The global heated tobacco market is expected to grow from $7.8 billion in 2022 to $8.2 billion in 2023, according to The Business Research Company's 2023 Heated Tobacco Global Market Report. Compound annual growth rate (CAGR) exceeds 4%.

Global hot tobacco market share is expected to grow from $9.5 billion in 2027, a compound annual growth rate of more than 3%. Going forward, rising disposable incomes and increased new product launches will drive the growth of the hot tobacco market.

Global Heated Tobacco Market Segmentation -

By product: HNB TobacCo Equipment, Direct/Indirect Heating HnB TobacCo., Impregnated/Mixed HnB Tobacco Equipment, HnB Tobacco Consumer Products, HnB tobacco Sticks, HnB Tobacco Capsules and smoke bombs

By type: Equipment, capsule, carburetor

By distribution channel: retail store, online

The largest opportunity in the heated tobacco market segmentation by product will be in the HnB tobacco equipment segment, by type in the carburetor segment, and by distribution channel in the retail store segment. The U.S. market for heated tobacco will grow the most, to $5.4 billion.

The global hot tobacco market is highly concentrated, with several large enterprises in the market. In 2021, the top ten competitors accounted for 78.6% of the total market. Philip Morris International is the biggest competitor with a market share of 54.8 per cent, followed by British American Tobacco, Japan Tobacco International, Korea Tobacco and Ginseng, Imperial Brands, Altria Group Inc, China Tobacco International, Steam Tobacco Manufacturing, Shenzhen Yukang Technology Co LTD and Mysmok Electronic Technology.

Major companies operating in the hot tobacco market are using advanced technologies to develop innovative products to consolidate their positions in the market. The launch of new heated tobacco products is a key trend that is gaining popularity in the market.

For example, in November 2022, U.S.-based tobacco company Philip Morris International (PMI) launched a more affordable version of the company's leading heated tobacco product, BONDS by IQOS, to accelerate the path to a smoke-free future. Originally launched on a pilot basis in a city in the Philippines, it offers the opportunity to address consumer purchase barriers, including affordability, while providing genuine tobacco taste satisfaction.

As with all smokeless products, IQOS's BONDS are intended for adults who would otherwise continue to smoke and are looking for a better alternative.

According to Hot Tobacco market analysis, Hot Tobacco's other strategies based on market trends include a focus on artificial intelligence, investments in heated tobacco products, technological advances, and strategic partnerships and collaboration.