Heat Pump Market Set for Promising Progress over Next Decade
The global heat pump market has been growing at a healthy pace. However, the global sustainability drive has been encouraging demand for sustainable heating and cooling systems over the recent past, which further translates into heightening sales of heat pumps at a global level. Future Market Insights (FMI) covers global heat pump market in this newly published report that projects the market to surpass the revenues worth US$ 16 Bn by the end of 2029. Leading market players are focusing on cost competitiveness to tap white spaces in developing economies such as India, Brazil, Poland, and South Africa.
Key Growth Influencers - Heat Pump Market
Increasing Sales of Eco-Friendly and Advanced Devices
Growing demand for eco-friendly and technologically-advanced devices in heating and cooling applications is expected to spur demand for heat pump. This demand is directly proportional to the global heat pump demand, as heat pump are very useful in reducing CO2 emissions. Heat pump can reduce electricity consumption for cooling and heating applications by approximately 50% as compared to electric resistance heating. These pumps use only ¼ electrical and ¾ environmental energy compared to the conventional heat pump.
Low Operation and Maintenance Costs Encouraging Adoption
75% of energy that is used by heat pump is renewable energy, which, in turn, reduces operational costs. These pumps also require very minimal, if any maintenance, which make them a preferred choice for most applications. Additionally, heat pump has an average lifespan of Pl15–20 years. Ground source heat pump require less maintenance than other heat pump types as they are installed underground and protected from environmental conditions. These beneficial parameters are projected to augment the demand for heat pump over the forecast period.
High Installation Costs to Hamper Market Growth
The lack of awareness of the heat pump among the consumers are major factors restraining the growth of the heat pump market. The total purchasing cost encompasses cost of heat pump, installation cost, cost of ground work for ground source heat pump and cost of ancillary items (buffer tank, manifolds, hot water cylinder).
Western Europe and APEJ to Hold Collective Market Share of over 50%
Air-water heat pump and hybrid heat pump segments have high potential for growth in Asia Pacific excluding Japan (APEJ), Eastern Europe, and Latin American markets. China would remain a highly lucrative market for heat pump manufacturers due to increasing construction activities, which directly impact the demand for heat pump in the region. The demand for eco-friendly heating and cooling systems in various regions such as APEJ and Western Europe is expected to increase at a significant rate in the near future, which will result in the growth of the heat pump market.
Heat Pump Market Structure Analysis
- The global heat pump market is considered to be a highly competitive market due to the presence of numerous local as well as international players. Tier-1 players hold ~50-60% of the shares in the heat pump market.
- Most of the key players are aiming to enhance their global presence and extend their product portfolio through collaborations, partnerships, and acquisitions.
- Substantial investments in research and development activities by companies are expected to enhance the heat pump market growth prospects.
- Key participants in the heat pump market such as Danfoss Group Global, United Technologies Corporation, Panasonic Corporation, Mitsubishi Electric Corporation, Daikin Industries Ltd, and NIBE Group,
- Furthermore, various manufacturers are also focusing on new product development to enhance their product portfolios.
FREQUENTLY ASKED QUESTIONS ABOUT Heat Pumps Market
How is the heat pumps market expected to grow during the forecast period?
In recent years, growth of gas-driven heat pumps is a major trend witnessed in Western Europe, North America, and Japan. Latest advancements include hybrid heat pumps with gas boilers, gas heat pumps, inverter-driven compressors, and smart heat pumps. The revolution in heating and cooling solutions, in terms of IoT-enabled heat pumps for energy efficiency and performance monitoring, will increase the adoption of heat pumps.
Which application area holds potential growth opportunities for market players?
Demand for heat pumps is gaining traction in India and China for commercial applications (shopping malls, hotels, theaters) and industrial applications (production plants). Key suppliers of heat pumps are focusing on product differentiation through innovation in terms of integration of new technologies, new application areas, and improving efficiency will drive the adoption of heat pumps.
What is the degree of competition in the heat pumps market?
The heat pumps market shows a perfect competition structure, with a large number of multi-national, regional, and local market players. Manufacturers from countries such as the U.S, Germany, Japan, and Italy are targeting new manufacturing facilities in ASEAN countries to enhance their market presence.
Which region will lead the global sales of heat pumps?
