Electric Fireplace Market Size, Share & COVID-19 Impact Analysis, By Product Type (Wall Mounted, Built-In, Fireplace Inserts, Mantel/Freestanding, and Tabletop), By Application (Residential and Commercial), By Installation (Fixed and Portable), and Regional Forecast, 2021-2028

The global electric fireplace market size was USD 2.14 billion in 2020. The market is projected to grow from USD 2.17 billion in 2021 to USD 2.77 billion by 2028 at a CAGR of 3.5% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with electric fireplace witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a higher growth of 2.0% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden fall in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The increased infrastructure development and prominence of furnace refurbishment is anticipated to drive the market at a noteworthy pace. Additionally, the development novel technologies and high-end products is expected to fuel the market growth. Development of energy-efficient products is estimated to bolster global electric fireplace market growth. The reliance of customers toward eco-friendly and smoke free heating system in their infrastructures is also boosting the sales prospects for the market. Many customers are looking for renovation and modification. They are trying to install compact products with lesser operational cost, and thus prefer the electric powered products at their facilities.

COVID-19 IMPACT

COVID-19 to Obstruct Growth due to Uncertain Scenario in Global Construction and Interior Development Sector

COVID-19 has a major impact on economic activities and caused problems for the manufacturing sector in the first quarter post pandemic. The supply side scenario witnessed a noticeable downturn due to shutdown manufacturing activities and numerous sanctions on cross-border trade of non-essential products. However, the demand side of the market projected exactly opposite scenario. The extended staying at home encouraged lot of customers to turn toward development of interiors, which, in turn, helped to elevate sales of the fireplaces market.

The disruption and complete breakdown of the supply chain of automated mowers at the beginning of pandemic lowered development prospects in the first half of fiscal years. However, distributors and retailers consumed balance inventories. After the resumption of manufacturing activities in diverse economies, the market returned positive growth projections. Thus, looking at long-term prospects of COVID-19 had a minimal effect on progression of the market.

LATEST TRENDS

Increasing Options of Customization Solutions with Diverse Setting and Functions to Encourage Market Growth

The massive interest of key players in development of novel products has opened the doors for development of a wide range of customization and designs. The integration of thermostat-controlled heaters with inner glow logs is significantly driving the global market. By analyzing the diverse growth opportunities in the global market, numerous companies operating in multiple regions are keen to venture into the global market.

Dimplex is extensively working on development of its existing product portfolio and integrating realistic sounds of smoke effects, crackling fire and, glowing embers. The constant effort to develop imaginative new products by manufacturers is expected to attract customers toward this highly optimistic market.

DRIVING FACTORS

Cost Effective Heating Solution and Virtually No Maintenance of Electric Powered Products are Cementing Them as First Choice   

The development of products with supplemental heating solution has emerged as an encouraging cost-effective and highly practical solution for residential as well as certain commercial spaces. The supplement provides zone heating feature using which customers can select specific areas for heating, which are frequently accessed by the occupants. The application of this modern system to cut off unnecessary heating of the entire infrastructure and considerable energy costs incur during the application of these products. For instance, a leading hearth solutions manufacturer Dimplex has developed organized interior carriers fireplace solutions, which are capable of providing apt heating to the spaces of almost 1,000 square feet.

Additionally, natural gas or wood pallet burning has a discouraging factor of 50% to 70% energy losses varying according to various factors. On the other hand, its counterparts operating on electric power have almost negligible energy losses prompting substantial performance of the market. Moreover, electric powered products eliminate the requirement of chimney, wood log storage space or piped gas connection for installation. The reduced expenditure on chimney cleaning and easy installation are also impacting the buying decisions of customers.

RESTRAINING FACTORS

Limited Flame Styling and Tacky Looks of Certain Electric Powered Products Disturb the Decorated Décor of Stylish Spaces

Flake flames induced during operation limit the styling options of the infrastructure. Thus, anything below high-end and modern products can be a bit downgrading for the interior aesthetics and trendy settings. Electric powered products certainly have an issue of latency in heating up the space post switching it on, which can prove a bit uncomfortable for the occupants especially during winter. Although, this scenario might change over the coming years as most of the manufacturers are making heavy investments and focusing on research and development operations to come up with better attractive solutions.

SEGMENTATION

By Product Type Analysis

Wall Mounted Fireplace Segment to Retain Its Prominence over the Forecast Period

By product type, the market is classified into wall mounted, built-in, fireplace inserts, mantel/freestanding, and tabletop.

Wall mounted systems will experience robust demand due to ease of installation as the units can be hanged on a wall and are capable of low profile integration. The efforts of manufacturers to introduce wide range of products in the aforementioned product type, integration of remote connectivity, and incorporation of advanced media options are the factors favoring promising performance of the segment. Furthermore, besides hefty market share, the wall mount electric segment is also projected to show steadfast growth pace during the forecast period.

The majority of the manufacturers have witnessed higher growth prospects for the wall mounted segment followed by built-in segment. For instance, according to Brain Mills who operates as a Vice President of commerce, Glen Dimplex has garnered extensive demand from customers for wall hung and built-in models in 2020. The easy installation of wall hanged models in existing infrastructure is the main reason behind stellar performance of the segment. Whereas, efficient utilization of available space and apt installation of built-in structure to generate highly efficient operation are providing new growth avenues to the built-in segment

By Application Analysis

Residential application to emerge as Better Performing Segment over its Counterpart during the Forecast Period

By application, the global market is classified into residential and commercial. Residential segment is expected to have a commendable share in the global market due to the increasing interest of domestic customers in the renovation of conventional heating systems and high reliance of customers toward electric based heating systems in their modern infrastructures.

