Impact of the Covid-19 Outbreak on the Global Heat Pumps Market
The spread of the COVID-19 pandemic has negatively impacted the global heat pumps market owing to the lockdowns imposed in the majority of the countries across the globe since December 2019. A heat pump is a device that is used to transfer heat/thermal energy from one place to another. Heat pumps consist of four major components, namely, the condenser, the expansion valve, the evaporator, and the compressor. The heat transfer medium circulated through these components is known as the refrigerant. Heat pumps are an integral part of the heating, ventilation, and air conditioning (HVAC) devices that are used for space heating and cooling. The reduction in primary energy consumption and CO2-emissions is the major driver for the growth of the heat pumps market. Increasing investments in the construction and residential sectors are expected to provide growth opportunities for the suppliers of heat pumps. The demand for these products has been hampered temporarily in recent months owing to the shutting down of businesses globally. However, the demand for heat pumps is anticipated to recover in the coming months and grow significantly in the long term.
FIGURE: Sales of Heat Pumps in Europe, 2014-2018 (Million Units)Government policies in many countries have continued to focus on the promotion of renewable and energy-efficient heating and cooling technologies in the commercial, residential, and industrial sectors. According to the International Renewable Energy Agency (IRENA), carbon emissions must decline to 9.5 gigatons (Gt) by 2050 in order to limit global warming to less than 2 degrees Celsius above pre-industrial temperatures. To achieve this, there is a need for the expansion of renewable energy and improving energy efficiency, which is projected to drive the demand for heat pumps worldwide. Moreover, increasing infrastructural developments are also expected to drive the use of heat pumps, particularly in industrial areas. For instance, according to the India Brand Equity Foundation (IBEF), India would require an investment of USD 777.73 billion in infrastructure by 2022, to ensure sustainable development in the country. This, in turn, is expected to boost the demand for heat pumps in the country. Hence, the demand for heat pumps is anticipated to increase in the coming years.
Source: European Heat Pump Association (EHPA)
Source: Primary Experts, Secondary Sources and MRFR Analysis