Market Size

The global outdoor heating market size reached a value of more than USD 1.29 billion in 2024. The market is expected to grow at a steady pace, with a compound annual growth rate (CAGR) of 5.50% between 2025 and 2034. By 2034, the market is projected to reach a value of USD 2.07 billion. This growth is driven by increased demand for outdoor living spaces, as well as the growing popularity of outdoor events, dining, and entertainment. As consumers and businesses focus on sustainability, energy-efficient heaters are becoming more prevalent, further accelerating the market's expansion. The rise of smart outdoor heating products and the increasing adoption of electric heaters are key factors contributing to the growth of this market.

Market Trends

The outdoor heating market is experiencing a significant shift towards eco-friendly and energy-efficient solutions. As consumers and businesses alike strive for sustainable practices, energy-efficient heaters, particularly electric ones, are becoming increasingly popular. These heaters offer the advantage of low carbon footprints and greater efficiency compared to traditional fuel-based alternatives. Additionally, the integration of smart technologies in outdoor heating products is transforming the market. Smart heaters, equipped with app-controlled systems, allow users to regulate heating remotely, improving both convenience and energy consumption control. With outdoor dining and entertainment becoming more prevalent, especially in colder regions, outdoor heating solutions are seeing higher demand in commercial settings such as restaurants and cafes. The trend towards combining functionality with aesthetic appeal is also driving growth, as many outdoor heaters now feature stylish designs that enhance outdoor spaces.

Market Growth

The outdoor heating market has seen consistent growth over the past few years and is expected to continue this upward trajectory. In 2024, the outdoor heating market was valued at over USD 1.29 billion, with projections suggesting a compound annual growth rate (CAGR) of 5.50% between 2025 and 2034. This growth is primarily driven by the increasing popularity of outdoor spaces for leisure, dining, and events. Furthermore, innovations in heating technologies, such as energy-efficient systems and environmentally friendly fuel options, are attracting more consumers to invest in these products. By 2034, the outdoor heating market is expected to reach a value of USD 2.07 billion. The combination of growing demand, technological advancements, and a shift towards sustainable living will continue to fuel this market's expansion in the coming years.

Segmentation

By Product Type

• Tabletop Outdoor Heaters: These compact, portable heaters are designed for smaller spaces like patios or balconies. Their size makes them ideal for residential use, especially for individuals looking to heat outdoor areas without occupying much space. The convenience of portability is also a key factor driving their popularity.
• Wall Mounted and Hanging Heaters: These heaters are perfect for larger outdoor spaces, as they save space by being mounted or hung from structures such as walls or ceilings. They are ideal for commercial use, such as in restaurants, outdoor cafes, and large event spaces, where ground space needs to be preserved. Wall-mounted units often come with adjustable angles for optimal heating coverage.
• Freestanding Heaters: These traditional outdoor heaters are widely used in both residential and commercial spaces due to their versatility. They are commonly found in patios, gardens, and outdoor restaurants. Freestanding heaters are available in various sizes and fuel options, offering flexibility for different settings and heating needs.

By Fuel Type

• Electric Heaters: Electric outdoor heaters are becoming the preferred choice due to their energy efficiency and low maintenance requirements. They are suitable for both residential and commercial applications and are considered eco-friendly due to their minimal carbon emissions. As smart home technologies continue to evolve, the demand for electric outdoor heaters that can be controlled remotely is expected to rise.
• Gas/Propane Heaters: Gas and propane heaters provide powerful heating and are widely used for larger outdoor spaces and colder climates. They offer a quick and efficient heat source, making them ideal for commercial applications such as event venues and outdoor restaurants. These heaters are typically available in freestanding or wall-mounted designs.
• Others: This category includes biofuels, wood-burning heaters, and other emerging fuel technologies. These options are gaining traction in certain regions due to their eco-friendly nature and sustainability credentials. They are often used in niche applications, such as eco-conscious restaurants and venues that emphasize green practices.

By Application

• Commercial and Industrial Space Heating: Commercial sectors, such as outdoor cafes, restaurants, hotels, and event venues, are significant users of outdoor heaters. These spaces benefit from the ability to extend their usable outdoor areas into colder months, enhancing customer experience and business performance. Industrial spaces also use outdoor heating solutions for larger operational areas.
• Residential Outdoors: As more homeowners invest in creating outdoor living spaces, the demand for outdoor heating solutions has risen. From small patios to large garden areas, outdoor heaters provide warmth and comfort in residential settings, allowing homeowners to enjoy their outdoor spaces year-round, even in cooler weather.
• Catering and Hospitality: Catering and hospitality businesses, particularly those that offer outdoor dining, rely heavily on outdoor heating to maintain customer comfort. Outdoor heaters extend the usability of patios and outdoor seating areas, making them crucial for businesses looking to maximize their space and increase revenue by catering to customers year-round.
• Others: This category includes niche applications, such as heating for outdoor events, entertainment, and recreational areas. As outdoor events such as festivals, weddings, and sporting events become more popular, the demand for portable and effective outdoor heating solutions is expected to grow.

Regional Analysis

• North America: The outdoor heating market in North America is dominated by the United States, where demand for both residential and commercial outdoor heaters is on the rise. The trend toward extended outdoor living and dining, combined with harsh winters in certain regions, has led to increased adoption of outdoor heating solutions. Canada also contributes significantly to market growth, with consumers seeking energy-efficient and environmentally friendly options.
• Europe: Europe is one of the largest markets for outdoor heating, with high demand in countries like the UK, Germany, and France. The preference for energy-efficient products and sustainability is evident, as many European consumers and businesses opt for electric heaters. The region's variable climate, with cold winters and mild summers, also drives the need for outdoor heating solutions.
• Asia Pacific: The Asia Pacific market is seeing rapid growth, with countries such as China, Japan, and India leading the charge. While outdoor heating has traditionally been less common in this region, the increasing trend of outdoor dining and social events is creating a demand for heating solutions. In Japan, outdoor heating is popular for use in both residential and commercial settings, while in China, the market is expected to expand as the middle class continues to grow.
• Rest of the World (RoW): Emerging markets in regions such as Latin America, the Middle East, and Africa are gradually adopting outdoor heating solutions. In the Middle East, where outdoor social gatherings are common, outdoor heating products are becoming more popular, particularly in hospitality and catering sectors. In Latin America and Africa, there is growing interest in affordable and sustainable outdoor heating solutions, with increasing adoption of propane and electric heaters in both residential and commercial spaces.

Companies Covered

• Lynx Grills, Inc.: A leading manufacturer specializing in premium outdoor heating solutions and grilling equipment. They focus on creating high-quality, durable products for residential and commercial use.
• Lava Heat Italia: Known for their stylish and high-performance outdoor heating products, Lava Heat Italia is recognized for its innovative design and engineering in the outdoor heating industry.
• The Schwank Group: A prominent player in the market, Schwank is renowned for producing energy-efficient infrared heating systems suitable for both commercial and residential applications.
• Tansun Ltd.: A global leader in electric outdoor heating systems, Tansun offers a wide range of products designed for various outdoor spaces, emphasizing energy efficiency and sustainability.
• Calcana USA Ltd: Specializing in propane and natural gas heaters, Calcana is a key player in the outdoor heating market, providing solutions for commercial spaces and large outdoor venues.
• Balkene Home: Known for their freestanding outdoor heaters, Balkene Home offers affordable and efficient heating solutions for residential use.
• Others: A variety of other companies are involved in the development and distribution of outdoor heating products, including both large multinational corporations and regional players.