Heat Pumps Market Set to Grow Robustly over 2020-2030
The global heat pumps market has been growing at a tremendous pace. As the demand for sustainable heating and cooling systems increases, worldwide sales of heat pumps are projected to surpass US$ 50 Bn by 2030. Leading market players are focusing on cost-competitiveness to tap white spaces in developing regions, including India, Brazil, Poland, and South Africa.
Heat Pumps Market: Key Insights
- Air-air heat pumps continue their positive trend; air-water heat pumps to falter gradually.
- Residential sector remains primary end user of heat pumps; market players to reap relevant returns from commercial sector.
- Hydrofluorocarbon (HFC) heat pumps would generate greater total return to shareholders; CO2 refrigerant heat pumps to see adoption surge.
- Market players would allocate their resources to air-source and geothermal heat pumps.
- Asia Pacific excluding Japan (APEJ) continues to offer opportunities for growth and profitability.
KEY FACTORS SHAPING HEAT PUMPS MARKET
Supportive Regulatory Framework and Rising Urbanization
Growth of the construction industry along with increasing implementation of stringent new building regulations by governments, worldwide, especially in China, Japan, the U.S., South Korea, and Europe, are expected to be key factors driving the demand for heat pumps for residential applications. Subsidies on the purchase of heat pumps provided by governments, tax credit schemes, and rising use of renewable energy are set to boost the demand for heat pumps. In countries such as Japan, Australia, the U.S., and countries of Europe, governments are providing subsidies on the purchase of heat pumps to reduce carbon footprint and increase the use of renewable sources of energy for heating and cooling purposes. Certain regions such as Japan, China, and Europe have their renewable energy policies for heating purposes, which, in turn, promotes the use of heat pumps over conventional heating devices.
Eco-friendly and Advanced Devices to Drive Market Growth
Growing demand for technologically-advanced and eco-friendly devices for cooling and heating applications is likely to boost the demand for heat pumps. Heat pumps are very valuable for the reduction in carbon intensity. They can help decrease electricity consumption for heating and cooling applications by half as compared to other electric resistance heating appliances. Modern heat pumps such as ground-source heat pumps (GSHP) use only one-fourth of electrical and three-fourth of environmental energy as compared to conventional heat pumps.
Rising Demand for CO2 Refrigerant Heat Pumps
CO2 refrigerant heat pumps represent potential growth opportunities for players in the heat pumps market. CO2 refrigerant heat pumps were first developed in Japan under the brand name EcoCute. Demand for these CO2 refrigerant heat pumps is growing owing to their easy recyclability, low cost, and environment-friendly qualities. Currently, CO2 refrigerant heat pumps are available in China, Japan, and other markets in Asia. CO2 heat pumps are preferred in Japan and Europe, since they offer various qualities such as low global warming and zero ozone depletion potential. CO2 refrigerants are usually used in air-source heat pumps, which have lower overall installation costs than ground source heat pumps, for domestic water heating applications
APEJ Heat Pumps Market to Remain Dominant throughout Forecast Period
In terms of volume, APEJ led the global heat pumps market in 2019. The heat pumps market in China is projected to offer the most lucrative opportunities for market participants over the forecast period.
However, the coronavirus pandemic (COVID-19) pandemic has adversely disturbed the global supply chain. China, the U.S., and some European countries are the leading revenue contributors to the heat pumps market. Alerted by the dramatic upsurge in COVID-19 confirmed cases, governments in these major regions have enacted nationwide lockdowns, causing uncertainty in economic order. Moreover, self-quarantine regulations have led to scarcity in staff and raw materials, thus, putting a strain on the heat pumps market.
Heat Pumps Market: Structure Analysis
- The global heat pumps market is highly competitive due to the presence of a large number of players. However, it has been moving towards consolidation with ongoing mergers and acquisition of prominent players.
- Panasonic Corporation, Mitsubishi Electric Corporation, Daikin Group, NIBE Group, and Danfoss are prominent and most experienced players in the global heat pumps market.
- Participants in the heat pumps market are aiming to enhance their product offerings and expand their geographical footprint through collaborations and partnerships with leading component suppliers and manufacturers.
