Fuel Gas Heater Market

Fuel Gas Heater Market Outlook 2024 to 2034

In the recently revised research report made by FMI, the fuel gas heater market is expected to record USD 1,954.80 million in 2024. Rising growth prospects for fuel gas heater solution providers in developed countries are key motivators of this market.

The fuel gas heater industry is forecast to expand at a CAGR of 4.80% in the ten-year time frame. Factors like surging adoption rates and use cases for fuel gas heating applications are supporting the market growth. Additionally, technological advancements and innovations in fuel gas heaters by market players are forecast to boost market growth.

According to revenue analysis of the fuel gas heater market by FMI analysts for the year 2034, the market is expected to surpass USD 3,124.00 million.

Attributes	Key Insights
Fuel Gas Heater Market Size (2024E)	USD 1,954.80 million
Market Valuation (2034F)	USD 3,124.00 million
Value-based CAGR (2024 to 2034)	4.80%

Market Trends and Drivers for Fuel Gas Heating Technology

• Home heating in the residential sector is one of the significant components responsible for increasing greenhouse gases in the environment. Players and consumers alike are taking an environmentally conscious approach, by offering the option of gases and technology that have the potential to conserve energy, reduce carbon footprint, and build resilience to altering climate and oscillating fuel prices.
• Growing demand for heating technologies that are low-carbon and efficient is positively impacting the market growth. As a result, demand for fuel gas heaters continues to strike higher, especially in regions like Europe and North America.
• Continuous demand for fuel gas heaters in residential, commercial, and industrial sectors to appreciate the value of the fuel gas heater industry.
• Setting up plans to accelerate the deployment of fuel gas heaters to achieve Net Zero Emissions by 2050.
• Ongoing research on the sustainability considerations and environmental impact associated with the manufacturing and use of fuel gas heaters is helping in the advancement of the market.
• With the help of IoT connectivity and smart thermostat integration, the adoption of fuel gas heaters is continuously rising. This is also solidified by the increasing interest of consumers in these smart innovations.
• Market players are finding opportunities by integrating advanced combustion control technologies in fuel gas heating systems.
• Demand for hybrid heating solutions in the fuel gas heater industry is expected to be a key market trend.

In a later section of this report, analysis of fuel source preferences and regional market dynamics in the fuel gas heating industry are also vividly discussed.

Overview of Markets Adjacent to the Fuel Gas Heater Market

In the section below, find out emerging opportunities in the fuel gas heater market, instant water heater market, and electric water heater market. The comparative study is beneficial for players seeking expansion of their scope.

Core Market:

Attributes	Fuel Gas Heater Industry
CAGR (2024 to 2034)	4.80%
Growth Factor	Growing demand for fuel gas heaters in the residential sector
Opportunity	IoT connectivity and smart thermostat integration to increase opportunities for fuel gas heaters
Key Trends	Surging demand for hybrid heating solutions

Instant Water Heater Market:

Attributes	Instant Water Heater Market
CAGR (2024 to 2034)	4.60%
Growth Factor	Increasing prominence of home energy management systems
Opportunity	Sustainability trends push the integration of renewable energy sources
Key Trends	Evolving consumer needs propose a heightened scope of hybrid water heaters

Electric Water Heater Market:

Attributes	Electric Water Heater Market
CAGR (2024 to 2034)	5.2%
Growth Factor	Increasing demand for heaters to be used in the residential sector
Opportunity	Surging product launches by market players
Key Trends	Rising focus on sustainability to set the trends in the electric water heater market

Category-wise Fuel Gas Heater Market Analysis

Natural Gas to Occupy a Massive Share of the Fuel Gas Heater Market

Leading Type of Fuel	Natural Gas
Value Share (2024)	45.20%

Natural gas is excessively used in fuel gas heaters as it is less polluting and generates a lesser degree of greenhouse gases than its counterparts. Analysts at FMI have estimated that this gas is expected to account for 45.20% of the overall market share.

