U.S. Residential Outdoor Heating Market Size, Share & COVID-19 Impact Analysis, By Product Type (Freestanding, Tabletop, and Wall Mounted and Hanging), By Fuel Type (Electric, Gas/Propane, and Others (Wood)), and Forecast, 2022-2029

The U.S. residential outdoor heating market size was valued at USD 411.1 million in 2021. The market is projected to grow from USD 431.5 million in 2022 to USD 667.1 million by 2029, exhibiting a CAGR of 6.4% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with residential outdoor heating experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the U.S. residential outdoor heating market exhibited a higher growth of 7.0% in 2020 as compared to 2019.

Outdoor heaters are devices that are particularly structured to release heat outward to wherever public is assembled. The radiated heat released from this device is used by people, thus increasing the temperature. Numerous kinds of outdoor heating appliances involve fire pits, quartz or ceramic electric lamps, and gas outdoor heaters. They can be deployed in various manners, comprising wall mounted, table top, or hanging. Improved lifestyle of consumers in developed countries, such as the U.S., to sustain a great social position and advance toward a better lifestyle leads to the product adoption. Since outdoor heaters are both stylish and affordable, they can be used as house decor. There may be an increase in demand for outdoor heating in the country as a result of this.

COVID-19 IMPACT

Significant Increment in Time Spent Indoor had a Positive Impact on Market

COVID-19 outbreak had a noteworthy impact on the economic activities of the U.S. The U.S. market even registered a negative growth in its GDP plummeting almost by 3.5% during 2020. The U.S. registered its worst performance in the last 74 years, constraining market growth. Substantial decrement in consumer spending and reduction in investments made across different businesses owing to the severe cash crunch have been the story during the initial phase of the pandemic. Restrictions in cross-border trade and stringent regulations on international boundaries for the transport of non-essential goods fueled the crises faced by the industrial manufacturing industry. The volatility of the circumstances pushed the retailers and distributors to operate in a pessimistic manner, which subsequently disrupted supply chain operations.

However, according to Slate, in 2020, internet searches for heat lamps at a popular furniture website increased by 70% compared to the previous year, and residential outdoor heater vendors saw increased interest among consumers. During that time, travel was restricted due to the pandemic, thus consumers were investing extra time in their backyards, which led to more use for these products. The reduction in outdoor socializing in commercial spaces post COVID-19 restrictions had a positive impact on the increment of residential outdoor heater sales for residential application. According to the article, a propane vendor in New York City reported a 200% increase in sales (to around 250,000 tanks per month), and sales of heaters at a prominent retailer surged by 1,500%.

LATEST TRENDS

Adoption of Advanced Smart Outdoor Heaters in Residential Sector is Cementing Market Growth

The growing focus on product innovation and product differentiation in outdoor heaters is creating an ample amount of opportunities for market players. The manufacturers are emphasized toward producing high-quality heaters that require utilizing advanced technologies in the united states. In addition, in the residential sector, the adoption of smart outdoor heaters equipped with technologies is increasing revenues. The need for smart residential outdoor heaters is high, especially in residential applications. Also, heat lamps and fire pits sales are rising progressively, which is further boosting the size of the outdoor heating market for residential use in the U.S.

Additionally, homeowners are gradually spending on making indoor and outdoor living spaces comfortable. Many of them are strongly accepting improved resolutions for outdoor heating. This has prolonged the market prospects & business opportunities, which is further contributing toward the residential outdoor heating market growth in the U.S.

DRIVING FACTORS

Increasing Demand for Electric Outdoor Heaters to Substantiate Development Prospects

Adoption of electric outdoor heaters has emerged as a more efficient method to heating up an area in winters, and has also proved to be safer for the environment due to elimination of toxic emissions. As per the study conducted by the Department of Energy (DOE), utilization of electricity by consumers in the U.S. went beyond USD 1 billion each minute, and to reduce electricity consumption, consumers shifted their preference toward highly efficient electric models, replacing the currently popular conventional products.

The application of such electric patio heaters can provide optimized heating for the stipulated area and will reduce the overall operational cost. The preference of customers toward electric powered products mainly stands on two critical pointers, which are application of eco-friendly products citing environmental concerns and installation of cost-effective yet stylish products.

RESTRAINING FACTORS

Continuous Escalations of Environmental Concerns & Huge Operational Prices to Obstruct Market Growth

Gas-powered outdoor heaters generate heat by using fossil fuels such as propane, coal, butane, LPG, and natural gas. The emission of greenhouse gases due to the consumption of propane as a primary source of power for conventional outdoor heaters is the main reason behind the shift in the preference by customers. In addition, the 3,000-watt capacity propane heater generates more than 42 kg of carbon as per the study conducted by Propane Education and Research Council in 2020. The conventional residential outdoor heaters are capable of catering to an area of 9 sq. meter for 8 hours every week. Greenhouse gas emissions equal car drives of approximately 104 miles in the U.S.

The usage of outdoor heaters contributes to carbon dioxide emissions. Growing carbon dioxide emissions are a result of the increased usage of outdoor heaters in outdoor locations. Outdoor heaters, on the other hand, cannot be restricted due to their utility and aesthetic appeal. They are common at restaurants, taverns, and other outdoor settings. Existing market providers are concentrating on developing creative solutions that reduce the environmental effect of such heaters. Several companies have started selling infrared outdoor heaters. The environmental effect of such outdoor heaters is modest. Moreover, outdoor heaters' negative environmental effects may constrain market expansion.

SEGMENTATION

By Product Type Analysis

Portability Advantage Provided by the Freestanding Segment to Spur the Product Demand

Based on product type, the market is classified into tabletop, freestanding, hanging, and wall mounted.

