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The industrial heat pumps market size is forecast to increase by USD 689.3 million at a CAGR of 5.58% between 2024 and 2028. The rising focus on improving energy efficiency by industries is leading to increased adoption of high-temperature heat pumps, which are more energy-efficient compared to traditional heating systems. The growing focus on high-temperature heat pumps is also driven by their ability to provide both heating and cooling solutions, making them versatile and suitable for various applications. Additionally, the emerging regulations and increasing government initiatives to reduce emissions are encouraging industries to adopt more sustainable heating and cooling solutions, further driving the demand for high-temperature heat pumps.
It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market is driven by the increasing demand for energy-efficient solutions in buildings and industrial processes to support decarbonization efforts. With growing policy support and initiatives like the REPowerEU initiative, there is a rising focus on transitioning from fossil fuels to renewable energy sources. Heat pump units are experiencing a surge in sales growth, driven by the need for energy security and the reduction of CO2 emissions. The market is also influenced by factors such as national electricity generation portfolios, energy performance, and policies aimed at promoting renewable energy targets and banning fossil fuels. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising focus on improving energy efficiency by industries is notably driving market growth. The escalating cost of energy and the environmental repercussions of high carbon emissions from fossil fuel-based energy sources has intensified industries' focus on adopting more sustainable practices. Industries such as pulp and paper, chemicals, and similar sectors are major energy consumers due to their use of energy-intensive equipment like pumps, blowers, and motors. This high energy consumption is influenced by factors such as electricity tariffs, energy pricing, taxes and levies, performance-based labels, building codes and standards, renewable energy targets, and the shift away from fossil fuels. Additionally, the use of air heat pumps and other renewable energy sources is becoming more prominent in these industries.
Furthermore, new regulatory standards are increasingly aimed at reducing high energy costs and carbon emissions in these applications, thus creating opportunities. The utilization of heat pumps in industries is also effective in reducing carbon emissions, assisting industries in meeting their energy efficiency goals. This contributes to decarbonization efforts and aligns with policies supporting net zero emissions. Additionally, it helps mitigate the impact of energy prices on industries. Besides lowering carbon emissions, heat pumps offer significant cost advantages to end-users. As energy costs rise and regulatory requirements for energy efficiency become stricter, the adoption of energy-efficient solutions in industries is expected to increase during the forecast period.
Emerging demand for advanced heat pumps is a major trend in the market. companies operating in the market upgrade these with additional features to improve performance. Innovations in compressor designs, such as two-speed compressors, enable them to perform extreme heating or cooling with high efficiency. This new compressor technology significantly reduces power consumption.
The integration of these with furnace systems to create dual-fuel heat pumps is an innovation. This helps them to choose the fuel source according to the specific condition. The high initial cost of this integrated system can reduce their adoption in the initial phase of their launch. Variable-speed or dual-speed motors can be installed on indoor fans (blowers), outdoor fans, or both. The use of this technology ensures streamlined movement of air, reduces energy wastage, and minimizes noise which is expected to increase its usage and hence propel the growth of the market during the forecast period.
The high initial cost and limitations are major challenges impeding the market growth. They are extensively used to heat and cool controlled spaces. Though they are energy-efficient and have a low environmental impact, their initial cost is higher than substitutes such as furnaces and boilers. While large business enterprises can afford to install expensive, small- and medium-sized businesses with a limited budget and low-profit margins are apprehensive of such heavy investments. With the increase in the cost of refrigerants, the overall operating cost rises, which deters companies from investing.
One of the major constraints is their low operating range. These pumps work efficiently in low temperatures. When the temperature increases or reduces significantly, these pumps do not work efficiently and require more energy. The combination of these with a furnace can overcome this challenge, but this hybrid system is more expensive than these, which can hinder the growth of the overall market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Carrier Global Corp. - The company's offering's including HVAC and refrigeration, among others, with a high focus on HVAC.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the paper and pulp segment will be significant during the forecast period. The manufacturing process of the paper and pulp industry is highly energy-intensive. Within this manufacturing process, the drying process consumes the largest proportion of energy during the production process.
