Industrial Heating Equipment Market Size & Share 2026-2035

Industrial Heating Equipment Market Size

The industrial heating equipment market was estimated at USD 26.4 billion in 2025. The market is expected to grow from USD 27.9 billion in 2026 to USD 45.4 billion by 2035, at a CAGR of 5.6%, according to a recent study by Global Market Insights Inc.

New government regulations and increasing energy costs are driving the demand for energy-efficient heating equipment in industries. There has been a growing emphasis on reducing operational costs and carbon emissions, driving industries to embrace cutting-edge heating solutions and enhancing their business landscape.

The growing installation of electric equipment, along with its ability to be integrated with the renewable energy system, is supporting the growth of industry. The growing deployment of electric equipment, supported by its ability to be integrated with the renewable energy system, is positively influencing industry growth.

For citation, in 2025, the European Commission concluded over USD 1 billion industrial heat decarbonization auction within the Innovation Fund program. The project is geared towards the support of industrial electrification technologies, such as heat pumps, induction heating, geothermal heating systems and solar thermal power for industrial production.

Flexible heating technologies are set to see an increase in adoption as a result of the shift toward custom-made heating equipment that is designed to meet industrial process needs. Furthermore, the continuous emergence of new technologies such as smart heating systems, IoT monitoring, and automation further enhances operational efficiency, process control, and energy optimization.

For instance, in 2025, the Government of Canada stepped up its support for advanced manufacturing by providing an additional investment of almost USD 175 million in Next Generation Manufacturing Canada (NGMC). The goal of the initiative is to strengthen Canada's world-class manufacturing innovation cluster and enhance the country's global competitiveness.

The fast penetration of renewable energy into the industrial systems is further helping the industry to expand. They are increasingly being used to maintain and provide high temperatures in critical industrial processes, providing operational safety, consistency and improving industry efficiency.

For reference, the State of Pennsylvania spent almost USD 3 million to expand a manufacturing firm in Lancaster. The investment reflects the state's desire to foster local manufacturing capabilities, and to establish a new manufacturing facility in line with the company's expansion plans.

Industrial Heating Equipment Market Trends

A growing shift to sustainable energy systems along with tighter environmental legislation should drive deeper market adoption of industrial heating equipment in different industries. As small and medium enterprises continue to modernize, as well as investments in the manufacturing industry, there is growth in overall business.

Favorable market trends and technological developments in smart heating solutions, such as automation and digitalization, enable operational efficiency. Furthermore, government assistance and strategic investments to encourage energy efficient technologies are boosting industry growth.

For reference, in 2026, policymakers in Europe made strides towards industrial heat electrification with the development of the EU Electrification Action Plan to phase out gas fired industrial heat. The policy framework is anticipated to enable more widespread use of electric heat pumps and advanced industrial heat applications in several industries, such as chemicals, food processing and metals.

Regulatory measures linked to the reduction of energy consumption and carbon emissions have spurred manufacturers to bring new environmentally friendly and technologically advanced systems to market. Other product features and capabilities such as corrosion resistance materials, advanced communication and control, and leakage detection are helping to drive product uptake.

Growing investments from both governments and private enterprises toward industrial infrastructure development and modernization are anticipated to significantly increase the adoption of heating equipment. This investment is mainly dedicated to improving the productivity of operations, reducing energy use and to meet long-term sustainability goals within industrial processes.

For citation, in 2026, growing adoption of industrial heat pumps in Germany highlighted the accelerating shift toward low-carbon heating technologies, with heat pumps accounting for nearly half of all newly installed heating systems. The trend reflects increasing commercial preference for energy-efficient alternatives to conventional gas-based heating equipment.

Industrial Heating Equipment Market Analysis

• Based on technology, the industry is segmented into heat pump, boiler, furnace, water heater and others. The boiler market holds a share of about 40% in 2025 and is projected to grow at a rate of over 4% through 2035.

• The segment will be driven by growing demand for steam and hot water generation in different industries like chemicals, food processing and manufacturing. The market is expected to benefit even more from the growth of investment in new and improved high efficiency boiler technology, such as low-NOx and condensing systems.

