Increasing Penetration in Emerging Nations Expected to Boost the Global Space Heaters Market, Says Technavio
Technavio
analysts expect the global
space heaters market to exceed 44 million units by 2020, growing
at a CAGR of over 5%, according to their latest report.
The global space heaters market is expected to grow consistently during
the forecast period with major demand coming from Europe and North
America. Residential energy consumption for space heating and the demand
for various space heaters depend on user behavior and climatic
conditions. In cold regions like Northern and Central Europe space
heating accounts for 60%-70% of the residences’ primary energy
consumption. This has propelled consumers to channel their heating
resources toward more energy-efficient and cost-effective heating such
as space heaters which can help lower household heating costs by 10% and
prevent the emission of 800 pounds of carbon dioxide.
According to Jhansi Mary, lead analyst at Technavio for home,
kitchen and large appliances research, “Vendors are
incorporating features such as digital control panels, wall-mounted
models, built-in energy-saving modes, adjustable thermostats, and
innovative designs to garner larger market shares in the global space
heater market.”
Technavio’s new
research areas market research analysts have identified
the following four factors that will drive the global space heaters
market:
-
Increasing penetration in emerging nations
-
Compliance with government regulations on emissions and energy
efficiency
-
Sustained production in emerging countries
-
Increase in disposable income
Increasing penetration in emerging nations
The increase in per-capita income will propel the market in emerging
nations. An increase in the adoption of electric and technologically
advanced products is seen in developing markets especially in the higher
income segments.
With the increased scope for high-priced space heaters, local players
are introducing newer products to capitalize on the increasing
purchasing power. For instance, in India, Usha International launched a
range of space heaters, including steam heaters, panel heaters, carbon
heaters, and oil filled radiators in December, 2015.
Another propellant of the market will be the booming e-commerce sector
in emerging nations. For instance, in countries such as India and China,
the rapidly growing e-commerce sector is a major driver for the home
appliance market. As home appliance players venture into the space
heaters market, they will be able to leverage on their already
established presence in the online retail market.
Compliance with government regulations on emissions and energy
efficiency
The market for technologically advanced and efficient space heaters is
gaining traction as consumers gain awareness about the importance of
energy efficiency and sustainability.
As per the European Commission, energy-efficient heaters and water
heaters in households can save European consumers over USD 65 billion by
2020. For instance, energy-efficient heaters and water heaters could
save 600 TWh of electricity per year and avoid emissions of over 130
million tons of carbon dioxide. Ecodesign requirements state that the
seasonal space heating energy efficiency of electric portable local
space heaters shall not be less than 36%.
Sustained production in emerging countries
A substantial number of home appliances are produced in
manufacturing-intensive countries such as China, which is the world
leader in the production of home appliances. Space heaters will continue
to be one of the key categories in China’s home appliances production.
Favorable government policies, subsidies, the presence of large
production facilities, and the ability of these vendors to manage
economies of scale will ensure sustained production of space heaters in
China.
Given the volume of production in China, vendors within the country and
across the globe, are in a favorable position to manufacture and
distribute space heaters.
Increase in disposable income
With the increase in the purchasing power of people, there is an
increase in the discretionary spending of consumers. This trend has led
to the increase in expenditure on home appliances across all countries
which will have a positive impact on the market for space heaters market
as well.
“Increase in per-capita income levels, urbanization, and rise in
organized retailing are the primary driving factors for the increase in
expenditure on home appliances in countries such as India,” says Jhansi.
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About Technavio
Technavio
is a leading global technology research and advisory company. The
company develops over 2000 pieces of research every year, covering more
than 500 technologies across 80 countries. Technavio has about 300
analysts globally who specialize in customized consulting and business
research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research
techniques to ascertain the size and vendor landscape in a range of
markets. Analysts obtain information using a combination of bottom-up
and top-down approaches, besides using in-house market modeling tools
and proprietary databases. They corroborate this data with the data
obtained from various market participants and stakeholders across the
value chain, including vendors, service providers, distributors,
re-sellers, and end-users.
If you are interested in more information, please contact our media team
at media@technavio.com.
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