Market Trends of Underfloor Heating Industry
This section covers the major market trends shaping the Underfloor Heating Market according to our research experts:
Residential Sector to Drive the Market Growth
- The residential sector holds the maximum market share for the underfloor heating market due to people's growing inclination toward a better standard of living. Moreover, refurbishment activities and smart home initiatives further boost the market growth. The smart home market is anticipated to register a CAGR of 25% over the forecast period and is expected to reach USD 246.42 billion in the next five years.
- Underfloor heating is 15-20% more energy efficient than traditional methods and, therefore, reduces the overall carbon footprint of a building. It is, therefore, considered an optimal solution for heating homes. Further, government advisers have recently recommended banning gas boilers installation in new homes, stimulating market growth.
- Moreover, the increasing adoption of underfloor heating in the residential sector is due to its advantages over radiators. The advantages include more comfort, adequate heat, and less expensive bills. Moreover, the air circulated from underfloor heating is cleaner than the air pushed around by radiators.
- Further, vendors are investing in research & development to create better products in the market. For instance, in November 2021, Meross, a Chinese smart home gadget maker, produced its first smart thermostat for electrically underfloor heating systems. The innovative gadget uses a glass screen featuring a touch-sensitive, illuminated LED display to manage every part of the heater system and functions broadly similar to any regular cable thermostat.
- By 2025, the United Kingdom is expected to have a Future Homes Standard that will require new homes to be future-proofed with low-carbon heating and world-leading energy efficiency. According to the UK Department for Business, Energy & Industrial Strategy, homes built to this standard should emit 75% to 80% less CO2 than homes built to current construction requirements.
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Europe Holds Maximum Market Share
- Europe holds the maximum market share as the region has a strong presence of underfloor heating vendors, such as Robert Bosch GmbH, Siemens AG, Schneider Electric, Nexans S.A., and nVent Electric plc, among others. Moreover, Europe has been witnessing an increasing number of players entering the market, owing to the rising inclination toward energy-efficient buildings that are enabling companies to earn more profit by expanding their sales.
- According to the European Commission, by volume, the installed base of smart home and intelligent building devices in the region is expected to grow to over 980 million units in the next five years, considering energy management and security-based devices. Additionally, the European Union topped the investments in energy-efficient buildings, according to OECD. Therefore, with the increase in investments and emphasis on energy-efficient buildings in the region, the market is likely to grow over the forecast period.
- The region is witnessing multiple acquisition activities. For instance, in February 2021, the UK-based Polypipe Group PLC, the manufacturer of water management and climate management solutions, announced its acquisition of the UK-based Nu-Heat (Holdings) Limited, the supplier of sustainable underfloor heating solutions, air and ground source heat pumps, and other renewable heating systems, for a total consideration of GBP 27 million on a cash-free, debt-free basis. This acquisition will enable Polypipe Group to further develop underfloor heating capabilities and new ways to integrate underfloor heating, heat pumps, and air-based climate management systems.
- Intense R&D operations and public knowledge about the prospects of heating systems in the building sector, particularly in cold locations, had a favorable impact on market growth. The continuous large-scale renovations and government rules prohibiting the installation of gas boilers in new homes by 2025 have fueled the expansion of the electric underfloor heating business. Colder climatic conditions in this region, people's demand for comfort in their homes, and the benefits of radiant heat are expected to propel the market growth.
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