U.S. Residential Furnace Market Size – By Product, Application Analysis, Share, Growth Forecast, 2024- 2032

U.S. Residential Furnace Market Size

The U.S. residential furnace market was valued at USD 5.3 billion in 2023 and is estimated to grow at a CAGR of over 5% from 2024 to 2032. Residential furnaces are essential for home heating, providing warmth and comfort. As concerns about energy use and the environment grow, the demand for energy-efficient heating solutions is rising in the market. With a focus on sustainability, consumers are looking for furnaces that save energy and reduce utility bills. This trend matches the increase in residential construction and renovation, where new homeowners and renovators prioritize energy efficiency. Manufacturers are responding by offering advanced, energy-efficient furnace models to meet this demand.
 

Government incentives and rebates for HVAC upgrades also boost market growth. These financial incentives encourage homeowners to replace old heating systems with modern, efficient ones, making it easier to switch to greener options. This combination of factors shows a broader move towards sustainable living, where energy efficiency improves comfort and meets regulatory and consumer needs.
 

U.S. Residential Furnace Market Trends

The U.S. residential furnace industry is evolving with several key trends. One major trend is the growing use of smart technology in heating systems. Consumers are choosing smart furnaces that can be controlled and monitored remotely through mobile apps, making them more convenient and energy efficient. Another trend is the focus on hybrid heating systems that combine traditional furnaces with renewable energy sources like solar power or heat pumps, offering more sustainable heating options.
 

The market is also moving towards modular and compact furnace designs, which are ideal for small homes and urban areas. Additionally, as people become more environmentally conscious, there is a preference for furnaces that use alternative fuels like biofuels or electricity to reduce carbon footprints. These trends show a shift in the market towards efficiency, technology integration, and sustainability.
 

U.S. Residential Furnace Market Analysis

The U.S. residential furnace industry faces challenges that could slow its growth. One main issue is the high cost of installing advanced furnace systems. While these systems save energy in the long run, the high upfront cost can discourage consumers, especially in a market sensitive to price. Many homeowners may delay replacing or upgrading their furnaces due to financial concerns, which affects overall market demand.
 

Additionally, changing energy prices create uncertainty for consumers about the long-term benefits of energy-efficient furnaces. When energy costs go up, homeowners may hesitate to buy new systems, fearing that their savings might be offset by unpredictable fuel prices. This hesitation can slow market growth as consumers consider immediate costs versus future savings. These challenges highlight the need to clearly communicate the long-term benefits of modern heating systems and offer financial incentives to encourage adoption.
 

Based on product, the gas furnace segment was crossed USD 2.4 billion in 2023, due to gas furnaces being efficient, cost-effective, and reliable. Homeowners prefer gas furnaces for their consistent heating and lower operating costs compared to oil and electric options. The oil furnace segment is next, appealing to those in areas without natural gas. Electric and wood furnaces serve niche markets focused on sustainability. The hybrid furnace segment is also growing as consumers look for solutions that combine multiple heating sources, adding more variety to the market.
 

Based on application, the single-family homes dominated about 58.4% of the market share in 2023. This is because many U.S. homes are single-family, and homeowners want efficient and reliable heating. Larger single-family homes need strong heating systems, creating steady demand for gas and hybrid furnaces. Also, more people are renovating homes and upgrading to energy-efficient systems, boosting growth in this segment.
 

California residential furnace market size surpassed USD 727.2 million in 2023, driven by the state's demand for energy-efficient and eco-friendly heating solutions. California's strict energy regulations and focus on reducing emissions have led homeowners to buy high-efficiency furnaces with low emissions. The state's mild winters and ongoing renovations in urban and suburban areas also support the market.
 

U.S. Residential Furnace Market Share

In the U.S. residential furnace industry, leading companies like Carrier and Lennox compete based on energy efficiency, technology, price, and distribution reach. These companies focus on creating high-efficiency, eco-friendly products to meet the growing demand for sustainable heating. They also differentiate their products with smart technology and hybrid systems, offering features that improve convenience and control. Price is important, as companies try to balance affordability with advanced technology. A strong distribution network is also crucial, helping brands reach both urban and rural areas, which increases competition in the market.
 

This U.S. Residential Furnace Market Companies

Major players operating in the U.S. residential furnace industry are:

• Amana
• Boyer Furnace
• Bryant
• Carrier
• Daikin
• Lennox
• Luxaire
• Rheem
• York    
   

U.S. Residential Furnace Industry News

• In October 2023, Carrier launched its updated gas furnace lineup with "A Tap Away" NFC technology, allowing dealers to adjust settings and check diagnostics with a phone, even without power or service. This feature works with the Carrier Service Tech App.
   
• In March 2023, U.S. heat pump and electric water heater sales set record percentages, while gas equipment sales declined. Heat pumps, comprising 55% of heating system sales, continued outpacing gas furnaces, reversing previous market trends, per AHRI data.
   

This U.S. residential furnace market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) & volume (Million Units) from 2021 to 2032, for the following segments:

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Market, By Product

• Gas furnace
• Oil furnace
• Electric furnace
• Wood furnace
• Hybrid furnace

Market, By Application

• Single family
• Multi family

The above information is provided for the following states:

• California
• Texas
• New York
• Florida
• Illinois
• Ohio
• New Jersey
• North Carolina
• Massachusetts
• Virginia
• Washington
• Michigan
• Indiana
• Minnesota
• Wisconsin
• Missouri
• Oregon
• South Carolina
• Kentucky
• Iowa
• Oklahoma
• Utah
• Kansas
• Nevada
• Arkansas