The underfloor heating system is a heat source that is simply used for keeping the room of a building warm. It can be installed under the floor, walls, or even the ceiling to ensure that the rooms heat faster. The growing trend of installing modern interior has been instrumental in supplementing the demand for an underfloor heating system since it does not occupy additional space and ensure that there is enough room for instating modern architecture. Furthermore, the ability of the underfloor heating system to work with all types of flooring further makes it an attractive option, with the global underfloor heating market size estimated to grow from US$4.110 billion in 2019 to US$6.303 billion in 2025 at a CAGR of 7.39%. Even though, the underfloor heating system requires an initial investment that is typically almost 30% higher than that of the traditional radiators, the ability of these systems to pay off the investment, in the long run, is seen as an appealing option for the building/homeowners as they are more efficient and require less maintenance in comparison to the traditional radiators. Moreover, the performance of electrical underfloor heating is similar to that of the radiators, making them popular, specifically in regions where the climate is harsh and cold.
Rising Focus on Building Energy Management
According to the U.S Department of Energy – heating, cooling, and ventilation captures 34.94% of the residential and commercial building’s energy use. Similarly, according to the Department of Industry, Science, Energy, and Resources – Australian Government, HVAC typically consumes 39% of the energy supplied to an office building in the country, within which, 6.6% of the overall energy is consumed by the heating requirement of the building.
Typical Energy Consumption in an Office Building
Source: Department of Industry, Science, Energy, and Resources – Australian Government
Thus, efforts have made by the government, specifically in the United States and Europe, to optimize energy consumption and make the commercial and residential building energy efficiency meet their respective climate change goals. The energy and power industry have been recommending replacing conventional equipment and appliances with green and power-efficient equipment. Comparing the environmental impact, due to its size and dimension, the underfloor heating system requires relatively less energy to provide a similar level of performance as the conventional radiator, with the former consuming 20%-40% less energy than the latter to heat a room of similar dimension. Thus, in order to reduce the share of HVAC in building’s energy consumption and to optimize overall building’s energy demand, replacing conventional heating equipment with the underfloor heating system may provide a small but significant stimulus in ensuring controlled carbon emission in the immediate future.
Recent Market Developments
Rising Remodeling Expenditure Providing High Revenue Generation Opportunity
According to the European Insulation Manufacturers Association, single-family and multi-family houses combine 67% of the total floor area in Europe. The underfloor heating system tends to improve the value of the property significantly. In fact, it has been suggested that underfloor heating is the second or the third most popular choice among the individuals that they spent on while getting a major home improvement in Europe. Thus, the rising household expenditure on remodeling/renovation directly correlates with the growth of the underfloor heating market. For instance, close to double-digit growth of household remodeling spending has been observed in key European markets such as the United Kingdom, Germany, and France in the last couple of years.
Distribution of Floor Area per Building Type in Europe, in %
Source: European Insulation Manufacturers Association
Similarly, in the Nordic region, specifically, in Norway – more than seven out ten apartments are owned by the private individuals (source: Statistics Norway) and property owners are the most important factors for carrying out the renovation activity in the country. In Finland, however, the spending on renovation construction has declined by 4.2% to reach EUR 6 billion in 2019 (source: Statistics Finland), however, a significant proportion of the individuals have planned spending on heating system renewal in the next three years. Similarly, in the United States, remodeling spending has been growing at a good pace over the years and has been instrumental in driving the underfloor heating market growth in the country.