Underfloor Heating Market Analysis

Underfloor Heating Industry Insights

System Type Analysis

In 2024, the hydronic category holds the larger market share, of 70%. A hydronic underfloor heating system includes network pipes, thermal actuators, zone valves, wiring centers, and manifolds, which together deliver more heat than an electric system at a lower operating cost.

With the rise in the standard of living of people, North American and European countries are the key contributors to the underfloor heating market boom. Heating controls enable central heating systems to operate automatically, with the user's only input being to update or temporarily override the program.

The electric category will witness the higher CAGR, of 8%, over the forecast period. This is because of the shift form fossil fuels toward cleaner energy sources, and since hydronic systems mostly use natural gas, electric ones are being preferred. Additionally, electric systems require fewer components than their hydronic counterparts and use non-corrosive elements. Further, with the expanding electricity access in far-flung areas, people no longer have to depend on gas and other fossil fuels for heating. Moreover, compared to hydronic systems, electric variants respond more quickly, thus enhancing comfort and limiting energy consumption.

The segment is bifurcated as below:

• Electric (Faster-Growing Category)
• Hydronic (Larger Category)

Offering Analysis

The hardware category has the larger share, of 75%, in 2024. Hardware, which is the major component of any heating system, includes heating cables, heating mats, heating pipes, thermostats, zone valves, and wiring centers. Companies are involved in acquisitions in order to enhance their position in the market. For instance, The Stelpro Group acquired Flextherm, an electric floor heating solution provider. This collaboration will facilitate developing products for smart homes and energy consumption management, including a range of heating cables and controls.

Moreover, the changing lifestyle of people and rising disposable income, especially in developed countries, such as Canada and the U.S., drive the usage of underfloor heating in new as well as renovated apartments. For instance, in North America, the Pittsburgh Mixed-Use Development project involves the development of residential, commercial, and office spaces on 11.33 hectares of land. This project was expected to be completed in Q4 2023, and it has attracted investments of USD 1,000 million.

Services will witness the faster growth over this decade, with a CAGR of 9%. This is because of the complexity of installing an underfloor heating system, which required professional help, often beginning with consulting for buildings with large floor areas. Similarly, due to the variety of components used in this system, upgrading and repairing it is not easy. Therefore, users must contact a real estate contractor or product manufacturer for this purpose.

The following offerings are covered in the report:

• Hardware (Larger Category)
  • Heating systems
    • Cables
    • Mats
    • Thermostats and sensors
    • Pipes
    • Thermal actuators
    • Zone valves
    • Wiring centers
    • Manifold valves
    • Others
  • Control systems
• Service (Faster-Growing Category)
  • Installation
  • Upgradation/replacement
  • Maintenance and repair
  • Consulting

Installation Type Analysis

The new installations category dominates the market in 2024 with 65% share, and it is projected to grow at the higher rate, of 8.5%, attributed to the increasing awareness of reducing carbon emissions. For instance, the EU has developed the Energy Efficiency (EE) regulatory framework, containing policies and outlining actions to help the region meet its objective of reducing greenhouse gases by at least 55% by 2030.

Moreover, commercial and residential infrastructure projects, including those part of smart city projects, are using underfloor heating setups in order to meet these objectives.

Moreover, as per forecast, retrofit installations will also witness significant growth, since the preference of people is shifting toward cost-effective solutions that do not compromise on comfort. The efficiency and convenience of underfloor heating solutions in this regard are encouraging people to adopt them when renovating their homes. As per statistics, people of the U.S. spent USD 457 billion in 2020 on making their homes more comfortable, including by upgrading their heating systems, but with a focus on energy savings.

We have analyzed the below-mentioned installation types:

• New (Largest and Fastest-Growing Category)
• Retrofit

End Use Analysis

The residential category, which holds the largest share, of 55%, in 2024, will advance at the highest rate over the decade, of 10%. This will be due to the growing application of underfloor heating systems in residential properties since they are considered ideal for such projects. Hence, with the booming housing construction in developed countries, such as the U.S. and Canada, the installation of these systems is rising too.

For instance, the Thornhill residential project in Canada involves the development of 308 residential and retail units ranging from 534 to 878 square feet. It has attracted an investment of USD 144 million.

The report offers insights on the following end uses:

• Residential (Largest and Fastest-Growing Category)
• Commercial
• Industrial