Europe Unitary Heater Market Size and Share
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 517.20 Million |
| Market Size (2030) | USD 626.5 Million |
| CAGR (2025 - 2030) | 3.91% |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Unitary Heater Market Analysis by Mordor Intelligence
The Europe Unitary Heater Market size is estimated at USD 517.20 million in 2025, and is expected to reach USD 626.5 million by 2030, at a CAGR of 3.91% during the forecast period (2025-2030).
- The unitary heater market in Europe is experiencing growth due to factors such as the increasing adoption of IoT-enabled heating solutions, the need to maintain optimal working conditions across industries, and the growing focus on energy efficiency and sustainability.
- Government regulations promoting energy efficiency and the rising demand for energy-efficient heating systems are further driving market growth in developed European regions, including the United Kingdom, Germany, and France.
- In Germany, for instance, the government is actively supporting the rapid development and adoption of renewable and efficient heating technologies through new legislation and attractive incentives. This has resulted in a significant shift in the market, with the heating and cooling industry benefiting from this initiative. The adoption of technologies such as CHP, solar thermal, heat pumps, condensing heating boilers, and pellet heating systems has increased substantially.
- Additionally, the German Housing Association (GdW) and the CDU Economic Council are advocating for a transition to decentralized heating systems, citing the insufficiency of current government efforts to achieve a climate-neutral building stock by 2050. These developments are expected to significantly influence the heating equipment market in the coming years.
- Unitary heaters are widely utilized in industrial applications. Countries such as Germany, France, and Italy are witnessing growing demand for electric heaters across various end-user industries. Moreover, increased production activities and the expansion of construction projects are driving the demand for unitary heaters.
- The Russia-Ukraine conflict has also had a notable impact on the unitary heater market in Europe. For example, supply chain disruptions and gas shortages caused by the conflict have led France to aim to cease imports of Russian gas and oil by 2027. Although gas supplies have largely been restored, availability remains limited.
- However, France’s robust electricity grid and competitive pricing have encouraged a shift toward electric heating solution over hybrid or gas-fueled condensing boilers, making the French unitary heater market one of the largest in Europe. This trend is further supported by incentives such as “MaPrimeRenov” and “Coup De Pouce Chauffage,” which have been in effect from 2020 to 2024. On the other hand, the rise in biomass boiler sales is linked to France’s extensive agricultural and forestry resources, which make biomass an affordable option for many residents.
- However, combustion-based unitary heaters present certain challenges, including the risk of carbon monoxide poisoning, the potential for dry air and skin irritation, and higher energy consumption compared to alternatives like heat pumps.
Europe Unitary Heater Market Trends and Insights
Electric Heaters to Account for Significant Market Share
- As electricity and heat become more interconnected, the trend of using self-generated solar power for heating is on the rise. Factors such as surging oil and gas prices, declining photovoltaic costs, innovative product developments, and regulatory mandates like Germany's heating law are propelling this market forward.
- Ofgem, the energy regulator, has initiated a review of daily standing charges on energy bills, inviting feedback from businesses, charities, and consumers. This move comes in response to mounting dissatisfaction with the existing system. Currently, energy customers incur a fixed daily charge for their energy supply connection, but these fees have been on an upward trajectory.
- Over the past two years, in many regions, these charges have approximately doubled, with customers having no means to mitigate the costs. This scenario has amplified the demand for electric heaters, as a typical European household's transition to electric heating could slash their energy bill by over 20%.
- Goldman Sachs research indicates that a European household's investment in a new heating solution or electric vehicle could yield a payback period as brief as three and a half years. Such a shift could significantly curb household carbon emissions, which are estimated to account for about 30% of the total carbon footprint in the EU and UK.
- Furthermore, these insights align with the broader trend of diminishing solar power costs over time, a fact widely acknowledged in the industry. From 2010 to 2019, global solar PV costs plummeted by a staggering 82%. According to SolarPower Europe, in 2024, the European Union set a record by installing 65.5 GW of solar PV, marking the eighth consecutive year of such milestones. Given these dynamics, Europe's appetite for solar electric heaters is poised to grow in the near future.
Germany to Gain Significant Market Share
- Germany has historically leaned towards gaseous fuel condensing boilers for heating, establishing a dominant installed base. However, a notable shift is underway, with electric and hybrid heating solutions rapidly gaining popularity.
- Germany's market expansion is driven by the adoption of advanced monitoring systems, smart technologies, and building automation systems. Additionally, there's a heightened focus on cost savings, maintenance, and personalized services for unitary heater systems.
- Moreover, the German government is positioning a unitary heater as the go-to heating solution for households. Highlighting this initiative, in September 2024, the German Economy Minister launched a campaign to revolutionize home heating, resulting in unprecedented spikes in unitary heaters production and sales.
