Industrial Heat Pump Market Forecasts to 2030 – Global Analysis By Source (Ground, Water and Air), System (Open Cycle and Closed Loop), Capacity, End User and By Geography

Industrial Heat Pump Market Forecasts to 2030 – Global Analysis By Source (Ground, Water and Air), System (Open Cycle and Closed Loop), Capacity, End User and By Geography

According to Stratistics MRC, the Global Industrial Heat Pump Market is accounted for $1.39 billion in 2023 and is expected to reach $2.30 billion by 2030 growing at a CAGR of 7.4% during the forecast period. Large-scale devices called industrial heat pumps are employed to draw heat from a variety of sources, primarily industrial wastewater, ocean, and rivers. Heat pumps are used in a number of end-use industries, such as timber drying, pulp and paper production, petroleum refining, food and beverage production, chemical production, utilities, and district heating. Due to their ability to convert renewable electricity output into heat and cold that can be stored, industrial heat pumps will hereafter play an important role in the industrial sector.

According to the U.S. Department of Energy, a 30% tax credit can be claimed for buying a property in the U.S. that has qualified health pumps installed in connection with an existing or new dwelling unit.

Market Dynamics

Driver

Rising focus on improving energy efficiency by industries

The focus on adopting heat pumps by industries has increased as a result of the rising cost of energy and the adverse impacts on the environment brought on by the high carbon emissions from fossil fuel-based energy sources. The usage of energy-efficient solutions is crucial in sectors due to rising energy costs and more regulatory compliance with energy efficiency. During the projected period, this is anticipated to encourage the use of heat pumps.

Restraint

Less Awareness Regarding Heat Pumps

There is a dearth of technical knowledge among end users in emerging and undeveloped nations, as well as understanding of the energy efficiency, cost efficiency, and environmental benefits linked to heat pumps. The computation's findings are included in larger construction models and take the impact of the environment into account. Therefore, lack of or limited knowledge of the benefits of employing heat pumps and associated ISO standards is anticipated to impede market expansion.

Opportunity

Emerging demand for advanced heat pumps

Industrial heat pump market participants upgrade heat pumps with new features to boost performance. Heat pumps can efficiently handle extreme heating or cooling because to advancements in compressor design, like two-speed compressors. Power consumption is greatly decreased by this revolutionary compressor technology. Utilising this technology assures efficient airflow, lowers energy waste, and minimises noise in heat pumps, all of which will contribute to the market's growth over the course of the forecast period.

Threat

High initial cost

A lot of regulated environments are heated and cooled using heat pumps. Despite being environmentally friendly and energy-efficient, they initially cost more than alternatives like furnaces and boilers. While major corporations may afford to install pricey heat pumps, small and medium-sized firms are wary of making such substantial expenditures due to their tight budgets and low profit margins. The entire running cost of heat pumps increases as a result of rising refrigerant prices, which is impeding the expansion of the market.

Covid-19 Impact

The market for industrial heat pumps is only one of many sectors that have been adversely impacted by the COVID-19 outbreak. The potential for product deployment has been changed by pandemic-induced supply chain disruptions that influence the availability of raw materials, components, and finished goods, as well as by scaled-back industrial activities due to strict lockdown rules and decreased customer demand. The current difficulties will be overcome, nevertheless, by the expanding demand for sustainable and energy-resilient systems and the rising investments to enable their deployment.

The air segment is expected to be the largest during the forecast period

The air segment is estimated to have a lucrative growth. Quick and easy installation, long life, and low emissions are some of the prominent drivers accelerating the usage of these variants. They function by absorbing heat from the outside air and transferring it via the central heating system to an enclosed environment. Significant expenditures in the creation of systems that are specifically designed for use in locations with extreme climatic conditions will further promote commercial growth for the leading manufacturers.

The residential segment is expected to have the highest CAGR during the forecast period

The residential segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the adoption of heat pumps to provide heating solutions in the winter season and cooling solutions on hot days. Climate change and government measures to improve energy efficiency in the residential sector are what are driving the demand for these systems. Sales of heat pumps are expected to be driven by the rising demand for heat pumps used for affordable, environmentally friendly cooling and heating applications in the residential sector.

Region with Largest share

Asia Pacific is projected to hold the largest market share during the forecast period owing to increasing demand for energy-efficient heating and cooling solutions from several industries.
Increased investments in urbanisation and industrialization are the only factors responsible for this expansion. Some of the key factors driving the market are the rise in infrastructure and the number of new modern residential projects, as well as the rise in commercial space.

Region with highest CAGR

Europe is projected to have the highest CAGR over the forecast period, owing to the increased consumer awareness regarding the environment protection, sustainable products, and green energy. Due to the government's severe limitations on carbon emissions and the use of renewable energy sources, the demand for heat pumps in a variety of commercial, industrial, and residential applications is significantly increasing. Additionally, the cold weather is encouraging the residential sector to use heat pumps for heating purposes, which is pushing the industry.

Key players in the market

Some of the key players profiled in the Industrial Heat Pump Market include Johnson Controls International plc, NIBE Industrier AB, Daikin Industries, Ltd., Panasonic Corporation, Carrier Corporation, Bosch Thermotechnik GmbH, LG Electronics Inc., Danfoss A/S, Mitsubishi Electric Corporation, Emerson Electric Co., Johnson Controls, Inc., Swegon Group AB, Ingersoll-Rand Inc., United Technologies Corp. And Lennox International Inc.

Key Developments

In November 2022, Mitsubishi launched a cascaded air source heat pump that can produce between 7.8 kW and 640 kW of heat. The heat pump can generate hot water at a temperature of up to 70 C without boost heaters.

In April 2022, Daikin announced its support for the REPowerEU, which has set a goal to boost the rollout of heat pumps from 10 million units in 2027 to 30 million units in 2030.

Sources Covered
• Ground
• Water
• Air

Systems Covered
• Open Cycle
• Closed Loop

Capacities Covered
• More Than 5 MW
• 2 MW - 5 MW
• 500 kW to 2 MW
• Less Than 500 kW

End Users Covered
• Pulp and Paper Manufacturing
• Lumber Drying
• Food and Beverages
• Utilities
• Residential
• District Heating
• Petroleum Refining
• Chemical
• Other End Users

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements