Underfloor heating market overview, dynamics and segmentation analysis

Underfloor heating can simply warm your floor or replace your radiators as a primary heat source. It is classified into two types: electric systems and water systems. The global underfloor heating market was worth $4.70 billion in 2021 and will reach $8.97 billion by 2030. The industry will grow with a CAGR of 7.44% from 2021 to 2030.

Market Dynamics of the underfloor heating Industry

Growth Driving Factors

• The government support and provide incentives for different underfloor heating solutions. Also, the continuous rise in demand for cost-effective heating solutions, and the increasing need for a higher level of thermal comfort are contributing to the overall growth.

• The use of various underfloor heating technologies and systems such as Nexans floor heating, electric radiant floor heating, in-floor heating systems, water underfloor heating, heated concrete floor, sun touch heated floor, bathroom underfloor heating, electric floor heating systems, infrared underfloor heating, gas underfloor heating, heat pump underfloor heating, heated laminate flooring, Rehau underfloor heating, solar underfloor heating and others are enhancing the overall market growth.

• Furthermore, the increasing environmental concerns and the growing number of efficiency standards for people’s residential comfort levels around the world will contribute to the industry growth.

Market restraints

Higher costs and taking a longer duration of time to heat are the two most notable factors that are obstructing the overall growth of this market. According to Forbes, the average cost of UFH is nearly USD 28,000, the highest price is approximately around USD 35,000, and the lowest price is up to USD 20,000.

Opportunities

The increasing demand for digitalization as a result of rapid technological advancements is boosting the growth. Also, the production of smart meters, home automation systems, demand-based heating solutions, smart infrastructure, smart buildings, and so on, will provide numerous opportunities for the market’s future prosperity.

Segmentation analysis of the underfloor heating market

The underfloor heating market has derived various product types, installation type, application, and region segments.

• On the basis of product type, the market report is considering products like hydronic and electric underfloor heating.

The hydronic underfloor heating segment held the largest market share of around 70.23% in 2020. Hydronic underfloor heating systems are generally viewed as an energy-efficient and long-term solution for large-area heating. They are suitable for applications, including stone, and all types of tiles, boosting this segment’s overall growth.

• On the basis of application, the market is segmented into residential, industrial, healthcare, commercial, sports & entertainment, and others.

Residential Sector Accounted For Maximum Share

The “Residential” segment held approximately 60.21% of the market in 2020 and will continue to lead throughout the forecasted period of 2020-2030. The increased awareness of the benefits of underfloor heating systems used in residential properties, as well as the faster growth rate of the market for various residential applications as a result of the continuously growing home renovation activities by residents in many developed countries around the world, are all contributing to the overall growth of this segment.

• On the basis of installation, the market is divided into retrofit installation and new installation.

In terms of revenue, the “New Installation” segment led the market in 2020. Several government initiatives to invest in the development of smart cities with green buildings have gradually improved the demand for new installations of underfloor heating around the world, driving the segment’s growth.

•  Regionally the market is analyzed across North America, Europe, Asia Pacific, and LAMEA.

Europe had the largest market share in 2020, with the fastest CAGR of 7.62%. The increasing awareness of the advantages of various underfloor heating systems in the construction sector, especially in cold European countries, is boosting the region’s overall growth.

Competitive landscape

The market for underfloor heating is highly fragmented. Major market players are increasing their market footprints through strategies such as new product launches, expansions, agreements, partnerships, and purchases.

Prominent players in the underfloor heating market are:

• Uponor
• Danfoss
• Daikin
• Rehau
• Siemens
• Honeywell
• Thermosoft International

The presence of benefits such as increased UFH energy conservation, minimal maintenance of electric heating systems, freedom of design and adaptability of floor heaters, and safety and ease of installation are the major factors driving the market growth during the forecast years.