Smart Electric Heater Market Report 2026

The smart electric heater market size has grown rapidly in recent years. It will grow from $1.88 billion in 2025 to $2.11 billion in 2026 at a compound annual growth rate (CAGR) of 12.2%. The growth in the historic period can be attributed to early adoption of electric room heaters, rising demand for winter heating solutions, growth of residential construction activities, improvements in heating element technologies, increasing consumer interest in home comfort systems.

The smart electric heater market size is expected to see rapid growth in the next few years. It will grow to $3.34 billion in 2030 at a compound annual growth rate (CAGR) of 12.1%. The growth in the forecast period can be attributed to rising adoption of smart home ecosystems, growing preference for energy efficient electric heating, expansion of remote controlled appliance usage, increasing focus on personalized comfort automation, growth in commercial smart building installations. Major trends in the forecast period include increasing use of app controlled smart heating devices, rising integration of smart sensors for automated temperature control, growing adoption of energy efficient electric heating solutions, expansion of voice controlled and smart assistant compatible heaters, shift toward programmable heating schedules and remote monitoring.

Rising demand for energy-efficient heaters is expected to propel the growth of the smart electric heater market going forward. Energy-efficient heaters are heating devices designed to maximize the amount of heat produced while minimizing energy consumption. Smart electric heaters are energy-efficient because they optimize heating schedules, adjust temperature settings based on occupancy or ambient conditions, and integrate with smart home systems for remote control and energy monitoring, all of which help minimize energy waste and maximize efficiency. Energy-efficient heaters are designed to use less energy to produce the same heat as traditional heaters, which can help reduce greenhouse gas emissions and improve air quality. For instance, in October 2023, according to Eurostat, a Luxembourg-based statistical office of the European Union (EU), during the first half of 2023, average household electricity prices in the EU experienced a rise compared to the corresponding period in 2022, escalating from $26.81 (€25.3) per 100 kWh to $30.6 (€28.9) per 100 kWh, which indicated the need for better utilization of existing resources to attain better efficiency. Therefore, the rising demand for energy-efficient heaters is driving the growth of the smart electric heater market.

Major companies operating in the smart electric heater market are focused on developing innovative products, such as smart LED heaters, to gain a competitive edge in the market. LED heaters are heating devices that utilize light-emitting diodes (LEDs) as a component of their design. These heaters typically feature integrated LED lighting elements alongside the heating functions. For instance, in January 2024, AENO, a sub-brand of ASBISC Enterprises PLC, a Cyprus-based electronics company, launched the AENO premium eco-smart LED heater. This sleek and ultra-thin heater boasts advanced features such as a digital LED display, SMART mode for efficient heating, and customizable LED screen brightness. With safety features like child-lock and overheat protection, along with its ability to maintain a comfortable temperature without drying the air, the AENO premium eco-smart LED heater offers warmth and reduces energy costs.

In January 2024, Laars Heating Systems Company Inc., a US-based water heater manufacturing company, acquired Electro Industries Inc. for an undisclosed amount. The acquisition of Electro Industries bolstered Laars Heating Systems' residential, commercial, and industrial space heating portfolio, expanding its offerings and manufacturing capabilities to meet the evolving needs of customers in North America better. Electro Industries Inc. is a US-based electro-mechanical products company that produces electric boilers, air-to-water heat pump technology, electric duct heaters, control systems, and smart heaters.

Major companies operating in the smart electric heater market are Panasonic Corporation, LG Corporation, Mitsubishi Electric Corporation, Honeywell International Inc., Haier Electronics Group Co. Ltd., Carrier Global Corporation, Electrolux AB, Dyson Ltd., Danfoss Group, A.O. Smith Corporation, De'Longhi S.p.A., RinnAI Corporation, Rheem Manufacturing Company, Broan-NuTone LLC, Zehnder Group, V-Guard Industries Ltd., Dimplex North America Limited, Stiebel Eltron GmbH & Co. KG, Warmup plc, Stadler Form AG, Smith's Environmental Products Ltd., Haverland S.L., Glen Dimplex Group, EcoSmart Green Energy Products Inc., Siemens AG.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on electronic components, heating elements, and IoT modules used in smart electric heaters have increased manufacturing and import costs, particularly affecting regions dependent on overseas suppliers such as Europe and North America. These tariffs raise retail prices and may slow adoption in residential and commercial markets. However, they also encourage domestic sourcing of smart components, foster local innovation in energy efficient heating technologies, and support the development of regionally manufactured smart heating solutions.

The main product types of smart electric heater market covered are convection heaters, radiant heaters, infrared panel heaters, and fan heaters. Convection heaters warm the air through a heating element and then circulate it throughout the room, providing consistent and even heating. The functions involved are smart climate control and smart water heaters which are used by various end user industries including residential, commercial, and industrial.

A smart electric heater is a heating device that incorporates advanced technology to provide efficient and convenient heating solutions. These heaters typically connect to home Wi-Fi networks and can be controlled remotely via smartphone apps or voice commands through virtual assistants.

The main product types of smart electric heater market covered are convection heaters, radiant heaters, infrared panel heaters, and fan heaters. Convection heaters warm the air through a heating element and then circulate it throughout the room, providing consistent and even heating. The functions involved are smart climate control and smart water heaters which are used by various end user industries including residential, commercial, and industrial.North America was the largest region in the smart electric heater market in 2025. The regions covered in the smart electric heater market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart electric heater market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart electric heater market consists of sales of smart space heaters, smart panel heaters, hybrid heaters, energy monitors and accessories. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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