Outdoor Heating Market Size, Share & COVID-19 Impact Analysis, By Product Type (Freestanding, Tabletop, Wall Mounted and Hanging), By Fuel Type (Electric, Gas/Propane, Others (Wood)), By Application (Catering and Hospitality, Commercial and Industrial Space Heating, Residential Outdoors, and Indoor Agriculture/Livestock Brooder), and Regional Forecast, 2022-2029

The global outdoor heating market size was valued at USD 1.16 billion in 2021. The market is projected to grow from USD 1.21 billion in 2022 to USD 1.78 billion by 2029, exhibiting a CAGR of 5.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with outdoor heating experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 5.4% in 2020 as compared to 2019.

Outdoor heaters are appliances specifically designed to radiate heat outward where people are gathered. The radiant heat emitted from this appliance is absorbed by objects and people, raising the temperature. The various types of outdoor heating appliances include gas patio heaters, ceramic or quartz electric lamps, and fire pits. They can be installed in different styles, including wall-mounted, hanging, or tabletop.

COVID-19 IMPACT

Rising Adoption of Outdoor Gatherings to Drive the Market During COVID-19 Pandemic

COVID-19 outbreak has curbed the economies of multiple nations to a notable extent. Sealed international boundaries, sanctions on the cross-border trade of non-essential goods, and abrupt shutdown of manufacturing facilities across the globe at a certain point of time left the supply and demand imbalance and brought the markets to a halt during the pandemic. The pessimistic approach of the distributors and retailers augmented the direness of the situation and caused the breakdown of supply chain operations.

However, in October 2022, the commercial facility operators and catering & hospitality service providers caused a surge in demand for outdoor heating units as these service providers were trying to elevate their outdoor capacities to mitigate the reduced capacities in indoor facilities in the wake of pandemic induced safety protocols.

Due to the COVID-19 outbreak, many businesses had limited restaurants to outside dining. Some places have apparently started employing outdoor heating bulbs to keep clients warm in the evenings and throughout the winter; therefore, outdoor dining & gatherings further aided the market growth. Some people are opting for outdoor heating for their homes to stay warm.

Residents in areas under the government's second-strictest lockdown are prohibited from mixing indoors and are only permitted to meet with persons from other families outside in groups of six or less. As consumers scramble for outdoor socializing under new coronavirus regulations, the demand for patio heaters and fire pits increased.

For instance, in August 2020, Phil Urban, who operates as a chairperson of Mitchells & Butlers, which is the largest bar chain operating in the U.K., announced an investment of about USD 2.0 billion for the establishment of covered and heated outside areas.

Therefore, the aforementioned factors are further aiding the market growth during post-pandemic.

LATEST TRENDS

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Rising Demand for Environment-friendly Outdoor Heaters Aids the Market Growth

Electric patio heaters are not only a more efficient way to warm up space against the cold weather but are also more ecologically responsible for dangerous chemical emissions. This low-cost alternative to outdoor gas heaters heats up a place in a short amount of time, requiring fewer resources to maintain a comfortable temperature. As a consequence, electric patio heaters are a great choice for individuals who are concerned about the environment or just want to help reduce pollution levels.

The U.S. consumers utilize around USD 1.0 billion worth of electricity every minute, as per the Department of Energy (DOE). Hence, to lower the use of electricity, consumers prefer to choose high-efficiency low electricity-required appliances by replacing the conventional models. In 2021, as per the Green America Organizations, the U.S. consumers saved over USD 12 billion on utility bills and also helped to avoid greenhouse gas emissions.

In addition, electric heaters are a good method to keep comfortable and warm throughout the winter months. These heaters come with persuaded inherent gains. One of them is flexibility. These heaters come in many sizes and shapes, which mean they can easily be modified to function in different room surroundings. They are similar to a space heater, i.e., small and huge enough to accommodate in a garage wall.

Hence, increasing demand for electric outdoor heaters is further contributing to the global outdoor heating market growth.

DRIVING FACTORS

Increasing Popularity of Outdoor Entertaining Activities to Propel the Market Growth

Increasing consumer spending on outdoor activities, such as outdoor eating and fishing, around the globe, aids the market growth. According to the Outdoor Industry Association Report in 2021, outdoor recreation activities spending reached USD 646 billion in North America. As per this report, the U.S. accounted for 1.8%, which is USD 374.3 billion in spending on outdoor recreation activities in 2020.

