the prominent players in the Tier 3 segment.
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The section offers organizations with an overview of the industry. It consists a detailed examination of the emerging trends and opportunities in the market on a country-by-country basis. This country-specific analysis of the dynamics is anticipated to assist businesses in understanding the complex nature of the industry.
The analysis comprises key factors, potential challenges, and forecasts impacting the demand, production, and consumption of the industry within each country. This section aims to help companies in making informed decisions and developing strategies customized to individual countries.
China is predicted to dominate the country-wise growth in the industry during the assessment period with an estimated CAGR of 4.7%. Japan, Germany, and the United States are projected to follow behind China to become the key countries in the industry with forecasted CAGRs of 4.1%, 3.9%, and 3.4% respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| China | 4.7% |
| Japan | 4.1% |
| Germany | 3.9% |
| United States | 3.4% |
| Spain | 3.1% |
The United States electric fireplace market is poised to exhibit a CAGR of 3.4% during the assessment period. It is projected to attain a value of USD 866 million by 2034.
The industry is primarily driven by the increasing consumer focus on energy-efficient and eco-friendly heating solutions in the country. Electric fireplaces are gaining popularity owing to their low maintenance, zero emissions, and cost-saving features, which allow homeowners to reduce energy costs by up to 25% compared to conventional heating systems.
According to the United States Energy Information Administration (EIA), residential energy consumption for space heating accounts for 42% of the total household energy use in the country. The shift toward electric fireplaces is visible in urban households where the use of clean energy and smart home systems is on the rise.
Sales of automated fireplaces in China are projected to soar at a CAGR of 4.7% during the forecast period. The total value is anticipated to reach USD 354.1 million by 2034.
Rapid urbanization coupled with the booming construction industry in China is posing a need for modern home heating solutions, particularly smart systems. Improved living conditions of the growing middle class, as well as the increasing concern for ecology, are turning people and businesses toward energy-saving devices.
As stated in China’s Five-Year Plan, development strategies will incorporate clean energy technologies, thereby making the use of electric fireplaces prevalent in the country. According to the National Bureau of Statistics of China, the country’s urban population increased by 64% in 2022, with millions of new urban houses being developed every year.
Germany’s electric fireplace market size is projected to reach USD 173.2 million by 2034. Demand for the heating appliance is estimated to rise at a CAGR of 3.9% during the forecast period.
Primary factors responsible for the growth of the industry in Germany are stringent environmental regulations and the rising attention toward renewable energy sources. The increasing adoption of energy-saving household appliances is another key factor fostering demand.
Energy-efficient renovation programs that include the installation of electric fireplaces are subsidized by the German Federal Ministry for Economic Affairs and Energy (BMWi) as a part of the government’s energy efficiency programs. These heating appliances can be run through solar energy or other clean energy sources, thereby becoming appealing to homeowners who don’t wish to offset their carbon emissions.
The section offers organizations with insightful data and analysis of the two leading segments of the target industry. Segmentation of these categories is likely to help businesses in understanding the dynamics of the industry and investing in beneficial zones.
Analysis of the growth is projected to help companies in gaining a thorough understanding of the trends, opportunities, and challenges. This examination is anticipated to help companies navigate the complex environment of the business world and make informed decisions.
Wall-mounted is estimated to lead the product type segment with a value share of 36.6% in 2024. In terms of installation, indoor is predicted to dominate with a value share of 87.5% in the same year.
| Segment | Wall-mounted (Product Type) |
|---|---|
| Value Share (2024) | 36.6% |
Wall-mounted is estimated to emerge as the leading product type with a value share of 36.6% in 2024. This upsurge is prominently attributed to the increasing need for compact heating devices, especially in urban set-ups where small apartments and households are prevalent.
Wall-mounted electric fireplaces offer a perfect combination of aesthetic appeal and practicality, especially amid the trend toward modern and minimalistic living environments.
The fireplaces do not occupy floor space, making them ideal for use in small living areas. They are easy to install and don’t require any structural modifications. Wall-mounted smart fireplaces blend seamlessly into modern interiors, thereby being both functional and visually striking.
| Segment | Indoor (Installation) |
|---|---|
| Value Share (2024) | 87.5% |
By installation, indoor is estimated to dominate with a value share of 87.5% in 2024. This growth can be attributed to their all-around usage and growing penetration in households, hotels, and corporate offices. Indoor bamboo electric fireplaces offer great convenience since they provide warmth without using gas or wood, leading to clean and energy efficient electric heating.
Electric fireplaces for indoor spaces are designed to warm only internal spaces without wasteful heating usage. They are also affordable and environmentally friendly and are favored especially in areas that experience long and harsh winter seasons where home heating is a must. While outdoor fireplaces can be used only during certain seasons, indoor electric fireplaces can be run throughout the year.
Key players in the industry include Twin-Star Home (ClassicFlame), Real Flame, Dimplex North America, Amantii Electric Fireplaces, Napoleon Fireplaces, Duraflame, Inc., GHP Group Inc., and Modern Flames. Manufacturers in the industry are actively enhancing their capabilities and resources to cater to the increasing demand for electric fireplaces.
Leading organizations are leveraging joint ventures strategies to co-develop innovative products with increased efficiency and functionality while boosting their resource base.
Industry giants are introducing new and unique products that address the rising need for cutting-edge solutions. Geographic expansion is a key strategy deployed by reputed companies to increase sales. Emergence of start-ups within the next decade is likely to make the market extra competitive.
Brands are progressively investing in research and development activities to broaden their product portfolio. Businesses are showing an inclination toward adopting strategies that include acquisitions, mergers, and partnerships to strengthen their footprint.
Industry Updates
Product type is segmented into built-in, wall-mounted, fireplace insert, and freestanding. Built-in is segmented into up to 30 inches, 30 to 45 inches, 45 to 60 inches, and above 60 inches. Wall-mounted is divided in up to 30 inches, 30 to 45 inches, 45 to 60 inches, and above 60 inches.
Fireplace insert is classified in up to 30 inches, 30 to 45 inches, 45 to 60 inches, and above 60 inches. Freestanding is categorized in 30 inches, 30 to 45 inches, 45 to 60 inches, and above 60 inches.
Indoor and outdoor are the installation segments.
Sales channels include direct and indirect. Indirect is further classified into dealers and online.
End-user is categorized into residential and commercial. Residential is further divided into fixed and portable. Commercial is classified into fixed and portable.
The industry is spread across North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia Pacific, and the Middle East and Africa.
The market is predicted to reach USD 2,480.5 million in 2024.
The market is projected to reach a size of USD 3,710.7 million by 2034.
Twin-Star Home (ClassicFlame), Real Flame, Dimplex North America, Napoleon Fireplaces, Duraflame, Inc., GHP Group Inc., and Modern Flames.
It lasts anywhere from 10 to 20 years.
Yes, they offer a modern, convenient, and sustainable alternative to the conventional wood-burning fireplaces.
The market is estimated to witness a CAGR of 4.1% during the assessment period.
China is projected to lead with a CAGR of 4.7% during the forecast period.
Industrial Automation
July 2023
REP-GB-1633
289 pages
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Electric Fireplace Market