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Report Metrics |
Details |
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Base Year |
2019 |
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Historical Period |
2015-2019 |
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Forecast Period |
2020-2030 |
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Market Value in 2019 |
US$ 32.3 Bn |
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Segments Covered |
Type, Power Source, End User, Refrigerant, System Type, and Region |
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Regions Covered |
North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, and the Middle East and Africa |
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Key Companies |
Viessmann Group, Danfoss Group Global, United Technologies Corporation, The Bosch Group, Panasonic Corporation, Mitsubishi Electric Corporation, Daikin Industries Ltd., and NIBE Group. |
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Growth Drivers |
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Air-air Heat Pumps Stay Atop
Introduced nearly three decades back, air-air heat pumps are the most adopted heat pumps, especially in Western Europe. Although air-water heat pumps are in their nascent stage of growth, they are following air-air heat pumps closely in terms of revenue share. In APEJ, air-air heat pumps will generate maximum revenue. Further, both these heat pump categories hold about 3/4 revenue share collectively. On the other hand, hybrid heat pumps are exhibiting immense potential owing to multifunctional capabilities. As they use renewable energy sources, they are poised to see rapid adoption in the near future. Further, this study reveals that, ground source heat pumps are witnessing the fastest adoption as they require low maintenance.
APEJ Maintains its Hegemony
Capturing around half of overall heat pumps market value, Asia Pacific excluding Japan (APEJ) continues to attract significant stakeholders’ investments. The Chinese heat pumps market is the most lucrative market, projected to value around US$ 21 Bn by 2030. Despite a moderate growth rate, market value in Japan is anticipated to surge 1.5X by 2030. Market players are also targeting North America, owing to overall climatic conditions in the developed region. The U.S. is shaping the revenue pool in this developed regional market.
Eco-Friendly Quotient and Subsidization - Key Drivers
Heat pumps are beneficial in curbing CO2 emissions, and they also rely on renewable energy sources, such as solar energy. CO2 refrigerant heat pumps are becoming commonplace in different regions, owing to zero ozone depletion and low global warming quotients. In addition, they are cost-efficient and easily recyclable. Furthermore, governments in developed countries are providing subsidies on heat pumps in order to reduce carbon footprint.Air-air heat pump remains sought-after
Increasing demand for air-water heat pump
Surging demand for electric pumps
Others (Gas-driven) witness steady traction
High adoption in residential sector
Increasing application in commercial sector
HFC observes huge traction
CO2 picks pace
How Growth will Unfold
HFC (hydrofluorocarbon) refrigerant heat pumps will maintain their hegemony, registering US$ 30 Bn over the decade ahead. These heat pumps are expected to generate over 3/5 of total revenue in Western Europe. However, CO2 refrigerant heat pumps are witnessing an upsurge in their adoption. Initially developed in Japan, CO2 refrigerant heat pumps are relatively inexpensive and eco-friendly. Further, Japan will show significant traction for CO2 refrigerant heat pumps.
* This data is only a representation. Actual data may vary and will be available in report.
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Overview
Future Market Insights published its recent report on the global heat pumps market, which comprises global industry analysis of 2015-2019 and opportunity assessment for 2020-2030. It includes a comprehensive assessment of the relevant and related market dynamics. After conducting a complete analysis on the historical as well as current growth prospective of the heat pumps market, growth predictions for the market are obtained with maximum accuracy.
Heat Pumps Market Taxonomy
The global heat pumps market is segmented into six segments in detail to cover every aspect of the market and present complete market intelligence to the readers.
Type
- Air-water Heat Pumps
- Air-air Heat Pumps
- Ground Source Heat Pumps
- Hybrid Heat Pumps
Power Source
- Electric
- Others (Gas Driven)
End User
- Residential
- Commercial
- Industrial
Refrigerants
- HFC
- CO2
- Ammonia
- Hydrocarbon
- Others
System Type
- Air-source Heat Pumps
- Ductless Mini-split Heat Pumps
- Geothermal Heat Pumps
- Absorption Heat Pumps
Region
- North America
- Latin America
- Western Europe
- Eastern Europe
- APEJ
- Japan
- MEA
What's Included
The report begins with the executive summary of the heat pumps market, which includes a summary of the key findings and statistics. It also includes the market value (~US$ million) estimates of prime segments of the heat pumps market.
Readers can find detailed taxonomy and definitions for the heat pumps market in this chapter, which will help them understand basic information about the heat pumps market. This section also highlights the inclusions and exclusions, which help readers understand the scope of the heat pumps market.
The report provides key market trends that are expected to impact the market growth significantly during the forecast period. Detailed industry trends are provided in this section, along with key market developments and product innovations.
This section includes key inclusions of the report. It includes the product adoption & usage analysis, opportunity analysis, and manufactures’ strategies for market expansion.
This section explains the global market volume analysis and forecast for the heat pumps market.
This section highlights the average prices of air-water heat pumps, air-air heat pumps, ground source heat pumps, and hybrid heat pumps. The pricing benchmark for manufacturer-level pricing and distributor-level pricing is analyzed in this section.
