Rising government regulations for CO2 emissions will boost the market demand globally.
The global heat pump market is rising proficiently, anticipated to grow at a CAGR of 7.9% throughout the estimated period from 2019 to 2027, starting from US$ 50.25 Bn in 2018.
Increased government regulations and support for co2 emissions in the form of incentives, subsidies, and others will drive the market for heat pumps. For instance, in 2018, China National Petroleum Corporation contracted with Cheniere Energy for 25 years to purchase 1.2 Mn tons of LNG annually. With this contract, China plans to manage its greenhouse gas emissions as natural gas emits 50-60 percent less carbon during combustion. In addition, the rising housing and construction industry for multi-unit & single-unit dwellings will enhance the heat pump market growth.
Growing renewable heat sources and energy-efficient heating solutions will also drive market growth in years to come. Increased penetration of heat pumps in the residential and commercial sectors will also enhance the market growth. Rising awareness for cost & energy-efficient heat pumps will also boost the market growth. As a consequence of the above-mentioned factors, the market will show significant growth throughout the forecast period.
Market Synopsis
End-user Analysis
Boom in the residential industry will spur revenue growth.
In 2018, the residential segment dominated the global heat pump market. The residential segment contributed over 70% of the world's revenue share in the same year. On account of the high energy efficiency of the pumps, heat pumps are being used for cooling, sanitary hit water application, and space heating at homes. Furthermore, tax rebates and government policies on installing energy-saving products will also help the segment's growth. In addition, less maintenance cost, low running cost, carbon emission, long life span, and others are some of the benefits of the heat pumps market owing to which the segment will grow significantly. Thus, the segment will continue its dominance in the years to come.
Rising industrial sector will enhance the market growth.
The rapid growth of the industrial sector worldwide will enhance the heat pumps market, and the industrial segment will show the fastest growth during the forecast period. According to a recent report, the industrial sector is growing with around 1.5% growth in 2019. Rising demand for waste heat recovery pumps will drive the growth of the industrial sector in years to come. Heat pumps are used for various industrial processes such as dehumidification, water heating or cooling, distillation, evaporation, etc. As a result, the segment will show the fastest growth. In addition, the growing use of heat pumps in various industries, including chemical, petroleum, food & beverage, and others, will also enhance the segment growth.
Regional Analysis
Growing CO2 emissions and increased industrial sector will boost the market in the Asia Pacific.
In 2018, Asia Pacific dominated the global heat pump market. The Asia Pacific accounted for nearly 40% of the global market revenue share in 2018. Asia Pacific is the largest CO2 emitter, contributing more than 40% to global CO2 emission. China is the largest CO2 emitter in the world, with more than 9,056.8 metric tons of CO2 emission. Similarly, India is the 4th largest CO2 emitter with more than 2076.8 metric tons of CO2 emissions. According to a recent study, carbon dioxide emissions cost nearly US$ 200 Bn annually to the Indian economy. Hence, to decrease the cost and effect of CO2 emissions, the demand for heat pumps is increasing in the Asia Pacific.
Further, rising industrial production processes in the Asia Pacific, including chemicals, pharmaceuticals, iron & steel, textiles, papermaking, and others, will also drive the demand in the region. In addition, the growth of commercial and residential sectors in the region will also enhance the market growth in the Asia Pacific region. Therefore, the Asia Pacific region will continue its global heat pump market dominance.
New product launch with advanced features, acquisitions, and mergers will be the key strategy.
Product launches with advanced features such as IoT enabled and mergers & acquisitions will be the key strategy followed by market players to enhance their market presence.
Key Industry Development:
In April 2018, Stiebel Eltron acquired Denmark based Danfoss Varmepumpar AB. This acquisition will help Stiebel Eltron to enhance its geographic presence in Nordic countries.
In December 2018, Daikin Industries, Ltd. launched a heat pump cassette in South Africa. The heat pump cassette will deliver high energy efficiency along with less carbon footprint.
List of Companies Covered:
United Technologies Corporation
Daikin Industries, Ltd.
NIBE Industrier AB
The Viessmann Group
Stiebel Eltron
Ingersoll-Rand, Inc.
Robert Bosch GmbH
Vaillant Group
The Danfoss Group
Mitsubishi Electric Corporation
Midea Group
Panasonic Corporation
Historical & Forecast Period
This study report represents analysis for each segment from 2017 to 2027, considering 2018 to be the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period from 2019 to 2027.
Segmentation Technology Type (2017–2027; US$ Bn)
Air Source
Water Source
Ground Source
Hybrid
End-user (2017–2027; US$ Bn)
Residential
Commercial
Industrial
Capacity (2017–2027; US$ Bn)
Up to 10 KW
10-20 KW
20-30 KW
Above 30 KW
Geography (2017–2027; US$ Bn)
North America (U.S., Canada)
Europe (U.K., Germany, Spain, Italy, Rest of Europe)
Asia Pacific (Japan, China, India, Rest of Asia Pacific)
Rest of the World (Latin America, Middle East & Africa)
The current report also comprehends qualitative and qualitative market valuation factors such as key market drivers, market trends, restraints, and opportunities to better understand the overall heat pump market. The global report also represents the competitive landscape based on market initiatives and strategies, product portfolio, and business strengths.
Frequently Asked Questions:
The market for Heat Pumps is expected to reach US$ 50.25 Bn in 2028.
The Heat Pumps market is expected to see significant CAGR growth over the coming years, at 7.9%.
The report is forcasted from 2019-2027.
The base year of this report is 2018.
United Technologies Corporation, Daikin Industries Ltd., NIBE Industrier AB, The Viessmann Group, Stiebel Eltron, Ingersoll-Rand, Inc., Robert Bosch GmbH, Vaillant Group, The Danfoss Group are some of the major players in the global market.
