The Europe Underfloor Heating Market was valued at USD 2.46 billion in 2024. The market is estimated to reach USD 2.6 billion in 2025 and is projected to grow to approximately USD 5.04 billion by 2035, at a CAGR of 6.8% during the forecast period from 2025 to 2035.

Europe Underfloor Heating Market - Key Highlights

Why is the Europe Underfloor Heating Market Growing?

The growth of the Europe Underfloor Heating Market is driven mainly by the Energy Performance of Buildings Directive (EPBD) (Directive (EU) 2024/1275) of the European Union. This directive sets ambitious energy efficiency standards for all buildings.

• The EPBD requires all new buildings in the EU to be nearly zero-energy buildings (NZEB) and aims for a zero-emission building stock by 2050. Member States must create national building renovation plans to achieve renovations in line with climate targets for 2030, 2040, and 2050, while also addressing funding and implementation issues.
• Underfloor heating systems play a key role in meeting these requirements. They are more energy-efficient, typically providing 15-20% energy savings compared to traditional heating options.
• The EPBD also drives a significant renovation wave. It especially targets the worst-performing buildings, which make up a large portion of the residential stock. Renovations must meet strict energy performance standards set by each Member State, creating a demand for effective heating replacements or upgrades like underfloor heating.
• National policies support the goals of the EPBD. For instance, the Federal Funding for Efficient Buildings (BEG) program in Germany offers subsidies of up to 45% for energy-efficient heating installations and upgrades. This promotes market adoption.
• France and other key markets have invested billions in renovation funding programs that align with EU Recovery and Resilience Facility grants, boosting retrofit activities.
• Climate factors heavily impact the adoption of underfloor heating systems in different countries in Europe. Nordic countries, with colder climates and advanced district heating networks, show a higher use of sustainable heating technologies. These include underfloor heating combined with heat pumps or low-temperature systems to maximize energy savings.
• Smart thermostats and controls, which the EPBD encourages through the integration of automation and smart technologies, are increasingly included with new underfloor heating installations. They provide further energy optimization through occupancy sensing and adaptive scheduling.

In summary, the Europe underfloor heating market is poised to grow at a significant rate due to strong regulations set by the EPBD, coordinated national renovation programs, appealing subsidy schemes, climate-driven demand, and advancements in technology. These efforts aim to transform the building stock into an energy-efficient and low-carbon sector by the middle of the century.

Market Segmentation

The Europe underfloor heating market is segmented by system type, installation method, component, application, end-user, and country.

Electric Systems Dominate Underfloor Heating Market with 55-60% Share in 2025

By system type, the overall underfloor heating market is further segmented into electric underfloor heating systems (including heating cables, mats, films, foils) and hydronic water-based systems (wet systems, dry systems, suspended systems).

Electric underfloor heating systems are expected to hold about 55-60% share of the European underfloor heating market in 2025. This is mainly due to its simpler installation, lower upfront costs, and suitability for apartment renovations that are common in European cities. Electric systems provide faster response times and allow for precise control in each room, which many European consumers prefer.

Residential Applications Lead with 65-70% Market Share in 2025

Based on application, residential applications hold the largest share of 65-70% of the European underfloor heating market in 2025, driven by new construction standards, renovation incentives, and luxury living aspirations. This application segment includes single-family homes, apartments, townhouses, and luxury developments across diverse European housing markets.

The segment benefits from established installer networks, consumer awareness campaigns, and positive experiences that drive growth through referrals. European residential customers focus on comfort, energy efficiency, and heating solutions that are not visible, which help maintain the interior design aesthetics important in European architecture and lifestyle choices.

Key Growth Drivers, Restraints, and Trends

The Europe underfloor heating market is mainly driven by energy efficiency regulations, building performance standards, retrofit incentives, and smart home adoption.

However, the key challenges include high installation costs, complex retrofitting requirements, and competition from heat pump technologies.

Impact of Key Growth Drivers and Restraints

Base CAGR: 6.8%

Market Restraints

Technology Innovation Transforms European Underfloor Heating Market

Technological advancements are revolutionizing the European underfloor heating market through smart controls, predictive algorithms, and renewable energy integration.

• IoT-enabled systems can save 18-25% in energy by using occupancy sensing, weather forecasting, and machine learning to adjust heating patterns based on how residents behave and the thermal features of buildings.
• Innovations in smart controls include smartphone apps for remote use, geofencing for automatic temperature changes, and easy integration with popular European smart home platforms like KNX. Leaders in the industry, such as Danfoss, Uponor, and Schneider Electric, are creating AI-powered thermostats that learn user preferences to improve comfort while reducing energy use.
• The rise of low-profile heating systems allows for retrofitting in historic buildings and small apartments. Ultra-thin heating mats, usually around 6mm thick, and self-adhesive systems make installation easier and support do-it-yourself projects. This provides renovation options and cost control for European homeowners.
• Renewable energy integration is growing, with underfloor heating systems often paired with solar thermal systems, heat pumps, and photovoltaic panels. Their compatibility with low-temperature operation makes it easier to use renewable sources. The thermal mass of underfloor systems also acts as energy storage, allowing heating demand to shift to times when renewable energy is abundant and grid pricing is favorable.

These advancements are driving the adoption of underfloor heating across Europe, promoting energy efficiency, sustainability, and user comfort.

Competitive Landscape

The European underfloor heating market is characterized by the presence of established building technology companies, specialized heating system manufacturers, smart home solution providers, and innovative control system developers. Market leaders rely on a wide range of products, strong relationships with installers, and brand recognition built over decades in Europe.

Key players in Europe include Uponor (Finland), Rehau (Germany), Danfoss (Denmark), and Watts. They succeed through technological innovation, extensive training programs for installers, and providing complete system solutions covering heating elements, controls, and accessories.

Specialized companies that focus exclusively on radiant heating, like Warmup (UK) and Comfort Heat (Denmark), develop expertise in system design, best practices for installation, and customer service that fits different European building styles and climates.

Smart home technology providers, such as Schneider Electric, Honeywell, and Siemens, add to the heating market by bringing in IoT capabilities, cloud platforms, and building automation. They do this through acquisitions and partnerships, which help grow their smart underfloor heating offerings.

Regional specialists and national distributors, like Polypipe (UK), offer localized support that includes installer training and products tailored to local markets. This approach meets the diverse climate conditions, construction practices, and regulations found across Europe, ensuring solutions that fit the needs of each member state.

The market is moderately consolidated, with top players holding about 40-45% share of the total market. Besides the leading companies, many regional manufacturers and newer entrants boost competition with cost-effective, customizable, and retrofit-friendly solutions, especially in emerging Eastern European markets.

Recent Developments in the Europe Underfloor Heating Market

• February 2025: Uponor expanded its Smatrix Wave product line with new thermostatic heads offering enhanced connectivity and integration with leading smart home systems, improving user comfort and energy efficiency.
• March 2025: Schneider Electric launched an upgraded version of its smart underfloor heating controller incorporating AI-driven adaptive learning for automated energy optimization across European residential markets.
• April 2025: Rehau introduced new ultra-thin (6mm) self-adhesive heating mats targeting retrofit applications in historic and space-constrained European buildings, enabling simplified installation and improved renovation flexibility.

Europe Underfloor Heating Market Report Coverage and Summary