Industrial Heat Pumps Market to Reach USD 4.0 Bn by 2035 at 5.9% CAGR | Transparency Market Research

Industrial Heat Pumps Market Outlook 2035 – Valued at US$ 2.1 Bn in 2024, projected to reach US$ 4.0 Bn by 2035, growing at a 5.9% CAGR.

WILMINGTON, DE, UNITED STATES, February 20, 2026 /EINPresswire.com/ -- The global industrial heat pumps market was valued at US$ 2.1 Billion in 2024 and is projected to reach US$ 4.0 Billion by 2035, expanding at a CAGR of 5.9% from 2025 to 2035. The market is witnessing steady growth driven by rapid industrial decarbonization mandates, tightening emission-reduction regulations, rising energy costs, and strong economic incentives supporting energy-efficient electrification technologies.

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In revenue terms, the market continues to expand in tandem with increasing electrification of industrial process heating, large-scale waste-heat recovery integration, and the deployment of high-temperature ammonia- and CO₂-based heat pump systems across manufacturing facilities.

Asia Pacific held the largest revenue share of 41% in 2024, while the <60 °C temperature segment accounted for 38% of total market share, reinforcing strong demand from food processing, district heating, and low-temperature industrial operations.

Market Overview

Industrial heat pumps are electrically powered thermal systems designed to upgrade low-temperature waste or ambient heat into usable higher temperatures for industrial processes. These systems operate through vapor compression or absorption cycles and can deliver 300–500% efficiency, significantly outperforming conventional fossil-fuel-based boilers.

They are widely used in:
• Food & beverage processing
• Chemical manufacturing
• Pharmaceuticals
• Pulp & paper
• Textile processing
• District heating networks
• Steam preheating and drying applications

Industrial heat pumps can operate below 60 °C for washing and pasteurization processes and extend beyond 150–200 °C for chemical and pharmaceutical applications.

With industries accelerating their decarbonization strategies and aligning with ESG and net-zero commitments, industrial heat pumps are emerging as a core solution for reducing carbon emissions, lowering operational costs, and improving overall energy efficiency.

Key Market Growth Drivers

1. Rapid Industrial Decarbonization and Emission-Reduction Mandates
The primary growth engine of the industrial heat pumps market is the global push toward industrial decarbonization.

Major economies are implementing strict emission-reduction policies, including carbon pricing mechanisms and net-zero targets for 2030 and 2050. The EU’s Fit for 55 package and rising carbon prices—exceeding EUR 80–90 per ton—are increasing the operating costs of fossil-fuel boilers.

Industrial heat pumps enable facilities to:
• Achieve 300–500% system efficiency
• Reduce CO₂ emissions by 30–60%
• Replace natural gas and fuel oil boilers
• Align with ESG and sustainability commitments

Countries such as Japan and Germany offer subsidies covering up to 40–50% of capital expenditure for industrial heat pump installations, significantly improving project ROI. Food & beverage and chemical manufacturers are increasingly deploying heat pump systems to recover waste heat and reduce annual emissions by thousands of tons.

2. Rising Energy Costs and Strong Economic Incentives for Efficiency
Escalating industrial energy prices are accelerating demand for high-efficiency heating technologies. Compared to conventional gas- or oil-fired boilers, industrial heat pumps drastically reduce energy consumption, particularly for process heating in the 60 °C to 150 °C range.

Key economic advantages include:
• Up to 300–500% improvement in energy efficiency
• Substantial reduction in thermal energy costs
• Faster payback periods supported by government incentives
For example, a 1 MW industrial heat pump can reduce annual energy expenses by up to US$ 350,000 when replacing a gas boiler, depending on local tariffs. As renewable electricity generation expands, electrified heating solutions are becoming increasingly cost-competitive.

<60 °C Segment – Leading Temperature Category

The <60 °C temperature segment represents the most commercially mature category, holding approximately 38% of the global market share.

This segment is extensively used in:
• Dairy pasteurization
• Food processing
• District heating
• Textile washing
• Industrial cleaning systems

Low-temperature industrial heat pumps achieve COP (coefficient of performance) values between 3.5 and 6, enabling up to 60% reduction in thermal energy costs compared to traditional boilers.

The presence of mature and commercially proven technologies from companies such as GEA Group, Johnson Controls, and Mitsubishi Heavy Industries makes this segment a low-risk investment for industries seeking immediate decarbonization gains.

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Industrial Heat Pumps Market Regional Insights

Asia Pacific – Leading Region (41% Share)
Asia Pacific dominates the global industrial heat pumps market, accounting for approximately 41% of total demand. Rapid industrialization, expanding manufacturing output, and stringent energy-efficiency regulations are key drivers.

China, Japan, and South Korea are witnessing increasing adoption across chemical, electronics, and district energy sectors. Japan has installed more than 3,000 high-temperature industrial heat pump units since 2022 as part of its industrial electrification initiatives.

Europe
Europe holds approximately 28% market share, supported by aggressive climate targets under the EU Green Deal. Germany added more than 800 MW of industrial and district heat pump capacity in 2023, reflecting strong policy support.

North America
North America accounts for roughly 18% share, driven by incentives under the U.S. Inflation Reduction Act. Food processing and pulp & paper industries have contributed significantly to nearly 200 MW of new capacity installations in recent years.

Analysis of Key Players – Competitive Landscape

The competitive landscape is technology-driven and moderately consolidated. Major companies include:
• GEA Group
• Mitsubishi Heavy Industries
• Sabroe
• Daikin Applied Europe
• Siemens Energy
• Turboden
• Atlas Copco
• Carrier
• Everllence
• Tetra Heat Pump
• Bosch Industrial

Industrial Heat Pumps Market – Recent Developments

• In 2025, GEA Group announced deployment of a high-temperature heat pump for sugar processing, upgrading waste heat to 135–160 °C to replace fossil-fuel boilers and reduce CO₂ intensity.

• In 2025, Mitsubishi Heavy Industries introduced compact, high-efficiency industrial heat pump modules that reduce installation footprint by approximately 28%.

• In 2024, Woodside Energy acquired an industrial heat pump manufacturing facility in Beaumont, Texas, valued at US$ 2.35 Billion, integrating low-carbon hydrogen and carbon capture initiatives.

• In November 2024, Everllence commissioned the world’s largest 70 MW CO₂-based seawater heat pump in Esbjerg, Denmark, delivering approximately 280,000 MWh of climate-neutral heat annually and reducing 120,000 tons of CO₂ emissions.

Market Challenges & Opportunities

Challenges

• High upfront capital investment
• Complex integration into existing facilities
• Dependence on electricity grid decarbonization
• Technical limitations for ultra-high-temperature processes

Opportunities

• Accelerated industrial electrification
• Expansion into high-temperature process heating
• Waste-heat recovery optimization
• Integration with renewable energy systems
• Strong government subsidies and carbon pricing incentives

Market Segmentation

By Temperature Range
• <60 °C (38% share in 2024)
• 60–150 °C
• >150 °C

By Application
• Food & Beverage
• Chemicals
• Pharmaceuticals
• Pulp & Paper
• Textiles
• District Heating


By End-Use
• Manufacturing
• Energy & Utilities
• Industrial Processing

By Region
• Asia Pacific (41% share, leading region)
• Europe
• North America
• Latin America
• Middle East & Africa

Why Buy This Report?

• Comprehensive market sizing and 2035 forecast
• Detailed segment-level and temperature-range analysis
• Competitive landscape and company profiling
• Regulatory and decarbonization insights
• Investment and ROI outlook
• Regional and country-level breakdown
• Porter’s Five Forces and value chain analysis
• Strategic recommendations for stakeholders

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FAQs

1. What is the projected size of the industrial heat pumps market by 2035?
The market is expected to reach US$ 4.0 Billion by 2035.

2. What is the CAGR during 2025–2035?
The market is projected to expand at a CAGR of 5.9%.

3. Which region leads the market?
Asia Pacific holds the largest revenue share at 41%.

4. Which temperature segment dominates?
The <60 °C segment leads with approximately 38% market share.

5. What are the key growth drivers?
Rapid industrial decarbonization mandates and rising energy costs supported by strong efficiency incentives.

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