Asia Pacific Excluding Japan (APEJ) remains in the frontline of the heat pumps market. Adoption of heat pumps for residential and commercial applications in Latin America, APEJ, and Eastern Europe will drive the global heat pumps market growth. In the forecast period, it is expected that India, Brazil, China will pose significant growth momentum in the global heat pumps market.
Hybrid Heat Pumps Will Weigh Heavy on Traditional Choices
Introduced nearly three decades ago, air-air heat pumps remain most sought-after heat pumps, especially in Western Europe. Although the market for air-water heat pumps is still in their nascent stage, they are closely following air-air heat pumps in terms of revenue share. While these pump types collectively account for 3/4th share in market value, the latter will generate maximum revenues in Asia Pacific excluding Japan (APEJ). On the other hand, hybrid heat pumps are positioning themselves as high-potential pump choice on the back of their multifunctional capabilities and high sustainability quotient.
Western Europe Leading the Way, APEJ Firms Up
Western Europe is expected to account for a noteworthy share in the global heat pump market value. Italy and the U.K. are displaying significant adoption, underpinning Europe’s preeminence in the global market. Further, the overall climatic condition in Western Europe continues to drive the usage of air-source heat pumps. The study reveals that APEJ is gradually outpacing its competition, whereas China will represent the most lucrative heat pump market by 2029 end, reaching the US$ 5 Bn mark. Despite a moderate growth outlook, Japan will witness twofold growth in revenues over the forecast period.
* This data is only a representation. Actual data may vary and will be available in report.
Eco-Friendly Quotient and Subsidization - Key Drivers
Heat pumps are beneficial in curbing CO2 emission, as well as they rely on renewable energy sources such as solar energy. With increasing ubiquity of CO2 refrigerant heat pumps in different regions owing to zero ozone depletion and low global warming quotient, they will also continue to record notable sales with their cost efficiency and recyclability. As governments of developed countries are providing subsidies on heat pumps to regulate the environmental impact, the sales will see considerable expansion in the near future.
Air-air heat pump remains sought-after
Increasing demand for air-water heat pump
Surging demand for electric pumps
High adoption in residential sector
Increasing application in commercial sector
HFC observes momentous traction
CO2 picks pace
How Growth will Unfold
Hydrofluorocarbon (HFC) refrigerant heat pumps will maintain their hegemony over the next decade, reaching the mark of US$ 10 Bn, and the sales will be prominent in Western European market. However, there are strong possibilities of CO2 refrigerant heat pumps growing at a higher CAGR, as they are relatively inexpensive and eco-friendly. Initially developed in Japan, these heat pumps will continue to gather substantial traction in Japanese market.
* This data is only a representation. Actual data may vary and will be available in report.Click Here To Know How The Growth Will Unfold
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Heat Pumps Market Analysis 2019 - 2029
Future Market Insights published its recent report on the global heat pumps market, which comprises of the global industry analysis for 2014 - 2018 & opportunity assessment for 2019 - 2029. It includes a comprehensive assessment of relevant and related market dynamics. After conducting a complete analysis on the historical as well as current growth prospective of the heat pumps market, the growth predictions for the market are obtained with maximum accuracy.
With the ever-evolving technology in the HVAC sector and its end user industries, the modern market dynamics of the heat pumps landscape are reflecting different growth opportunities for market players. The importance of HVAC technologies in domestic as well as commercial industrial areas has begun to heighten the need for sustainability. Thereby, leading players in the market are introducing heat pumps that incorporate renewable energy and reduce greenhouse emissions to sync with the rising environmental concerns. In addition, end users in the automotive and construction industry are also showing an inclination towards environment-friendly heating equipment. In the coming years, the demand for sustainable and energy-efficient heat pumps will witness incremental demand in electric vehicles as well as green buildings.
Heat Pumps Market Taxonomy
The global heat pumps market is segmented into five segments in detail to cover every aspect of the market and present complete market intelligence to the reader.
- Air-water Heat Pumps
- Air-air Heat Pumps
- Ground Source Heat Pumps
- Hybrid Heat Pumps
- Others (Gas Driven)
- North America
- Latin America
- Western Europe
- Eastern Europe
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 (2019-2029).
his 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 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 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
- 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
Heat Pumps Market Reports - Table of Contents
1. Executive Summary
18. Assumption and Acronyms Used
19. Research Methodology