An increase in outdoor recreational activities spending includes accessories, apparel, food & drinks, entertainment/activities, and lodgings. Such rising consumer spending on outdoor activities and entertainment essentials aids the market growth. These heating appliances are widely used for outdoor activities. People use these heating appliances to keep the environment warm during the winter season.

During the COVID-19 pandemic, several countries imposed lockdowns that impelled the demand for safer meetings outside. Patios, gardens, and terraces become new outdoor meeting and living rooms around the globe to avoid the spread of coronavirus. Hence, the abovementioned factors aid the market growth and increase the market share globally.

RESTRAINING FACTORS

Rising Environmental Concerns and High Operational Cost of Electric Outdoor Heaters to Hinder the Market Growth

Gas-powered outdoor heaters produce heat by burning fossil fuels such as coal, propane, LPG, butane, and natural gas. When these gases burn, it produces a considerable amount of CO2 and several air pollutants such as nitrogen oxides and sulfur dioxide. Rising environmental concerns owing to the use of these fossil fuel-powered outdoor heaters hinder the market growth.

According to the Propane Education and Research Council Study in 2020, basic propane patio heaters with 3,000 Watt capacity generate approximately 42 kg of CO2. It can warm up a 9 square meter patio during the 8 hours of every evening in a week. This emission is equivalent to 104 miles of the average car driving in the U.S. Propane-based outdoor heater emits 5.76 kg of CO2 per gallon. According to the Sustainable Princeton Organization Report, in 2021, approximately 43.6 to 44.9 metric tons of carbon dioxide will be emitted with the constant use of outdoor heaters.

Further, a gas-powered patio heater is responsible for warming up the environment as it releases CO2 during the night within a couple of hours of usage. As per the Phys.org Report in 2021, a gas-powered outdoor heater emits 108 MJ of energy and approximately 3 kg of CO2.

Such an increase in carbon emission with the use of traditional outdoor heaters is responsible for global warming and several environmental concerns that hinder the market growth.

SEGMENTATION

By Product Type Analysis

Freestanding Outdoor Heaters to Witness Major Growth Owing to Easy Handling

By product type, the market is divided into freestanding, tabletop, and wall mounted and hanging. 

The freestanding segment is expected to show substantial growth during the forecast period. The growth is attributed to its easy movable capability. It can simply be moved to wherever the heat is required, and release waves that are infrared and travel straight to the surface and people, unconstrained by any breeze or wind.

Moreover, the tabletop segment is experiencing a strong upsurge in this market. These outdoor heaters are smaller than a traditional heater and come attached to patio tables. They are available in propane and electric versions with the advantage of portability.

Also, the wall mounted and hanging segment is showing steady growth in the market. These heaters are attached to a wall. Instead of resting easily on the ground, these kinds of heaters do not take up any space on the floor, making them perfect for compact patios, or increasing the space for guests and furniture in larger patios.

By Fuel Type Analysis

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Electric Outdoor Heaters to Hold Major Market Share Due to Less Cost Involved

By fuel type, the market is distributed into electric, gas/propane, and others (wood).

The electric segment is expected to show prominent growth during the forecast period. The less cost sustained in the production of these heaters is recognized as the noticeable aspect behind the favorable growth of this segment across the global market. Additionally, lesser price in the preservation and upkeep of electric-based heaters upsurge the inflow of consumers beholding outdoor heaters for a variety of applications.

Additionally, propane-fueled heaters are anticipated to exhibit substantial growth in the coming years. These gas heaters are proficient in providing improved heating and can cover more functional areas, which allow them to maintain their stronghold in the overall market.

By Application Analysis

Catering and Hospitality Sector is Projected to Experience Notable Progress

Under application, the market is further classified into catering and hospitality, commercial and industrial space heating, residential outdoors, and indoor agriculture/livestock brooder.

The catering and hospitality segment is anticipated to witness strong growth during the forecast period. The practice of outdoor spaces to accommodate consumers in cafes and bars is the major issue behind the large chunk overseen by the catering and hospitality sector across multiple regions. Outdoor heaters are used in such places to ensure comfort and warmth to the consumers in any weather. Features, such as instant heat with light, cooling, speakers, and Bluetooth control, make the outdoor heaters more desirable for guests looking for well-being perfect temperature in any weather condition.

Moreover, the commercial and industrial space heating segment is further projected to exhibit substantial growth. Adding heating options in industrial and commercial space adds up to the efficiency of business operations. The outdoor type of heaters implemented in the warehouses can keep the equipment running smoothly. Furthermore, it ensures the comfort and health of the employees in freezing temperatures.

