Industrial Heat Pump Market Regional Analysis:
Europe Market Analysis
Europe industry is poised to dominate majority revenue share of 34.1% by 2035. Moreover, several government initiatives and investments are promoting the usage of sustainable heating technologies. According to European Commission in 2020, the economic potential of geothermal power comprising improved geothermal systems was projected to increase from 19 GWe in 2020, to 522 GWe in 2050. Geothermal energy has several applications including district agriculture, heating, and industrial processes. With two million systems installed, ground source heat pumps are the most extensively adopted technologies for geothermal energy usage in the EU.
UK is projected to witness a considerable rise in the regional market. The local government has made ambitious targets to grow heat pump installation from 55ooo yearly in 2021 to 600,000 by 2028, with a plan to produce at least 300,000 units domestically every year by that time period. This commitment is supported by significant investment including up to 12 billion euros (USD 12.7 billion) which are allocated for low-carbon heating solutions and energy efficiency. Such factors are expected to boost the country’s market development during the forecast period.
Germany is also anticipated to garner a substantial share during the forecast period. The local government provides subsidies covering up to 70% of the installation costs for heat pumps with a standard subsidy of 30% and more incentives for replacing fossil-based boilers. These incentives coupled with rising awareness of environmental sustainability are boosting the adoption of industrial heat pumps across multiple sectors contributing to the country's efforts to decrease greenhouse gas emissions and change towards renewable energy sources.
Asia Pacific Market Analysis
Asia Pacific is expected to experience a stable CAGR during the forecast period due to the availability of large skilled labor at low cost. Also, government regulations and initiatives encouraging the adoption of heat pumps in the industrial sector are driving the market growth. The increasing trend of shifting production base to developing economies, particularly China and India are projected to influence market growth throughout the forecast period. Energy-saving solutions are predicted to gain high prominence in countries such as China, Indonesia, Japan, and India.
The local government in China has set targets to peak carbon emissions by 20230 and attain carbon neutrality by 2060, which has encouraged industries to adopt low-carbon technologies with industrial heat pumps. To support this China has implemented several initiatives and policies such as subsidies for energy-efficient equipment and tax breaks for companies that decrease carbon footprints. China industrial heat pump market is now all set for sustainable growth.
Japan, known for its technological developments and growth in the industrial heat pump market, is expected to witness considerable growth. The country works to decrease its reliance on fossil fuels and cut emissions. In January 2023, according to the World Economic Forum, Japan set a target to accomplish carbon neutrality by 2050, which includes a strong focus on adopting energy-efficient technologies across various industrial sectors. Additionally, Japan emphasizes integrating industrial heat pumps with renewable energy sources such as geothermal and solar energy to create a robust market for industrial heat pump that aligns with countries environmental goals.
