Asia Pacific Industrial Heat Pump Market Growth, Size, Share, Trends, Key Players Analysis, and Forecast till 2031

The Asia Pacific industrial heat pump market size is projected to reach US$ 5.41 billion by 2031 from US$ 3.09 billion in 2024. The market is expected to register a CAGR of 8.6% during 2025–2031. The rapid innovations and expansion strategies adopted by major players are likely to bring new key trends in the market in the coming years.

Asia Pacific Industrial Heat Pump Market Analysis  

Industrial heat pumps have potential end use in energy & power, manufacturing, chemicals, food & beverages, paper & pulp, and wood products industries. Other end-use industries include agricultural, indoor cultivation, textiles, pharmaceuticals, cement, and concrete processing. The increasing focus on lowering environmental pollution and reducing the carbon footprint is accelerating the demand for industrial heat pumps. These pumps can potentially increase energy efficiency and decrease CO2 emissions. Industrial heat pumps are potentially used in the energy & power sector for power generation. An industrial heat pump can generate electricity by utilizing solar energy in a wide wavelength, incorporating light range and infrared ranges. High-end industrial heat pumps are primarily utilized in the manufacturing industry because of their energy efficiency, cost-effectiveness, and sustainability. The chemical industry is one of the most energy-demanding sectors. The limitation of using fossil fuels, the requirement for energy independence, and the environmental challenges of greenhouse gas emissions are influencing the application of industrial heat pumps in the chemical industry.

Heat pumps demonstrate noteworthy versatility in delivering heating and air conditioning in the same system by switching the flow direction of the working fluid. Industrial heat pumps also eliminate the requirement for dual systems to obtain the required temperature. Industrial heat pumps lose some efficiency and may need an additional heat source in exceptionally adverse climates. This supplemental heat can come from electric heaters or geothermally heated water. End-use industries in the industrial heat pump market include energy and power, manufacturing, chemicals, food and beverages, paper and pulp, and wood products. Other end-use industries include agricultural, indoor cultivation, textiles, pharmaceuticals, cement, and concrete processing. These industries require significant volumes of industrial heat pumps to integrate into their infrastructure for efficient operations.

Asia Pacific Industrial Heat Pump Market Overview

The Industrial heat pump in the Asia Pacific is segmented into China, Japan, India, Indonesia, South Korea, Singapore, Australia, and the Rest of APAC. The foreign direct investments in these countries are Increasing to develop industrial sectors. According to the United Nations Conference on Trade and Development, foreign direct investment in developing countries of Asia Pacific reached US$ 619 billion, increased by 19% in 2022. Furthermore, increasing investment in the automotive manufacturing sector by the leading players in developing countries has created massive demand for industrial heat pumps.

For instance, in January 2025, China's BYD Ltd. (electric vehicle manufacturer) aimed to expand its plant in Indonesia with a significant investment of US$ 1 billion. Further, in November 2024, Continental AG planned to expand its tire manufacturing capacity in Thailand. The production capacity is expected to reach 3 million tires annually. Industrial heat pumps are also becoming an important technology in automotive manufacturing plants, providing a sustainable way to reduce energy consumption and improve efficiency. In the automotive sector, heat pumps play a significant role in temperature management, heating, and energy recovery. Such rising industrial plant expansion capabilities of leading automotive manufacturers across Asia Pacific drive the market growth. The major players in the Asia Pacific industrial heat pump market include Midea, Shenling, Daikin, Mitsubishi Electric, and Panasonic Corporation.

The flourishing demand from the chemical, oil, gas, and energy sectors also favors the industrial heat pump market in Asia Pacific. According to The Asia Pacific Economic Corporation, in 2023, the global chemical manufacturing sector was valued at US$ 5.7 trillion, and more than 45% of revenue was generated in the region. In chemical manufacturing plants, industrial heat pumps are gaining traction as sustainable solutions for energy efficiency and reducing carbon emissions.

Many countries have certain regulations governing carbon emissions and increasing the overall energy efficiency of the plants. Japan is promoting the implementation of carbon pricing mechanisms, such as a carbon tax or cap-and-trade system, to encourage companies to reduce their carbon emissions. Japan has been actively involved in international climate frameworks, including the Paris Agreement, to reduce carbon emissions. Also, South Korea launched its Green New Deal, which is part of a broader economic recovery plan that aims to promote low-carbon industries and infrastructure development. Such growing government initiatives for carbon emission reduction, along with growing industrial development in Asia Pacific, drive the industrial heat pump market growth.

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Asia Pacific Industrial Heat Pump Market Drivers and Opportunities

Demand for Energy-Efficient Solutions

A heat pump utilizes heat from the ground using deep boreholes or pipes. It can also tap into heat sources such as sewers or wastewater that would otherwise be wasted, thus increasing the overall energy efficiency of the industrial heat pump. Industrial heat pumps are used for hot water generation, especially in industries such as food processing, chemical manufacturing, and paper mills. These systems capture low-grade heat from waste processes and use it to generate hot water, reducing the need for electric or fossil fuel-based heating systems. Owing to such energy-efficient and economical benefits, industrial heat pumps are gaining traction in manufacturing and paper mills. Heat pumps capture and reuse waste heat in industrial plants. The heat pumps recover heat from exhaust gases in processes such as metalworking, glass manufacturing, and chemical plants and use it to pre-heat incoming air or water for other processes. Moreover, energy-efficient solutions, such as heat pumps, require less maintenance and have lower replacement costs. Increasing investments for energy-efficient solutions in the industrial sector in Asia Pacific drive the industrial heat pump market growth. For instance, Sinopec, China's largest petrochemical company, operated more than 900 heat exchange stations as of November 2023. These stations utilized industrial heat pumps to provide heating and cooling solutions for increasing the energy efficiency of the heat exchange stations. The widespread deployment of industrial heat pumps in chemical and industrial facilities drives market growth.

Energy efficiency offers long-term benefits by decreasing overall electricity demand, thereby reducing the need to invest in new infrastructure for electricity generation and transmission. It also contributes to the diversification of utility resource portfolios and can act as a buffer against the risk of volatile energy procurement costs. Many manufacturing industries are investing in high-efficiency industrial heat pumps to achieve energy efficiency. As a result, these solutions contribute to a positive impact on the environment. Thus, the high demand for energy-efficient solutions accelerates the market growth.

Renewable Energy Integration

Industrial heat pumps can efficiently utilize excess renewable energy generated from sources such as solar and wind power. Heat pumps can convert and store this energy in the form of heat during surplus energy production, ensuring its utilization even when renewable energy generation is low. This synergy contributes to a more sustainable energy mix. The integration of renewable energy sources with heat pumps helps industries shift away from fossil fuels, reducing greenhouse gas emissions.

China's Renewable Energy Law does not recognize the ambient heat provided by heat pumps as a renewable resource. Energy tariffs in the country do not encourage electrification, as coal and gas retain an economic advantage in the country. However, with increasing government support policies, the demand for industrial heat pumps is increasing with the rapid development of the renewable energy sector in China. For instance, in 2025, the government of China planned to install more than 50 GW of solar photovoltaic panels on all new public buildings and factories. These plans also include the installation of industrial heat pumps for more than 2 million square meters of public, industrial, and government buildings.

In December 2022, Japan started the installation of a large-scale offshore wind farm in Akita prefecture in Tohoku, Japan. This investment is made to achieve carbon neutrality by 2050 and increase the offshore wind power electricity generation capacity. In 2020, Japan set ambitious targets for producing 10 GW of offshore wind capacity by 2030 and 30–45 GW by 2040. The industrial heat pumps in wind farms are used to reduce carbon emissions, reduce the overall energy consumption, and enhance the overall efficiency of the wind farms. Renewable energy integration with industrial heat pumps is expected to provide significant opportunities to the market by aligning with sustainability goals, improving energy efficiency, and reducing operational costs for industries, creating a win-win scenario for industries, consumers, and the environment.

Asia Pacific Industrial Heat Pump Market Report Segmentation Analysis

Key segments that contributed to the derivation of the Asia Pacific industrial heat pump market analysis are steel grades, application, type, and coating type.

• Based on heat source, the market is segmented into water, air, geothermal, and waste heat. The water segment held the largest share of the market in 2024.
• By end user, the market is categorized into energy and power, manufacturing, chemicals, food and beverages, paper and pulp, wood products, and others. The food and beverages segment dominated the market in 2024.
• In terms of operating temperature, the market is segmented into below 120°C, 120–150°C, and above 150°C. The below 120°C segment dominated the market in 2024.
• In terms of size, the Asia Pacific industrial heat pump market is segregated into below 2 MW, 2–5 MW, and above 5 MW. The below 2–5 MW segment dominated the market in 2024.

Asia Pacific Industrial Heat Pump Market Regional Insights

The regional trends and factors influencing the Asia Pacific Industrial Heat Pump Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Asia Pacific Industrial Heat Pump Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Asia Pacific Industrial Heat Pump Market Report Scope

Asia Pacific Industrial Heat Pump Market Players Density: Understanding Its Impact on Business Dynamics

The Asia Pacific Industrial Heat Pump Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Asia Pacific Industrial Heat Pump Market are:

1. Mitsubishi Heavy Industries
2. Daikin Industries Ltd
3. Danfoss A/S
4. Emerson Electric
5. Johnson Controls International Plc
6. Robert Bosch GmbH

Disclaimer: The companies listed above are not ranked in any particular order.

Asia Pacific Industrial Heat Pump Market Share Analysis 

The geographic scope of the industrial heat pump market report offers a detailed country analysis in Asia Pacific that includes countries such as China, Japan, India, Indonesia, Malaysia, Thailand, Vietnam, and the rest of APAC. China dominated the Asia Pacific industrial heat pump market in 2024, and it is expected to retain its dominance, followed by India, Japan, and South Korea over the forecast period. India is anticipated to register the highest CAGR of 10.3% during 2025–2031. The industrial heat pump market in India is growing at a rapid pace owing to the increasing investment in the manufacturing sector and rapid investment in the chemical and petrochemical sectors in India. According to the India Brand Equity Foundation, the Indian government planned to offer US$ 2.2 billion in incentives to boost the local manufacturing capacities in six new sectors, including shipping containers and chemicals. The manufacturing sector in India has the potential to reach to value of US$ 1 trillion by 2026, according to the India Brand Equity Foundation Organization. The manufacturing sector's gross value-added prices were estimated at US$ 110.48 billion in the first quarter of 2024. Further, increasing foreign direct investment in India is growing at a rapid pace in various sectors. For instance, according to the Department for Promotion of Industry and Internal Trade (DPIIT), India received a total foreign direct investment (FDI) of US$ 48.03 billion in 2023. India aimed for an annual investment of US$ 100 billion in the coming years, according to the Union Minister of Information and Broadcasting.

Asia Pacific Industrial Heat Pump Market Report Coverage and Deliverables

The "Asia Pacific Industrial Heat Pump Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Asia Pacific industrial heat pump market size and forecast at country levels for all the key market segments covered under the scope
• Asia Pacific industrial heat pump market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Asia Pacific industrial heat pump market analysis covering key market trends, country framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Asia Pacific industrial heat pump market
• Detailed company profiles