Worldwide sales of heat pumps reached 11 million units in 2018 with year on year growth set to top10 per cent in 2019.
A new research report by Fact.MR said escalating demand for heat pumps is being driven by buyers choosing eco-friendly alternatives to conventional heating appliances.
Fact.MR expects the heat pump market to register a 12 per cent Compound Annual Growth Rate (CAGR) through to 2029.
The report also points to a thriving trend toward decarbonized buildings and zero-carbon strategies to drive increased revenue.
“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,” the report said.
“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.
“Heat pump manufacturers are also investing efforts in product innovations in terms of customization 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 along with regulatory compliance, it is likely that heat pump sales will remain highly influenced by their sustainability quotient throughout the forecast period.
“Additionally, the brisk expansion of the construction industry, coupled with the growing frequency of innovations in HVAC systems, will continue to boost growth,” Fact.MR said.
The study found the overall performance of heat pumps has been experiencing notable improvement, which is expected to enable them to take over those markets 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 share.
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 on ‘dual-source’ offerings in their portfolios.
Further, new heat pumps developed with variable or dual speed features to maximize efficiency and electrical savings are likely to provide an added advantage to manufacturers, thereby offering them a competitive edge.
The residential sector accounts for 60 per cent of the heat pump market although the report predicts increased consolidation in this segment of the market.
This will be driven by increased government spending on infrastructure and incentives to adopt renewable systems, especially in developing regions.
In the commercial sector, the report found that various high-end products with technically advanced features are being manufactured for critical applications.
Efforts are continuing to explore heat pump installations in futuristic commercial developments creating lucrative opportunities for manufacturers.
“East Asia continues to create a pool of opportunities in the heat pump market, on the back of rapid urbanization and industrialization. A 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,” the Fact.MR study said.
Just last month Ingersoll Rand's Australasian business leader, Stuart Kirkwood, said OEMs have delivered enormous advances in efficiency and sustainability in recent years.
"This means a lot more heat pumps, heat recovery and free cooling," he said. "If we are going to triple electricity use we need to do it right."
For manufacturers to transform raw materials into everyday products they require enormous amounts of heat, which contributes 8% of Australian greenhouse gas emissions.
Climate change think tank, Beyond Zero Emissions’ has prepared a report showing how manufacturers can generate heat differently, through the smart use of renewable electricity.
The Electrifying Industry Report warns that businesses wedded to high carbon strategies are at risk from the global transition to a low carbon economy.
Head of Research and lead author of the report, Michael Lord, said there is a missed opportunity for thousands of businesses across Australia.
“We found many manufacturers could save money today simply by replacing their gas-fired boilers with industrial heat pumps. It’s just not widely taken up yet,” he said.