According to a recently published report, the worldwide sales of heat pumps reached 11 million units in 2018, which are estimated to record a Y-o-Y growth of ~10% in 2019. Gains in the heat pump market are prominently underpinned by the continued consumer quest for ecological alternative to conventional heating systems. The report also suggests that the thriving trend of decarbonizing buildings, aiming the zero-carbon future, will continue to significantly contribute to the robust increase in market revenues.
A wave of energy efficiency and sustainable heating technologies hitting the residential as well as commercial and industrial sectors has led to a notable rise in the adoption of heat pumps. Considering the rapid switch to renewable heating systems, heat pump manufacturers are focusing on the incorporation of the latest technologies in their high-efficiency low-cost offerings. The report opines that heat pump manufacturers are also investing efforts in product innovations in terms of customization, with an objective to cater to the demands created by region-specific climatic conditions.
As energy-efficient products continue to play an important role in reducing greenhouse gas (GHG) emissions and regulate the amount of electricity consumed by the residential and commercial sectors, it is highly likely that heat pump sales will remain highly influenced by their sustainability quotient. Additionally, the brisk expansion of the construction industry, coupled with the growing frequency of innovations in HVAC systems, will remain a major booster to the growth of heat pump market.
Air Source Heat Pumps Remain Preferred
According to the study, the overall performance of heat pumps has been experiencing notable improvement, which is expected to enable them to take over those markets that are currently controlled by gas boilers. In comparison with water-source and ground-source heat pumps, the air source variants will continue to account for higher market shares. With ~70% revenue share recorded in 2018, manufacturers’ spending on air source heat pumps is likely to see an uptick in the near future.
Suitable for a broad range of applications and characterized by low capital and installation costs, air source heat pumps have been witnessing strong growth in demand. However, sensing the operational limitations of air-source heat pumps in colder regions, manufacturers are concentrating in including the ‘dual-source’ offerings in their portfolios. Further, new heat pumps developed with variable or dual speed features to maximize the efficiency and electrical savings are likely to provide an added advantage to manufacturers, thereby offering them a competitive edge.
As per the study, residential sector contributes substantially, to the growth of heat pump market, accounting for ~60% shares. Increasing government spending on infrastructural activities along with incentives to adopt renewable systems, especially in developing regions, remain the key aspects for market consolidation in residential sector.
It is also pertinent to note that various high-end products with technically advanced features are being manufactured for critical applications in commercial sector. Continuous efforts in exploring possibilities of heat pump installations in the futuristic commercial developments, coupled with government funding for projects, including the U.K.’s non-domestic RHI (Renewable Heat Incentive) for commercial properties, will create lucrative opportunities for the manufacturers.
The study finds that East Asia continues to create a pool of opportunities in the heat pump market, on the back of rapid urbanization and industrialization. Increasing preference for green technology among consumers, complementing the governments’ awareness initiatives, will remain a vital growth influencer associated with the heat pump market in the East Asian region.
This study offers a long-term perspective and growth analysis of the global heat pump market for the period between 2019 and 2029. According to the study, the heat pump is estimated to record a volume CAGR of ~12% during the forecast period.
These insights are based on a report on Heat Pump Market by Fact.MR