VALLEY COTTAGE, N.Y. — Global sales of heat pumps is estimated to be valued at $6.5 billion by the end of 2016, witnessing a year-over-year growth of 5.8 percent over 2015, according to a new report from Future Market Insights. Western Europe is projected to account for a value share of 40.7 percent of the market by year end but Asia Pacific excluding Japan (APEJ) is anticipated to gain a higher growth rate in later years of the 2016-2026 forecast period.
Rapid growth of the global construction industry, along with a strict implementation of new environmentally-friendly buildings especially in China, Japan, United States, South Korea, and Europe is expected to drive the residential use of heat pumps in these regions.
The global heat pumps market is segmented on the basis of product type (ground source heat pump, air-air heat pump, air-water heat pump, hybrid heat pump); refrigerants (HFC, ammonia, CO2, hydrocarbons, others); power source (electric, others (gas)); and end user (residential, commercial, industrial).
On the basis of product type, the air-water heat pumps segment is anticipated to continue to dominate the market in terms of value and volume over the forecast period, due to its strong demand from Western Europe and APEJ. However, air-water heat pumps face competition from geothermal and hybrid heat pumps that may require higher initial investment but provide better returns afterwards. The air-water heat pumps segment is anticipated to witness robust growth and register a compound annual growth rate (CAGR) of 8 percent in terms of value over the forecast period.
On the basis of power source, the electric heat pumps segment is anticipated to continue to dominate the market in terms of value and volume over the forecast period, owing to large availability and lower cost in most parts of the world. The electric heat pumps segment is anticipated to witness substantial growth and register a CAGR of 7.2 percent in terms of value over the forecast period.
On the basis of end-use, the residential segment is estimated to account for more than 55 percent value share of the global heat pumps market by the end of 2016. This segment is expected to remain dominant over the forecast period and is anticipated to witness steady growth and register a significant CAGR in terms of value over the forecast period.
The global heat pumps market is segmented into seven key regions: North America, Latin America, Western Europe, Eastern Europe, APEJ, Japan, and Middle East & Africa (MEA). Western Europe is the largest market for heat pumps. Rapid growth in residential and commercial buildings in APEJ and proactive government policies for energy and renewables is expected to drive revenue growth of the heat pumps market in this region over the forecast period.
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Publication date: 11/11/2016