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2023

Industrial Heat Pump Market

Industrial Heat Pump Market Size, Share, Competitive Landscape and Trend Analysis Report, by System, by Source, by Capacity, by End-use Industry : Global Opportunity Analysis and Industry Forecast, 2021-2031

EP : Equipment and Devices

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Author's: Mohd Arbaz| Radhika Gupta | Eswara Prasad
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Industrial Heat Pump Market Research, 2031

The global industrial heat pump market was valued at $8.8 billion in 2021, and is projected to reach $17.7 billion by 2031, growing at a CAGR of 7.7% from 2022 to 2031.

Industrial heat pumps are the large-scale systems used to extract heat from a number of sources, primarily industrial wastewater, seawater, and rivers. Several end use industries including lumber drying, pulp & paper manufacturing, petroleum refining, food & beverages, chemical, utilities, and district heating use heat pumps to distribute heat and to cool applications. Henceforth, industrial heat pumps play a significant role in industrial sector by transforming renewable electricity generation into heat and cold, which can be stored.

Industrial Heat Pump Market

The current trend across the globe toward the decarbonization journey has just started, which is still largely dependent on fossil fuels. At many places, fossil fuels are used for heating purposes, and to decrease this dependency, heat pumps are effectively employed by using a variety of sources, including ambient air, geothermal energy, wastewater, lakes, rivers, and oceans to generate heat. Another choice is to power the heat pumps with renewable energy, which totally offsets the carbon footprint of the heat supply.

According to the U.S. department of energy, water heating accounts for about 14% of an average annual energy consumption. To reduce this consumption due to water heating, industrial heat pumps are increasingly used owing to their energy and cost saving trait. Sources used for generating the heat in heat pumps include air, ground, and waters. Industrial heat pumps are used in applications where instantaneous heating or cooling is required.

The industrial heat pumps market is driven by rise in demand for heating with better performance and energy efficiency for its use in various end user applications such as drying, space heating, wash water heating, chromating, concentrating of dilute dope stream, electroplating, distillation, and other applications. In addition, rise in replacement of traditional water heaters with advanced heat pumps, which can perform both heating and cooling simultaneously, is expected to drive the global industrial heat pumps market growth during the forecast period.

In addition, surge in purchase of air conditioner in China and North America region is anticipated to fuel the market growth during the forecast period. China had the highest demand for air conditioners across the globe in fiscal year 2021. In the same year, surge in demand for air conditioning in North America and the other Asian nations excluding China and Japan exceeded to 16 million units in 2021. Moreover, rise in awareness toward energy-efficient heating systems to reduce environmental pollution and along with increase in dominance of industrial heat pumps is projected to propel the growth of the market in the coming years.

Growth in industrial energy-related technologies & systems and rising initiatives from developing & developed economies in order to reduce emissions of greenhouse gases by increasing employment of industrial heat pumps in major end use industries propel the demand for heating systems, which, in turn, are anticipated to drive the growth of the industrial heat pumps market in the coming years.

However, long payback period and low awareness of heat consumption in companies is anticipated to hamper the growth of the industrial heat pumps market during the forecast period. Several manufacturers have lessened awareness about the heating and cooling demands (heat consumption) requires for manufacturing process of chemicals, food, textiles, and others. Moreover, availability of alternative for heating applications includes   central gas fired boilers, geothermal heat pump, combined heat power, and others application are expected to hamper the growth of the market during the analyzed timeframe. On the contrary, rise in R&D for high temperature industrial heat pumps in water and space heating applications is anticipated to create opportunity for key players that operate in the Industrial heat pumps market during the forecast period.

The Industrial heat pumps market is segmented on the basis of system, source, capacity, end use industries, and region. Depending on system, the market is bifurcated into closed loop and open cycle. By source, it is divided into air, water, and ground. On the basis of capacity, it is fragmented into less than 500 kW, 500 kW to 2 MW, 2 MW - 5 MW, and more than 5 MW. By end use industries, it is categorized into lumber drying, pulp & paper manufacturing, petroleum refining, food & beverages, chemical, utilities, district heating, and others.

Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The industrial heat pump market is analyzed in accordance with the impacts of the drivers, restraints, and opportunities. The period studied in this report is 2022–2031. The report includes the study of the industrial heat pump market with respect to the growth prospects and restraints based on the regional analysis.

The study includes Porter’s five forces analysis of the industrial heat pump industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth. On the basis of system, the closed loop segment dominated the market in 2021, owing to increase in use of closed loop systems from various applications, including food & beverages, chemical, lumber drying, district heating, and others.

The market analysis covers in-depth information of the major Industrial heat pumps industry participants. The key players that operate in the market are profiled in the report, which include Daikin Industries Ltd, Johnson Controls, Inc., Danfoss A/S, NIBE Industrier AB, Robert Bosch, STIEBEL ELTRON GmbH and Co. KG, Carrier Global Corporation, Ingersoll-Rand Inc., Emerson Electric Co., and Mitsubishi Electric Corporation.

Industrial Heat Pump Market by Source

Air is the dominating segment and is estimated to maintain its dominance during the forecast period.Growing paper and pulp industry with widening utilities sector due to advancement in technology is expected to drive the growth of the air source heat pumps market during the forecast period. In addition, advantages associated with air source heat pump, including cost effectiveness, efficiency, safety, and high temperature are expected to fuel the growth of the market during the forecast period.

Industrial Heat Pump Market by End-use Industry

Food and Beverages witnessed highest market share during the forecast period. This growth is due to increases the demand for food and beverages products such as beer, milk, chocolate, and other products, which in turn is projected to fuel the demand for heat pumps. Also, demand is rising for industrial heat pumps systems from dairy industry, beverage industry for drying, heating, and cooling system for slaughterhouse, chocolate manufacturing, concentration of beer, and other liquid products across the globe.In addition, rise in demand for hardwood and softwood drying from sawmill facilities is anticipated to drive the growth of the market in the coming years.

Industrial Heat Pump Market by System

Closed cycle is the largest growing segment owing to its widening application in the field of electric motors, combustion engines, steam turbines, and combustion turbines, and others. Open cycle is the second largest segment owing to its widening application in the field of electric motors, combustion engines, steam turbines, and combustion turbines, and others.

Industrial Heat Pump Market by Capacity

Less Than 500 kW accounts for maximum market share and is projected to be the fastest growing segment during the forecast period due to rise in demand for industrial heat pumps for heating and cooling in industrial. Moreover, Industrial heat pumps with a capacity of 500 KW to 2 MV, helps in increasing the temperature of a waste heat source up to the temperature where waste heat converts into useful heat source. The gradual increase in usage of energy in each country of the Europe and North American region for production of chemicals, and other application including printing, drying of food, and others has led to an increase in the utilization of industrial heat pumps in industrial sector. These factors are expected to boost the growth of the market during the forecast period.

Industrial Heat Pump Market by Region

Asia-Pacific is the dominating region and maintain its dominance during the forecast period. Rise in demand for heating water and space heating application from industrial users, is expected to drive the growth of the Industrial heat pumps market in the Asia-Pacific region.

In addition, rise in demand for heat pumps in food and beverages industry in the manufacturing process of chocolate is anticipated to fuel the growth of the global industrial heat pumps market in the future. In the same line, chilling capacity is needed for some phases in the production of chocolate. Due to the concurrent needs for cooling and heating capacity, the heating and cooling system was replaced by a combined cooling and heating installation which further fuel the product demand.

Asia-Pacific garnered the highest industrial heat pumps market share in 2021, in terms of revenue, and is anticipated to maintain its dominance during the forecast period. This is attributed to growing industrialization in the China, U.S., Germany, India, Australia, and other regions. Moreover, rise in investment toward decarbonizing policies is anticipated to fuel the growth of the industrial heat pumps market in the region during the forecast period. In the last 10 years, rapid development of building infrastructure in developing economies, such as India, China, and Japan, is anticipated to boost the demand for Industrial heat pumps, thereby driving the market growth in the coming years.

Furthermore, rise in awareness and government regulations toward minimizing carbon emissions in the Asia-Pacific region is expected to drive the growth of the Industrial heat pumps market during the analyzed time frame. Furthermore, economies, such as China, India, Japan, South Korea, and Australia, are taking efforts to minimize the greenhouse gas emissions, increasing investment toward green buildings, and adopting heating products such as Industrial heat pumps, which are anticipated to fuel the growth of the Asia-Pacific Industrial heat pumps market in the coming years.

