Heating Up the Market: The Rapid Expansion in Heat Pump Manufacturing

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Researched by Industrial Info Resources (Sugar Land, Texas)--Amid the ongoing global energy crisis, heat pumps are becoming increasingly popular as one of the energy-efficient technologies that is used in heating, ventilation and air conditioning (HVAC) systems.

Offices, homes, schools and factories, buildings all over the world are still majorly dependent on fossil fuels for space heating, especially on natural gas, which contributes to a significant amount of carbon emissions in the atmosphere. According to a report by International Energy Agency (IEA), heating in buildings contributes about 4 gigatonnes (Gt) of CO2 emissions every year, accounting for roughly 10% of global emissions.

Heat pumps can play a significant role in reducing the global carbon footprint. They serve the dual purpose of heating as well as cooling a space. Unlike furnaces that use fossil fuels, heat pumps transfer heat from one place to another by using refrigerant and electricity, and therefore, they are more environmentally friendly. They are capable of providing heat in cooler months by pulling heat from the cold outdoor air and transferring it indoors, and in warmer months, they pull heat out of indoor air to cool your home.

A study by IEEE Spectrum1 indicates that heat pumps could cut down the carbon emissions of buildings by half compared to conventional heating systems.

Industrial Info is tracking 24 active projects of heat pump production worth US$1.87 billion globally. Europe accounts for the largest share, contributing around US$1.65 billion worth of spending, followed by Asia and North America with spending worth US$192 million and US$26 million, respectively.

By country, Poland (US$636.7 million), Germany (US$480 million), Slovakia (US$272 million) and Czech Republic (US$219 million) are the leading investors in heat pump technology. China comes next with spending worth US$192 million, followed by the U.S. with investment worth US$26 million.

Owing to the Ukraine-Russia conflict and the EU's "Fit to 55" plan to reduce its carbon footprint by 55% by 2030, Europe is witnessing unprecedented growth of the heat pump market. According to the European Heat Pump Association, heat pump sales in Europe rose from 34% in 2021 to 38% in 2022.

The investment by the U.S. in the heat pump market currently stands at US$64 million across three active projects. Major players include Johnson Controls International PLC (Glendale, Wisconsin), which is planning to upgrade its industrial heat pump and chiller manufacturing facility next year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the full report.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).