A Market in Accelerating Motion
Southeast Asia’s heating industry has just posted numbers that demand attention.
According to the Southeast Asia Heating Industry Development Report 2026 published by GEP Research, the regional heating market reached $34.72 billion in 2025, growing 12.8% year-over-year – the fastest rate among all major global regions.
And the momentum is building. In Q1 2026 alone, the market has already surpassed $9.2 billion, with the full-year forecast hitting $39.8 billion - a projected annual growth of 14.6%.
This is not a blip. This is a structural shift.
Market Breakdown: Who’s Driving the Growth?
By application:
| Segment | Share (2025) |
| Industrial heating systems | 61.50% |
| Building heating (incl. district heating) | 28.30% |
| Agricultural and specialty heating | 10.20% |
By country:
Thailand, Indonesia, and Vietnam together account for 68.7% of the region’s total demand, with Malaysia and the Philippines following closely behind.
The takeaway: For heat pump exporters targeting Southeast Asia, these five countries are your primary addressable market.
Outlook to 2030: $68 Billion and a Technology Shift
Between 2026 and 2030, the report forecasts that the Southeast Asian heating market will enter a critical structural upgrade phase:
2030 projected market size: $68.2 billion
CAGR (2026-2030): 12.9%
Market concentration: Top 5 companies will increase their share from 27.1% (2025) to ~38% (2030)
Three key technology trends to watch:
Medium-temperature heat pumps (150°C–400°C) reaching commercial viability – this is the sweet spot for industrial decarbonization
Biomass gasification coupled with gas boilers scaling up
Digital twin-based intelligent heating dispatch systems
For B2B buyers, this means the Southeast Asian market is transitioning from "basic heating" to "efficient, intelligent, and low-carbon heating."
What This Means for Heat Pump Exporters
The Chinese connection
According to the GEP report, China is the largest import source for Southeast Asia’s heating equipment market, accounting for 76.2% of total imports. This is a strong signal: Southeast Asian buyers are already familiar with – and actively purchasing – Chinese-made heating products.
The opportunity window
| Factor | Implication |
| 12.8% current growth | Market is expanding faster than any other region |
| 14.6% 2026 forecast | Growth is accelerating, not slowing |
| $68B by 2030 | A decade of sustained expansion ahead |
| 150-400°C heat pump tech | New product categories entering the market |
| 76.2% China import share | Your potential customers are already looking to China |
Strategic recommendations
Focus on the Big Three: Thailand, Indonesia, Vietnam – these countries represent nearly 70% of regional demand
Monitor industrial heat pump opportunities – the 150-400°C segment is flagged as a key growth area through 2030
Prepare for increased competition – market concentration is rising; early movers have an advantage
Leverage China’s supply chain advantage – with 76.2% import share, you are entering a market that already trusts Chinese equipment