Industrial Heat Pump Market Size

Industrial Heat Pump Market size was estimated at USD 1.5 billion in 2024 and is expected to surpass USD 2.9 billion by the end of 2037, rising at a CAGR of 5.7% during the forecast period, i.e., 2025-2037. In 2025, the industry size of industrial heat pumps is estimated at USD 1.6 billion.

The expansion of infrastructure and rapid urbanization particularly in developing countries are catalyzing the demand for heat pumps.  According to a 2023 report by the United Nations Development Programme (UNDP), the increasing construction of cities and the growth of new commercial and residential structures drive the need for contemporary energy-saving heating and cooling options in China. Heat pumps are gaining attention in construction for their eco-friendliness, effectiveness, and flexibility. The increasing construction of smart cities and green buildings are encouraging the adoption of heat pumps which are essential in achieving energy efficiency and reducing the environmental impacts of urban infrastructure.

Constant advancement in technology has resulted in improved efficiency, cost-effectiveness, and reliability of such appliances. New refrigerants with low global warming potential are being advanced to ensure greater gains while operating in an ecologically safe way. The incorporation of developed control systems is a significant trend. As a result, these developments in industrial heat pumps are gaining more recognition as economically attractive and environmentally safe tools for heating and cooling in the industrial context. For example, in May 2024, Midea announced the EVOX G3 heat pump system which consists of advanced technologies such as enhanced vapor injection and low GWP refrigerant R454B, intended for effective heating in colder regions.