Heat Pump Market To Generate $105,462.1 Million Revenue by 2030
- Published: December 2022
The global heat pump market is projected to generate $105,462.1 million revenue in 2030, advancing at a CAGR of 7.8% during 2021–2030. Factors that influence the market growth, include the rising focus on replacing traditional fuel-based heating techniques with heat pumps and the large-scale adoption of these cost-effective systems in residential heating applications. Besides, this technology helps in the reduction of carbon footprint, and further, consents to regulatory norms. Subsequently, growing environmental concerns and favorable regulatory strategies further sustain its global demand.
Air-To-Air Type of Heat Pumps Accounts for Largest Market Share
The air-to-air type of heat pumps accounted for the majority of the market share, of around 75%, in 2021. The air-to air heat pump technology absorbs heat from the outside environment and transfers it to indoor spaces, including residential buildings, offices, educational institutions, and other commercial buildings. Over other heating systems, the expenses for installing air-to-air heat pumps are minimal, as the process eliminates the requirement for drilling boreholes or for expensive equipment.
Moreover, the commercial application is projected to exhibit the highest growth rate over the projection timeframe. These products are widely used in office buildings, hotels, schools, houses of worship, and indoor stadia since they can offer cooling and heating to different zones simultaneously.
Geographically, the Asia-Pacific (APAC) region is the principal heat pump market driver, with revenue of around $23 billion in 2021. This is mainly because of the growing demand for energy-efficient heating solutions in residential and commercial units, essentially due to the rising climate awareness and need to lower carbon emissions. Recently, heat pumps have also found a wide application in water radiators, washing machines, and dryers because of their high energy saving and CO2 emission reduction potential.
The COVID-19 pandemic has had a significant influence on the manufacturing industry over the previous two years. Moreover, the market has been negatively affected by the decline in the construction activity leading to a decreased demand for heat pumps in practically all countries. Additionally, the delays in the delivery of these systems and deferring of new installation projects, due to the disruptions in the logistical network, hampered the industry growth. Simultaneously, the market has demonstrated the capability of dealing with such short-term disturbances, as long-term concerns, such as energy efficiency and environment-friendliness, remain unaltered.
Product Launch Is Most-Effective Strategic Action Taken by Players
Major Heat pump OEMs have been extensively involved in product launches. For instance, in February 2022, Danish OEM Sabroe, a brand under Johnson Controls International, launched the 273 S, a high-temperature ammonia heat pump capable of delivering 95°C (203°F) heat with minimal energy consumption.
Similarly, in November 2021, Daikin Europe N.V., a part of Daikin Industries Ltd., launched the Daikin Altherma 3 H MT, a mid-temperature hydrosplit heat pump, to replace polluting boilers in recently built houses.
Key enterprises in the heat pump market include Samsung Electronics Co. Ltd., DENSO CORP., Midea Group Co. Ltd., Panasonic Corporation, Mitsubishi Electric Corporation, Johnson Controls International plc, Daikin Industries Ltd., Carrier Global Corporation, LG Electronics Inc., Trane Technologies plc, and GEA Group Aktiengesellschaft.