Market for Heat Pumps in Cold Climates is Anticipated to Grow to $13 Billion in 2031
Market barriers include high prices, technological limits, lack of clear guidelines and shortage of industry experts
A new report from Guidehouse Insights analyzes the market for residential heat pumps (HP) in cold climates and examines key technology trends.
Although electrification technologies are becoming cost-effective and more reliable than fossil fuel systems in various climates, a HP running on electricity loses efficiency and performance when the outside temperature is below the freezing point. The cold-climate heat pump (CCHP) achieves better heating performance than the conventional HP in these cold regions. According to a new report from Guidehouse Insights, the HP market in cold climates is anticipated to grow from $6.57 billion in 2022 to $13.11 billion in 2031 at a compound annual growth rate (CAGR) of 8.0%.
“CCHP technology advances have broken down boundaries and allowed HP to expand its application range to cold climates,” says Young Hoon Kim, senior research analyst with Guidehouse Insights. “CCHP has substantial growth potential and manufacturers should take advantage of this market opportunity by educating installers about the benefits of CCHP. Utilities serving cold regions can also use CCHP technology to move one step closer to reducing CO2 emissions.”
The report summarizes the market drivers and barriers for HP and CCHP technologies. Market barriers include high electricity prices, a heating culture that rejects the technology, technological limits, lack of clear CCHP guidelines, a shortage of experts and a lack of awareness, as well as a lack of product type in certain regions, according to the report.
The report, Cold-Climate Heat Pumps, covers residential HP technology for the cold regions of North America, Europe, and Asia Pacific through 2031. The outlook is broken down by HP types, such as air-source HP, HP water heaters, ground-source HP, and exhaust-air HP. The report also analyzes residential heating technologies such as boilers and furnaces to estimate the HP market’s potential in these northern regions. In this outlook, district heating, distributing a large amount of generated heat to individual households, is excluded. 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, Cold-Climate Heat Pumps, 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.