Fired Air Heaters Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Fired Type (Direct and Indirect), By Fuel Type (Oil and Gas), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.68 Billion
CAGR (2026-2031)	8.03%
Fastest Growing Segment	Indirect
Largest Market	North America
Market Size (2031)	USD 9.03 Billion

Market Overview

The Global Fired Air Heaters Market will grow from USD 5.68 Billion in 2025 to USD 9.03 Billion by 2031 at a 8.03% CAGR. Fired air heaters are industrial thermal systems designed to elevate air temperatures through the combustion of fuels such as natural gas, propane, or oil, either via direct contact with the flame or through an indirect heat exchanger. These units are essential for applications requiring large-scale space heating, such as in warehouses and construction sites, as well as for process drying and curing in the manufacturing sector. The market's expansion is primarily supported by the robust growth of infrastructure development which necessitates temporary heating solutions, alongside increasing requirements for efficient thermal processing in the chemical and food industries.

However, the market faces a significant impediment in the form of increasingly stringent environmental regulations aiming to curb carbon emissions and improve energy efficiency. The sector must navigate the complex transition away from carbon-intensive equipment without compromising operational output. According to the International Energy Agency, in 2024, renewable energy sources accounted for only 12% of global industrial heat consumption, underscoring the persistent reliance on fossil-fuel-based technologies like fired air heaters despite the regulatory push for decarbonization.

Key Market Drivers

The expansion of global oil and gas exploration and refining activities serves as a primary catalyst for the fired air heaters market. These thermal systems are integral to downstream operations, specifically in maintaining optimal temperatures for crude oil distillation, catalytic reforming, and hydrocracking processes. As energy consumption rises, the industry continues to invest heavily in expanding refinery capacities and developing new fields, which directly correlates with the procurement of industrial heating units to ensure continuous operation. According to the Organization of the Petroleum Exporting Countries, August 2024, in the 'Monthly Oil Market Report', world oil demand growth for 2024 is forecast at a healthy 2.1 million barrels per day, signaling sustained industrial requirements for the robust thermal processing equipment used in these expanding facilities.

Simultaneously, the rising demand from chemical and petrochemical processing industries further propels market momentum. Fired air heaters are utilized extensively for reactor heating and polymer production, where precise thermal control is mandatory for maintaining product integrity and safety standards. The resurgence of industrial manufacturing has accelerated chemical output, driving the need for new and upgraded heating infrastructure to meet production targets. According to the American Chemistry Council, June 2024, in the 'Mid-Year 2024 Chemical Industry Situation and Outlook', U.S. chemical output is anticipated to rise by 2.2% in 2024, reflecting a broader recovery that necessitates reliable thermal technologies. Consequently, investment in the sector remains high; according to Saudi Aramco, in March 2024, capital expenditures reached $49.7 billion for the full year 2023, highlighting the massive scale of funding directed toward energy infrastructure projects that rely on such essential thermal systems.

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Key Market Challenges

The Global Fired Air Heaters Market is significantly constrained by the enforcement of increasingly stringent environmental regulations designed to accelerate industrial decarbonization. Governments and regulatory bodies globally are implementing rigorous standards that penalize the operation of carbon-intensive thermal equipment. Since fired air heaters predominantly rely on the direct combustion of fossil fuels to generate heat, they are immediate targets for these legislative restrictions. Compliance with these mandates compels facility operators to incur substantial costs for emissions monitoring and reporting, while simultaneously facing the risk of heavy penalties for non-compliance. This regulatory pressure introduces severe market uncertainty, causing industrial buyers to delay or cancel investments in traditional fossil-fuel-based heating units due to concerns regarding asset stranding and future operational viability.

The persistence of high industrial emissions further exacerbates this challenge, prompting authorities to tighten controls even more aggressively. The inability of the sector to rapidly decouple from fossil fuels reinforces the regulatory crackdown that directly impedes market expansion. According to the International Energy Agency, in 2024, global energy-related CO2 emissions increased by 0.8% to reach a record high of 37.8 gigatonnes, driven primarily by a 1% rise in emissions from fuel combustion. This upward trend in combustion-related emissions underscores the magnitude of the environmental issue, forcing regulators to disincentivize the use of conventional fired air heaters and limiting their growth potential in modern industrial applications.

Key Market Trends

The development of hydrogen-compatible and multi-fuel combustion systems allows facilities to future-proof thermal assets against strict decarbonization mandates. Facing uncertainty regarding the immediate availability of green hydrogen, operators are increasingly adopting "hydrogen-ready" burners capable of firing varying fuel blends—from natural gas to 100% hydrogen—without requiring hardware modifications. This flexibility ensures operational continuity during the energy transition while progressively enabling carbon footprint reduction. Highlighting the scale of this shift, according to the Asian Business Review, September 2025, in the article 'Global hydrogen demand up 2% in 2024', global hydrogen demand reached 100 million tonnes in 2024, reflecting the industrial sector's extensive preparation for low-emission fuel integration.