• The heat pump market segment is projected to surpass USD 2.5 billion by 2035. The growing demand for energy-efficient and environmentally friendly heating solutions in various industries is driving strong growth in the market. Industry expansion is anticipated to be further accelerated by the strict environmental regulations concerning carbon emissions coupled with the increasing number of technologies with lower energy usage and environmental impact.

• For instance, federal clean energy incentive programs supported investments of almost USD 235 billion across states for industries related to emerging technologies to encourage both industrial reshoring in 2025, offering the significant opportunities for industry expansion.

• The furnace market was valued at USD 3.9 billion in 2025. Favorable demand is coming from industrial units as technologies such as recuperative and regenerative burners improve heat recovery and fuel efficiency. Furthermore, the use of smart control systems and Internet of Things based monitoring systems is improving automation and allowing for accurate temperature control in addition to lowering energy use.

• For instance, the Government of Canada announced an investment of USD 12.5 million through the Energy Innovation Program to six clean technology projects in BC. These projects address carbon capture, clean fuel production and industrial fuel switching projects based on the objective of decreasing greenhouse gas emissions and speeding up the transition towards a low carbon economy.

• The water heater industrial heating equipment market will be driven by the growing demand from the food processing, chemicals, refineries, and other industries. Advanced and environmentally friendly water heating systems are being developed and adopted due to the growing pressure from regulations to improve energy efficiency, as well as an increasing number of industrial decarbonization programs.

• Based on application, the industry is divided into food processing, pulp & paper, chemical, refinery, primary metal and others. The chemical application holds a share of 32.6% in 2025 and is set to reach over USD 12 billion by 2035.

• As specialty chemical, pharmaceutical and petrochemical manufacturing expands, the use of advanced heating technology is becoming a necessity. In addition, the growing trend of heat pump integration into chemical processing systems will have a favorable impact on the momentum of the industry.

• Increased preference for processed food products and ready-to-eat food products among the consumers is expected to show stable growth in the food processing application. Advances in technology are making it possible to build increasingly efficient and automated heating systems that help to maintain consistent product quality, reliability in operation and increase food safety standards, thus contributing to the overall growth.

• For instance, Siemens Energy increased its portfolio in the field of industrial electrification and heating for carbon emission reduction in heavy industry, such as the steel and cement sector, and in the chemical sector, in 2025. The company launched state-of-the-art digital heating controls and AI-powered energy optimization solutions.

• The pulp & paper application is set to grow at a rate of 5.5% from 2026 to 2035. The demand for packaging materials has surged significantly in recent years, driven by the growth of e-commerce activities around the world. Further, progress in the strictness of environmental laws to cut emissions and operational expenses is helping manufacturers invest in upgrading heating solutions, bolstering the industry outlook.

• For instance, in February 2025, the government of India has introduced new decarbonization measures to incentivize the use of energy-efficient industrial heating technologies in refineries, fertilizer plants and chemical production facilities. It is anticipated that this will help speed up the rollout of electric boilers, heat pumps, and advanced furnace systems.

• The refinery sector was estimated at USD 1.5 billion in 2025. The industry expects to grow strongly, as the industry continues to expand refinery capacity in the face of increasing demand for energy. Ongoing focus on replacement of traditional heating systems with advanced heating solutions will augment the business landscape.

• The primary metal application is set to see significant growth as a result of expanding energy demand and the continued industrial expansion, especially in emerging economies. This trend of replacing and refitting traditional heating systems with new and more efficient solutions, such as the modern furnace and heat pump, will boost the business environment even more.

• The U.S. dominated the industrial heating equipment market in North America with around 84% share in 2025 and generated USD 7.7 billion in revenue. The rise in energy-efficient and environment-friendly heating technology demands in industrial sectors is set to drive the business growth.

• For instance, in March 2025, the European Commission launched new funding initiatives for industrial sustainability to cover industrial heating processes and the replacement of traditional fossil fuel-based systems with more energy-efficient alternatives like electric furnaces and induction heating systems.

