The global industrial heat pump market was valued at $9.5 billion in 2023, and is estimated to reach $19.3 billion by 2033, growing at a CAGR of 7.4% from 2024 to 2033.
Well inspection services involve a comprehensive evaluation of oil and gas wells to ensure their integrity, safety, and efficiency. These services typically include visual inspections, non-destructive testing, pressure testing, and other diagnostic methods to detect potential issues such as corrosion, leaks, structural weaknesses, and other anomalies. Well inspection services are crucial for maintaining operational safety, preventing environmental contamination, and ensuring compliance with regulatory standards. These services help operators to identify and address problems early, thereby reducing downtime and operational costs while extending the life of the well.
The rise in the adoption of heat recovery systems is significantly driving the demand for industrial heat pumps, as industries seek to maximize energy efficiency and reduce operational costs. Heat recovery systems capture waste heat generated from industrial processes, which would otherwise be lost to the environment. By integrating industrial heat pumps, this recovered heat transferred to other processes where thermal energy is required such as space heating, drying, or process heating. All these factors are expected to drive the demand for the industrial heat pump market during the forecast period.
However, the complexity of integrating industrial heat pumps into existing systems contributes to the high initial costs. Many industrial processes require customized solutions to ensure that the heat pump functions effectively within the specific operational environment. This need for tailored designs, along with the specialized engineering and maintenance expertise required that drives up the overall investment.
In addition, in some cases, industries need to retrofit or upgrade their existing infrastructure to accommodate the new system, adding to the cost burden. These factors collectively slow down the pace at which industries adopt industrial heat pumps, particularly in markets where economic conditions or budget priorities make such large-scale investments challenging. All these factors hamper industrial heat pump market growth.
Technological innovations and ongoing product development create significant opportunities for the growth of the industrial heat pump market. As industries increasingly seek energy-efficient and sustainable solutions, advancements in heat pump technology have allowed for the development of more efficient, versatile, and cost-effective systems. Innovations such as improved refrigerants, higher operating temperature ranges, and enhanced system designs are enabling industrial heat pumps to perform effectively across a wider array of industrial applications, including sectors such as food processing, chemical manufacturing, and pulp and paper. All these factors are anticipated to offer new growth opportunities for the industrial heat pump market during the forecast period.
The industrial heat pump market is segmented into system type, source, capacity, end use, and region. On the basis of system type, market is divided into closed loop and open cycle. On the basis of source, the market is segmented into air, water, and ground. On the basis of capacity, the market is classified into less Than 500 kW, 500 kW to 2 MW, 2 MW - 5 MW, and more than 5 MW. On the basis of end use, the market is classified into Lumber drying, pulp and paper manufacturing, petroleum refining, food and beverages, chemical, utilities, district heating, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of system type, market is divided into closed loop and open cycle. The closed loop segment accounted for 68.4% of the industrial heat pump market share in 2023 and is expected to maintain its dominance during the forecast period. In a closed-loop industrial heat pump system consists of three main components such as evaporator, compressor, and condenser. The heat transfer fluid, often a refrigerant or water/glycol mixture, is circulated through these components.
In the evaporator, the fluid absorbs heat from the surroundings, which causes it to evaporate. The compressor then compresses the vapor, increasing its pressure and temperature. This high-pressure, high-temperature vapor is directed to the condenser, where it releases its heat to the targeted process or space. As the fluid cools, it condenses back into a liquid, ready to return to the evaporator and repeat the cycle.
On the basis of source, the market is segmented into air, water, and ground. The air segment accounted for less than three-fifths of the industrial heat pump market share in 2023 and is expected to maintain its dominance during the forecast period. Industrial air source heat pumps (ASHP) are designed to extract heat from the ambient air and transfer it to a different medium, typically for heating or cooling purposes in industrial settings. These systems operate by using refrigerant to absorb heat from the outside air, even in colder temperatures, and then compressing the refrigerant to increase its temperature. The heat is subsequently transferred to the target medium such as water or air, which is then used for various industrial applications.
On the basis of capacity, the market is classified into less than 500 kW, 500 kW to 2 MW, 2 MW - 5 MW, and more than 5 MW. The less than 500 kW segment accounted for more than half of the industrial heat pump market share in 2023 and is expected to maintain its dominance during the forecast period. Industrial heat pumps with a capacity of less than 500 kW are essential components in various sectors such as manufacturing, food processing, and chemical industries. These systems are designed to provide efficient heating and cooling solutions, making them valuable for applications that require temperature control but on a smaller scale compared to larger industrial heat pumps.
