Europe Industrial Electric Heating Equipment Market Size - By Technology, By Application, By Channel, Growth Forecast, 2025 - 2034

Europe Industrial Electric Heating Equipment Market Size

According to a recent study by Global Market Insights Inc., the Europe industrial electric heating equipment market was estimated at USD 1.9 billion in 2024. The market is expected to grow from USD 2.1 billion in 2025 to USD 4.4 billion in 2034, at a CAGR of 8.6%.

• The rising focus on industrial decarbonization targets aligned with corporate net-zero commitments coupled with the adoption of advanced electrified process heating technologies will drive industry growth. The transition toward clean energy alternative across manufacturing clusters in line with continuous upgrades in electric boilers efficiency will accelerate the demand for industrial heating equipment.
   
• Industrial electric heating equipment refers to machinery and systems designed to generate and apply heat using electrical energy for industrial processes. These devices include electric furnaces, electric boilers, heat pumps, and induction heating systems used in sectors such as manufacturing, chemical processing, food production, and metalworking.
   
• For reference, in February 2025, The European Commission has unveiled a strategic USD 58.2 billion public investment under the new InvestAI initiative, aimed at accelerating the development and deployment of artificial intelligence technologies across the EU.
   
• The development of large-scale industrial heat pump systems paired with growing awareness regarding lifecycle cost saving will foster industry penetration. The emergency of hybrid electrification solutions integrating electric heating with thermal energy storage coupled with the emphasis on peak load management will bolster the Europe industrial electric heating equipment market outlook.
   
• The rising investments in electrification-friendly industrial infrastructure paired with modernization initiatives in legacy manufacturing facilities will augment the technology adoption. The proliferation of smart monitoring and automation solutions within process heating applications in tandem with advancements in digital control systems will strengthen the industry potential.
   
• For illustration, in August 2025, according to European Heat Pump Association (EHPA), The European Union has set an ambitious deployment goal of 60 million heat pumps by 2030.
   
• The rising electrification of medium-temperature industrial processes coupled with continuous R&D in high-temperature electric heating technologies will spur business growth. The growing role of private-sector innovation in industrial heating solutions, paired with collaborations between technology providers and equipment manufacturers will drive the Europe industrial electric heating equipment market momentum.
   
• The integration of predictive maintenance tools with industrial heating assets coupled with AI-enabled fault detection systems will strengthen the industry’s growth. Rising focus on minimizing industrial energy losses paired with the deployment of waste-heat recovery systems integrated with electric heating equipment will spur the business landscape.
   
• For instance, in August 2024, Austria-based clean tech firm ecop has secured USD 9.9 million in funding from the European Innovation Council Accelerator to advance its development of high-temperature heat pump solutions tailored for industrial processes and district heating networks.
   
• The Europe industrial electric heating equipment market was valued at USD 1.5 billion in 2021 and grew at a CAGR of over 7% through 2024. The shift from fossil fuel-based steam generation toward electric steam boilers together with the rising competitiveness of electricity over natural gas will accelerate the industry scenario.
   
• The growing emphasis on electrified process heating in food & beverage industries coupled with the rising hygiene and quality requirements will bolster business growth. Surging preference for clean manufacturing technologies across pharmaceutical and chemical industries in association with the need for precise temperature control will propel industry potential.
   

Europe Industrial Electric Heating Equipment Market Trends

• The European industrial sector is undergoing a significant transformation, marked by the gradual phasing out of conventional heating systems such as fossil fuel-based boilers and furnaces. This shift is driven by the need for cleaner, more efficient, and digitally integrated heating solutions.
   
• Advanced electric heating units including heat pumps, electric boilers, and electric furnaces are increasingly favored for their ability to deliver precise temperature control, lower emissions, and compatibility with renewable energy sources. These systems also offer longer lifespans and reduced maintenance costs, making them attractive for industries seeking operational efficiency and sustainability.
   
