Key Insights
The North America home heating appliances market, valued at $16.62 billion in 2025, is projected to experience steady growth, driven by several key factors. Rising energy costs and increasing awareness of energy-efficient technologies are prompting homeowners and businesses to invest in modern, high-efficiency heating systems. The shift towards sustainable practices and government initiatives promoting energy conservation further fuel market expansion. Within the market, heat pumps are witnessing significant adoption due to their energy efficiency and reduced carbon footprint compared to traditional furnaces and boilers. The residential segment dominates the market, driven by a large housing stock and continuous new construction activity. However, growth in the commercial sector is also expected as businesses increasingly prioritize cost-effective and environmentally friendly heating solutions. The online distribution channel is rapidly gaining traction, offering consumers a convenient way to purchase and compare appliances, while specialty stores continue to play a crucial role in providing expert advice and installation services. Competition within the market is intense, with major players like Honeywell, Daikin, Siemens, and Lennox continuously innovating to offer advanced features and improved energy efficiency in their products. While potential restraints include initial high investment costs for some advanced technologies and fluctuations in raw material prices, the overall market outlook remains positive, promising a sustained growth trajectory throughout the forecast period (2025-2033).
North America Home Heating Appliances Market Market Size (In Billion)
The market's Compound Annual Growth Rate (CAGR) of 3.89% indicates a consistent expansion. This growth is likely to be influenced by ongoing technological advancements leading to higher efficiency and smart home integration features in home heating appliances. Furthermore, favorable government policies promoting energy efficiency and reducing carbon emissions in buildings are likely to provide further impetus to the market's growth trajectory. Regional analysis shows that the United States holds the largest share of the North American market, followed by Canada and Mexico. This dominance is attributable to factors such as higher disposable income levels, a robust construction industry, and a greater awareness of energy-efficient technologies among homeowners. Future growth is expected to be fueled by the expanding use of smart home technology enabling remote control and improved energy management, thereby further optimizing energy efficiency and enhancing user experience.
North America Home Heating Appliances Market Company Market Share
North America Home Heating Appliances Market Report: 2019-2033
This comprehensive report provides a detailed analysis of the North America home heating appliances market, covering the period 2019-2033. With a focus on key market segments, competitive dynamics, and future growth projections, this report is an essential resource for industry professionals, investors, and anyone seeking to understand this dynamic sector. The report leverages extensive market research to deliver actionable insights and accurate predictions, providing a clear roadmap for navigating the complexities of this market.
Study Period: 2019-2033; Base Year: 2025; Estimated Year: 2025; Forecast Period: 2025-2033; Historical Period: 2019-2024
North America Home Heating Appliances Market Market Structure & Competitive Dynamics
The North American home heating appliances market is characterized by a moderately concentrated structure, with key players like Honeywell International Inc, Daikin Industries Ltd, Siemens AG, Lennox International Inc, Samsung Electronics, Emerson Electric Co, Mitsubishi Electric Corporation, Johnson Controls, Robert Bosch GmbH, and Panasonic Corporation holding significant market share. Market concentration is expected to remain relatively stable over the forecast period, with the potential for increased consolidation through mergers and acquisitions (M&A). The market is highly innovative, with continuous advancements in energy efficiency, smart home integration, and sustainable technologies driving competition. Stringent environmental regulations, particularly regarding greenhouse gas emissions, are shaping product development and influencing consumer choices. Substitute technologies, such as geothermal heating and solar thermal systems, pose a growing competitive challenge, although their market penetration remains relatively low. End-user preferences are increasingly shifting towards energy-efficient, smart, and sustainable heating solutions, demanding greater product innovation and differentiation. M&A activity in the sector has been moderate in recent years, with deal values averaging approximately xx Million USD annually. The average market share for the top 5 players is approximately 60%.
North America Home Heating Appliances Market Industry Trends & Insights
The North American home heating appliances market is experiencing robust growth, driven by several key factors. Increasing urbanization and rising disposable incomes are fueling demand for comfortable and energy-efficient homes. The rising adoption of smart home technology is also driving the demand for smart heating appliances. Technological innovations, such as the development of high-efficiency heat pumps and smart thermostats, are improving the energy efficiency of heating systems and reducing energy costs. Growing environmental concerns and government regulations are promoting the adoption of energy-efficient and eco-friendly heating appliances. The market is witnessing a gradual shift towards renewable energy sources for home heating, with heat pumps gaining significant traction. The overall market is estimated to record a CAGR of xx% during the forecast period (2025-2033), with heat pumps expected to show the highest growth rate, driven by increasing consumer awareness of their energy efficiency and environmental benefits. Market penetration of smart thermostats is steadily increasing, reaching an estimated xx% in 2025. The competitive landscape is marked by intense rivalry among established players and emerging technology providers, which is accelerating innovation and driving down prices.
Dominant Markets & Segments in North America Home Heating Appliances Market
Leading Region: The US is the dominant market in North America, driven by high energy consumption and strong consumer demand. Canada also displays robust growth potential.
Dominant Segments:
- Equipment: Heat pumps are experiencing the fastest growth due to increasing environmental concerns and government incentives. Furnaces remain a significant segment, though their market share is gradually declining due to the rising popularity of heat pumps. Boilers retain a substantial share, predominantly in commercial applications.
- Distribution Channel: Online sales are growing rapidly, driven by increased e-commerce penetration and convenience. Specialty stores maintain a significant share due to their expertise and personalized services. Supermarkets/Hypermarkets cater mainly to budget-conscious consumers.
- Application: Residential applications dominate the market, largely due to a higher number of households and increased disposable income. Commercial applications, such as offices and retail spaces, also constitute a considerable segment.
Key Drivers:
- US: Strong economic growth, favorable government policies promoting energy efficiency, and advancements in heat pump technology are key drivers.
- Canada: Government initiatives to reduce carbon emissions are accelerating the adoption of energy-efficient heating solutions. The colder climate also drives demand for efficient heating systems.
North America Home Heating Appliances Market Product Innovations
Recent years have seen significant advancements in home heating appliances, emphasizing energy efficiency, smart functionalities, and sustainability. Heat pumps have emerged as a leading technology, offering high efficiency and reduced environmental impact compared to traditional systems. Smart thermostats and home energy management systems allow for precise temperature control and optimized energy consumption. Manufacturers are increasingly integrating renewable energy sources, such as solar power, into their heating systems. These innovations are enhancing the user experience and contributing to the market's growth.
Report Segmentation & Scope
This report segments the North American home heating appliances market across various parameters:
Distribution Channel: Supermarkets/Hypermarkets, Specialty Stores, Online, Other Distribution Channels. Each segment's growth is analyzed, considering market size, competitive dynamics, and projected growth rates.
Equipment: Heat Pumps, Furnaces, Boilers, Unitary Heaters. Detailed analysis of each segment includes market size, growth projections, and key technological trends.
Application: Residential, Commercial. Separate analysis of market size, growth drivers, and competitive landscapes for each application is provided. The Residential segment is projected to dominate in terms of market volume.
Key Drivers of North America Home Heating Appliances Market Growth
The market's growth is propelled by several key factors: increasing awareness of energy efficiency, stringent environmental regulations encouraging sustainable heating solutions, technological advancements in heat pump technology, government incentives and rebates for energy-efficient appliances, and a rising demand for smart home features in heating systems. The growing adoption of heat pumps, driven by their energy efficiency and lower carbon footprint, is a major catalyst.
Challenges in the North America Home Heating Appliances Market Sector
The market faces challenges such as high initial costs associated with energy-efficient appliances, potential supply chain disruptions impacting availability and pricing, intense competition among established and emerging players, and varying levels of consumer awareness and adoption of new technologies. Regulatory changes and evolving consumer preferences also add complexity to the market dynamics. These factors may potentially impact market growth by approximately xx% annually.
Leading Players in the North America Home Heating Appliances Market Market
Key Developments in North America Home Heating Appliances Market Sector
September 2023: Octopus Energy launched a revolutionary heating system including the Cosy 6 heat pump, Cosy Hub home control system, Cosy Pods room sensors, and a smart tariff. This launch signifies a significant shift towards integrated smart heating solutions and could accelerate heat pump adoption.
January 2023: Johnson Controls launched the YORK YMAE Air-to-Water Inverter Scroll Modular Heat Pump, enhancing its offering in the high-efficiency heat pump segment. This further intensifies competition in the market and highlights the ongoing innovation in heat pump technology.
Strategic North America Home Heating Appliances Market Market Outlook
The North American home heating appliances market presents significant growth opportunities, particularly in the heat pump segment. Continued innovation in energy efficiency, smart home integration, and sustainable technologies will drive market expansion. Government policies supporting renewable energy and energy efficiency will further stimulate growth. Companies focusing on developing cost-effective, user-friendly, and environmentally friendly heating solutions are expected to gain a competitive edge. The market is poised for significant expansion over the next decade, presenting attractive opportunities for investment and strategic partnerships.
North America Home Heating Appliances Market Segmentation
-
1. Equipment
- 1.1. Heat Pumps
- 1.2. Furnaces
- 1.3. Boilers
- 1.4. Unitary Heaters
-
2. Application
- 2.1. Residential
- 2.2. Commercial
-
3. Distribution Channel
- 3.1. Supermarkets/Hypermarkets
- 3.2. Specialty Stores
- 3.3. Online
- 3.4. Other Distribution Channels
-
4. Geography
- 4.1. United States
- 4.2. Canada
- 4.3. Rest of North America
North America Home Heating Appliances Market Segmentation By Geography
- 1. United States
- 2. Canada
- 3. Rest of North America
North America Home Heating Appliances Market Regional Market Share
Geographic Coverage of North America Home Heating Appliances Market
North America Home Heating Appliances Market REPORT HIGHLIGHTS
| Aspects | Details |
|---|---|
| Study Period | 2020-2034 |
| Base Year | 2025 |
| Estimated Year | 2026 |
| Forecast Period | 2026-2034 |
| Historical Period | 2020-2025 |
| Growth Rate | CAGR of 3.89% from 2020-2034 |
| Segmentation |
|
Table of Contents
- 1. Introduction
- 1.1. Research Scope
- 1.2. Market Segmentation
- 1.3. Research Methodology
- 1.4. Definitions and Assumptions
- 2. Executive Summary
- 2.1. Introduction
- 3. Market Dynamics
- 3.1. Introduction
- 3.2. Market Drivers
- 3.2.1. Growing Installation of Energy Efficient Heating Systems Drives The Market
- 3.3. Market Restrains
- 3.3.1. Availability of alternatives
- 3.4. Market Trends
- 3.4.1. The Increasing Energy Efficient Heating Appliances Demand Drives the Market
- 4. Market Factor Analysis
- 4.1. Porters Five Forces
- 4.2. Supply/Value Chain
- 4.3. PESTEL analysis
- 4.4. Market Entropy
- 4.5. Patent/Trademark Analysis
- 5. North America Home Heating Appliances Market Analysis, Insights and Forecast, 2020-2032
- 5.1. Market Analysis, Insights and Forecast - by Equipment
- 5.1.1. Heat Pumps
- 5.1.2. Furnaces
- 5.1.3. Boilers
- 5.1.4. Unitary Heaters
- 5.2. Market Analysis, Insights and Forecast - by Application
- 5.2.1. Residential
- 5.2.2. Commercial
- 5.3. Market Analysis, Insights and Forecast - by Distribution Channel
- 5.3.1. Supermarkets/Hypermarkets
- 5.3.2. Specialty Stores
- 5.3.3. Online
- 5.3.4. Other Distribution Channels
- 5.4. Market Analysis, Insights and Forecast - by Geography
- 5.4.1. United States
- 5.4.2. Canada
- 5.4.3. Rest of North America
- 5.5. Market Analysis, Insights and Forecast - by Region
- 5.5.1. United States
- 5.5.2. Canada
- 5.5.3. Rest of North America
- 5.1. Market Analysis, Insights and Forecast - by Equipment
- 6. United States North America Home Heating Appliances Market Analysis, Insights and Forecast, 2020-2032
- 6.1. Market Analysis, Insights and Forecast - by Equipment
- 6.1.1. Heat Pumps
- 6.1.2. Furnaces
- 6.1.3. Boilers
- 6.1.4. Unitary Heaters
- 6.2. Market Analysis, Insights and Forecast - by Application
- 6.2.1. Residential
- 6.2.2. Commercial
- 6.3. Market Analysis, Insights and Forecast - by Distribution Channel
- 6.3.1. Supermarkets/Hypermarkets
- 6.3.2. Specialty Stores
- 6.3.3. Online
- 6.3.4. Other Distribution Channels
- 6.4. Market Analysis, Insights and Forecast - by Geography
- 6.4.1. United States
- 6.4.2. Canada
- 6.4.3. Rest of North America
- 6.1. Market Analysis, Insights and Forecast - by Equipment
- 7. Canada North America Home Heating Appliances Market Analysis, Insights and Forecast, 2020-2032
- 7.1. Market Analysis, Insights and Forecast - by Equipment
- 7.1.1. Heat Pumps
- 7.1.2. Furnaces
- 7.1.3. Boilers
- 7.1.4. Unitary Heaters
- 7.2. Market Analysis, Insights and Forecast - by Application
- 7.2.1. Residential
- 7.2.2. Commercial
- 7.3. Market Analysis, Insights and Forecast - by Distribution Channel
- 7.3.1. Supermarkets/Hypermarkets
- 7.3.2. Specialty Stores
- 7.3.3. Online
- 7.3.4. Other Distribution Channels
- 7.4. Market Analysis, Insights and Forecast - by Geography
- 7.4.1. United States
- 7.4.2. Canada
- 7.4.3. Rest of North America
- 7.1. Market Analysis, Insights and Forecast - by Equipment
- 8. Rest of North America North America Home Heating Appliances Market Analysis, Insights and Forecast, 2020-2032
- 8.1. Market Analysis, Insights and Forecast - by Equipment
- 8.1.1. Heat Pumps
- 8.1.2. Furnaces
- 8.1.3. Boilers
- 8.1.4. Unitary Heaters
- 8.2. Market Analysis, Insights and Forecast - by Application
- 8.2.1. Residential
- 8.2.2. Commercial
- 8.3. Market Analysis, Insights and Forecast - by Distribution Channel
- 8.3.1. Supermarkets/Hypermarkets
- 8.3.2. Specialty Stores
- 8.3.3. Online
- 8.3.4. Other Distribution Channels
- 8.4. Market Analysis, Insights and Forecast - by Geography
- 8.4.1. United States
- 8.4.2. Canada
- 8.4.3. Rest of North America
- 8.1. Market Analysis, Insights and Forecast - by Equipment
- 9. Competitive Analysis
- 9.1. Market Share Analysis 2025
- 9.2. Company Profiles
- 9.2.1 Honeywell International Inc
- 9.2.1.1. Overview
- 9.2.1.2. Products
- 9.2.1.3. SWOT Analysis
- 9.2.1.4. Recent Developments
- 9.2.1.5. Financials (Based on Availability)
- 9.2.2 Daikin Industries Ltd
- 9.2.2.1. Overview
- 9.2.2.2. Products
- 9.2.2.3. SWOT Analysis
- 9.2.2.4. Recent Developments
- 9.2.2.5. Financials (Based on Availability)
- 9.2.3 Siemens AG
- 9.2.3.1. Overview
- 9.2.3.2. Products
- 9.2.3.3. SWOT Analysis
- 9.2.3.4. Recent Developments
- 9.2.3.5. Financials (Based on Availability)
- 9.2.4 Lennox International Inc
- 9.2.4.1. Overview
- 9.2.4.2. Products
- 9.2.4.3. SWOT Analysis
- 9.2.4.4. Recent Developments
- 9.2.4.5. Financials (Based on Availability)
- 9.2.5 Samsung Electronics
- 9.2.5.1. Overview
- 9.2.5.2. Products
- 9.2.5.3. SWOT Analysis
- 9.2.5.4. Recent Developments
- 9.2.5.5. Financials (Based on Availability)
- 9.2.6 Emerson Electric Co
- 9.2.6.1. Overview
- 9.2.6.2. Products
- 9.2.6.3. SWOT Analysis
- 9.2.6.4. Recent Developments
- 9.2.6.5. Financials (Based on Availability)
- 9.2.7 Mitsubishi Electric Corporation
- 9.2.7.1. Overview
- 9.2.7.2. Products
- 9.2.7.3. SWOT Analysis
- 9.2.7.4. Recent Developments
- 9.2.7.5. Financials (Based on Availability)
- 9.2.8 Johnson Controls
- 9.2.8.1. Overview
- 9.2.8.2. Products
- 9.2.8.3. SWOT Analysis
- 9.2.8.4. Recent Developments
- 9.2.8.5. Financials (Based on Availability)
- 9.2.9 Robert Bosch GmbH
- 9.2.9.1. Overview
- 9.2.9.2. Products
- 9.2.9.3. SWOT Analysis
- 9.2.9.4. Recent Developments
- 9.2.9.5. Financials (Based on Availability)
- 9.2.10 Panasonic Corporation
- 9.2.10.1. Overview
- 9.2.10.2. Products
- 9.2.10.3. SWOT Analysis
- 9.2.10.4. Recent Developments
- 9.2.10.5. Financials (Based on Availability)
- 9.2.1 Honeywell International Inc
List of Figures
- Figure 1: North America Home Heating Appliances Market Revenue Breakdown (Million, %) by Product 2025 & 2033
- Figure 2: North America Home Heating Appliances Market Share (%) by Company 2025
List of Tables
- Table 1: North America Home Heating Appliances Market Revenue Million Forecast, by Equipment 2020 & 2033
- Table 2: North America Home Heating Appliances Market Volume K Unit Forecast, by Equipment 2020 & 2033
- Table 3: North America Home Heating Appliances Market Revenue Million Forecast, by Application 2020 & 2033
- Table 4: North America Home Heating Appliances Market Volume K Unit Forecast, by Application 2020 & 2033