On the basis of end use, the market is classified into Lumber drying, pulp and paper manufacturing, petroleum refining, food and beverages, chemical, utilities, district heating, and others. The food and beverages segment accounted for less than two-fifths of the industrial heat pump market share in 2023 and is expected to maintain its dominance during the forecast period.
Industrial heat pumps are gaining traction in the food and beverage industry due to their energy-efficient heating and cooling capabilities, crucial for processes such as pasteurization, sterilization, drying, and refrigeration. These pumps transfer heat from low-temperature sources such as air, water, or process waste streams to higher temperature levels, which then be reused within the production process. This allows food and beverage manufacturers to reduce reliance on fossil fuels, thereby cutting down on energy consumption and carbon emissions.
Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region accounted for more than one-thirds of the industrial heat pump market share in 2023 and is expected to maintain its dominance during the forecast period. As energy prices continue to fluctuate, industries in the Asia-Pacific region are increasingly seeking cost-effective solutions to manage their energy expenditures. Industrial heat pumps offer a way to improve energy efficiency by recovering and upgrading waste heat or utilizing low-grade heat sources. This capability helps reduce dependence on expensive fossil fuels and lowers operational costs that makes heat pumps a preferable option for businesses aiming to mitigate the impact of rising energy prices.
Key players in the industrial heat pump market include STIEBEL ELTRON GmbH and Co. KG, Johnson Controls, Inc., Danfoss A/S, Robert Bosch, NIBE Industrier AB, Daikin Industries Ltd., Ingersoll-Rand Inc., Mitsubishi Electric Corporation, Carrier Global Corporation, and Emerson Electric Co.
Well inspection services involve a comprehensive evaluation of oil and gas wells to ensure their integrity, safety, and efficiency. These services typically include visual inspections, non-destructive testing, pressure testing, and other diagnostic methods to detect potential issues such as corrosion, leaks, structural weaknesses, and other anomalies. Well inspection services are crucial for maintaining operational safety, preventing environmental contamination, and ensuring compliance with regulatory standards. These services help operators to identify and address problems early, thereby reducing downtime and operational costs while extending the life of the well.
The rise in the adoption of heat recovery systems is significantly driving the demand for industrial heat pumps, as industries seek to maximize energy efficiency and reduce operational costs. Heat recovery systems capture waste heat generated from industrial processes, which would otherwise be lost to the environment. By integrating industrial heat pumps, this recovered heat transferred to other processes where thermal energy is required such as space heating, drying, or process heating. All these factors are expected to drive the demand for the industrial heat pump market during the forecast period.
However, the complexity of integrating industrial heat pumps into existing systems contributes to the high initial costs. Many industrial processes require customized solutions to ensure that the heat pump functions effectively within the specific operational environment. This need for tailored designs, along with the specialized engineering and maintenance expertise required that drives up the overall investment.
In addition, in some cases, industries need to retrofit or upgrade their existing infrastructure to accommodate the new system, adding to the cost burden. These factors collectively slow down the pace at which industries adopt industrial heat pumps, particularly in markets where economic conditions or budget priorities make such large-scale investments challenging. All these factors hamper industrial heat pump market growth.
Technological innovations and ongoing product development create significant opportunities for the growth of the industrial heat pump market. As industries increasingly seek energy-efficient and sustainable solutions, advancements in heat pump technology have allowed for the development of more efficient, versatile, and cost-effective systems. Innovations such as improved refrigerants, higher operating temperature ranges, and enhanced system designs are enabling industrial heat pumps to perform effectively across a wider array of industrial applications, including sectors such as food processing, chemical manufacturing, and pulp and paper. All these factors are anticipated to offer new growth opportunities for the industrial heat pump market during the forecast period.
The industrial heat pump market is segmented into system type, source, capacity, end use, and region. On the basis of system type, market is divided into closed loop and open cycle. On the basis of source, the market is segmented into air, water, and ground. On the basis of capacity, the market is classified into less Than 500 kW, 500 kW to 2 MW, 2 MW - 5 MW, and more than 5 MW. On the basis of end use, the market is classified into Lumber drying, pulp and paper manufacturing, petroleum refining, food and beverages, chemical, utilities, district heating, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of system type, market is divided into closed loop and open cycle. The closed loop segment accounted for 68.4% of the industrial heat pump market share in 2023 and is expected to maintain its dominance during the forecast period. In a closed-loop industrial heat pump system consists of three main components such as evaporator, compressor, and condenser. The heat transfer fluid, often a refrigerant or water/glycol mixture, is circulated through these components.
In the evaporator, the fluid absorbs heat from the surroundings, which causes it to evaporate. The compressor then compresses the vapor, increasing its pressure and temperature. This high-pressure, high-temperature vapor is directed to the condenser, where it releases its heat to the targeted process or space. As the fluid cools, it condenses back into a liquid, ready to return to the evaporator and repeat the cycle.
On the basis of source, the market is segmented into air, water, and ground. The air segment accounted for less than three-fifths of the industrial heat pump market share in 2023 and is expected to maintain its dominance during the forecast period. Industrial air source heat pumps (ASHP) are designed to extract heat from the ambient air and transfer it to a different medium, typically for heating or cooling purposes in industrial settings. These systems operate by using refrigerant to absorb heat from the outside air, even in colder temperatures, and then compressing the refrigerant to increase its temperature. The heat is subsequently transferred to the target medium such as water or air, which is then used for various industrial applications.
On the basis of capacity, the market is classified into less than 500 kW, 500 kW to 2 MW, 2 MW - 5 MW, and more than 5 MW. The less than 500 kW segment accounted for more than half of the industrial heat pump market share in 2023 and is expected to maintain its dominance during the forecast period. Industrial heat pumps with a capacity of less than 500 kW are essential components in various sectors such as manufacturing, food processing, and chemical industries. These systems are designed to provide efficient heating and cooling solutions, making them valuable for applications that require temperature control but on a smaller scale compared to larger industrial heat pumps.
On the basis of end use, the market is classified into Lumber drying, pulp and paper manufacturing, petroleum refining, food and beverages, chemical, utilities, district heating, and others. The food and beverages segment accounted for less than two-fifths of the industrial heat pump market share in 2023 and is expected to maintain its dominance during the forecast period.
Industrial heat pumps are gaining traction in the food and beverage industry due to their energy-efficient heating and cooling capabilities, crucial for processes such as pasteurization, sterilization, drying, and refrigeration. These pumps transfer heat from low-temperature sources such as air, water, or process waste streams to higher temperature levels, which then be reused within the production process. This allows food and beverage manufacturers to reduce reliance on fossil fuels, thereby cutting down on energy consumption and carbon emissions.
Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region accounted for more than one-thirds of the industrial heat pump market share in 2023 and is expected to maintain its dominance during the forecast period. As energy prices continue to fluctuate, industries in the Asia-Pacific region are increasingly seeking cost-effective solutions to manage their energy expenditures. Industrial heat pumps offer a way to improve energy efficiency by recovering and upgrading waste heat or utilizing low-grade heat sources. This capability helps reduce dependence on expensive fossil fuels and lowers operational costs that makes heat pumps a preferable option for businesses aiming to mitigate the impact of rising energy prices.
Key players in the industrial heat pump market include STIEBEL ELTRON GmbH and Co. KG, Johnson Controls, Inc., Danfoss A/S, Robert Bosch, NIBE Industrier AB, Daikin Industries Ltd., Ingersoll-Rand Inc., Mitsubishi Electric Corporation, Carrier Global Corporation, and Emerson Electric Co.
Key findings of the study
- On the basis of source type, the ground segment is anticipated to grow at the fastest CAGR of 8.6% during the forecast period.
- On the basis of system type, the open cycle segment is anticipated to grow at the fastest CAGR of 7.7% during the forecast period.
- On the basis of end use, the petroleum refining segment is anticipated to grow at the fastest CAGR of 8.9% during the forecast period.
- On the basis of capacity, the more than 5 MW segment is anticipated to grow at the fastest CAGR of 8.1% during the forecast period.
- Region-wise, Asia-Pacific has the highest share in 2022 in terms of revenue.
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 2023 to 2033 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.
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Key Market Segments
By System Type
- Closed Loop
- Open Cycle
By Source
- Air
- Water
- Ground
By Capacity
- Less Than 500 kW
- 500 kW to 2 MW
- 2 MW to 5 MW
- More Than 5 MW
By End Use
- District Heating
- Others
- Lumber Drying
- Pulp and Paper Manufacturing
- Petroleum Refining
- Food and Beverages
- Chemical
- Utilities
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- Italy
- France
- Spain
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- Carrier Global Corporation
- DAIKIN INDUSTRIES, Ltd.
- Danfoss A/S
- Emerson Electric Co.
- Ingersoll Rand Inc.
- Johnson Controls, Inc.
