Market research forecasts point to growth across all three fuel types in 2026, at very different speeds. Demand for each fireplace type will vary by region, housing type, and local regulations.
- Demand for gas fireplaces: forecast to grow 1.9% annually from 2026 to 2032 [1]
- Demand for electric fireplaces: forecast to grow 6.9% annually from 2026 to 2033, the fastest of any fuel type [2]
- Demand for wood fireplaces: forecast to grow 1.1% annually from 2026 to 2032 [3]
This hearth industry report will cover the existing demand for fireplaces by type in 2026, as well as what is driving demand shifts and where buyers are deploying each type of fireplace. It also covers how F&C Distributors sees dealers and builders adjusting their stocking mix for 2026.
2026 Fireplace Demand by Fuel Type
| Fuel Type | Global Market Size (Revenue) | Recent Trend | Key Drivers |
|---|---|---|---|
| Gas fireplaces and inserts | $2.32B market in 2025 | 1.9% CAGR, 2026–2032 | Convenience, controllability, clean/ash-free operation, and continued demand for real-flame fireplaces [1] |
| Gas log sets | $1.84B market in 2025 | 4.8% CAGR, 2026–2035 | Retrofit appeal, realistic flames, home remodeling, and converting existing wood fireplaces to gas [4] |
| Electric fireplaces | $6.4B market estimate for 2026 | 6.9% CAGR, 2026–2033 | Easy installation, no venting, low maintenance, smart-home integration, and demand for space-efficient designs [2] |
| Wood fireplaces and inserts | $1.31B market in 2025 | 1.1% CAGR, 2026–2032 | Traditional aesthetics, authentic fire experience, and demand for enclosed/high-efficiency models [3] |
| Wood stoves | $1.4B market estimate for 2026 | 4.2% CAGR through 2035 | Off-grid/rural heating, fuel-cost considerations, and newer EPA-compliant combustion technology [5] |
Figures are global revenue estimates from different research firms with different base years (2025 actuals and 2026 estimates), so compare growth rates rather than totals.
What is Shifting Demand Between Fuel Types?
Alongside customer preferences, a variety of external factors are influencing these demand figures. These considerations impact all fireplace and hearth distributors for dealers, builders, and designers, as they can help shape stocking decisions and product offerings.
- Gas Restrictions: New York's All-Electric Buildings Act would bar fossil-fuel equipment in most new low-rise buildings starting in 2026, but the state paused enforcement in November 2025 pending a federal appeal [6]. Restrictions like this remain limited to a handful of jurisdictions.
- Wood-Burning Emissions Rules: The EPA’s 2015 wood heater standards set stricter Step 2 emissions limits starting in May 2020, which narrowed the models manufacturers can sell. (This restriction only applies to wood stoves and some inserts/heaters, not all wood-burning fireplaces.) [7]
- Biomass Tax Credit Discontinued: The federal credit of up to $2,000 for qualifying biomass stoves (Section 25C) ended for stoves placed in service after December 31, 2025, under Public Law 119-21 [8].
- Increasing Electric Adoption: Electric fireplaces need no venting or gas line, which makes them easier to place in more spaces. They are finding success in multifamily developments, where complex construction makes gas lines impractical, and as decoration for media walls. [2]
New Construction vs. Remodel Demand
| Fuel Type | Demand in new homes | Demand for remodels |
|---|---|---|
| Electric | Strong. Single-family starts ran at a 918,000 seasonally adjusted annual rate in August 2026 [9]; electric suits apartments and homes without venting. | Strong. The Leading Indicator of Remodeling Activity projects about $518B in annual homeowner improvement and repair spending [10]. |
| Gas | Strong. 42% of single-family homes completed in 2025 use gas [12], supporting builder demand for gas hearth products. | Strong. Gas has an established replacement and retrofit market, particularly for existing wood fireplaces. |
| Wood-burning | Niche. Wood is less commonly specified in new construction because of installation and emissions requirements. | Niche but established. Demand is mainly replacement and upgrades from homeowners seeking traditional wood-burning fireplaces or inserts. |
What This Means for Dealers and Builders in 2026
These figures show that, while they are growing at different speeds, demand for each type of fireplace is growing nonetheless. Homeowners possess a wide variety of needs and desires, and each type of fireplace remains the best answer for a certain subset of situations.