Furthermore, the residential outdoors segment is expected to have considerable growth. These outdoor heaters are installed to provide a much-needed temperature boost extending the time spent outdoors. Additionally, these customized heaters also form a focal point adding décor to outdoor spaces.

The indoor agriculture/livestock brooders segment is likely to witness steady growth owing to the installation of heaters in greenhouse farming, enabling the feasible growth of specific agricultural crops. This helps in favorable growing conditions and protects the crops from various pests and bad weather conditions. Also, these heaters are installed in animal enclosures to keep animals warm and healthy in adverse conditions.

REGIONAL INSIGHTS

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The market’s scope comprises five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America had the major market share in the market. The increasing commercial and residential constructional activities across the U.S. and Canada are driving the growth of the market as outdoor heaters are widely used in commercial and residential spaces. According to the executive director of the New York City Hospitality Alliance, Andrew Rigie, in New York City alone, 10,500 eating & drinking launches are presenting outdoor dining facilities. This tendency of dining outdoor and current efforts completed by dining service providers can enhance the mandate of outdoor heating units in North America.

Furthermore, the U.S. is witnessing phenomenal growth in the industry. The U.S. has the largest market share in North America. The increasing commercial and residential constructional activities across the U.S. as well as in Canada are driving the growth of the market as outdoor heaters are widely used in commercial and residential spaces. Additionally, gathering in the U.S. might also grow the sales of these heaters in the region. Also, established and developed industries in the country have also led to the introduction of luxury resorts, high-end cafes, rooftop pubs, and bars.

In Asia Pacific, the tropical climate in South Asia, particularly in the majority of the Indian subcontinent, shows less demand for outdoor heating accessories for more than 10 months in a year. China, South Korea, and Japan have established and properly functioning manufacturing facilities, which make Asia Pacific a vital and promising region in the global market and increase the outdoor heating market share globally.

Europe is anticipated to progress at a significant pace in the market during the said course of time. The eminent performance of the market is anticipated due to favorable climatic conditions across the region. The growing tendency of restaurants, breweries, and rooftop clubs is also a feature backing the development of the market.

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The development in the market of the Middle East & Africa and South America will be deemed as the market with lowest opportunities for development over the forecast period. The vast area covered by the desert in the region and the extremely hot climate of the Gulf countries limit sales opportunities across the Middle East & Africa region.

KEY INDUSTRY PLAYERS

Key Players Upgrading Products Diversity to Emphasize Diverse Range of Consumers

The key manufacturers currently catering to the customers in the market are keen on the development of a wide range of product portfolios integrated with advanced technologies and novel products in a bid to increase the influx of customers utilizing outdoor heating systems in different applications. The majority of the consumers are looking to procure and install heating systems that are capable of addressing critical requirements and can operate with a noticeable efficiency in the market.

LIST OF KEY COMPANIES PROFILED:

• Infratech (U.S.)


• Lava Heat Italia (U.S.)


• Bromic (U.S.)


• Calcana (Canada)


• Ambience (U.S.)


• Fire Sense (U.S.)


• Schwank (patioSchwank) (U.S.)


• AZ Patio Heaters (U.S.)


• Napoleon (Canada)


• Dayva (U.S.)


• Lynx Grills (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• September 2020: Napoleon opened a 20,000 square meter distribution facility in the Netherlands to promote its high-end grills. Agencies such as the Netherlands Foreign Investment Agency (NFIA) and the Dutch reflex for innovation have helped spur Napoleon’s European operations.


• February 2021: Dometic announced the company had entered into an agreement to acquire Twin Eagles. Furthermore, the former company states Twin Eagles would be an asset in fueling the growth of the North American market.


• March 2020: In North America, Schwank presented its first tube heater. It is built with an EC motor. It is the only model among all others inbuilt with such features.


• August 2021: BBQGuys announced the addition of Twin Eagles and Delta Heat grills and other outdoor kitchen equipment on its website. Some of the products that are included in the product inventory are pellet grills, charcoal grills, gas grills, outdoor kitchen cabinets/storages, side burners, other accessories, and refrigeration.


• December 2021: Napoleon and its Social Trading Platform will be acquired by CoinShares. The latter company is Europe’s longest standing crypto firm. Napoleon will continue to double down on building an investment community under the ownership of CoinShares.

REPORT COVERAGE

An Infographic Representation of Outdoor Heating Market

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The research report provides a detailed analysis of the type, application, and industries. It provides information about leading companies and their business overview, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, SWOT analysis, current market trends, and highlights key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation