From the period of 2022 to 2028, the Global Heat Pump Market is expected to reach USD 89.8 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 9.3%.
A Heat Pump is a type of refrigeration system that uses a mechanical-compression cycle to heat or cool a space. As a result, it's commonly used in heating and cooling systems. A compressor in the outdoor unit circulates refrigerant, which absorbs and releases heat as it passes between the interior and exterior units. The fundamental difference between an air conditioner and a Heat Pump is that they both use similar principles to cool the intended room; however, heat pumps can also heat residential spaces, whilst air conditioners cannot. As people become more concerned about damaging GHG emissions, demand for sustainable and clean energy is likely to expand. Low running costs, high security, and low maintenance are all essential factors that influence overall market share. As a result of these reasons, product demand has increased, particularly in commercial and residential settings, giving lucrative market opportunities for global and domestic industry players.
Key Highlights from the Report
- Air-to-Air heat pumps, Air-to-Water heat pumps, Water Source heat pumps, Ground Source (Geothermal) heat pumps, and Hybrid heat pumps are the various types of heat pumps available. An air-to-air Heat Pump gathers heat from the outside air and delivers it directly inside the house using a fan system to heat a space. The use of air-to-air Heat Pump technology has been driven by policy development, improved construction regulations that make heat pumps in new buildings more competitive and growing air-conditioning demand.
- The Heat Pump Market is divided into four categories based on rated capacity: up to 10 kW, 10–20 kW, 20–30 kW, and over 30 kW. In 2021, the Heat Pump Market with a rated capacity of up to 10 kW held the biggest share. The key benefits, such as suitability for single-family residential houses, are likely to drive demand for heat pumps in the up to 10 kW segment during the projection period.
- Asia Pacific is the fastest regional segment in terms of growth. In the majority of Japanese households, heat pumps are utilised not just for room heating and cooling, but also for refrigerators. Heat pumps are currently found in water heaters, washing machines, and dryers, and their market share is quickly increasing due to their enormous potential for energy savings and CO2 emissions reduction. In China, one of the most important markets in Asia-Pacific and the world, heat pumps are in great demand in all three sectors: residential, commercial, and industrial.
Heat Pump technology's contribution to carbon reduction
Heat Pump technology has the potential to reduce greenhouse gas emissions. When utilized in heating, ventilation, and air conditioning (HVAC) systems, the Heat Pump is frequently recognized as a sustainable technology. Heat pumps use energy input, primarily electricity, to extract ambient heat from the air and ground at low temperatures and raise the temperature. The Heat Pump can extract up to 77 percent of the energy contained in the air. As a result, as compared to other heat transfer mediums, the usage of heat pumps can significantly reduce fossil fuel consumption, minimizing the carbon footprint. This aspect is driving market expansion by increasing the number of Heat Pump installations across all industries.
In Emerging Economies, there is a Lack of Knowledge of the Importance of Heat Pumps
The Heat Pump is a technically challenging piece of equipment. End users in emerging and undeveloped economies have a limited understanding of the energy efficiency, cost efficiency, and environmental benefits connected with heat pumps, as well as technical know-how. This aspect is likely to limit their penetration in emerging markets. However, governments of such regions are taking effective measures to bring awareness of heat pumps and utilize it on a major scale.