For dealers and builders, this reinforces the importance of partnering with a distributor that offers fireplaces in every fuel type, as well as additional products for fireplace installation. F&C Distributors expects dealers and builders to field requests across all three fuel types in 2026, so stocking venting with every unit, through chimney and venting product distributors, keeps installs on schedule.
F&C Distributors: Stocked Across Every Fuel Type
F&C Distributors is the one-stop distributor for gas logs, fireplaces, venting, chimney products, grills, and outdoor kitchens. It stocks thousands of fireplace, hearth, and outdoor living products from 30+ leading brands, ready for immediate delivery. This stock includes Valcourt and Enerzone wood fireplaces and inserts, along with Lexington Hearth mantels, for hearth dealers and builders.
F&C Distributors is a veteran-owned wholesale distributor serving dealers, builders, designers, architects, landscapers, chimney sweeps, and e-commerce retailers. Shop gas, electric, and wood hearth products from brands like Valcourt and Enerzone at fandconline.com.
FAQs
Is electric fireplace demand growing faster than gas?
Electric fireplace demand is growing faster than gas fireplace demand. Electric fireplaces can be installed more flexibly and easily, and gas fireplaces are beginning to fall under local restrictions in some areas. Market forecasts put electric growth at 6.9% a year, against 1.9% for gas [2][1].
Are wood-burning fireplaces still in demand for 2026?
Wood-burning fireplaces are still in demand in 2026, though at a smaller scale than electric: the global wood fireplace market was estimated at $1.31B in 2025, growing 1.1% a year [3], against an estimated $6.4B for electric in 2026 [2]. Demand comes mainly from buyers who want a real wood fire and from homeowners upgrading an existing fireplace. Wood inserts are wood stoves converted to fit an existing fireplace opening, a common upgrade since most traditional open fireplaces lose over 90 percent of their heat up the chimney [11].
What hearth products should dealers stock for 2026?
Dealers should keep gas, electric, and wood units in the mix, along with the venting and connectors to install them. Forecasts show growth in every fuel type, at different speeds. A distributor that carries all three, like F&C Distributors, lets dealers cover each request on one order.
Sources
- LP Information. (2026). Global Gas Fireplaces Market Growth. https://www.marketresearch.com/LP-Information-Inc-v4134/Global-Gas-Fireplaces-Growth-44930119/
- Grand View Research. (2026). Electric Fireplace Market Size, Share & Trends Analysis Report. https://www.grandviewresearch.com/industry-analysis/electric-fireplace-market-report
- Market Research Reports. (2026). Global Wood-Burning Fireplace Market Strategic Research Report. https://www.marketresearchreports.com/reports/global-wood-burning-fireplace-market-strategic-research-report
- Market Research Intellect. (2026). Gas Log Sets Market. https://www.marketresearchintellect.com/product/gas-log-sets-market/
- MarkWide Research. (2026). Wood Stoves Market. https://markwideresearch.com/wood-stoves-market
- ICSC. (2025). New York’s All-Electric Buildings Act Put on Hold. https://www.icsc.com/news-and-views/icsc-exchange/new-yorks-all-electric-buildings-act-put-on-hold
- EPA. (2026). New Source Performance Standards for Residential Wood Heaters. https://www.epa.gov/stationary-sources-air-pollution/new-source-performance-standards-residential-wood-heaters
- IRS. (2025). FAQs for Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D Under Public Law 119-21. https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb
- U.S. Census Bureau. New Residential Construction. https://www.census.gov/construction/nrc/index.html
- Harvard Joint Center for Housing Studies. Leading Indicator of Remodeling Activity. https://www.jchs.harvard.edu/research-areas/remodeling/lira
- U.S. Environmental Protection Agency. Choosing the Right Fireplace. https://www.epa.gov/burnwise/choosing-right-fireplace
- U.S. Census Bureau. Characteristics of New Housing. https://www.census.gov/construction/chars/highlights.html