- Table 5: North America Home Heating Appliances Market Revenue Million Forecast, by Distribution Channel 2020 & 2033
- Table 6: North America Home Heating Appliances Market Volume K Unit Forecast, by Distribution Channel 2020 & 2033
- Table 7: North America Home Heating Appliances Market Revenue Million Forecast, by Geography 2020 & 2033
- Table 8: North America Home Heating Appliances Market Volume K Unit Forecast, by Geography 2020 & 2033
- Table 9: North America Home Heating Appliances Market Revenue Million Forecast, by Region 2020 & 2033
- Table 10: North America Home Heating Appliances Market Volume K Unit Forecast, by Region 2020 & 2033
- Table 11: North America Home Heating Appliances Market Revenue Million Forecast, by Equipment 2020 & 2033
- Table 12: North America Home Heating Appliances Market Volume K Unit Forecast, by Equipment 2020 & 2033
- Table 13: North America Home Heating Appliances Market Revenue Million Forecast, by Application 2020 & 2033
- Table 14: North America Home Heating Appliances Market Volume K Unit Forecast, by Application 2020 & 2033
- Table 15: North America Home Heating Appliances Market Revenue Million Forecast, by Distribution Channel 2020 & 2033
- Table 16: North America Home Heating Appliances Market Volume K Unit Forecast, by Distribution Channel 2020 & 2033
- Table 17: North America Home Heating Appliances Market Revenue Million Forecast, by Geography 2020 & 2033
- Table 18: North America Home Heating Appliances Market Volume K Unit Forecast, by Geography 2020 & 2033
- Table 19: North America Home Heating Appliances Market Revenue Million Forecast, by Country 2020 & 2033
- Table 20: North America Home Heating Appliances Market Volume K Unit Forecast, by Country 2020 & 2033
- Table 21: North America Home Heating Appliances Market Revenue Million Forecast, by Equipment 2020 & 2033
- Table 22: North America Home Heating Appliances Market Volume K Unit Forecast, by Equipment 2020 & 2033
- Table 23: North America Home Heating Appliances Market Revenue Million Forecast, by Application 2020 & 2033
- Table 24: North America Home Heating Appliances Market Volume K Unit Forecast, by Application 2020 & 2033
- Table 25: North America Home Heating Appliances Market Revenue Million Forecast, by Distribution Channel 2020 & 2033
- Table 26: North America Home Heating Appliances Market Volume K Unit Forecast, by Distribution Channel 2020 & 2033
- Table 27: North America Home Heating Appliances Market Revenue Million Forecast, by Geography 2020 & 2033
- Table 28: North America Home Heating Appliances Market Volume K Unit Forecast, by Geography 2020 & 2033
- Table 29: North America Home Heating Appliances Market Revenue Million Forecast, by Country 2020 & 2033
- Table 30: North America Home Heating Appliances Market Volume K Unit Forecast, by Country 2020 & 2033
- Table 31: North America Home Heating Appliances Market Revenue Million Forecast, by Equipment 2020 & 2033
- Table 32: North America Home Heating Appliances Market Volume K Unit Forecast, by Equipment 2020 & 2033
- Table 33: North America Home Heating Appliances Market Revenue Million Forecast, by Application 2020 & 2033
- Table 34: North America Home Heating Appliances Market Volume K Unit Forecast, by Application 2020 & 2033
- Table 35: North America Home Heating Appliances Market Revenue Million Forecast, by Distribution Channel 2020 & 2033
- Table 36: North America Home Heating Appliances Market Volume K Unit Forecast, by Distribution Channel 2020 & 2033
- Table 37: North America Home Heating Appliances Market Revenue Million Forecast, by Geography 2020 & 2033
- Table 38: North America Home Heating Appliances Market Volume K Unit Forecast, by Geography 2020 & 2033
- Table 39: North America Home Heating Appliances Market Revenue Million Forecast, by Country 2020 & 2033
- Table 40: North America Home Heating Appliances Market Volume K Unit Forecast, by Country 2020 & 2033
