Asia Pacific Industrial Heat Pump Market is expected to reach US$ 5.41 Billion by 2031

Significant Reduction in CO₂ Emissions Fueling the Asia Pacific Industrial Heat Pump Market Growth

According to our latest market study on "Asia Pacific Industrial Heat Pump Market Size and Forecast to 2031 – Regional Analysis – by Heat Source, End User, Operating Temperature, and Size," the Asia Pacific industrial heat pump market was valued at US$ 3.09 billion in 2024 and is expected to reach US$ 5.41 billion by 2031; it is anticipated to register a CAGR of 8.6% during 2025–2031. The Asia Pacific industrial heat pump market report includes growth prospects in light of current trends and driving factors positively influencing the market.   

Industrial heat pumps are devices used to transfer heat from a lower temperature source to a higher temperature for heating or cooling industrial processes. They work based on the same principles as refrigeration or air conditioning systems but are optimized for industrial use, often delivering heat at higher temperatures and larger scales. These pumps are a type of active heat-recovery equipment and are an effective and cost-efficient solution for the generation of heat and cold. They uplift the temperature by absorbing thermal energy from an existing low-temperature heat source and circulating it to a warmer space. These pumps primarily source heat from the geothermal energy accumulated in the ground, surrounding air, water, or waste heat from industrial processes. These heat pumps are widely used in industries to save energy, reduce operational costs, and improve sustainability. Investments in the industrial sector are rising across the countries of Asia Pacific, such as India, China, Japan, Malaysia, and South Korea. South Korea's investment in the industrial manufacturing sector reached US$ 82 billion in 2024. Several companies in the country have also raised their capital investment in the semiconductor and automobile sectors. China's manufacturing sector received foreign direct investment of ~U$ 45.5 billion to expand economic growth in 2023. The global flow of foreign direct investment in the manufacturing sector in Asia Pacific reached US$ 1.3 trillion in 2023, primarily owing to an increase in new industrial and infrastructure project investments.

Asia Pacific Industrial Heat Pump Market Share — by Country, 2023

Source: The Insight Partners Analysis

Rising demand for reducing carbon emissions across the Asia Pacific region is among the factors contributing to the growing industrial heat pump market size . Industrial heat pumps are increasingly being used as an effective solution for carbon dioxide reduction, particularly in industries that require significant amounts of heating and cooling. Asia Pacific contributed more than 60% of total global greenhouse gas emissions of around 54.5 Gt CO2 equivalent in 2023, driven by rapid urbanization, industrialization, and high dependence on fossil fuel. According to the International Energy Agency, China is responsible for more than 33% of global heat consumption, with 40% of heat consumption from the industrial sector. The demand for water and space heating and stringent clean heating policies is growing across Asia Pacific. According to the Energy Foundation Organization in China Space, heating in China is responsible for around 40% of building emissions. Further, Southern China consumes 77–167 million tonnes (Mtce) of energy to support space-heating demands, and space-heating generated 126–275 million tons (Mt) of CO2 emissions. Heat pumps play a major role in meeting China's goal of CO2 emissions by 2030. Investment requirement for heat pumps in the industrial sector is rising. Moreover, the industrial sector comprises around 38.3% of the gross domestic product (GDP) of China in 2023. Industrial heat pump technologies are significantly reducing CO2 emissions arising from industrial processes. As a result, several governments and private and public players are investing in procuring industrial heat pumps in Asia Pacific. India's government launched the India Cooling Action Plan (ICAP) in 2019 to reduce carbon emissions and meet cooling and heating demand across various sectors. Ground Source Industrial Heat Pumps (GSHPs) are used in India for low carbon emissions for cooling and heating purposes in the industrial sector. Increasing government policies and rising demand for carbon emissions across Asia Pacific fuels the industrial heat pump market growth.

Manufacturers of industrial heat pumps continuously procure raw materials and components from suppliers to produce industrial heat pumps to support the growing customer demand. An industrial heat pump has four key components: compressor, evaporator, condenser, and expansion device. A refrigerant is the working fluid that passes through all these components. The production of industrial heat pumps involves the use of large iron castings with aluminum tubing and stainless-steel components. The castings used in the motor and pump often have small amounts of molybdenum, nickel, and magnesium to enhance the mechanical and corrosion-resisting characteristics of the casting. All industrial heat pumps need a working fluid to transmit surplus energy from one heat source to another. Chlorofluorocarbons (CFCs) are employed as working fluids owing to their enhanced thermodynamic properties. As CFCs' adverse effects are identified in the environment, it has been slowly phased out of production. Instead of CFCs, water, ammonia, and hydrocarbons are frequently used in industrial heat pump systems despite their lack of effectiveness in some industrial heat pump designs.

The Asia Pacific industrial heat pump market analysis has been performed by considering the following segments: heat source, end user, operating temperature, and size. Based on heat source, the market is segmented into water, air, geothermal, and waste heat. By end user, the market is categorized into energy and power, manufacturing, chemicals, food and beverages, paper and pulp, wood products, and others. In terms of operating temperature, the market is segmented into below 120°C, 120–150°C, and above 150°C. Based on size, the market is segmented into below 2 MW, 2–5 MW, and above 5 MW.

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 prominent players profiled in the Asia Pacific industrial heat pump market report. Various other companies are introducing new technologies and offerings to bolster the market in terms of volume as well as revenue.

The Asia Pacific industrial heat pump market is segmented into China, Japan, India, Indonesia, Malaysia, Thailand, Vietnam, and the rest of APAC. In terms of revenue, China dominated the Asia Pacific industrial heat pump market share in 2024. China has the largest share in the 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 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 growth of the Asia Pacific industrial heat pump market. 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.

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