United States Air Furnaces Market

US Air Furnaces Market Analysis

The United States Air Furnaces Market is expected to register a CAGR of 2.75% during the forecast period.

• The increasing investments in the real-estate sector and growth in industrialization are the primary factors driving the market. The rapid increase in the construction of different commercial and residential buildings across the United States is creating significant demand for air furnaces as a common type of heating equipment.
• Rising energy consumption along with stringent rules and regulations imposed by governing bodies is driving the demand for energy-efficient heating equipment in the United States. Additionally, increasing energy bills are also influencing many industrial and commercial organizations to install these energy-efficient systems on their working sites.
• Moreover, the increasing adoption of advanced technologies like Internet of Things (IoT) and Artificial Intelligence (AI) is also having a positive impact on the market. The usage of these technologies in air furnaces can result in major energy savings and also prevent equipment failures.
• The impacts of the COVID-19 pandemic disrupted the supply chain for many heating and cooling equipment manufacturers in the United States. Further, with the outbreak of the pandemic, many housing construction projects started to be carried on at a slower pace, while some were cancelled, which also resulted in a stagnant demand for air furnaces.
• The high upfront cost related to the installation of gas furnaces can act as a market restraint. Additionally, slow government regulations to completly phase out fossil fuel powered furnaces in the country is also expected to hinder the growth of the market. For instance, accordin to the new proposed rue from the Enegry department under the the Biden Administration by 2029, the country will phase out manufacturing and imports of non-weatherized, less efficent, non condensing furncese.

US Air Furnaces Market Trends

Gas Furnaces to Hold a Major Market Share

• Gas-fired furnaces are the most common type of air furnaces in the US and utilize natural gas as their primary source of fuel. The natural gas is ignited in the furnace, warming up the air, which is then distributed through ducts to various parts of a building or the home.
• Further, owing to the direct generation of high-temperature combustion gas, which is directed through a heating chamber by using an air blower, a natural gas furnace heats up quickly.
• Natural gas is a very affordable fuel source in the United States. It is also clean and efficient. Moreover, gas furnaces are required to have a minimum AFUE (Annual Fuel Utilization Efficiency) rating of 90% in Southern US and 95% in Northern US, as per Energy Star, making them high-efficiency appliances.
• In January 2021, Nortek Global HVAC launched the premium SD Series, a 95% AFUE, ultra-low NOx residential furnace that offers easy installation/service features. The single-stage, upflow/horizontal, natural gas-fired furnaces are available from the company's Frigidaire (FG8SD) and Maytag (MGC3SD) brands.
• While natural gas furnaces can be slightly more expensive than oil furnaces, they are easier to maintain. However, gas furnaces carry the danger of carbon monoxide leaks, making it necessary to install carbon monoxide detectors.

Residential End-User Sector to Grow Significantly

• The growth in the US construction sector coupled with the rise in the demand for independent houses fuels the market growth in the residential sector, as air furnaces are extensively used in residential buildings to regulate the temperature in winter and summer by providing consistent air circulations.
• The US housing sector is picking up at a fast rate, recovering from the effects of the pandemic. As per the data released by the US Census Bureau, new home construction starts in February 2022 increased by 22% compared with the same period in the previous year. This is the fastest growth rate in building since 2006.
• Temperature variations in U.S. regions result in extreme hot or cold weather, which stimulates the demand for residential air furnaces. Air furnaces have much faster start times, as compared to hydronic heating systems, and can quickly provide comfort to the entire home.
• The use of air furnaces can also improve indoor air quality significantly. Many furnaces are equipped with humidification, which allows for the removal of a lot of indoor air contaminants and humidity problems that can cause property damage and health problems. These factors also contribute to the market growth.
• The trend of using energy-efficient air furnaces is also growing with the implementation of new energy norms. For instance, in June 2022, the US Department of Energy (DOE) proposed new energy-efficiency standards for residential gas furnaces that would significantly reduce greenhouse gas emissions and provide more savings for consumers on their energy bills.

US Air Furnaces Industry Overview

The United States Air Furnaces Market is moderately competitive and consists of some influential players. In terms of market share, some of these important actors currently manage the market. These businesses are leveraging strategic collaborative actions to improve their market percentage and enhance their profitability.

• December 2021 - Daikin announced the acquisition of two Washington-based HVAC distributors, Thermal Supply, Inc. and AirReps, LLC., further expanding its presence in North America.
• August 2021 - Allied Air Enterprises, a Lennox International company, expanded its gas furnace offering with the Ducane, Concord and Allied 80G2E, an 80% two-stage constant torque (CT) gas furnace that provides a progression from entry-level single-stage product to two-stage variable speed furnaces.

US Air Furnaces Market Leaders

US Air Furnaces Market News

• February 2022 - US-based Steffes, LLC announced an expanded distribution partnership with the Master Group for the Canadian market. Steffes provides an extensive range of forced air furnaces. The agreement grants the Master Group the rights to distribute and resell Steffes residential heating products in the Canadian market.
• February 2022 - Mitsubishi Electric Trane HVAC US (METUS), a supplier of ductless and ducted mini-split and Variable Refrigerant Flow (VRF) heat-pump and air-conditioning systems, introduced the intelli-HEAT Dual Fuel System. This new solution connects with any thermostatically controlled furnace. The dual-fuel system helps homeowners with a gas furnace to improve their home's comfort and sustainability by using an energy-efficient, all-electric heat pump as their primary heating source.