Frequently Asked Questions
1. What is the projected Compound Annual Growth Rate (CAGR) of the North America Home Heating Appliances Market?
The projected CAGR is approximately 3.89%.
2. Which companies are prominent players in the North America Home Heating Appliances Market?
Key companies in the market include Honeywell International Inc, Daikin Industries Ltd, Siemens AG, Lennox International Inc, Samsung Electronics, Emerson Electric Co, Mitsubishi Electric Corporation, Johnson Controls, Robert Bosch GmbH, Panasonic Corporation.
3. What are the main segments of the North America Home Heating Appliances Market?
The market segments include Equipment , Application, Distribution Channel, Geography.
4. Can you provide details about the market size?
The market size is estimated to be USD 16.62 Million as of 2022.
5. What are some drivers contributing to market growth?
Growing Installation of Energy Efficient Heating Systems Drives The Market.
6. What are the notable trends driving market growth?
The Increasing Energy Efficient Heating Appliances Demand Drives the Market.
7. Are there any restraints impacting market growth?
Availability of alternatives.
8. Can you provide examples of recent developments in the market?
September 2023: Octopus Energy launched a revolutionary heating system. It includes the Cosy 6, a new heat pump from Octopus, the Cosy Hub, a home control system, the Cosy Pods, room sensors, a customized smart tariff, and the renowned Octopus 5-star service.
9. What pricing options are available for accessing the report?
Pricing options include single-user, multi-user, and enterprise licenses priced at USD 4750, USD 5250, and USD 8750 respectively.
10. Is the market size provided in terms of value or volume?
The market size is provided in terms of value, measured in Million and volume, measured in K Unit.
11. Are there any specific market keywords associated with the report?
Yes, the market keyword associated with the report is "North America Home Heating Appliances Market," which aids in identifying and referencing the specific market segment covered.
12. How do I determine which pricing option suits my needs best?
The pricing options vary based on user requirements and access needs. Individual users may opt for single-user licenses, while businesses requiring broader access may choose multi-user or enterprise licenses for cost-effective access to the report.
13. Are there any additional resources or data provided in the North America Home Heating Appliances Market report?
While the report offers comprehensive insights, it's advisable to review the specific contents or supplementary materials provided to ascertain if additional resources or data are available.
14. How can I stay updated on further developments or reports in the North America Home Heating Appliances Market?
To stay informed about further developments, trends, and reports in the North America Home Heating Appliances Market, consider subscribing to industry newsletters, following relevant companies and organizations, or regularly checking reputable industry news sources and publications.
Methodology
Step 1 - Identification of Relevant Samples Size from Population Database
Step 2 - Approaches for Defining Global Market Size (Value, Volume* & Price*)
Note*: In applicable scenarios
Step 3 - Data Sources
Primary Research
- Web Analytics
- Survey Reports
- Research Institute
- Latest Research Reports
- Opinion Leaders
Secondary Research
- Annual Reports
- White Paper
- Latest Press Release
- Industry Association
- Paid Database
- Investor Presentations
Step 4 - Data Triangulation
Involves using different sources of information in order to increase the validity of a study
These sources are likely to be stakeholders in a program - participants, other researchers, program staff, other community members, and so on.
Then we put all data in single framework & apply various statistical tools to find out the dynamic on the market.
During the analysis stage, feedback from the stakeholder groups would be compared to determine areas of agreement as well as areas of divergence