Underfloor Heating Market by Product (Hydronic and Electric), System (Heating System and Control System), Application (Residential, Commercial, and Industrial), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global Underfloor Heating Market Analysis

The global underfloor heating market size is predicted to garner $8,240.5 million in the 2021–2028 timeframe, growing from $4,888.9 million in 2020, at a healthy CAGR of 7.0%.

Market Synopsis

Growing demand for energy-efficient heating systems and stringent building regulations to reduce energy consumption are driving the global underfloor heating market. Furthermore, supportive government policies and incentives programs for developing energy-efficient heating & cooling system will boost the demand of the underfloor heating market in the coming years.

The initial cost of installing the underfloor heating system is high. Additionally, the response time of an underfloor heating system is relatively slow, hindering the growth of the global underfloor heating market.

According to the regional analysis, the Europe underfloor heating market is anticipated to grow during the review period and generate a revenue of $3,741.2 million in 2028, with a CAGR of 7.4%. The growing awareness of energy-efficient heating & cooling system is the key factor driving the growth of underfloor heating in the region.

Underfloor Heating Overview

Underfloor heating is the way of heating floors of a building through strong and flexible tubing that is embedded in the floor. The underfloor heating system is an affordable, convenient, and environmentally friendly way of heating the floors of a building during cold weather. Due to climate change, various regions are experiencing extremely cold conditions all year round, which makes living in such regions highly uncomfortable. As a result, the demand for underfloor heating system is steadily growing.

Impact Analysis of COVID-19 on the Global Underfloor Heating Market

The COVID 19 pandemic has had a significant effect on the growth of the global underfloor heating market. The spread of novel coronavirus and home quarantine disrupted industrial supply and forced component suppliers and manufacturers to think differently about how to use the global distribution network to support business continuity. The industry participants had operational challenges owing to the implementation of safety protocol to contain the spread of the virus, causing labor shortage. Besides, the outbreak of the novel coronavirus led to a fluctuation in price and demand of underfloor heating systems due to the closure of offices and commercial establishments. Due to the social distancing, manufacturers, service providers, and contractors were either not allowed or reluctant to provide installation service resulting in decreasing demand.

Growing Awareness about Energy-efficient and Eco-friendly Attributes of Underfloor Heating to Drive the Market Growth

People in Europe and North America are aware of the benefits of underfloor heating compared to conventional heating systems such as radiators, air conditioners, and convectors. The underfloor heating system is cost-effective, energy-efficient, and affordable maintenance cost. As a result, homeowners, city developers, and architects are shifting towards the underfloor heating system. For instance, the Sierra Bonita Apartment, California, the US, is an eco-friendly residential building with underfloor heating systems.

Technological advancements such as Wi-Fi-controlled underfloor heating solutions have also contributed to the market growth. Portable underfloor heating systems are easy to install and do not require renovation work. Similarly, the Wi-Fi-enabled underfloor heating systems enable their users to control the temperature using smartphones & tablets and can also be used to set different temperatures across the house. Energy-efficient and eco-friendly attributes of underfloor heating are driving the market growth.

To know more about global underfloor heating market drivers, get in touch with our analysts here.

High Installation Cost to Restrain Market Growth

The initial cost of installing an underfloor heating system is high in most countries. As per the estimates, installation and material from professionals will cost anywhere from $650 - $11,000. The cost of installing an electric underfloor heating system is around $65 - $115, and wet underfloor heating system costs from $160 - $250 per square meter. The high cost of installation is expected to hamper the growth of the underfloor heating market.

Growing Demand for Eco-friendly Underfloor Heating to Generate Huge Opportunities

Governments of most countries are focusing on reducing carbon emissions. The Paris agreement, where 196 countries agreed to contribute to lowering the temperature by decreasing carbon footprints, has fuel the demand for eco-friendly products. As a result, people are installing wind or solar powered underfloor heating systems in their homes and offices. Furthermore, architects and city developers investing in green building projects are opting for eco-friendly underfloor heating system.

Government initiatives have also been taken for green regions in order to reduce carbon emissions. The complete region is supposed to use either green energy sources appliances or appliances which are capable of running on low energy. This is expected to create a lucrative opportunity for the eco-friendly underfloor heating market, in the future years.

To know more about global underfloor heating market opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The hydronic underfloor heating sub-type is anticipated to have a dominant market share and generate a revenue of $5,838.9 million by 2028, growing from $3,396.8 million in 2020. In a hydronic underfloor heating system, heat is distributed through the tubing laid underfloor. Hot water flows through the pipes embedded beneath the floor. When compared to the electric system, the hydronic underfloor heating system is eco-friendly and economical, hence they are used in large buildings and homes. Such factors are driving the market of the hydronic underfloor heating market.

Source: Research Dive Analysis

The heating system sub-segment is anticipated to have a dominant market share and generate a revenue of $6,652.2 million by 2028, growing from $3,892.6 million in 2020. Increasing investment for developing energy-efficient underfloor heating system is the main factor driving the demand for heating system during the forecast period. Moreover, underfloor heating systems are becoming increasingly popular across the world as they allow users to control surrounding temperatures. Such factors are expected to drive the heating system market over the forecast period.

Source: Research Dive Analysis

The residential sub-segment is anticipated to have a dominant market share and generate a revenue of $5,045.7 million by 2028, growing from $2,945.1 million in 2020. Changing climate has fueled the demand for the underfloor heating system, globally. Moreover, growing awareness among homeowners about underfloor heating systems due to their energy-efficient and eco-friendly attribute is driving the demand for underfloor heating systems among residential owners. In addition, growing renovations, refurbishment activities, and new residential complex developments in the residential sector have also contributed to the rise in the inflow of investments for the underfloor heating market.

Source: Research Dive Analysis

The Market for Underfloor Heating in Europe to be the Most Dominant

The Europe underfloor heating market accounted for the highest market share in 2020 and it is estimated to show the fastest growth during the forecast period. Europe was the highest revenue contributor, accounting for $2,156.0 million in 2020, and is estimated to reach $3,741.2 million by 2028, with a CAGR of 7.4%. Growing population and industrialization have drastically changed Europe's climate. As a result, most people are opting for underfloor heating systems which are capable of uniform heating while using less energy and emitting fewer carbon emissions. Furthermore, governments across Europe have imposed strict laws and regulations concerning carbon emissions. Such factors are expected to drive Europe's underfloor heating market.

Competitive Scenario in the Global Underfloor Heating Market

Acquisition and investment are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading underfloor heating market players are Uponor, Danfoss, nVent, Rehau, Honeywell International, Daikin, ESI Heating and Cooling, Thermosoft International, Siemens, and Mitsubishi Electric.

Porter’s Five Forces Analysis for the Global Underfloor Heating Market:

• Bargaining Power of Suppliers: There are several suppliers operating in the global underfloor heating market. The presence of enormous number of suppliers reduces their profits as the buyer can switch from one supplier to another based on cost factor and demand.
  Thus, the bargaining power of suppliers is low.
• Bargaining Power of Buyers: There are significant number of suppliers in the market. Buyers can easily switch from one supplier to another.
  Thus, buyer’s bargaining power will be high.
• Threat of New Entrants: Companies operating in the underfloor heating market are working on launching energy efficient products to attract clients. Also, these companies are implementing various effective strategies such as offering discounts and value propositions.
  Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: The high presence of HVAC and VRF system may be used as substitute for underfloor heating.
  Thus, the threat of substitutes is moderate.
• Competitive Rivalry in the Market: The companies operating in this market are focusing on bringing innovative technologies in underfloor heating which increases the industry competition.
  Therefore, competitive rivalry in the market is high.