• North America market is projected to surge USD 12 billion by 2035. The food processing industry is anticipated to have a favorable outlook, driven by the growing investments in the sector and the growing importance of sustainability and reduction of GHGs. Moreover, the popularization of smart technologies such as IoT & AI is enhancing process optimization and aiding in the expansion of the market.

• The Europe industry is set to grow at a rate of over 5% by 2035. Opportunities and growing investment in sustainable infrastructure are facilitating innovation and driving the adoption of cutting-edge heating solutions. The regional business environment will be increasingly defined by the increased uptake of renewable and low-emission systems such as heat pumps and boilers in a range of industries including food, chemicals and primary metals.

• The Asia Pacific market accounts for about 35% of the industrial heating equipment market in 2025. The region's growth is anticipated to be propelled by the rapid industrialization, growth of infrastructure and greater industrial activities in major economies. Growing need for energy and a positive government policy encouraging energy-efficient technologies has led to industries investing in more energy-efficient heating systems.

• For instance, the Government of China launched more efforts on clean manufacturing infrastructure and industrial modernization in 2024 to promote the deployment of low-carbon industrial heating systems in steel, cement and petrochemical industries. The project is expected to generate significant demand for advanced boilers, furnaces and electric heating technologies.

• The increasing energy demand and the rise in the integration of sustainable and clean energy generation technologies will strengthen the Middle East & Africa industrial heating equipment market. There is an ongoing expansion in industry and modernization of the conventional heating systems with modern equipment which are favorably affecting the growth of industry.

• For instance, in 2025, Bosch launched next-generation smart industrial boiler systems coupled with the Internet of Things (IoT) integrated monitoring, predictive maintenance, and advanced energy management technologies. The purpose of these systems is to maximize fuel utilization, improve system reliability and reduce downtime in industrial facilities.

• Latin America industrial heating systems industry will benefit from higher investments in infrastructure, as well as a shift away from imported products, which will drive local manufacturing activity in the region. Furthermore, the increasing digitization and automation of industrial processes are enhancing the efficiency and productivity of industrial operations, fostering industry growth.

• For citation, in May 2024, the Brazilian steel industry announced plans to invest in excess of USD 20 billion to boost steel-making capacity and enhance the competitiveness of the industrial sector for citation. The programme was in line with government initiatives such as tax relief and infrastructure upgrading projects to cut operating costs and boost industry development by upgrading industrial facilities, implementing advanced technologies and building new plants.

Industrial Heating Equipment Market Share

The top 5 players including Johnson Controls, Trane Technologies, Carrier, Siemens Energy and Daikin Industries together hold share of about 48% in the industrial heating equipment industry.

• Johnson Controls broad portfolio of industrial heating products includes boilers, HVAC systems, heat pumps, BMS systems and energy management systems. It aims to provide products with enhanced thermal efficiency, lower operational costs and sustainable industrial processes to the manufacturing, chemical and food processing sector throughout the world.

• Trane Technologies offers industrial heating products, such as energy-efficient HVAC systems, heat recovery products, industrial chillers, heat pumps and thermal management technologies. The company's special focus is on optimizing the use of energy and on assisting in the decarbonization of industrial facilities, commercial buildings and manufacturing applications worldwide.

• Carrier provides products and solutions for industrial heating applications, such as boilers, furnaces, industrial HVAC systems, air handling units, chillers, and smart automation. The company's focus is on energy efficiency, digital connectivity, and sustainable heating solutions, all of which are crucial for optimizing industrial processes and meeting environmental requirements in a wide range of end-use industries.

• Siemens Energy provides industrial heating and energy solutions such as steam turbines, electrification systems, industrial burner solutions, heat recovery solutions, and digital thermal management platforms. It has a long track record of successful applications in industrial heating systems, energy efficiency and emission reduction in power generation, chemicals and heavy manufacturing worldwide.