• For reference, in April 2025, Gradyent closed an oversubscribed USD 32.6 million growth funding round, led by global impact investor Blue Earth Capital. The company aims to drive efficiency and sustainability in heating and cooling grid operations worldwide.
   
• Energy efficiency has become a cornerstone of industrial strategies across Europe, driven by rising energy costs, environmental concerns, and regulatory pressures. Electric heating equipment is gaining traction owing to its superior energy performance compared to traditional systems.
   
• In addition, technologies including variable-speed heat pumps, smart thermostats, and automated control systems enable precise energy management, reducing waste and optimizing consumption. These innovations are particularly impactful in energy-intensive industries including chemicals and food processing, where heating processes account for a substantial portion of operational energy use.
   
• For reference, in June 2024, Rondo Energy, in collaboration with Breakthrough Energy Catalyst, the European Commission, and the European Investment Bank, announced USD 87.3 million in strategic funding to support three pioneering industrial decarbonization projects across Europe.
   
• Europe’s regulatory environment is increasingly focused on decarbonization, with stringent laws and directives aimed at reducing industrial carbon emissions. Governments across the region are offering financial incentives, including grants, tax reliefs, and subsidies, to encourage the transition.
   
• The push for carbon neutrality by 2050 under the EU Green Deal further amplifies the urgency for industries to upgrade their heating infrastructure. As compliance becomes a business imperative, companies are investing in electric heating technologies to avoid penalties, enhance sustainability credentials, and gain competitive advantage in a low-carbon economy.
   
• For citation, in July 2025, The European Union is allocating USD 209.4 million to accelerate the development of next-generation digital technologies, as part of the latest funding round under the Horizon Europe Programme aimed at fostering cross-border R&D collaboration.
   
• The chemical and food processing industries are among the largest consumers of industrial heating equipment in Europe, and their growth is a major driver of market expansion. In the chemical sector, processes including distillation, polymerization, and drying require precise and consistent heating, making electric systems ideal due to their controllability and efficiency.
   
• The shift toward specialty chemicals and pharmaceuticals is further boosting demand for advanced heating technologies. The integration of smart controls and automation in heating systems is also enhancing productivity and traceability, aligning with industry 4.0 trends.
   

Europe Industrial Electric Heating Equipment Market Analysis

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• Based on technology, the industry is segmented into heat pumps, electric boilers, electric furnaces, mechanical steam compressors, and others. The heat pump holds a market share of 25.3% in 2024 and is projected to grow at a growth rate of over 5% through 2034.
   
• The widespread availability of medium and high temperature heat pump designs paired with falling lifecycle operating costs will drive the adoption of industrial heat-pump solutions. The development of modular, skid-mounted heat-pump packages in association with streamlined retrofit workflows will foster more rapid conversion of legacy process heat systems.
   
• For instance, in September 2022, The European Investment Bank (EIB) extended a USD 139.6 million loan to Vaillant Group to support its ongoing investments in research, development, and innovation focused on advanced heating technologies.
   
• The electric furnace segment was valued at USD 35.9 million in 2024. The innovation in induction of coil materials and high-efficiency power electronics in association with tighter metallurgical process control requirements will foster greater electrification of furnaces.
   
• The incorporation of digital twinning and real-time process optimization combined with closed-loop control system will accelerate yield improvements and energy savings. The expansion of service networks for high-power electrical installations paired with installer certification programs will escalate safer and faster project execution.
   
• The electric boiler market is anticipated to reach over 550 million by 2034. The proliferation of fast-ramping electrode and resistive boiler designs in line with increased renewable generation variability will drive the business momentum. The pairing of electric boilers with medium-term thermal storage in association with time-of-use tariff arbitrage will bolster economic resilience against power price volatility.
   
• For citation, in April 2023, UPM advanced its decarbonization strategy by replacing fossil fuel-based heat and steam production with electric boilers at its mills in Finland and Germany. This initiative marks a significant step toward UPM’s 2030 climate target of reducing CO2 emissions from fuels and purchased electricity by 65%.
   
