Industrial Heat Pump Market Report

An increase in demand for heating with improved performance and energy efficiency for use in a variety of end-user applications such as drying, space heating, wash water heating, chromating, dilute dope stream concentration, electroplating, distillation, and others is driving the industrial heat pump market. Furthermore, the replacement of old water heaters with modern heat pumps that can do both heating and cooling at the same time is likely to fuel the growth of the globally industrial heat pumps market during the forecast period. Furthermore, an increase in awareness towards energy-efficient heating systems to minimise environmental pollution, as well as an increase in the dominance of industrial heat pumps, is expected to boost market expansion in the future years. Moreover, growth in industrial energy-related technologies and systems, as well as rising initiatives from developing and developed economies to reduce greenhouse gas emissions by increasing the use of industrial heat pumps in major end-use industries, drive demand for heating systems, which are expected to drive the growth of the industrial heat pumps market in the coming years.

Heat pumps are, basically, extremely complicated units of equipment. End consumers in emerging and undeveloped economies have little understanding of the energy efficiency, cost efficiency, and environmental benefits connected with heat pumps, as well as technical know-how. This aspect is expected to impede the expansion of the Heat Pump Market in emerging economies. Furthermore, heat pumps are widely utilised in the industrial sector to improve energy efficiency, minimise energy costs, and reduce carbon emissions. However, the high costs associated with these heat pumps is anticipated to amper the market growth over the forecast period. Besides this, the availability of alternative heating applications such as central gas fuelled boilers, geothermal heat pumps, combined heat power, and others are likely to impede market expansion throughout the forecast period.

Major market players are focusing their efforts on R&D in order to provide distinctive products that enhances that product portfolio. They are also adopting various marketing strategies such as product launches, mergers, collaborations, and acquisitions to strengthen their position in the sector.  For instance, Viessmann Group acquired a controlling ownership in Pacifica Home Services Ltd. (PHS) in January 2022, while also supporting the Management team's reinvestment. PHS is an expert in the installation and maintenance of integrated HVAC solutions, with a focus on heat pumps. The transaction involved the acquisition of Oakes Energy Services Ltd, which was determined to be critical to the growth of the new company. In May 2022, Mitsubishi Electric Corporation announced a 1.44 billion Turkish lira (113 million USD) investment in a new facility at Mitsubishi Electric Air Conditioning Systems Manufacturing Turkey Joint Stock Company (MACT), which is the company's Turkish air-conditioner production base. It was determined that MACT's yearly capacity for air-to-water (ATW) heat pumps* will be increased by 100,000 units from existing capacity, and room air conditioners will be increased by 300,000 units. Furthermore, in July 2022, the Viessmann Group, one of the world's leading suppliers of sustainable climate (heating, cooling, water and air quality) and renewable energy solutions declared that the construction a new production plant in Legnica, Poland, for its Climate Solutions business area. The approximately 200 million Euro investment in the new Polish plant was a crucial component of the company's green climate solutions and complemented its current heat pump operations.

Asia Pacific is anticipated to experience a significant growth in the industrial heat pump market owing to the growing preference for energy-efficient heating solutions as well as increased awareness about climate change and greenhouse gas emissions. In addition, the ability of heat pumps to convert heat to renewable heat by using air temperature and renewable heat output is also driving the demand for heat pumps in Asia Pacific region. Furthermore, North America is also expected to witness a substantial growth in the heat pump market over the forecast period. This growth can be attributed to the growing consumer demand for energy-efficient systems, government programmes to encourage emission reduction, and clean heating and cooling systems to embrace clean and sustainable technology.