• Daikin Industries industrial heating products cover heat pumps, HVAC, industrial refrigeration systems, air handling systems, and energy efficient thermal products. The company specializes in sustainable heating solutions, emission-free technologies and innovative climate-control systems for industrial processing, manufacturing plants and climate-control projects for commercial buildings.

Industrial Heating Equipment Market Companies

• Carrier reported net sales of USD 21.8 billion in 2025. The continued expansion of the company was driven by its strong manufacturing operations in the domestic market and by the growth of its environmental solutions business in Europe. The growing demand for advanced thermal management systems and the surge in large-scale natural gas projects continued to drive strong revenue growth and the adoption of thermal management equipment worldwide.

• Daikin Industries reported USD 23.5 billion in revenue during the first nine months of 2025. The business remains on sustainable urban infrastructure and enhanced energy management systems. Increased focus on environmental compliance and emission reduction programs and also the expansion of energy-efficient HVAC and heating technologies are anticipated to speed up the adoption of these products.

• Siemens Energy reported revenue of USD 45.9 billion in 2025. The company is focusing on technology innovation and willingness to expand production capacity to minimize impact on the environment throughout industrial activities. Its position in the industrial heating equipment industry is anticipated to be supported by the growing investments in electrification, thermal systems and low emission industrial technologies.

 Major players operating in the industrial heating equipment market are:

• Atlas Copco

• ANDRITZ

• Babcock & Wilcox Enterprises

• Carrier

• Chromalox

• Clayton Industries

• DAIKIN INDUSTRIES

• Dalrada Climate Technology

• Emerson Electric

• Everllence

• Fulton

• GEA Group

• Groupe Atlantic

• Hurst Boiler & Welding

• IHI Corporation

• Johnson Controls

• MITSUBISHI HEAVY INDUSTRIES

• Miura America

• Robert Bosch

• Siemens Energy

• Swegon Group

• Tenova

• Thermax

• Trane Technologies International

Industrial Heating Equipment Industry News

• In February 2026, Johnson Controls' York brand launched its propane (R290) air-to-water reversible heat pump series in the European market for commercial and industrial use. The series of heat pumps can be used for heating, cooling or both. The hot water temperature of the heat pumps is in the range of 65-77°C. The heat pumps come with scroll compressors and axial fans, which work efficiently even in temperatures as low as -20°C. The heating capacity of the heat pumps is between 86.7 and 139 kW.

• In December 2025, Bosch Industriekessel entered into a strategic partnership with A.E.P. Thermal, an expert company in the field of electrode boilers. In the partnership, Bosch Industriekessel will benefit from the technical expertise of the two companies, which will be used to create electrode boiler solutions to target markets. This partnership is a major move towards decarbonizing process and district heating, as it further cements its commitment to sustainable heat generation through electrification.

• In November 2025, ANDRITZ strengthened its position by opening a new service center in Germany by acquiring important assets from Wehrle-Werk AG’s boiler and grate service division. The agreement is based on intellectual property rights, know-how, equipment and inventory, and involves the incorporation of experts from Wehrle in the existing team in Emmendingen. The new service center will enhance its know-how in the field of service for great-fired boilers, particularly in waste-to-energy plants and waste incineration plants.

• In February 2025, Swegon acquired American Geothermal, a U.S.-based manufacturer of cooling & heating solutions for the concrete industry. Its expertise and offerings, such as ChillMaster, will enable Swegon to grow its presence. The purchase will mark a major achievement in the company's expansion plans owing to the environmental regulations and the rising demand for more eco-friendly HVAC solutions.

The industrial heating equipment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) & volume (‘000 Units) from 2022 to 2035, for the following segments:

Click here to Buy Section of this Report

Market, By Technology

• Heat pump

• Boiler

• Furnace

• Water heater

• 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 regions and countries:

• North America

  • U.S.

  • Canada

• Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Portugal

  • Romania

  • Netherlands

  • Switzerland

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

• Middle East & Africa

  • Saudi Arabia

  • UAE

  • Egypt

  • South Africa

• Latin America

  • Brazil

  • Argentina