The freestanding segment dominated the U.S. market with major market share in 2021 and is projected to witness the highest CAGR of 7.0% in the forecast period (2022-2029). Freestanding heaters are portable and can be installed at any place regardless of the infrastructure. Most of the manufacturers provide freestanding models at a comparatively lower price than its counterparts. The lower price offering could be the other prime factor contributing to the noteworthy pace of market development for freestanding.

Moreover, in terms of market share, the tabletop segment holds a significant market share in the residential market as these heaters are favorable for application in domestic outdoor dining spaces. The application of small and compact products stands ideal in case of application for alfresco dining.

By Fuel Type Analysis

Utilization of Modern Machinery to Depict Higher CAGR for Land Development Segment

In terms of fuel type, the market is categorized into gas/propane, electric, and others (wood).

The electric segment is set to outpace its peers over the course of time. Increasing application of eco-friendly electric powered products is cited as a pivotal factor augmenting the share of this segment. The federal government in the U.S. is also keen toward imposing stringent regulatory norms for the application of conventional propane fueled models of electric patio heaters to encourage customers toward procurement of electric models.

The low cost incurred in the operation of these heaters is identified as the prominent factor behind the promising growth of electric fuel across the U.S. market. Additionally, lower price in maintenance and repairs of electric-based heaters to increase influx of customers looking for outdoor heaters for a multiple use is driving the segment forward.

COUNTRY INSIGHTS

The market in North America is dominated by the U.S. As construction activities increase across the U.S. and Canada, the outdoor heating market is expected to grow. Commercial and residential spaces use outdoor heaters extensively.

Between now and 2021, new construction in the U.S. will be worth USD 1.58 trillion, according to the U.S. Census Bureau. The U.S. construction industry grew by 15.6% to USD 1.51 trillion in 2021, according to the Q4 2020 U.S. Construction Survey.

There is a value-grab opportunity for manufacturers in the outdoor heating market in the U.S. due to the residential sector. Backyards and patios are areas that are part of the family circle in North America. Due to this, companies are increasing the availability of heat lamps, fire pits, and more specifically residential outdoor heaters. Using smart heating technology, households around the world are bringing their indoor conveniences to their outdoor spaces. As a result of such developments, the outdoor heating industry is expanding.

In addition, advanced outdoor heating technologies are enabling homeowners in the U.S. to move their indoor conveniences outside. Such market trends are contributing toward the growth of the outdoor heating market size in the residential sector in the U.S. Farmhouse outings and infrastructure residence in sub-urban areas in the country are going to promote the sales of these units. The strong manufacturing cluster in the U.S. may also increase sales of outdoor heaters.

KEY INDUSTRY PLAYERS

Prominent Players Emphasize on Strategies to Improve Overall Market Presence

Bromic, Infratech, Lava Heat Italia, and Twin Eagles are some of the key players covering the major U.S. residential outdoor heater market share. The promising share of the established market leaders can be attributed to the diverse product portfolio offerings of these players. For instance, in November 2020, Bromic Heating launched Smart Heat electric outdoor heater that comes in 2,300W or 3,400W models, with heat covering up to 108 feet. It was made with high quality AISI316 stainless steel and spreads radiant heat at a large area while reducing unwanted light emissions.

Furthermore, Fire Sense, Space Ray, AEI Corporation, Sunheat International, Dayva International Inc., and Lynx Grills are focused on establishing the products equipped with technologies. For instance, AEI Corporation under the brand name Ambience offers outdoor heaters that can effortlessly absorb the heat and comfortably adjust the temperature that is ambient in outdoor and indoor locations by heating cool surfaces. Also, increasing consumer spending on outdoor activities, such as outdoor eating and fishing, around the country is also aiding the market growth. These players tend to have good tie-ups with local vendors, which helps them increase their sales and profit along with holding a major share in the market.

LIST OF KEY COMPANIES PROFILED:

• Infratech (U.S.)


• Lava Heat Italia (U.S.)


• Bromic (Texas, U.S.)


• AEI Corporation (U.S.)


• Twin Eagles, Inc. (U.S.)


• Fire Sense (U.S.)


• Space-Ray (U.S.)


• SUNHEAT International (U.S.)


• Dayva International Inc. (U.S.)


• Lynx Grills (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2022 - Infratech heating systems acquires major ad spots in premium brands such as Apple TV+ and Jeep. The company is becoming a desirable choice with most photogenic properties in the world.


• December 2021 - Best Buy Totaltech plans on an acquisition of Yardbird, with partnership of many leading brands, such as Traeger, Weber, and Bromic, to strengthen their outdoor television and audio. Yardbird is a leading premium outdoor furniture company.


• February 2021 - Dometic declared that it got involved into a contract to purchase Twin Eagles. Additionally, Dometic company declares Twin Eagles is set to be an asset in driving the development of the U.S. market.


• August 2021 - BBQGuys declared the inclusion of Delta Heat grills and additional outdoor kitchen apparatus and Twin Eagles on their website. Few of the things that are involved in the product catalogue are outdoor kitchen cabinets, gas grills, charcoal grills, or storages, pellet grills, side burners, refrigeration, and other accessories.


• March 2020 - In North American premiere, Schwank presented its first tube heater. It is built with an EC motor. It is the only model among all others that is inbuilt with such a feature.

REPORT COVERAGE

The U.S. residential outdoor heating market report focuses on leading regions across the globe to offer a better understanding to end-users. Moreover, the report offers insights into the industry dynamics and analyzes technologies utilized at a rapid pace across the world. It also displays some of the key factors and restraints to help the readers gain in-depth knowledge about the market.

Report Scope & Segmentation