- Mitsubishi Electric Corporation
- NIBE Industrier AB
- Robert Bosch GmbH
- STIEBEL ELTRON GmbH and Co. KG
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: INDUSTRIAL HEAT PUMP MARKET, BY SYSTEM TYPE
CHAPTER 5: INDUSTRIAL HEAT PUMP MARKET, BY SOURCE
CHAPTER 6: INDUSTRIAL HEAT PUMP MARKET, BY CAPACITY
CHAPTER 7: INDUSTRIAL HEAT PUMP MARKET, BY END USE
CHAPTER 8: INDUSTRIAL HEAT PUMP MARKET, BY REGION
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Executive Summary
According to the report titled, 'Industrial Heat Pump Market,' the industrial heat pump market was valued at $8.8 billion in 2021, and is estimated to reach $17.7 billion by 2031, growing at a CAGR of 7.7% from 2022 to 2031.Heat pump is a cost-effective and effective solution for heat and cold generation. Heat pump raises the temperature by absorbing thermal energy from an existing low-temperature heat source and releasing it to a warmer area. Industrial heat pumps are able to generate large amount of heat with a limited amount of electricity by using heat sources compared to direct conversion of electricity to generate heat.
Moreover, the food and beverages industry continues to witness substantial growth due to advancements in manufacturing technologies over decades. This is attributed to rapid urbanization, which has boosted the demand for industrial heat pumps for combination of heating and cooling system in chocolate manufacturing process. Rapid urbanization resulted in the surge in food and beverages products, including chocolate, milk, drinks, sugar, and other products which, in turn, increased the demand for industrial heat pumps to fulfill combine cooling and heating system demand from food and beverage industries. This factor is anticipated to drive the growth of the industrial heat pumps market during the forecast period. Furthermore, the industrial heat pumps market in regions, such as Asia-Pacific, Middle-East, Latin America, and Europe, exhibits potential growth opportunities due to rise in demand for hot water heating from food and beverages consumers in these regions. This has resulted in surge in hot water consumption at enormous rate, which, in turn, augmented the demand for industrial heat pumps.
However, Industrial heat pumps require relatively higher investment cost while comparing to other alternative like oil and gas burners which is expected to restrain the growth of the industrial heat pumps market during the forecast period. In addition, several manufacturers have lessened awareness about the heating and cooling demands (heat consumption) requires for manufacturing process of chemicals, food, textiles, and others which in turn is anticipated to hamper the growth of the industrial heat pumps market during the analyzed time frame.
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, Significant development of the renewable energy sector is expected to have a positive impact on the growth of the industrial heat pumps market during the forecast period. Europe has registered the highest growth rate, owing to increase in investment toward renewable energy systems. Hot water heating systems are expected to meet the increase in demand for hot water from end users, which further fuels the demand for industrial heat pumps. Furthermore, governments across the globe promote eco-friendly heating systems to minimize carbon emissions from industrial energy systems and reduce the cost of electricity. Therefore, high-temperature heat pumps system is projected to drive the growth of the industrial heat pumps market during the analyzed time frame.
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.
Asia-pacific garnered a dominant share in 2021 and is anticipated to maintain this dominance in the industrial heat pumps market during the forecast period. This is attributed to presence of key players and huge consumer base in the region. 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.
Key Market Insights
In 2021, the closed loop segment accounted for about 68.3% of the share in the global Industrial heat pumps market and is expected to maintain its dominance till the end of the forecast period.In 2021, the air segment accounted for 57.7% Industrial heat pumps market share in the year 2021 and is anticipated to grow at a rate of 8.0% in terms of revenue, increasing its share in the global Industrial heat pumps market.
Less than 500 KW is the fastest-growing application segment in the global Industrial heat pumps market, expected to grow at a CAGR of 7.9% during 2022-2031.
Asia Pacific is expected to grow at the fastest rate, registering a CAGR of 8.4%, throughout the forecast period.
Companies Mentioned
- Carrier Global Corporation
- DAIKIN INDUSTRIES, Ltd.
- Danfoss A/S
- Emerson Electric Co.
- Ingersoll Rand Inc.
- Johnson Controls, Inc.
- Mitsubishi Electric Corporation
- NIBE Industrier AB
- Robert Bosch GmbH
- STIEBEL ELTRON GmbH and Co. KG
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 419 |
| Published | October 2024 |
| Forecast Period | 2023 - 2033 |
| Estimated Market Value ( USD | $ 9.5 billion |
| Forecasted Market Value ( USD | $ 19.3 billion |
| Compound Annual Growth Rate | 7.4% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
