Fuel Operated Heaters Market

Market Outlook

Fuel operated heaters are pre-heaters which are used to heat the passenger cabins of all kinds of vehicles. These heaters do not depend on the heat produced by the running engine. Water-based fuel operated heaters can be installed anywhere in the engine section as they have a compact design.

Hence, they are the first choice for passenger cars with interiors too cramped for added installations. Fuel-operated heaters work on the principal of heat exchange and cool the passenger compartment of vehicles. They are also being increasingly used in airplanes and commercial aircrafts for heating passenger cabins as these planes fly at high altitudes where the temperature reaches below zero-degree levels.

The market outlook for fuel operated heaters is on the positive side as vehicle production for all types (PCV, LCV and HCV) is increasing considerably in emerging economies in the current market situation. Furthermore, climatic conditions in countries, such as U.S., Canada, Russia, Eastern Europe, etc. are very cold, which will help the global market for fuel operated heaters to grow immensely in the above mentioned countries during the forecast period.

Reasons for Covering this Title

The outlook for fuel operated heaters market is positive and the market registered strong growth in 2016 in terms of revenue. This steady growth can be vastly attributed to increasing vehicle production in countries, such as China, India, Brazil and Turkey, among others. Additionally, the old fleet in the market is readily accepting and installing advanced fuel operated heaters as these are more cost-effective, compact in design and have higher operational life. This trend is estimated to drive the aftermarket in near future.

Fuel operated heaters are now becoming one of the primary necessities in all the types of vehicles, especially in the luxury car segment and hence, the market is estimated to grow with prominent CAGR during the forecast period. Furthermore, fuel operated heaters are economical to purchase as compared to other car accessories. They are also easy to maintain and some of the models of fuel operated heaters also eliminate the engine cold start problem, which is an added advantage. However, they have restricted functionality, which means they don’t address AC or cooling power requirements.

In the North America market, significant market volume share is held by the LCV segment as these usually have pre-installed heaters in their vehicles and this factor is one of the prominent drivers for the fuel operated heaters in this market. The APAC region is anticipated to remain one of the prominent markets in terms of value and volume as the consumers in this region have high disposable income and are adopting new trends and technologies in the automotive and transportation sector.

In the forthcoming years, the aftermarket segment, by sales channel, is estimated to grow as fuel operated heaters have to be regularly maintained and serviced. Additionally, owing to stringent interior vehicle pollution norms, the manufacturers in the global fuel operated heater market are continuously trying to research, develop and innovate products with novel properties and adhere to pollution norms with respect to the global market.

The fuel operated heaters market is slated to create significant demand in the aftersales service sector throughout the forecast period. The U.S. and EU-5 countries along with emerging economies led by China, India and Brazil will account for most of the market share, in terms of value, in the fuel operated heaters systems market in the coming years.

Global Fuel Operated Heaters Market: Key Players

Examples of some of the key players operating in the global Fuel Operated Heaters market are Eberspächer Climate Control Systems GmbH & Co. KG, Webasto Group, Kingtec Group Company Limited, Proheat, VVKB, Wolverine Heaters, Phillips & Temro Industries, Five Star Manufacturing Group, Inc., Cebi International S.A., Mikuni Heating Ltd, MAHLE GmbH, Calix AB, and LLC AUTOTERM among others.

Key Developments

• On 15th January, 2018, Webasto Group exhibited its products including fuel-operated heaters and heating and air conditioning solutions for all requirements in hall 10, booth G 59 at boot 2018 exhibition in Düsseldorf, which took place from 20th to 28th January 2018
• On 26th September 2017, Eberspächer Climate Control Systems GmbH & Co. KG showcased its latest heating and cooling solutions for off-highway vehicles at Agritechnica in Hanover. With the EasyStart Web control unit, up to five heaters and thus, multiple vehicles can be controlled simultaneously
• On 25th March, 2017, Kingtec Technologies (Heyuan) Co., Ltd. and Denso Corporation established a joint venture company. The name of the new company is "Guangdong KINGTEC DENSO Refrigeration Equipment Co., Ltd." and it began production in April 2016. The joint venture will help Denso Corporation to gain operation footprint in the China market and market its products in this emerging country.