This section explains the global market value analysis and forecast for the heat pumps market during 2014-2029. This chapter includes detailed analysis of the historical heat pumps market, along with an opportunity analysis for the future. Readers can also find absolute $ opportunity for the current year (2019-2020) and incremental $ opportunity for the forecast period (2020-2030).
This chapter explains the key macroeconomic factors that are expected to influence the growth of the heat pumps market over the forecast period. This section highlights the opportunity analysis and key market dynamics of the heat pumps market such as drivers, restraints, trends, and opportunities. Moreover, readers will understand key trends followed by prominent manufacturers in the heat pumps market.
Based on product type, the heat pumps market is segmented into air-water, air-air, ground source, and hybrid heat pumps. In this chapter, readers can find information about the key trends and developments in the heat pumps market and market attractiveness analysis based on type.
This chapter provides details about the heat pumps market on the basis of power source - electric and others (gas driven). In this chapter, readers can also understand the market attractiveness analysis for these divisions.
This chapter provides details about the heat pumps market on the basis of where they are used - residential, commercial, and industrial. In this chapter, readers can understand the market attractiveness analysis based on end user.
This chapter provides details about the heat pumps market on the basis of the refrigerants used in pumps - HFC, CO2, ammonia, hydrocarbon, and others. In this chapter, readers can understand the market attractiveness analysis based on refrigerants.
This chapter provides details about the heat pumps market on the basis of the system type - air-source heat pumps, ductless mini-split heat pumps, geothermal heat pumps and absorption heat pumps. In this chapter, readers can understand the market attractiveness analysis based on system type.
This chapter explains how the heat pumps market will grow across several geographic regions such as North America, Latin America, Western Europe, Eastern Europe, APEJ, Japan, and the Middle East & Africa (MEA).
This chapter includes detailed analysis of the growth of the heat pumps market in North America, along with a country-wise assessment that includes the U.S. and Canada. Readers can also find regional trends, regulations, and market growth based on end users and countries in North America.
Readers can find detailed information about several factors such as pricing analysis and regional trends that are impacting of the growth of the heat pumps market in Latin America. This chapter also includes the growth prospects of the heat pumps market in prominent LATAM countries such as Brazil, Mexico, and the Rest of Latin America.
Important growth prospects of the heat pumps market based on its end users in several countries such as Germany, the U.K., France, Spain, Italy, and the Rest of Western Europe are included in this chapter.
Important growth prospects of the heat pumps market based on its end users in several countries such as Poland, Russia, and the Rest of Eastern Europe are included in this chapter.
China, India, Australia & New Zealand, and the Rest of Asia Pacific Excluding Japan are prominent countries in the Asia Pacific Excluding Japan region that are the prime subjects of assessment to obtain growth prospects of the heat pumps market. In this chapter, readers can find detailed information about the growth parameters of the heat pumps market in the Asia Pacific Excluding Japan region during the forecast period.
This chapter highlights the growth of the heat pumps market in Japan. This section also helps readers understand the key factors responsible for the growth of the heat pumps market in Japan.
This chapter provides information about the heat pumps market growth in major countries in the MEA region such as South Africa, Turkey, and the Rest of MEA during the forecast period.
In this chapter, readers can find detailed information about the tier analysis and market concentration of key players in the heat pumps market, along with their market presence analysis by region and product portfolio.
In this chapter, readers can find a comprehensive list of all the prominent stakeholders in the heat pumps market, along with detailed information about each company. This includes company overview, revenue shares, strategic overview, and recent company developments. Some of the key market players featured in the report are Viessmann Group, Danfoss Group Global, United Technologies Corporation, The Bosch Group, Panasonic Corporation, Mitsubishi Electric Corporation, Daikin Industries Ltd, and NIBE Group, among others.
This chapter includes a list of acronyms and assumptions that provide a base to the information and statistics included in the heat pumps market report.
This chapter helps readers understand the research methodology followed to obtain several conclusions as well as important qualitative and quantitative information about the heat pumps market.
How the research was conducted?
Primary Research
Primary research interviews with key opinion leaders and other participants were conducted for data collection and validation of the below information:
- Adoption of Heat pumps
- Average Selling Price (US$) and Market Growth
- Key Developments
- Key Trends and Opportunities
- Regional wise Dynamics
- Market Share Information
- Key Brands
- Competition & Key Vendor Strategies
Secondary Research
- Company Press Release
- Published Trade Data
- Quarterly Financial Statements, 10-K & 10-Q Filings, Factiva, Morning Star
- Annual Reports/SEC filings/Investor Presentations/Earning Call Transcript
- Industry Journals
- Press Information and Data Released by Exhibitions Conducted By Associations, etc.
- European Heat Pump Association (EHPA), Renewable Energy Department, and other heat pumps related associations and organizations
Primary Interview Splits
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