Alternatively, heaters powered by propane and butane are expected to garner consumer interest and increase take-up over the next decade. This shift in dynamics is expected to make natural gas lose its share in the future, which is comparatively less environmentally friendly.

Conventional Heaters to Possess a Large Chunk of Market Share

Leading Technology	Conventional Heaters
Value Share (2024)	30.30%

Conventional heaters continue to have a substantial grip in the fuel gas heater market. This segment is projected to offer a value share of 30.30% in the year 2024. The key factor that is still driving the growth of conventional heaters is the cost-savings people experience through the purchase of conventional heaters as opposed to other contemporary options.

Global Fuel Gas Heater Market Demand Analysis by Country

Countries	Forecast CAGR (2024 to 2034)
Canada	5.40%
Spain	5.10%
South Korea	5.40%
Japan	4.90%
Australia	5.40%

Canada to Flourish in North America, With Many Customers Purchasing Fuel Gas Heaters

The market size of fuel gas heaters in Canada is becoming wider, stretching at a rate of 5.40% over the next ten years. The adoption rate of fuel gas heaters in Canada is higher than in the United States. The country is projected to observe an array of factors that induce market growth:

• Increasing count of companies expanding their operations in Canada, after identifying their market in the country.
• Gas-powered heaters are finding many takers in this country, as they spread heat and offer comfort uniformly across all areas.
• Players are benefitting online customers with fast shipping and quality customer services. Companies can thus expect a surge of online traffic on eCommerce platforms to purchase fuel gas heaters in upcoming years.

Concerns Over Climbing Global Emissions to Raise Demand for Convection Heaters in Spain

The growth rate of the fuel gas heater market in Spain is estimated at 5.10% CAGR over the forecast period. The growth of this market is compounding due to various factors, including:

• Increasing demand for gas wall heaters as a good substitute for central heating in circumstances where the requirement for living flames is not as important.
• As countries in Europe, Spain included, zero in on their efforts to gradually curtail their contribution to global warming, alternatives like convection heaters, heat pumps, biomass boilers, ionic boilers, etc. are finding considerable customers.

South Korea to Embark on a 5.40% Growth Rate in Following Years

The fuel gas heater industry in South Korea is thriving at a consistent 5.40% CAGR. Factors controlling the market dynamics in the country are as follows:

• Increasing focus on the transition to sustainable heating is going to govern demand for convection heaters, radiant heaters, and forced air heaters in South Korea.
• Players are releasing innovative fuel gas heaters that prioritize convenience in their portfolio. These heat convectors are made with the intent to offer superior performance, convenient features, and elegance in looks.
• Continuous developments in the country are propelling market growth. For instance, in October 2023, a new district heating plant was established by Naepo Green Energy Co., Ltd. in Naepo City, South Korea. The plant offers about 500MW of electricity to steam and the national grid for district heating purposes across the region. The plant uses H-Class technology that switches the main energy source of the heat source facility to liquefied natural gas (LNG) to encourage massive improvements in reduced emissions, fuel efficiency, and elevated cost-effectiveness.

Severe Spells of Cold in Japan Augment the Sales of Fuel Gas Heaters

Japan is projected to witness a compounding growth rate of 4.90% for the next decade. Key factors fueling the market growth are as follows:

• Cold spells of winter in Japan are improving the sales of domestic heating equipment like fuel gas heaters. The country faces a massive surge in its thermal power generation to combat overwhelmingly cold winters.
• Growing demand for low-carbon and efficient heating technologies is compelling the demand for fuel gas heaters that use earth-friendly gases.