• The mechanical steam compressor segment will witness a growth rate of over 5% through 2034. The electrification of compressor drives together with advances in high-efficiency impeller and sealing materials will drive broader MVR adoption for vapor recompression.
   
• In addition, the including of advanced vibration and bearing monitoring together with predictive maintenance contracts will boost long-term performance assurances. The development of corrosion-resistant compressor internals together with extended-duty sealing systems will escalate favorable business scenario.
   
• Based on channel, the industry is segmented into online, dealer, and retail. The retail segment will exceed USD 2 billion by 2034. The expansion of specialist retail showrooms coupled with increased emphasis on in-store technical advisors will drive buyer confidence among smaller industrial purchasers.
   
• In addition, the rollout of dedicated retail training zones paired with manufacturer-led demo days will foster closer relationships between brands and end-users who require hands-on evaluation. The availability of certified refurbishment and trade-in programs will amplify circular economy purchasing for mid-size plants.
   
• For reference, in May 2025, Alfa Laval, Tetra Pak, Krones, and SPX FLOW, four leading players in the food manufacturing technologies and equipment sector have jointly launched a new industry coalition: Food Manufacturing Technologies Europe (FMTE).
   
• Moreover, this strategic alliance aims to collaboratively address key industry challenges and drive innovation across the sector. With Europe playing a pivotal role in a global market projected to reach USD 137.8 billion by 2030
   
• The online industrial electric heating equipment market was valued at USD 269.8 million in 2024. The expansion of B2B e-commerce platform with enriched technical content in association with instant configuration and quoting will drive faster procurement cycles for industrial buyers.
   
• The integration of online marketplaces with supplier-certified product catalogs together with verified-installation partner listings will accelerate buyer confidence in remote purchases. The offering of virtual product demonstrations and augmented-reality installation previews paired with technical chats will drive remote specification and order completion.
   
• For citation, in December 2023, European heat pump manufacturers announced nearly USD 8.1 billion in planned investments over the next three years to expand production capacity and strengthen logistics infrastructure.
   
• The dealer segment will witness a growth rate of over 8% through 2034. The adoption of dealer portals providing real-time stock, lead-time, and technical-spec guidance together with API links to customer procurement systems will bolster industry scenario. The deployment of mobile dealer-installation teams will encourage quicker retrofits across distributed industrial sites.

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• Based on application, the industry is segmented into pulp & paper, food processing, refinery, primary metal, chemical, and others. The chemical electric heating equipment market holds a share of 23.2% in 2024 and is set to exceed USD 900 million by 2034.
   
• The strict requirements for temperature stability in batch processes in tandem with the fast response of electric heaters will drive uptake in specialty chemical production. The push for tighter solvent recovery and reduced flaring paired with electrified vapor recompression and thermal storage will strengthen energy-recovery projects.
   
• For citation, The UK Government has announced its Autumn Budget, featuring a substantial commitment to infrastructure development. A flagship initiative within this framework is the launch of a USD 1.2 billion low-carbon infrastructure project in Westminster, aimed at accelerating investment and generating high-quality, secure employment opportunities.
   
• The food processing electric heating equipment market was valued at USD 261.3 million in 2024. The need for hygienic, low-emission heating processes coupled with demand for precise temperature control will drive adoption of electric heating in food processing.
   
• The growth of rapid-start, localized heating technologies together with just-in-time production models will fuel retrofits of thermal equipment on processing lines. The push toward energy-efficiency labeling for food products combined with interest in lower lifecycle emissions will bolster investments in electric heat systems.
   
• For reference, in May 2025, The European Investment Bank extended a USD 23.3 million financing facility to Heura Foods, a Spanish startup specializing in plant-based nutrition. This strategic investment is aimed at accelerating the company’s research, development, and commercialization of innovative, sustainable, and health-focused food products.
   
• The pulp & paper segment witness a growth rate of over 9% through 2034. The integration of electric heating control with mill-wide automation systems coupled with condition-based maintenance will accelerate operational optimization. The drive to lower fuel-related emissions combined with improvements in high-capacity electric steam generation will boost electrification of drying and pulping stages.
   