Lockdown imposed owing to outbreak of COVID-19 pandemic resulted in temporary ban on import & export and manufacturing & processing activities across various industries, which decreased the demand for heat pumps from end users. In addition, halt in manufacturing process and trade activities owing to unavailability of workers and increase in demand–supply gap hampered the industrial heat pumps market growth during the pandemic period. This declined the market growth in the second, third, and fourth quarters of 2020. However, the industrial heat pumps market recovered by the second quarter of 2021, as COVID-19 vaccination begun in various economies across the globe, which improved the global economy.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the industrial heat pump market analysis from 2021 to 2031 to identify the prevailing industrial heat pump market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the industrial heat pump market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global industrial heat pump market trends, key players, market segments, application areas, and market growth strategies.

Industrial Heat Pump Market Report Highlights

Aspects Details
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Market Size By 2031

USD 17.7 billion

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Growth Rate

CAGR of 7.7%

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Forecast period

2021 - 2031

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Report Pages

314

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By Source
  • Air
  • Water
  • Ground
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By End-use Industry
  • Lumber Drying
  • Pulp and Paper Manufacturing
  • Petroleum Refining
  • Food and Beverages
  • Chemical
  • Utilities
  • District Heating
  • Others
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By System
  • Closed Loop
  • Open Cycle
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By Capacity
  • Less Than 500 kW
  • 500 kW to 2 MW
  • 2 MW - 5 MW
  • More Than 5 MW
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, France, Italy, Spain, UK, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa,, Saudi Arabia, Rest of LAMEA)
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Key Market Players

Robert Bosch, Emerson Electric Co., STIEBEL ELTRON GmbH and Co. KG, Johnson Controls, Inc., Carrier Global Corporation, Danfoss A/S, Mitsubishi Electric Corporation, NIBE Industrier AB, Daikin Industries Ltd., Ingersoll-Rand Inc.

Analyst Review

According to the insights of CXOs of leading companies, demand for Industrial heat pumps is fueled by growth of end use industries, surge in use of heating & cooling systems in the food & beverage industries, replacement of old units, rapid growth of water heater sector, and mainstream adoption of high temperature heat pumps in the market.

Rise in demand for industrial heat pumps from industrial applications such as lumber drying, pulp & paper manufacturing, petroleum refining, food & beverages, chemical, utilities, district heating, and others is driving the growth of the market, globally. However, Long payback period of industrial heat pumps and low awareness of heat consumption in companies are expected to be major restraining factors for the global Industrial heat pumps market growth. On the contrary, R&D activities for high temperature Industrial heat pumps products are growing, which are anticipated to create opportunities in the global Industrial heat pumps market during the forecast period.

Among the analyzed regions, Europe is expected to account for the highest revenue in the market during the forecast period, followed by Asia-Pacific, North America, and LAMEA. Asia-Pacific accounted for 35.2% of the total global Industrial heat pumps market share in 2021 and is expected to maintain its dominance during the forecast period.

Author Name(s) : Mohd Arbaz| Radhika Gupta | Eswara Prasad
Frequently Asked Questions?

Rise in R&D towards the development of high temperature heat pumps to delivers heat to industrial process without creating the carbon emission is the ongoing trend for Industrial Heat Pump Market across the globe.

lumber drying, pulp & paper manufacturing, petroleum refining, food & beverages, chemical, utilities, and district heating are major application of Industrial Heat Pump Market

Asia-Pacific is the largest regional market for Industrial Heat Pump.

The global Industrial heat pumps market is projected to reach $17.7 billion by 2031, growing at a CAGR of 7.7% from 2022 to 2031

Daikin Industries Ltd, Johnson Controls, Inc., Danfoss A/S, NIBE Industrier AB, Robert Bosch, STIEBEL ELTRON GmbH and Co. KG, Carrier Global Corporation, Ingersoll-Rand Inc., Emerson Electric Co., and Mitsubishi Electric Corporation

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Industrial Heat Pump Market

Global Opportunity Analysis and Industry Forecast, 2021-2031