Warm Air Heating Equipment Market Report 2026

The warm air heating equipment market size has grown steadily in recent years. It will grow from $135.86 billion in 2025 to $139.79 billion in 2026 at a compound annual growth rate (CAGR) of 2.9%. The growth in the historic period can be attributed to expansion of industrial buildings, growth in warehouse infrastructure, demand for space heating solutions, rise in commercial construction, cold climate industrial activity.

The warm air heating equipment market size is expected to see strong growth in the next few years. It will grow to $176.98 billion in 2030 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to energy efficiency regulations, expansion of logistics warehouses, growth in smart buildings, electrification of heating systems, increasing retrofit activities. Major trends in the forecast period include rising adoption of energy efficient heating systems, growth in heat pump based warm air solutions, increasing demand for large space heating, integration of smart temperature control systems, focus on reduced carbon emissions.

The growing demand within the construction industry is expected to support the expansion of the warm air heating equipment market. The construction sector includes organizations responsible for building, maintaining, and repairing infrastructure. As construction activity increases, so does the need for heating solutions such as heat pumps, which are commonly used to provide heating and cooling in medium- and large-sized buildings. For example, in July 2023, the Australian Bureau of Statistics, an Australian government agency, reported that the number of dwellings under construction rose to 240,813 in the March quarter of 2023, up from 240,065 in 2022. Among these, new houses totaled 103,778 compared to 101,240 the previous year. Therefore, the expanding construction industry is driving demand for warm air heating equipment.

Major companies in the warm air heating equipment market are focusing on product innovations such as hybrid dual fuel systems to strengthen their market position. A hybrid dual fuel system combines an electric heat pump with a gas or propane furnace to deliver energy-efficient heating and cooling. For instance, in September 2023, Johnson Controls-Hitachi Air Conditioning, a Japan-based air conditioner manufacturer, introduced the Hitachi air365 Hybrid dual fuel system. This system integrates a heat pump and gas furnace, offering efficient year-round climate control while lowering carbon emissions. It uses smart sensors to automatically switch between the two heating sources based on outdoor temperatures, maximizing efficiency and minimizing utility costs during extreme cold. Additionally, the dual fuel system qualifies for various incentives and rebates, making it an economical and environmentally friendly option for homeowners seeking to decarbonize their heating and cooling.

In January 2023, Johnson Controls International PLC, an Ireland-based industrial machinery manufacturer, acquired Hybrid Energy AS for an undisclosed amount. This acquisition expanded Johnson Controls’ ability to offer high-temperature heat pumps and sustainable energy management solutions for industrial and district heating applications, advancing its commitment to decarbonization and sustainability in Europe and beyond. Hybrid Energy AS is a Norway-based company specializing in high-temperature heat pumps and energy management systems for industrial and district heating uses.

Major companies operating in the warm air heating equipment market are Daikin, Mitsubishi Electric Corporation, WOLF GmbH, Johnson Controls Inc., Viessmann Werke GmbH & Co. KG, Bosch Thermotechnology, Carrier, Lennox International Inc., Trane Technologies plc, Rheem Manufacturing Company, Goodman Manufacturing Company L.P., Fujitsu General Limited, Nortek Global HVAC LLC, Modine Manufacturing Company, Amana Corporation, Bryant Heating & Cooling Systems, American Standard Companies Inc., Armstrong Air Conditioning Inc., Burnham Holdings Inc., ClimateMaster Inc., ECR International Inc., Heat Controller Inc., Heil Heating & Cooling Products, International Comfort Products LLC.

Asia-Pacific was the largest region in the warm air heating equipment market in 2025. North America was the second largest region in the warm air heating equipment market analysis. The regions covered in the warm air heating equipment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the warm air heating equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The warm air heating equipment market consist of sales of hybrid heat pumps, air source heat pumps, ground source heat pumps and others. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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