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The paper and pulp segment was valued at USD 604.90 million in 2018. The pulp and paper industry, owing to its high energy consumption, is under tremendous pressure from various environmental bodies. Thus, owing to their ability to reduce the consumption of greenhouse gases, are deemed to be a viable solution for the paper and pulp industry. Several environmental regulations have been put in place for the paper and pulp industry to reduce energy consumption and limit the volumes of greenhouse gases arising from paper and pulp manufacturing. The regulatory bodies ensure limited emissions and high energy efficiency in paper and pulp manufacturing facilities. The high competition in the paper and pulp industry and the need for sustainable solutions to reduce the environmental footprints in the paper and pulp industry are likely to create opportunities for companies in the future. Therefore, the demand in the paper and pulp industry will rise at a high pace during the forecast period.
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Europe is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Europe has been the largest contributor of revenue to the global market over the past few years, which is a trend that is expected to continue during the forecast period. Several countries in the region are actively adopting advanced heating technologies to reduce greenhouse gas (GHG) and carbon emissions from these processes. Most countries in Europe have self-initiated mandates to meet their sustainable climate goals. Several regulations, especially related to industries, have been enforced to reduce carbon emissions and achieve energy efficiency. The need to adhere to such emission-related regulations will increase the demand in Europe.
Among industries, chemical and automotive will be the major contributors of revenue to the market in Europe. The growth of the automotive industry in Europe will be driven by the rising demand for electric and hybrid vehicles. Several automobile manufacturers have planned to launch new electric vehicle (EV) models and invest in EV and battery manufacturing facilities during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
.The market is experiencing a surge in demand driven by the need for decarbonization and the shift towards more sustainable energy sources. With the fossil fuels ban gaining traction, industries are turning to alternatives like heat pump systems to reduce their carbon footprint. The market is witnessing increased adoption across the industrial, commercial, and residential sectors due to their power efficiency and easy installation. Additionally, factors such as automatic operation, electric shock resistance, and the ability to provide hot water further enhance their appeal. As governments implement supportive policies, the market is expected to continue its growth trajectory.
The market is witnessing substantial growth driven by factors such as the European Union's focus on decarbonization and the rising demand for carbon-neutral solutions. With increasing space cooling demand and the need for efficient power generation, heat pumps are gaining popularity as an alternative to traditional natural gas-fired condensing boilers. The market is also influenced by recent events like the Russian invasion of Ukraine, leading to considerations such as the Defense Production Act and the use of financial instruments. As industries seek low-temperature heat sources to reduce fuel costs and enhance business prospects, the market is poised for further expansion. The industrial sector and commercial sector are key drivers, with global sales expected to rise, especially in regions experiencing rapid industrialization. Government policies play a crucial role in shaping market trends, influencing factors such as set-up costs, safety awareness, quality, and capacity of heat pump systems, whether in closed-loop or open-cycle configurations.
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Market Scope |
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Report Coverage |
Details |
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Page number |
195 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.58% |
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Market Growth 2024-2028 |
USD 689.3 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.21 |
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Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 33% |
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Key countries |
US, Japan, China, Germany, and Italy |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Bard HVAC, Carrier Global Corp., Daikin Industries Ltd., Danfoss AS, Emerson Electric Co., Johnson Controls International Plc., Lennox International Inc., LG Electronics Inc., MAYEKAWA MFG. CO. LTD., Meier Tobler AG, Mitsubishi Electric Corp., NIBE Industrier AB, OCHSNER Warmepumpen GmbH, Oilon Group Oy, Rheem Manufacturing Co., Robert Bosch GmbH, Robur Spa, Sirac Air Conditioning Equipments Co. Ltd., Systemair AB, and Toshiba Corp. |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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