• The refinery electric heating equipment market was valued at USD 318.3 million in 2024. The complexity of high-temperature hydrocarbon processes together with phased hybrid electrification approaches will drive selective electric heating adoption in refineries. The integration of electric boilers for steam balancing paired with thermal storage systems will bolster refinery resilience during fuel-supply disruptions.
   
• For illustration, in July 2025, The European Investment Bank entered a USD 581.8 million, 15-year financing agreement with Eni to support the transformation of its Livorno refinery into a state-of-the-art biorefinery.
   
• The primary metal segment is set to reach over USD 650 million by 2034. The growth of electric reheating and surface-treatment processes paired with localized induction systems will foster incremental electrification in rolling and finishing lines. The development of modular power substations and high-capacity switchgear paired with electrified melt technologies will bolster product adoption.

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• The France dominated the industrial electric heating equipment market in Europe with 14% share in 2024 and generated USD 271.8 million in revenue. The country’s comparatively stable electricity pricing together with abundant industrial electrification pilots along with aggressive national manufacturing initiatives will drive product adoption.
   
• The UK industrial electric heating equipment market is expected to reach over USD 250 million by 2034. The expansion of modular induction and electric-furnace retrofit modules together with pilot projects in specialty metals and processing heating will foster targeted electrification in high-value segments
   
• For illustration, in March 2023, Asper completed the final close of its UK sustainable district heating co-investment platform, reaching its hard cap of USD 256 million in committed capital from both domestic and international institutional investors.
   
• The Germany industrial electric heating equipment market will witness a CAGR of over 5% till 2034. The strong domestic manufacturing base together with a high concentration of heat-intensive SMEs coupled with widespread electrification pilots will spur industrial demand for heat pumps and electric boilers.
   
• The Italy industrial electric heating equipment market was valued at USD 200.3 million in 2024. The strong presence of small and medium-sized industrial units together with a growing interest in modular electrified heat solutions coupled with generous renovation-style incentives will energize decentralized electrification projects.
   
• For citation, in April 2024, Nestlé has announced a strategic investment of USD 549.2 million to establish a new pet food manufacturing facility in northern Italy. This initiative reflects the company’s commitment to expanding its footprint in the high-growth pet nutrition segment, while reinforcing its long-term industrial presence in the region.
   
• The Spain industrial electric heating equipment market is set to reach over USD 250 million by 2034. The combination of strong HVAC manufacturing capability in association with rising corporate decarbonization targets will boost interest in electric heating solutions. The focus on improving industrial indoor air quality together with flameless electric heating options will propel business landscape.
   

Europe Industrial Electric Heating Equipment Market Share

• The top 5 companies in the Europe industrial electric heating equipment industry are Daikin Industries, Robert Bosch, Mitsubishi Heavy Industries, IHI Corporation, and Carrier contributing around 35% of the market in 2024. The market is undergoing a structural shift driven by decarbonization goals, energy efficiency mandates, and digitalization.
   
• Daikin competes in Europe by leveraging its leadership in low-carbon heat pump technologies, aligning with EU climate goals. The company’s vertical integration from compressors to refrigerants enables rapid innovation and cost control. Daikin’s expansion of manufacturing in Poland and Germany supports its strategy to meet rising demand for electrified heating.
   
• Bosch competes through a broad portfolio of energy-efficient heating systems, including electric boilers and hybrid heat pumps, tailored for both residential and industrial applications. Its strength lies in integrating smart technologies and building automation, which align with Europe’s push for digitalized and sustainable infrastructure.
   
• Mitsubishi Heavy Industries (MHI) competes by offering advanced industrial heating solutions, including Organic Rankine Cycle systems and high-efficiency heat pumps. Its European operations span multiple sectors from energy to transport refrigeration, allowing cross-sector innovation and synergies.
   
• IHI Corporation competes in Europe by integrating electric heating systems with renewable energy and smart grid technologies, targeting industrial decarbonization. Its engineering capabilities in high-temperature process heating and energy systems make it a preferred partner for sectors like chemicals and manufacturing.
   