Green Initiatives to Propel the Use of Latest Efficient Heating Systems in Australia

Australia’s fuel gas heater market is expected to expand at a CAGR of 5.40% over the next ten years. Key aspects that are compelling market growth are mentioned below:

• Ongoing advancements and research activities are propelling the growth of fuel gas heaters. For instance, in January 2024, Australian Gas Infrastructure Group’s MyHome launched a hydrogen-powered home in the country. This is a phenomenal development in this sector as MyHome positions itself as a first-of-its-kind in Australia.
• Increasing demand for green and efficient heating systems in residential homes to propel growth in Australia.

Competitive Analysis of the Fuel Gas Heater Sector

Fuel gas heater companies are expanding their operations across geographies where growth potential seems to be higher. Players are taking extra measures to develop green and efficient heating systems for a sustainable future for the planet.

Going forward, players are expected to continue on their path of research and developmental activities to introduce breakthroughs in the market for advancement.

Industry participants are offering their products online as customers are attracted to the convenience of online platforms. By offering benefits like fast shipping and quality customer service, players are raising their product sales.

Events Shaping the Fuel Gas Heater Market

• In September 2024, France revealed that it is planning to irrevocably switch from residential fuel and gas heaters to heat pumps. The country is seeking a way to curb its GHG emissions by encouraging citizens to install heat pumps in their houses and giving a much-needed boost to the heat pump industry. This is a key initiative under the multi-year environmental plan.
• In April 2024, Augsburg, Germany, made an official declaration that it had decided to end its use of natural gas in its heating systems. Businesses in the city have been proactive in informing their customers about their intention to gradually abandon the gas grid over the next few years.
• In April 2024, Oklahoma-based OGI Process Equipment, which is a top provider of industrial product solutions, announced the release of a new burner management system, called TotalArc BMS View. The system has uncontrolled safety and control, making it a cutting-edge system that not only effectively handles natural draft burners but also provides configurable electronic temperature control and monitoring.
• In November 2023, Adani Total Gas Ltd, a joint venture of TotalEnergies - a French energy giant, and Gautam Adani's group, commenced integration of green hydrogen in natural gas that they sell across Ahmedabad. Natural gas is heavily used in industries and households, where the latter segment uses it for cooking.

Key Coverage in the Global Fuel Gas Heater Market Research Report

• Adjacent Study of the Gas Water Heater Market and Fired Heaters Market
• Analysis of Aftermarket Services and Maintenance Contracts in the Fuel Gas Heating Sector

Enlisted Below are Key players in the Fuel Gas Heater Industry

• Heatco
• Exotherm Corporation
• Sigma Thermal
• Cast Aluminum Solutions
• ELMESS Thermosystemtechnik GmbH & Co. KG
• Quiri Thermal Exchanges

Market Segmentation of Fuel Gas Heater Products

The Market is Segregated By Type of Fuel:

• Natural Gas Heaters
• Propane Heaters
• Butane Heaters

Based on Application, the Market is Divided into:

• Residential
• Commercial
• Industrial

By Technology, the Market is Compartmentalized into:

• Convection Heaters
• Radiant Heaters
• Forced Air Heaters

Based on the Distribution Channel:

• Online Retail
• Offline Retail
• Direct Sales

Different Regional Markets are as Follows:

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

Frequently Asked Questions

What is the Market Valuation of Fuel Gas Heater Market as of 2024?

Current projections of the market indicate a valuation of USD 1,954.80 million in 2024.

What is the Projected Adoption Rate of Fuel Gas Heater for the Years Between 2024 to 2034?

Looking ahead to 2034, the current forecast projects a CAGR of 4.80% for the industry.

How Much Revenue this Industry is Expected to Generate by 2034?

FMI predicts the market to reach USD 3,124.00 million by the year 2034.

Which Technology Segment Holds a Significant Market Share?

Conventional heaters are predicted to hold a significant market share during the forecast period.

Which Countries Offer Growth Opportunities?

South Korea, Japan, and Canada are predicted to offer many opportunities for investors and stakeholders.

Which Players in the Industry are Influential?

Heatco, Exotherm Corporation, and Sigma Thermal are powerful players in the fuel gas heater industry.