Heat Pump Market, by Product Type (Air to Air and Air to Water), by Rated Capacity (Up to 10 kW, 10-20 kW, 20-30 kW, and above 30 kW), by End-User (Residential, Commercial, and Industrial), and by Region (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2018 – 2026

  • To Be Published : Aug 2019 |
  • Format : CMI Insight PPT Format CMI Insight PDF Format

Heat pump is a device that collects heat from sources such as air, water, and ground, and transfers the heat to another location, typically against a temperature gradient. Heat pumps have many advantages such as low running costs, less maintenance, less carbon emissions, and long life span among others. Usage of heat pump is the most energy efficient way to provide heating and cooling to various processes in the end-use industries such as pharmaceutical, textile, food processing and cold stores, automobile, and hotels.

Increasing consumption of energy in buildings is one of the major factors driving growth of the market

One of the major factors attributed to growth of the market is the rising consumption of energy in buildings. For instance, according to the International Energy Agency (IEA) analysis, in 2015, building and building construction sectors were accounted for around 37% of the global final energy consumption and around 40% of total direct and indirect CO2 emissions whereas, energy consumed by transportation sector was 28%, by iron, steel, and cement manufacturing industries was 30%, and others 5%, respectively. According to this statistics, buildings and construction accounted for around one-third of global final energy consumption. Therefore, rising consumption of energy in buildings will positively increase the installation of heat pumps near buildings. This heat pump is a highly energy-efficient alternative over the furnaces and air conditioners, which results in less energy usage. Hence, this factor is expected to fuel growth of the global heat pump market over the forecasted period.

Global Heat Pump Market: Restraints

High cost of heat pump is one of the major factors hindering growth of the market. For instance, according to Coherent Market Insights’ analysis, price for 1.5 Tons, 800cfm, 5kw heat pump was US$ 3,350, price for 2.5 Tons, 1200cfm, 7kw heat pump was US$ 4480, and price for 5 Tons, 2000cfm, 10kw heat pump was US$ 6890. Therefore, the price of heat pump depends on the capacity of the heat pump.

Global Heat Pumps Market: Segment Trends

Among product type, air to air segment accounted for the largest market share in 2017 and is expected to maintain it over the forecast period. Air to air heat pumps are generally used to provide heating during cold season and cooling during the summer seasons. Air conditioning systems have less co-efficient of performance (CoP) when compared to air to water heat pumps. This factor in turn helps in saving energy. Moreover, the benefits offered by air to air heat pumps include ease of operation, low installation cost, installation of complex heat distribution systems such as radiators or underfloor heating is not needed, and low operational cost among others.

Global Heat Pumps Market: Regional Insights

Asia Pacific is expected to grow with highest CAGR in the global heat pump market over the forecast period. Rapid urbanization, industrialization, and favorable government investments for the development of buildings are some of the factors leading to increasing investments in construction sector for building houses in emerging economies such as India and China. For instance, in June 2018, according to the India Brand Equity Foundation (IBEF) analysis, the Indian government announced the allocation of US$ 92.22 for the construction sector. Therefore, increasing number of construction of new buildings will positively increase the demand for heat pumps in this region, thereby driving growth of the market.

Key players in Heat Pump Market

Key players operating in the global heat pump market include Danfoss Group Global, Daikin Industries, Ltd, StiebelEltron Gmbh & Co.KG, Bosch Thermotechnik GmbH, NIBE Global Group, Thermsaver Inc., Glen Dimplex Group, Viessmann Group, Mitsubishi Electric, Corporation, and Enertech Group Ltd.

The global heat pump market is highly fragmented and new entrants in the market are expected to bring in competition to the existing market players. Therefore, existing market players are adopting strategies such as mergers & acquisitions, new product developments, and collaborations. This will further help the market players to gain competitive edge in the market. For instance, in April 2017, NIBE launched two products F1155 and F1255 that are inverter driven ground source heat pumps, both of which were awarded with MCS certification. This allows the heat pump to automatically adjust itself to the power demand, which results in optimal savings and reduced energy consumption as the heat pump is working.

Global Heat Pump Market: Taxonomy

On the basis of product type, the global heat pump market is segmented into:

  • Air to Air
  • Air to Water

On the basis of rated capacity, the global heat pump market is segmented into:

  • Up to 10 kW
  • 10-20 kW
  • 20-30 kW
  • Above 30 kW

On the basis of end user, the global heat pump market is segmented into:

  • Residential
  • Commercial
  • Industrial

On the basis of region, the global heat pump market is segmented into:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East
  • Africa

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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