Opportunities for Market Participants

The need for efficient cabin heating in all vehicle types (PCV, LCV & HCV) is estimated to grow in the coming years. As a result, demand for fuel operated heater systems in the global automotive and transportation market will grow at a significant pace.

Passengers Cars, followed by the LCV & HCV segments, is anticipated to emerge as the most opportunistic segment due to the growing consumer preference for cabin safety and good aesthetics in vehicles. APAC, with China & India in prominent position, is anticipated to dominate the demand for fuel operated heaters and will be followed by EU28 Countries. Noteworthy increase in sales in markets, such as BRICS Nations (Brazil, Russia, India, China, and South Africa), is expected over forecast period.

Prominent market participants will invest heavily in R&D with an intention to implement new features in fuel operated heaters. The introduction of new strong and novel products is further fueling the demand for fuel operated heaters among consumers, which will accelerate their growth in the global market.

Brief Approach to Research

FMI will follow a modelling-based approach and triangulation methodology to estimate data covered in this report. A detailed market understanding and assessment of the nature, product type, sales channel and capacity of the product segments covered in the study is followed by a demand-side approach to estimate the sales of target product segments, which is then cross-referenced with a supply-side assessment of value generated over a pre-defined period. The statistics and data are collected at a regional level and consolidated and synthesized at a global level to estimate the overall market sizes.

Key Data Points Covered in the Report

Some of the key data points covered in our report include:

• An overview of the fuel operated heaters market, including background and evolution
• Macroeconomic factors affecting the fuel operated heaters market and its potential
• Market dynamics, such as drivers, challenges and trends
• Detailed value chain and pricing analysis of the fuel operated heaters market
• Cost structure of the products and segments covered in the global fuel operated heaters market
• In-depth pricing analysis, by key product segments, regions and by major fuel operated heaters market participants
• Analysis of supply and demand, such as top product producing and consuming geographies, product imports/exports, exchange of services and overall trade scenario in the global fuel operated heaters market
• Analysis of the global fuel operated heaters market structure, including a tier-wise categorization of key fuel operated heaters market participants
• Competitive landscape of the market, including detailed profiles of the top players in the fuel operated heaters market

The research report presents a comprehensive assessment of the market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. It also contains projections using a suitable set of assumptions and methodologies. The research report provides analysis and information according to market segments such as geographies, application, and industry.

The report covers exhaust analysis on

• Market Segments
• Market Dynamics
• Market Size
• Supply & Demand
• Current Trends/Issues/Challenges
• Competition & Companies involved
• Technology
• Value Chain

Regional analysis includes

• North America (U.S., Canada)
• Latin America (Mexico. Brazil)
• Western Europe (Germany, Italy, France, U.K, Spain)
• Eastern Europe (Poland, Russia)
• Asia Pacific (China, India, ASEAN, Australia & New Zealand)
• Japan
• Middle East and Africa (GCC Countries, S. Africa, Northern Africa)

The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.

Global Fuel Operated Heaters: Market Segmentation

On the basis of product type, the global fuel operated heaters market has been segmented as:

• Fuel-Operated Air Heaters
• Fuel-Operated Coolant Heaters

On the basis of fuel type, the global fuel operated heaters market has been segmented as:

• Gasoline Heaters
• Diesel Heaters
• CNG Heaters

On the basis of capacity, the global fuel operated heaters market has been segmented as:

• Less than 5 Kw
• 5 Kw to 10 Kw
• Above 10 Kw

On the basis of vehicle type, the global Fuel Operated Heaters market has been segmented as:

• Passenger Car
• LCV
• HCV

On the basis of sales channel, the global Fuel Operated Heaters market has been segmented as:

• OEM (Original Equipment Manufacturer)
• Aftermarket