Stringent government norms towards reducing global carbon emissions are expected to augment the industrial heat pump market growth through 2028. Rising consumer awareness regarding sustainability would further outline the industry scenario over the coming years.
According to the American Council for Energy Efficient Economy (ACEEE), industrial heat pumps (IHPs) would pave the way for electrification and energy security. ACEEE suggests that IHPs are a potent solution that can cut U.S. industrial energy consumption, driven by process heat, down by up to one-third, which is equivalent to nearly 9 million cars' worth of emissions.
The overall industrial heat pump market is categorized based on product, capacity, temperature, application, and the regional landscape.
By product, the overall market is bifurcated into closed cycle absorption heat pumps, open cycle thermocompression heat pumps, open cycle mechanical vapor compression heat pumps, closed cycle mechanical heat pumps, water source heat pumps, air source heat pumps, and ground source heat pumps.
Among these, the water source heat pump (WSHP) sub-segment is likely to witness a significant rise in demand, propelled by the consistent refurbishment within industrial spaces.
Similarly, air source heat pumps (ASHPs) are also anticipated to experience large-scale adoption on account of lower maintenance and operational costs. According to the International Energy Agency, air-to-air type of heat pumps have grown widely popular, having exceeded shipments of more than 3.4 million units in the U.S. in 2020.
Owing to government backing and favorable regulatory framework empowering the adoption of renewable technologies, the demand for ground source heat pumps is expected to grow exponentially over the forecast period. As per the IEA, Europe plays a crucial role in driving the ground-source heat pumps sub-segment. Sweden leads the market in terms of installation rate per capital globally.
In terms of capacity, the global industrial heat pump market is divided into <500 kW, 500 kW - 2 MW, 2 MW - 5 MW, and >5 MW. Among these, the market size of industrial heat pumps with >5 MW capacity is estimated to grow at a rapid pace due to ongoing efforts of leading industry participants to deliver high-capacity products.
Based on temperature, the market provides a range of units starting with 800C-1000C, 1000C-1500C, 1500C-2000C, >2000C. Constant R&D initiatives for enhancing energy efficiency of large-scale industrial units is expected to amplify the deployment of heat pump technologies with extreme temperature capabilities, fueling growth of the > 200??C segment.
In terms of the regional landscape, Middle East & African industrial heat pump market is estimated to witness significant rise in product installation across the region, driven by robust macroeconomic indicators and increasing influx of foreign investments.
Meanwhile, the industrial heat pump market in Latin America is likely to witness a drastic surge in demand for space heating units and heat pumps as a result of burgeoning population and growing consumer spending on residential space heating.