Industrial Heat Pump Market: Global Industry Analysis and Forecast (2024-2030)

Industrial Heat Pump Market size was valued at USD 9.38 Billion in 2023 and the total Industrial Heat Pump size is expected to grow at a CAGR of 7.8% from 2024 to 2030, reaching nearly USD 15.86 Billion.
Overview
An industrial heat pump is a device that uses mechanical or thermal energy to move heat from a low-temperature source to a high-temperature sink, using the same principle as a refrigerator or air conditioner but in reverse. This process is called heat pumping or refrigeration, and it allows the heat pump to deliver useful thermal energy at a higher temperature than the source. Industrial Heat Pump Market are used in a variety of applications, such as heating and cooling of buildings, drying of products, and industrial processes.

Industrial Heat pump market is increasingly recognised as a critical technology for heat

decarbonisation, receiving increasing policy support in several countries over the last years. About 190 million heat pump units were in operation in buildings worldwide in 2021. The global stock of heat pumps has increased quite steadily over the past few years, particularly in primary Industrial Heat Pump Market in North America, Europe and northern and eastern Asia. In 2021, record high growth in heat pumps sales was registered in particular in Europe, China and the United States; 2022 is also showing early signs of positive growth despite challenges in supply chains. Other than climate objectives, energy security is an important driver for  Market in the European Union in particular, with increasing policy attention in 2022. Part of the deployment is also driven by a growing space cooling demand met with reversible Market.

Heat pumps still meet only around 10% of the global heating need in buildings though, below the deployment level required to get on track with the Net Zero Emissions by 2050 Scenario. Report covered, the global heat pump market share reaches about 600 million by 2030, covering at least 20% of global heating needs. Further policy support and technical innovation are needed, in particular to reduce upfront purchase and installation costs, remove market barriers to complex renovations, improve energy performance and durability, and exploit the potential of Industrial Heat Pump Market as an enabler of power system integration and flexibility.To know about the Research Methodology :- Request Free Sample Report
Industrial Heat Pump Market Dynamics:
Heat pump with decreases CO2 emissions are high in demand

By using heat pumps instead of condensing gas boilers, the vast majority of present space and water heating demand may be fulfilled with decreased CO2 emissions. Heat pumps are a highly efficient way of supplying useful heat by using electricity to harness ambient heat from the ground, water, or air. They use only one-third to one-fifth of the electricity consumed by conventional electric equipment. According to the national electricity generation portfolios for 2021, heat pumps could meet over four-fifths of the global demand for space and water heating with lower CO2 emissions than condensing gas boilers, which is expected to drive the Industrial Heat Pump Market growth during the forecast period.

The potential coverage of heat pumps has significantly improved since 2010, thanks to continuous advancements in energy performance and reductions in the carbon intensity of power generation. In the Net Zero Scenario, rapid reductions in emissions from electricity supply and increased technology efficiency mean that heat pumps will record lower CO2 emissions than natural gas-fired condensing boilers in all regions before 2025. However, despite the numerous benefits,  Market only met around 10% of the global heating demand in buildings in 2021.

This falls far short of the deployment level required to achieve the Net Zero Emissions by 2030 Scenario. In Industrial Heat Pump Markets such as Japan and the European Union, and to some extent South Korea, heat pumps are recognized as a renewable energy source, making them eligible for support under certain renewable energy policy schemes. In 2022, China also recognized heat pumps as a renewable energy technology at the national level.

Policy support for heat pumps is increasing rapidly to meet decarbonisation ambitions

There is currently a surge in the development of policies aimed at supporting the heat pump market, driven by soaring energy prices and the need to prepare for winter challenges due to the recent Russian invasion of Ukraine. The REPowerEU initiative seeks to double the deployment rate of hydronic Industrial Heat Pump Market over the next five years to 10 million units, with similar country-specific targets following suit. The United States has also recognized heat pumps as a crucial technology under

its Defense Production Act. The following key policy instruments have been implemented:

Financial instruments to reduce upfront costs and accelerate deployment, including grants, rebates, and subsidies introduced or expanded in the United States and France in 2021 and 2022.

Electricity tariffs that encourage fuel switching and account for flexibility. For instance, the Electric Ireland Superhome program provides beneficial pricing for heat pump users, while the EU Save Energy Communication emphasized the importance of energy pricing for switching to heat pumps. Rebalancing taxes and levies on electricity and gas could also help improve heat pump competitiveness in many Industrial Heat Pump Market.

Mandatory performance-based labels to encourage deployment, as demonstrated by the launch of the energy efficiency labeling scheme for EcoCute heat pumps in Japan in October 2021.

Building codes and standards that mandate energy efficiency, such as the adoption of heat pumps as a baseline heating and cooling technology in California in 2021. The 2022 update to the commercial building energy code in Washington State requires heating and cooling systems to use heat pumps, while a new building regulation in China imposes requirements for installed HVAC and efficiency improvements.