Simultaneously, the integration of IIoT and smart monitoring systems is reshaping maintenance strategies by replacing reactive repairs with predictive models. Embedded sensors and analytics now continuously monitor critical parameters such as flame stability and thermal profiles to prevent unplanned downtime. This digital transformation optimizes combustion efficiency by detecting potential failures before they disrupt production, a capability essential for modern, high-throughput facilities. Emphasizing this technological shift, according to Rockwell Automation, June 2025, in the '10th Annual State of Smart Manufacturing Report', 95% of manufacturers have invested in or plan to invest in artificial intelligence and machine learning over the next five years, driving data-led operational resilience in industrial heating operations.

Segmental Insights

The Indirect segment is currently recognized as the fastest-growing category in the Global Fired Air Heaters Market, driven by heightened demand for contamination-free heating solutions. These heaters utilize heat exchangers to separate combustion gases from the process air, ensuring that the output remains free of carbon monoxide and moisture. This capability is essential for sensitive industries such as food processing and pharmaceuticals, where maintaining product purity is paramount. Furthermore, strict adherence to indoor air quality standards established by entities like the Occupational Safety and Health Administration accelerates the industrial shift toward these safer heating technologies.

Regional Insights

North America maintains a leading position in the Global Fired Air Heaters Market, driven by established infrastructure in the oil and gas, power generation, and chemical processing industries. The region’s dominance is supported by strict operational safety standards that necessitate the adoption of reliable thermal equipment. Specifically, adherence to rigorous combustion safety codes outlined by the National Fire Protection Association (NFPA) influences the widespread installation of compliant heating systems. Consequently, the continuous need to meet these regulatory requirements sustains strong market demand across the United States and Canada.

Recent Developments

• In December 2024, AirX Climate Solutions, Inc. acquired Powrmatic USA, a prominent manufacturer of commercial and industrial heating systems located in Finksburg, Maryland. This strategic acquisition incorporated Powrmatic’s expertise in direct and indirect fired heating and cooling air turnover products into the acquirer's portfolio. The transaction was described as highly complementary, enhancing the company’s presence in the specialty HVAC landscape, particularly within the mid-Atlantic and Eastern regions of the United States. Powrmatic is recognized for its air turnover units that heat large facilities, such as factories and warehouses, providing significant energy savings compared to alternative systems.
• In December 2024, Zeeco, Inc. expanded its collaboration with ClearSign Technologies Corporation to launch a new co-branded line of process burners designed to reduce industrial emissions. This partnership introduced burners featuring advanced sensing and combustion technology capable of firing 100% natural gas and 100% hydrogen while maintaining extremely low nitrogen oxide levels. The new product line was developed to comply with strict environmental regulations and accelerate the adoption of decarbonization technologies in the global market. The collaboration leveraged Zeeco’s global research and manufacturing capabilities to validate and commercialize the technology for fired heating applications.
• In October 2024, Wacker Neuson announced that its entire range of diesel-powered construction equipment and compact machines, including indirect fired air heaters, was approved for use with hydrotreated vegetable oil (HVO) fuels. This development allowed customers to operate their heating equipment with a significantly reduced carbon footprint, as the alternative fuel is produced from renewable raw materials. The validation covered all machines with Stage V diesel engines produced from September 2024 onwards. This move highlighted the company’s commitment to providing environmentally friendly solutions and enabling more sustainable construction site operations without requiring hardware modifications.
• In June 2024, Ambienta SGR SpA entered into a definitive agreement to acquire a majority stake in Babcock Wanson Group, a leading European provider of industrial process heating equipment. This investment was aimed at supporting the company’s growth and its focus on the decarbonization and electrification of industrial heat production. Babcock Wanson, known for its fired air heaters and boiler systems, operates multiple manufacturing facilities across Europe. The acquisition by the environmental sustainability-focused asset manager was intended to leverage the manufacturer's engineering expertise to further develop low-emission technologies and optimize energy efficiency for industrial customers worldwide.

Key Market Players

• Briggs & Stratton, LLC
• Cambridge Air Solutions, Inc.
• Comtherm Limited
• Exotherm Corporation
• Hastings Industries
• JetHeat, LLC
• Stelter & Brinck, Ltd.
• Thawzall Tamarack Industries

By Fired Type	By Fuel Type	By Region
Direct and Indirect	Oil and Gas	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Fired Air Heaters Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Fired Air Heaters Market, By Fired Type:

• Direct and Indirect

• Fired Air Heaters Market, By Fuel Type:

• Oil and Gas

• Fired Air Heaters Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE