$3450
$2760
The Asia Pacific industrial heat pump market size is projected to reach US$ 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: Strategic Insights
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We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Asia Pacific Industrial Heat Pump Market: Strategic Insights
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Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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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 Report Scope
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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The Asia Pacific industrial heat pump market is expected to reach US$ 5,408.38 million by 2031.
China has the largest share in Asia Pacific industrial heat pump market.
The water segment held the largest share in the Asia Pacific industrial heat pump market in 2024.
The key companies operating in the industrial heat pump market include 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.
Rapid innovations in the industrial heat pump market are significantly reshaping Asia Pacific industrial heat pump market.
The increase favourable government policies related to the carbon dioxide reduction across the globe is major driving factor for the market growth.
The Asia Pacific industrial heat pump market was valued at US$ 3,088.66 million in 2024.
The List of Companies - Asia Pacific Industrial Heat Pump Market
- Mitsubishi Heavy Industries
- Daikin Industries Ltd
- Danfoss A/S
- Emerson Electric
- Johnson Controls International Plc
- Robert Bosch GmbH
- Siemens AG
- Carrier
- Swegon
- Atlas Copco AB
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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