Energy-Saving and Emission-Reduction Policies Drive Growth! China's Electric Heater Market to Surpass 18 Billion Yuan by 2025

Under the global wave of energy conservation and emission reduction, China's electric heater industry is experiencing an unprecedented development opportunity. According to data from Qianzhan Industry Research Institute, the market size of China's electric heater industry reached 10.8 billion yuan in 2019, with a year-on-year growth rate of around 10%. Driven by strong policy support and rapid technological innovation, the market is expected to further expand to 18 billion yuan by 2025. This growth not only showcases the potential of the electric heater industry in meeting industrial energy-saving needs and expanding the consumer market, but also signals a profound transformation and rejuvenation of the electric heating equipment industry.

1. Market Transformation Led by Policy Initiatives

In recent years, China has significantly increased its efforts in energy conservation and emission reduction policies. Key documents, such as the "Energy Production and Consumption Revolution Strategy (2016-2030)," clearly state that by 2030, the carbon dioxide emissions per GDP unit should decrease by 60%-65% compared to 2005 levels, aiming to reach peak carbon emissions as soon as possible. For high-energy-consuming sectors, such as manufacturing, transformation and upgrades are particularly urgent, and electric heaters have become crucial tools in industrial energy-saving transformations, thanks to their clean, efficient, and easily controllable properties.

With policy support, electric heaters have found widespread applications in manufacturing, chemical, construction heating, and various other fields. For example, in manufacturing, electric heaters can provide precise temperature control, allowing for efficient energy savings throughout the production process, ultimately reducing overall energy consumption. Compared to traditional heating methods using coal or natural gas, electric heaters significantly reduce carbon dioxide and harmful gas emissions, aligning with the green and low-carbon requirements for industrial upgrades. This trend not only aligns with national environmental policies but also provides a solid demand foundation for the electric heater industry in the coming years.

2. Technological Innovation Propels Market Expansion

While policies provide space for market growth, technological innovation has been pivotal in enhancing the application and performance of electric heaters. In recent years, various new technologies have emerged in the electric heater field, including intelligent temperature control, the application of energy-saving materials, and modular design, greatly enhancing the safety, efficiency, and energy-saving effects of equipment. For example, intelligent temperature control enables real-time monitoring of temperature changes, automatically adjusting power output during operation, not only ensuring precision in production processes but also significantly reducing energy consumption.

Moreover, the introduction of advanced materials, such as graphene and carbon fiber, has greatly improved the thermal conductivity and energy efficiency of electric heaters. Particularly in the consumer market, carbon fiber electric heaters are increasingly popular for home heating systems due to their energy-saving benefits and long lifespan. The diversity and high performance brought by technological innovation further drive the expansion of the electric heater market in both consumer and industrial sectors.

3. Dual Drivers of Industrial and Consumer Demand

China's electric heater market is witnessing growth driven by both “consumer” and “industrial” demand. In the industrial sector, energy-saving transformations in petrochemicals, pharmaceuticals, and machinery manufacturing are crucial markets for electric heater equipment. Additionally, the high efficiency and low pollution characteristics of electric heaters make them highly applicable in advanced manufacturing. On the consumer side, there is a growing demand for electric heating products in residential heating, cooking appliances, and household warming, especially in northern regions where energy-efficient electric heating systems are in high demand.

From a consumption perspective, with the acceleration of urbanization and the rise of environmental awareness among residents, consumers increasingly prefer green, energy-saving electric heating products as alternatives to traditional gas or coal-based heating. Electric heaters not only ensure effective heating but also reduce air pollution and carbon dioxide emissions, meeting modern consumers' needs for clean energy. Furthermore, recent changes in home consumption patterns, accelerated by the pandemic, have driven demand for upgraded household heating devices, contributing to the expansion of the consumer electric heater market.

4. The Profound Impact of Market Growth on Industry Development

The continued expansion of the electric heater market has significant implications for the electric heating equipment industry. First, the increased market demand encourages companies to invest more in research, development, and production. With the further development of intelligent and modular technologies, the electric heater industry will focus more on product innovation and the development of high-value-added features. Against this backdrop, companies with technological advantages will lead the competition, while traditional products face considerable pressure for upgrades.

Secondly, the expansion of the market has led to the extension of the industry chain. Suppliers of raw materials upstream, manufacturers in the midstream, and distributors and service providers downstream all benefit from this growth. For example, the demand for materials like carbon fiber and graphene will drive the development of related advanced material industries, while the wide application of new electric heating products will boost the growth of installation, maintenance, and other service industries. The improvement of the entire industrial chain not only contributes to standardized industry development but also accelerates the transformation and upgrading of China’s manufacturing sector.

5. Future Development Outlook

Looking ahead, with continuous policy reinforcement, ongoing technological advancement, and growing market demand, the market size of China's electric heater industry will continue to rise steadily. At the same time, trends toward intelligence, environmental sustainability, and energy efficiency will accelerate the industry’s shift toward high-value-added development. In the context of global carbon neutrality advocacy, China's electric heater industry will have a broader development outlook in the coming years and will gradually move toward the international market.

In summary, the growth of the electric heater market not only injects new vitality into the electric heating equipment industry but also contributes to the realization of green, low-carbon economic development. Driven by policy guidance, technological innovation, and market demand, China’s electric heater industry is set to enter a golden period of growth, contributing significantly to both China’s and the world’s energy conservation and emission reduction efforts.