Global Market for Decarbonized Heating Equipment Is Expected to Reach to $156 Billion by 2030
Market barriers include high upfront costs and low acceptance by consumers of new technologies
A new report from Guidehouse Insights explores market trends and provides a global forecast of heat decarbonization solutions for commercial and residential buildings by segment and region, with forecasts extending through 2030.
The heating market is still dominated by fossil fuel-based equipment and less efficient electric heating technologies. However, technologies that provide heating decarbonization solutions, such as heat pumps, variable refrigerant flow (VRF) systems, and hydrogen boilers, are becoming available. According to a new report from Guidehouse Insights, the global market for decarbonized heating equipment is expected to grow to $156.5 billion in 2030 at a compound annual growth rate (CAGR) of 6.3%.
“Opportunities for heat decarbonization in buildings are becoming more prominent as the transition to a low or zero carbon environment accelerates,” says Sasha Wedekind, senior research analyst with Guidehouse Insights. “The proliferation of renewables, new policy and regulations, hydrogen initiatives, and advancements in technology are all drivers in the push toward heat decarbonization.”
Despite these drivers, many market barriers still exist. Few consumers are aware of heat pumps and are averse to the high upfront cost. Furthermore, hydrogen infrastructure is lacking, making widespread adoption of hydrogen boilers unrealistic for the coming decade. Moreover, consumer education and engagement are low when it comes to new technologies.
The report, Decarbonizing Heat in Buildings, explores market trends and provides a global forecast of heat decarbonization solutions. The forecast in this report is segmented by heat pumps and hydrogen boilers. VRF heat pump systems are considered in the commercial sector. The forecast is further segmented by commercial and residential buildings, as well as five global regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Forecasts extend through 2030. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Decarbonizing Heat in Buildings, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.