- Beginning January 2024, Germany mandated that all newly installed heating systems must utilize a minimum of 65% renewable energy. This initiative aligns with Germany's ambitious target of attaining climate neutrality by 2045, spurring a surge in the adoption of renewable heating solutions, notably unitary heaters and hybrid systems.
- On another front, a rise in building refurbishments is fueling market expansion. The Heidelberg Institute for Energy and Environmental Research (ifeu) emphasizes the urgency of upgrading Germany's least energy-efficient buildings to align with climate objectives. Their forecasts indicate that by 2045, 60% of Germany's buildings might boast advanced heating systems.
Competitive Landscape
Players in the fragmented European Unitary Heater market are in a constant battle to maintain their competitive edge. This market is characterized by intense competition, driven by varying levels of technical and production management among its players. Key players include Nortek Global HVAC, Kampmann Group, Chromalox, Hazloc Heaters, among others.
Several factors are fueling the growth of the unitary heater market: the swift embrace of Industry 4.0 technologies, enhancements in process heating systems, a surging demand from diverse fuel-type industries, heightened investments in power generation capacity, and a growing consumer interest in dual-source heating solutions.
Furthermore, manufacturers are rolling out innovative heating solutions, from compact units for homes and small businesses to expansive central heating systems for larger commercial venues. The market's momentum is also bolstered by rapid industrialization and proactive government policies promoting the construction of energy-efficient and sustainable buildings.
Europe Unitary Heater Industry Leaders
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Daikin Industries Ltd
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Nortek Global HVAC
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Kampmann Group
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Chromalox
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Dantherm Group A/S
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- November 2024: Eberspaecher has unveiled a cutting-edge water heater designed specifically for electric buses, prioritizing both range and passenger comfort. This durable device swiftly and efficiently transforms electricity into heat. Noteworthy features include its modular setup, which integrates multiple heating units, and its seamless output control. Whether it's hydrogen buses, coaches, or trolleybuses, the High Voltage Electrical Water Heater caters to all, be it purely electric or hybrid. Thanks to its percentage signal-based control, the heater rapidly warms the interior for passengers while ensuring efficient battery conditioning without any energy wastage.
- October 2024: Thermon Group Holdings, Inc. has acquired Fabbrica Apparecchiature Termoelettriche Industriali S.r.L. ("F.A.T.I."), an electric heater manufacturer for industrial applications, located in Milan, Italy. This acquisition complements Thermon's existing product portfolio and expands its geographic reach. With this move, Thermon bolsters its position in the burgeoning global market for electrification and decarbonization solutions. F.A.T.I.'s manufacturing facility in Milan not only broadens Thermon's global manufacturing base but also, with F.A.T.I.'s array of European certifications and customer endorsements, positions Thermon to tap into expanding markets in Europe and Asia more swiftly.
Europe Unitary Heater Market Report Scope
Unit heaters, stand-alone non-ducted space heaters, operate independently from a facility's main HVAC system. These heaters emit warmth directly into their housing area. Their contained design and lack of ductwork enable unit heaters to address heating challenges in expansive spaces, all without necessitating significant alterations to the facility's primary HVAC setup.
The European unitary heater market is segmented by product type (gas-fired heaters, electric heaters, hydronic heaters, and others), end-user industry (residential, commercial, and industrial), and country (United Kingdom, Germany, France, Italy, Spain, and Rest of Europe). The report offers market size and forecast for all the above segments in value (USD).
| Gas-Fired Heaters |
| Electric Heaters |
| Hydronic Heaters |
| Others |
| Residential |
| Commercial |
| Industrial |
| United Kingdom |
| Germany |
| France |
| Italy |
| Spain |
| By Product Type | Gas-Fired Heaters |
| Electric Heaters | |
| Hydronic Heaters | |
| Others | |
| By End-user Industry | Residential |
| Commercial | |
| Industrial | |
| By Country*** | United Kingdom |
| Germany | |
| France | |
| Italy | |
| Spain |
Key Questions Answered in the Report
How big is the Europe Unitary Heater Market?
The Europe Unitary Heater Market size is expected to reach USD 517.20 million in 2025 and grow at a CAGR of 3.91% to reach USD 626.5 million by 2030.
What is the current Europe Unitary Heater Market size?
In 2025, the Europe Unitary Heater Market size is expected to reach USD 517.20 million.
Who are the key players in Europe Unitary Heater Market?
Daikin Industries Ltd, Nortek Global HVAC, Kampmann Group, Chromalox and Dantherm Group A/S are the major companies operating in the Europe Unitary Heater Market.
What years does this Europe Unitary Heater Market cover, and what was the market size in 2024?
In 2024, the Europe Unitary Heater Market size was estimated at USD 496.98 million. The report covers the Europe Unitary Heater Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Europe Unitary Heater Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Europe Unitary Heater Market Report
Statistics for the 2025 Europe Unitary Heater market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Unitary Heater analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
