Growth Opportunities in the Global Industrial Heat Pumps Industry

Growth Opportunities in the Global Industrial Heat Pumps Industry

The Need for Industrial Decarbonization Will Drive Industries to Embrace Nonfossil Solutions

he need to decarbonize the industrial economy is becoming ever more important. Much has been achieved so far in the decarbonization of power generation, but progress in the realm of industrial decarbonization has been relatively slow. This is now gradually changing as businesses seek to comply with environmental, social, and governance (ESG) goals and reduce emissions. The ever-higher costs of polluting in key country markets creates a financial incentive to act.

Traditional demand for heat pumps (HPs) has come predominantly from process industries such as food and beverage and pulp and paper, but as the technology evolves and the temperatures that HPs can handle increase, new industries will open up, such as growth from the chemicals and textiles spaces.

However significant restraints must be overcome. Equipment and installation costs remain high, mainly because of the custom nature of many installations, and the absence of higher sales volumes limits modularization. The price differential between electricity and gas is probably the most important though—the 2022 surge in global gas prices has been reversed, meaning the cost economics currently favor fossil fuels.

This research on the global industrial heat pumps industry covers the period 2020 to 2035.