• Carrier competes by offering a wide range of sustainable and smart heating solutions, including advanced heat pumps and integrated building management systems. Its focus on innovation and digital connectivity supports energy optimization and compliance with EU climate policies.
   

Europe Industrial Electric Heating Equipment Market Companies

• In the second quarter of 2025, the ANDRITZ Group reported revenues of USD 2.2 billion, reflecting a 10.0% decline compared to the same period in the previous year. Despite the drop in revenue, the Group achieved a strong order intake of USD 2.8 billion, marking a 26.3% increase year-over-year, indicating robust demand across its business segments.
   
• Carrier reported second-quarter sales of USD 6.1 billion, representing a 3% year-over-year increase. The growth was primarily driven by organic sales expansion of 6%, which was partially offset by a 4% negative impact from net acquisitions and divestitures, largely due to the divestiture of the Commercial Refrigeration business in quarter 4, 2024.
   
• Trane Technologies reported net revenues of USD 5.75 billion in quarter 2, 2025, reflecting an 8% year-over-year increase compared to USD 5.31 billion in quarter 2 2024. The company delivered GAAP continuing earnings per share (EPS) of USD 3.87, while adjusted continuing EPS stood at USD 3.88, representing a strong 18% growth over the prior year period.
   

Major players operating in the Europe industrial electric heating equipment market are:
 

• ANDRITZ
• Atlas Copco
• Carrier
• Chart Industries
• Chromalox
• Clayton Industries
• Condorchem Enviro Solutions
• DAIKIN INDUSTRIES
• EBNER
• Emerson Electric
• Fulton
• GIG Karasek
• Groupe Atlantic
• IHI Corporation
• Johnson Controls International
• MAN Energy Solutions
• Mitsubishi Heavy Industries
• Robert Bosch
• Siemens Energy
• Swegon
• Tenova
• Trane Technologies
   

Europe Industrial Electric Heating Equipment Industry News

• In April 2025, Daikin completed the acquisition of Kylslaget, a Swedish heat pump service provider, marking a strategic expansion of its service capabilities in Sweden. This move enhances Daikin’s regional footprint by increasing its technician workforce and scaling up its expert training programs. The acquisition aligns with Daikin’s broader growth strategy in Scandinavia, following its 2024 acquisition of BKF Klima in Denmark, and reinforces its commitment to delivering high-quality, localized service across Northern Europe.
   
• In January 2025, Mitsubishi Heavy Industries Air Conditioning Europe (MHIAE) and Stulz S.p.A. officially began mass production of air-cooled heat pump chillers in Verona, Italy. This collaboration aims to meet the growing demand for water circulation systems while adhering to the F-gas Regulation, supporting sustainable cooling solutions across European and UK markets.
   
• In February 2025, Swegon reached an agreement to acquire American Geothermal, a prominent producer of heat pumps and chillers for healthcare, commercial, and industrial applications. This acquisition will strengthen Swegon’s position in the region and enhance its portfolio of heating and cooling solutions in the region.
   
• In November 2024, MAN Energy Solutions launched the world’s largest industrial heat pump in Denmark, with a 70 MW heating capacity. The system generates climate-neutral heat annually by utilizing CO2 as a refrigerant, it aids in renewable energy integration and enhances power grid stability. The installation is part of a transition to replace Esbjerg's coal-fired power plant with sustainable energy solutions.
   

The Europe industrial electric heating equipment market research reports include in-depth coverage of the industry with estimates & forecast in terms of volume (Units) & revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Technology

• Heat pump
• Electric boiler
• Electric furnace
• Mechanical steam compressor
• Others

Market, By Application

• Food processing
• Pulp & paper
• Chemical
• Refinery
• Primary metal
• Others

Market, By Channel

• Online
• Dealer
• Retail

The above information has been provided for the following countries:

• France
• UK
• Poland
• Italy
• Spain
• Austria
• Germany
• Sweden
• Russia