After the outbreak of COVID 19 pandemic, the extensive time spent by customers in their home has encouraged customers to modify and rediscover their interior aesthetics through modifications of heating systems. The special attention of residential customers and their inclination toward the use of electric powered product are estimated to support the residential segment to emerge as a forerunner application.

By Installation Analysis

Fixed Segment to Create Lucrative Growth Opportunities in Market

By installation, the global market is classified into fixed and portable. The fixed segment is set to account for higher growth prospects and significant market share across the globe. The development and manufacturing of high powered units in fixed installation is the main reason behind promising performance of the market.

The popularity and subsequent higher demand for wall mounted and built-in for indoor residential use and also in numerous commercial and hospitality infrastructures can be perceived as the notable contributing factor behind the consistent strong performance of the market.

REGIONAL INSIGHTS

Region-wise, the market is divided into North America, South America, Europe, and Asia Pacific.

North America is anticipated to register notable share within the global market and is projected to witness a substantial pace of growth in the global market during the slated period of time. The growth is mainly due to high demand for products with cost-effective operation and environment-friendly fuel mode. Furthermore, the shift of customers from using traditional gas-based or wood pallet-based less efficient products to newer, silent, attractive, and electric powered heating system is widening the growth perspective in the North America market.

U.S. to exhibit promising growth with Increasing Demand for Electric Powered Products

In terms of market share, the U.S. is anticipated to retain its dominant presence throughout the forecast period. The substantial customer reach and impressive performance of key players in the country are expected to maneuver the growth projections of the regional market. The imposition of regulatory norms and ban on conventional hearth products in the region is one of the important reason behind the increasing influx of customers toward electric powered hearth products. The increasing awareness among consumers regarding quality and efficiency of these products has subsequently elevated the traction of customers toward high-end models. The increased awareness amongst customers, stringent regulatory norms by the federal government authorities, and product portfolio enhancement by manufactures are three noteworthy factors that collectively drive the growth of the market.

The increasing demand for smoke free and ecofriendly products embedded with feature such as smart connectivity, weather sensors, AI-based, and IoT integrated operation is propelling the market growth across Europe. Additionally, favorable weather climates, advantages over gas based or wood pallets-based units, and adoption of aesthetically advanced and modern fireplaces are also promoting promising development of the regional market. The manufacturing of safe and secured electric fireplace by the active market vendors is augmenting sales of these products in commercial infrastructures.

In South America, volatility in market supply chain and lower growth opportunities in the region limit market development prospects across the region. Limited direct customer reach and underdeveloped supply channel & sales network can also be termed as factors limiting market growth.  

Asia Pacific is expected to progress with a modest growth rate over the forecast period. The tropical climate conditions in the region of South Asia leaves minimal growth opportunities for the market in the India and most of the ASEAN countries. Although, the market could witness considerable demand from countries in the Far East region due to comparatively colder climate. Japan, South Korea, and Eastern provinces in China are estimated to be the target markets for the manufacturers, Additionally, Oceania is another market with high growth potential. The manufacturers are anticipated to analyze the opportunities in the market of Australia and try to reinforce their sales footprints in the opportunistic market.

KEY INDUSTRY PLAYERS

Key Companies Focus on Collaborations and Joint Ventures across Various Regions

Prominent manufacturers operating in this market are striving for the development of advanced products and are putting efforts to achieve technological superiority to propel their growth prospects in the global market. The companies are also looking to work on their distribution network and efficiently elevate direct customer reach in the opportunistic regions within the global market.

Additionally, many established market players are constantly making decisions regarding venturing into strategic mergers and acquisitions and collaborating in joint ventures to increase diversity in their respective product portfolio and sales within multiple regions. The increasing participation of players from diverse geographies is creating a fierce and intense competition landscape within the global market. GLEN DIMPLEX, Twin Star Home, and R.W. Flame are identified as the top contenders with promising market shares in the global market.

LIST OF KEY COMPANIES PROFILED:

• GLEN DIMPLEX (Gerlingen, Germany)


• NAPOLEON (Ontario, Canada)


• Sierra Flames (New York, U.S.)


• Alaskan Fireplace Company (Wisconsin, U.S.)


• Giantex Inc. (Neuville-en-Ferrain, France)


• Twin Star Home (Florida, U.S.)


• Touchstone Home Products, Inc. (Pennsylvania, U.S.)


• BFM Europe Ltd (Stoke-on-Trent, U.K.)


• Empire Comfort Systems (Illinois, U.S.)


• European Home (Massachusetts, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• September 2020: Planika Fireplaces a Poland based leading manufacturer of electric powered heating systems and hearths has launched a new and novel range of products under its Astro range. The induction of Astro range products will elevate the diversity of the present product portfolio of the aforementioned manufacturer. The product availability in 3 different forms and 3 different sizes is expected to increase sales of its products.


• August 2020: Lahazza Hearth & Stone has announced merger of WilliamSmith Fireplaces & Home Accents to operate as a single entity under the brand name WilliamSmith Fireplaces. The merger will help the company to increase its customer engagement in South Carolina Low Country, U.S. The strategic merger is also aimed to fortify WilliamSmith position as a prominent installation and service provider in the regional market of the U.S.

REPORT COVERAGE

The global electric fireplace market research report provides an in-depth analysis of the industry dynamics and competitive landscape. The report also provides market estimation and forecast based on product type, industry, and regions. It provides various key insights, including recent industry developments in the market, such as mergers & acquisitions, macro, and microeconomic factors, SWOT analysis, market trends and company profiles.

Report Scope & Segmentation