According to our latest study on “Asia Pacific Industrial Heat Pump Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis – by Heat Sources, Size, Operating Temperature, End-Users” the Industrial Heat Pump Market size was valued at US$ 3,088.66 million in 2024 and is expected to reach US$ US$ 5,408.38 million by 2031; it is estimated to record a CAGR of 8.6% from 2025 to 2031.

The heat source segment of the industrial heat pump market is categorized into water, air, geothermal, and waste heat. Heat pumps have become increasingly important to improve energy efficiency and reduce CO2 emissions. An industrial heat pump primarily sources heat from the geothermal energy accumulated in the ground, surrounding air, water, or waste heat from industrial processes. Water-based heat pump systems are among the most effective, environmentally friendly systems that are accessible for heating and cooling industrial buildings. Air heat pumps are a sustainable alternative as they do not burn fossil fuel to generate heat. In addition, geothermal heat pumps improve efficiency and decrease the energy consumption of heating and cooling systems in the industrial sector. Thus, the growing focus on low carbon emissions to lower environmental pollution and inclination toward energy-efficient pumps are driving the demand for industrial heat pumps.

China has the largest share in Asia Pacific industrial heat pump market, owing to increasing demand from the manufacturing sector. According to China National Bureau of Statistics (NBS), in 2024, the manufacturing sector was valued at US$ 4.67 trillion, increasing by 6.0% compared to the previous year, 2023, and the manufacturing sector accounted for ~24.86% of China's GDP. Industrial heat pumps are more energy-efficient than traditional heating methods. They are used to achieve the highest efficiency levels based on the application in the manufacturing sector. Industrial heat pumps are a powerful tool for manufacturing industries aiming to reduce energy consumption, lower carbon emissions, and optimize their processes.

Increasing investment in the chemical and petrochemical sector across China drives the industrial heat pump market growth. For instance, in November 2024, Sinopec Corp and Saudi Aramco made an investment of US$10 billion for the construction of a petrochemical complex in Fujian province, China. This facility aimed at producing 5 million tons of petrochemical feedstock annually. The use of industrial heat pumps in the petrochemical sector is growing, especially for better energy efficiency and reduced carbon emissions in their operations. Thus, increasing investment in the petrochemical and manufacturing sector in China created a massive demand for industrial heat pump products in the country.

Key Findings of Industrial Heat Pump Market Study:

Based on size, the industrial heat pump market is segmented into below 2 MW, 2 MW to 5 MW, and 5 MW and above. 2 MW to 5 MW has the largest share in 2023, owing to the increasing demand for this capacity across the food and beverages sector. The food and beverage sector is using these industrial heat pumps to increase energy efficiency and reduce carbon emissions. The food and beverage manufacturing industry in Southeast Asia was valued at US$ 667 billion in 2023 and is projected to reach US$ 900 billion by 2028, growing at an annual rate of 7% during the forecast period.

Industrial heat pumps with a capacity of below 2 MW (megawatts) are typically used in small to medium-scale operations. These systems can be used for heating, cooling, or heat recovery in sectors including food and beverage, chemical processing, pharmaceuticals, and municipal heating. For facilities with smaller heat demands, heat pumps can be more cost-effective than traditional heating and cooling methods such as boilers, electric resistance heating, or air conditioning systems. Manufacturers include Carrier, Mitsubishi Electric, Viessmann, Daikin Corporation, Johnson Controls, Trane, Fujitsu General, Gree Electric Appliances, and others. Increasing investment in the manufacturing sector in countries such as Singapore, China, India, South Korea, and Japan drives this industrial heat pump market growth. For instance, in 2022, Singapore received foreign direct investment of US$ 224 billion. In 2023, Singapore attracted investment of US$ 13 billion in the energy and chemical sector. In March 2021, Mitsubishi Electric Australia announced the launch of a new air source heat pump with full inverter compressors (444 to 1154 kW) to provide Australian businesses with a sustainable cooling solution for the best energy performance in most load conditions. The i-FX-N is an outdoor heat pump with a combination of inverter screw compressors that are designed to Mitsubishi Electric specifications, variable speed fans, and R513A low global warming potential refrigerant. The result is a heat pump that gives a cooling capacity that exceeds 1 MW at a time when businesses are seeking more efficient products to drive down operational costs and are also conscious of energy efficiency regulations.

Based on operating temperature, the market is segmented into below 120°C, 120–150°C, and 150°C and above. 120–150°C had the largest market share in 2023, owing to an increasing adoption in the chemical, textile, and manufacturing sectors. For instance, according to the Asia Manufacturing Index Report in 2023, the manufacturing sector in China accounted for 26.2% of China's total GDP and is growing at a rapid pace. The manufacturing sector uses industrial heat pumps to reduce carbon emissions and increase energy efficiency. Several major players in the market are developing advanced technology-based heat pumps in order to reduce carbon emissions and enhance energy efficiency. For instance, in November 2024, Trane, provider of indoor climate control solutions brand of Trane Technologies, launched a high-temperature water-to-water heat pump RTSF HT which can deliver hot water up to 110°C. RTSF HT expanded its portfolio of compact water-to-water heat pumps and chillers. These are designed to meet the growing demand for industrial and commercial applications. The company offers industrial heat pumps for industrial-scale manufacturing in various regions such as Australia, Europe, the Middle East, Africa (EMEA), and New Zealand

Mitsubishi Heavy Industries, Daikin Industries Ltd, Danfoss A/S, Emerson Electric, Johnson Controls International Plc, Robert Bosch GmbH, Siemens AG, Carrier, Swegon, and Atlas Copco AB are among the key players profiled in the industrial heat pump market report. Several other major players were studied and analyzed during the industrial heat pump market analysis to get a holistic view of the market and its ecosystem. The Industrial Heat Pump Market also provides detailed market insights, which help the key players strategize their growth. The report includes growth prospects owing to the current industrial heat pump market trends and their foreseeable impact during the forecast period.

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