Renewable and energy efficiency targets and instruments that ban the installation of fossil fuels. France's new building code, for example, prohibits the replacement of oil and coal boilers starting in July 2022. In New York City, the natural gas ban will take effect in new buildings up to seven floors high starting in 2023 and in those over seven stories starting in 2027. These policies demonstrate the rapid increase in policy support for Industrial Heat Pump Market in line with decarbonisation ambitions. The report covered more detailed and micro level analyses of market police and government regulations by country.
Global Market Segment Analysis:
By source: the Industrial Heat Pump market segmented into Air, Water, and Ground. Air Heat Pump is expected to dominate the  Market during the forecast period. The air heat pump market is experiencing a surge in demand due to a variety of factors. One of the primary drivers of this demand is the growing awareness and concern about climate change and the need to reduce carbon emissions. Air heat pumps are an energy-efficient and environmentally friendly alternative to traditional heating and cooling systems that rely on fossil fuels, making them an attractive option for those looking to reduce their carbon footprint.

Additionally, supportive policies and incentives, such as grants, rebates, and tax credits, are further driving the demand for air heat pumps. These policies aim to encourage the adoption of renewable energy sources and help make air heat pumps more affordable and accessible. Furthermore, advancements in technology have made air heat pumps more efficient and reliable, which has also contributed to their increasing popularity. As a result, the Industrial Heat Pump Market is expected to continue to grow in the coming years, as more individuals and organizations seek to transition to renewable energy sources and reduce their carbon footprint.
Industrial Heat Pump Market Regional Insights:
Asia Pacific dominated the largest market share in 2023
Asia Pacific is expected to dominate the Industrial Heat Pump Market during forecast period. Due to a variety of factors. One of the primary drivers of this demand is the growing need for energy-efficient heating and cooling solutions in various industries, including food processing, chemical manufacturing, and pharmaceuticals. The market growth is driven by an  efficient and sustainable alternative to traditional fossil fuel-based heating and cooling systems, which makes them an attractive option for companies looking to reduce their carbon footprint and energy costs.

One example of the increasing demand for Industrial Heat Pump industry in the Asia Pacific region is the food processing industry in Japan. Japan has been promoting the use of industrial heat pumps in food processing to reduce energy consumption and greenhouse gas emissions. For instance, in 2019, Mitsubishi Heavy Industries Thermal Systems installed a CO2-based heat pump system at a food processing plant in Japan, which uses waste heat to provide hot water for the factory's cleaning process. This has resulted in a significant reduction in energy consumption and carbon emissions, while also reducing costs for the food processing plant.

There are several countries in Asia that are experiencing a high demand for industrial heat pumps. One such country is Japan. Japan has been promoting the use of industrial heat pumps in various industries, including food processing, chemical manufacturing, and papermaking, to reduce energy consumption and greenhouse gas emissions.
Industrial Heat Pump Market Scope: Inquiry Before Buying



Industrial Heat Pump Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
USD 9.38 Bn.


Forecast Period 2024 to 2030 CAGR:
7.8 %
Market Size in 2030:
USD 15.86 Bn.


 Segments Covered:
by Source
Air
Water
Ground


by System
Closed Loop
Open Cycle


by Capacity
Less Than 500 KW
500 KW To 2 MW
2 MW - 5 MW
More Than 5 MW


By End-use Industry
Lumber Drying
Pulp and Paper Manufacturing
Petroleum refining
Food and beverages
Chemicals
Utilities
District Heating
Others



Industrial Heat Pump Market Regional Insights:
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Industrial Heat Pump Key Players:
1. Daikin Industries, Ltd.
2. Mitsubishi Electric Corporation
3.Danfoss A/S
4. NIBE Industrier AB
5.  Bosch Thermotechnik GmbH
6. Carrier Corporation
7.  Johnson Controls International plc
8. LG Electronics Inc.
9.  Panasonic Corporation
10. Swegon Group AB
11. Daikin Industries, Ltd.
12. Mitsubishi Electric Corporation
13.  Danfoss A/S
14. NIBE Industrier AB
15. Bosch Thermotechnik GmbH
16.  Carrier Corporation
17.  Johnson Controls International plc
18.  LG Electronics Inc.
19.  Panasonic Corporation
20. Swegon Group AB

FAQs:

1. What are the growth drivers for the Industrial Heat Pump Market?
Ans. The government initiatives is expected to be the major driver for the Industrial Heat Pump Market.

2. What is the major restraint for the Industrial Heat Pump Market growth?
Ans. Stringent government regulations are expected to be the major restraining factor for the Industrial Heat Pump Market growth.

3. Which region is expected to lead the global Industrial Heat Pump Market during the forecast period?
Ans. North America is expected to lead the global Industrial Heat Pump Market during the forecast period.

4. What is the projected market size & growth rate of the Industrial Heat Pump Market?
Ans. The Industrial Heat Pump Market size was valued at USD 9.38 Billion in 2023 and the total Anime revenue is expected to grow at a CAGR of 7.8% from 2024 to 2030, reaching nearly USD 15.86 Billion.

5. What segments are covered in the Industrial Heat Pump Market report?
Ans. The segments covered in the Industrial Heat Pump Market report are Type, Capacity’s, End-use, and Region.