Air source heat pump market, consistently led by initiatives such as emission reduction targets, incentive plans, and clean heating & cooling programs, since the last few years, has evolved rapidly in terms of the commercialization landscape. With a recorded valuation of USD 30 billion in 2017, global air source heat pump market, in terms of annual installations has been forecast to surpass 13 million units by the end of 2024. One of the most pivotal factors that can be credited for the commendable traction that ASHP market is projected to accomplish is the unprecedented rise in carbon emissions that has had a disastrous impact on the environment.
Europe Air Source Heat Pump Market Size, By Application, 2017 & 2024 (USD Million)
Naturally, global concerns regarding the hazards of carbon footprints have necessitated a large-scale adoption of energy saving components – thus validating the immense scope of commercialization of air source heat pump market across myriad geographies. In fact, it has been reported that an air source heat pump can generally deliver half to three times more heat energy than the electricity it consumes. Quite overtly, this is another factor responsible for the growth of air source heat pump industry. Enumerated below is a quick insight into the geographical landscape of this business space.
A gist of U.S. air source heat pump industry trends
The United States is indeed a prominent growth avenue for ASHP market. The rising adoption of air source heat pumps in the energy-related policies of various states can be aptly credited for the growth of this regional business. It is prudent to mention that New York is one of the most significant states participating proactively in reshaping the regional demographics. Elaborating further, cooling and heating in buildings contribute to 32% of New York’s combustion-related GHG emissions. In support to the State’s GHG emission reduction goals that reportedly aim at minimizing 40% of GHG emissions by 2030 and 80% by 2050, the NYSERDA (New York State Energy Research and Development Authority) has initiated an integrated, long-term Policy Framework to encourage the adoption of clean heating & cooling technologies and reduce the reliance on fossil fuels.
The NYSERDA in this regard launched an “Air-Source Heat Pump Program” in 2017 to increase the adoption of ASHP’s in the region and encourage wide-scale use for space heating and cooling. In addition, NYSERDA will provide incentives of USD 10.95 million to the installers to support the deployment of the program. If industry experts are to be believed, this initiative will lead to massive demand for ASHP systems in the marketplace, in turn fueling the regional air source heat pump market growth.
Yet another vital instance altering the dynamics of U.S. ASHP industry in the recent years, is of the State government’s introduction of a tax rebate till 2021 for commercial and residential buildings in a bid to support the adoption of energy efficient systems. Moreover, regulators are also imposing strict energy-codes and standards to reduce electricity bills, which is certain to have a profound impact on the sales of ASHPs. In consequence, regional air source heat pump market size is expected to witness a massive upsurge by 2024.
Unveiling Germany air source heat pump industry outlook
Germany ASHP industry is another prominent contender in the regional league that is anticipated to surpass 65,000 units by the end of 2024. Given the region’s stringent energy codes and efficiency policies pertaining to the adoption of sustainable heating & cooling schemes in commercial & residential building construction, it goes without saying that the regional air source heat pump market will witness remarkable proceeds down the line.
Not to mention, the German Renewable Energy Heating Act that introduced the obligation of using sustainable and renewable energies for domestic water and space heating in residential buildings has also provided a subtle backing for the regional ASHP market.
An outline of APAC air source heat pump industry
Delving deeper into the regional landscape of air source heat pump market, it is imperative to mention that besides the established regions, the emerging economies are also racing ahead in contributing toward global air source heat pump industry share. Fueled by rapid industrialization and urbanization, Asia Pacific has emerged as a lucrative belt for the expansion of air source heat pump market. The World Bank, in the year 2015 analyzed over 50% of the population in Asia Pacific to be residing in urban areas - comparatively much more that the combined population of the U.S. and Europe. This statistic sheds light on the increasing demand of energy efficient systems that need to be installed according to energy codes in residential, commercial, and industrial sectors, thus impelling APAC air source heat pump market share.
China recently introduced a New Type Urbanization Plan for the development of a scientific & reasonable urban development model by 2020. The plan, according to reliable reports, aims to seek developments on ecological progress, urbanization quality, and decarbonizing cities. In essence, driven by the country’s sustainable development approach, the regional air source heat pump market is anticipated to witness commendable growth in the ensuing years. Other economies including South Korea, India, Malaysia, and Singapore, are also expected to enroll their names in air source heat pump industry, predominantly driven by favorable governmental support in terms of policies and subsidies pertaining to ASHP installations.
It is rather evident that the regional landscape of air source heat pump industry is rapidly evolving with governmental rollouts and developments brought forth by the regional players toward offering more cost effective and energy efficient systems. On that note, it is prudent to mention that notable innovations such as the reverse cycle chiller and indoor pumps for low acoustic emissions have rapidly made inroads in air source heat pump market, which is further expected to strengthen the future commercialization potential of this business sphere. Driven by the mammoth participation of industry players and the extensive proportion of governmental initiatives, air source heat pump market size is expected to cross USD 50 billion it the coming six years.