Dublin, Oct. 14, 2021 (GLOBE NEWSWIRE) -- The "Heat Pumps Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The Global Heat Pumps Market was valued at USD 6.04 billion in 2020, and it is expected to reach USD 9.87 billion by 2026, registering a CAGR of 9.5%, during the forecast period (2021-2026). The COVID-19 pandemic outbreak has created an economic turmoil for small, medium, and large-scale industries alike, globally. While it is realistic to expect a slow growth or even decline in sales of heat pumps sales, government policies and consumer demand are expected to drive the sales of heat pumps. End users are now increasingly concerned of disruptions and dangers threatened by climate change and carbon emissions (informally known as 'the Blue Planet Effect') and are making environmentally-responsible heating choices.
Heat pump works on the principle of mechanical-compression cycle refrigeration that can even be reversed to heat or cool the desired space of a facility. Hence, these are increasingly being used for space heating and cooling applications.
Heat pumps are composed of two main components, which include an outdoor unit that is quite similar to that of central air-conditioner and indoor air handler. The outdoor unit consists of a compressor that circulates refrigerant, whose function is to absorb and release heat that travels between outdoor and indoor units.
The increasing need to curb dependence on fossil fuels and look for an energy-efficient alternative to furnaces and air conditioners are expected to drive the demand for heat pumps over the forecast period. As heat pumps move heat rather than generate heat, they can provide equivalent space conditioning at as little as one-quarter of the operating costs of conventional heating or cooling appliances.
Various government initiatives, such as the Domestic RHI and the Non-Domestic RHI, by the government of the United Kingdom is a financial incentive scheme set up to encourage the installation and usage of renewable heating technologies in existing homes. Such initiatives are expected to fuel market growth over the forecast period.
Key Market Trends
Air Source Heat Pumps are Expected to Hold a Major Market Share
The air source heat pump (ASHP) takes the electricity input, extracts the heat from ambient air, and gives hot water up to 90 degrees Celsius. Due to the extraction of heat from the ambient air, the ambient gets cooler. Thus, the requirement for both hot water and cold air drives the growth of air-source heat pumps.
There are two main types of ASHP, which are air-to-water and air-to-air. An air-to-air heat pump absorbs heat from the outside air and then transfers it directly into houses via a fan system to heat a room. Simultaneously, air-to-water heat pumps absorb heat from the outside air and then transfer it via the central heating system to provide hot water heating, radiator, or underfloor heating in an indoor space (or all three). Thus, choosing the type of ASHP determines the type of heat distribution system one needs.
These pumps have been rapidly becoming more widespread in recent years and now dominate the global sales for buildings. For instance, according to the International Energy Agency (IEA), the annual shipments of air-to-air heat pumps in the United States expanded from 2.3 million units in 2015, to 3.1 million in 2019.
Moreover, several factors, such as policy development, upgraded construction standards that make heat pumps in new buildings more competitive, and growing air-conditioning demand, are raising the popularity of air-to-air technologies, thus, boosting the market growth.
The market for ASHP is likely to grow over the forecast period due to its key advantages, such as versatility and affordability, as these pumps can work for either cooling or heating purposes and can be used for water heating or space heating. Moreover, air-source heat pumps are considered a renewable alternative to heat houses in the United Kingdom.
United States is Expected to Dominate Market Share
The deployment of heat pumps has grown steadily in the North American region, specifically in the United States, due to various reasons, such as climatic conditions, the convenience to offer the equipment, government tax credit benefits, and regulations.
Furthermore, the heat pumps have been regulated by the governments in the region for their energy efficiency. For instance, the Department of Energy (DOE) announced Fan Energy Rating (FER) that sets a minimum airflow efficiency standard for residential furnace fans. As of 3rd July 2019, vendors can no longer manufacture furnaces unless they meet the minimum efficiencies.
With the new FER standards, the US DOE predicts that the new standard for furnace fans might save about 3.99 quads of energy, reduce carbon pollution by 34 million metric tons, and save the American citizens more than USD 9 billion electric bills through 2030. According to new state law, the city of Maine seeks installers to help meet the goal of 100,000 heat pumps over the next five years. Furthermore, the New Ambler heat pump project aims to reduce diesel costs in the villages drastically.
In addition, the deployment of CO2heat pumps is expected to increase in the region, owing to the government initiatives toward decarbonized future. For instance, the energy group division for Mayekawa USA MYCOM has been promoting the Japanese company's CO2 and ammonia-based heat pumps for space heating and domestic water heating in North America.
The competitive rivalry in the heat pump market is high owing to the presence of some major players such as Mitsubishi Electric, Daikin, Panasonic amongst others. Their ability to continually innovate their offerings has enabled them to gain a competitive advantage over other players in the market. Through research & development activities, mergers & acquisitions these players have been able to expand their market footprint.
January 2021 - Fluidra, a pool and wellness equipment provider, acquired Built Right, a Florida-based manufacturer of heat pumps. Built Right specializes in manufacturing and servicing high-performance heat pumps.
Reasons to Purchase this report:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand for Energy Efficient Solutions
4.2.2 Increasing Government Initiatives to Curb Carbon Emission
4.3 Market Restraints
4.3.1 High Installation Cost of Heat Pumps
4.4 Industry Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Force Analysis
4.6 Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
5.1.1 Air Source
5.1.2 Water Source
5.1.3 Geothermal (Ground) Source
5.2 End User Vertical
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Trane Inc. (Ingersoll Rand Inc.)
6.1.2 Midea Group
6.1.3 NIBE Group
6.1.4 Panasonic Corporation
6.1.5 Mitsubishi Electric Corporation
6.1.6 Daikin Industries, Ltd.
6.1.7 Stiebel Eltron Gmbh & Co. Kg (De)
6.1.8 Glen Dimplex Group
6.1.9 Viessmann Werke GmbH & Co KG
6.1.10 Flamingo Heat Pumps
6.1.11 WOLF (Centrotec Sustainable AG)
6.1.12 Efficiency Maine
7 INVESTMENT ANALYSIS
8 FUTURE OF THE MARKET
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