Large-scale Natural Refrigerant Heat Pump Market Size [2031]

Report Description

Large-scale Natural Refrigerant Heat Pump Market Outlook 2031

The global large-scale natural refrigerant heat pump market size was USD 2.63 Billion in 2022 and is likely to reach USD 12.90 Billion by 2031, expanding at a CAGR of 9.7% during 2023–2031. The market growth is attributed to the rising eco-friendly sustainability.

Increasing eco-friendly sustainability is expected to boost the large-scale natural refrigerant heat pump market in the coming years. As concerns over climate change and ozone layer depletion intensify, which is increasing emphasis on reducing the environmental impact of cooling and treatment systems.

Natural ingredients such as carbon dioxide, ammonia, and hydrocarbons have increased their popularity due to their ozone-depleting potential and global warming potential compared to synthetic refrigerants such as hydrofluorocarbons.

This shift toward natural refrigerants is in line with global efforts to curb greenhouse gas emissions and promote eco-friendly technologies. The adoption of large-scale natural refrigerant heat pumps helps organizations reduce their carbon footprint, enhance their sustainability credentials, and comply with environmental regulations.

• In February 2022, EVAPCO, Inc. acquired Systemes LMP to pursue the growing demand for eco-friendly sustainable refrigeration systems by using natural ingredients. EVAPCO refrigeration division reinforces its chiefly ammonia-based industrial technology that offers through immediate growth into and synergy with LMP's CO2 expertise and product offerings.

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The market report finds that the COVID-19 pandemic hindered the market, due to the strict lockdown imposed by the government. During the pandemic, the disruption of the supply chain and the sharp drop in industrial and commercial sectors impacted the expansion of the market.

Large-scale Natural Refrigerant Heat Pump Market Dynamics

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Major Drivers

Increasing demand for heat pump technologies in both developed and developing countries is expected to fuel the large-scale natural refrigerant heat pump market during the forecast period. Heat pumps offer a versatile solution for heating and cooling needs, making them applicable to various sectors such as industrial, commercial, and residential.

As households and businesses seek sustainable and efficient heating and cooling options, which increases the demand for the market. This technology is a favorable solution for lessening greenhouse gas emissions. Several large-scale heat pumps such as open-cycle mechanical vapor compression heat pumps, closed-cycle absorption heat pumps, and others that provide an energy-effective approach to cooling and heating in industrial and commercial applications.

Rising government initiatives to improve efficiency in the industrial sector is anticipated to drive the large-scale natural refrigerant heat pump market in the coming years. Energy efficiency refers to using less energy to do small tasks, which lowers energy costs and pollution. Governments of several countries are aiming for initiatives to reduce energy use, which increases energy efficiency.

• In November 2021, the International Energy Efficiency and the UK Government announced that the four major companies Australia, Japan, Indonesia, and Nigeria have signed onto their action plan for rapidly expanding the energy efficiency of products sold worldwide, bringing the total to 14 and making it the largest ever global initiative of its kind.

Existing Restraints

Lack of awareness and the shortage of workforce is expected to hinder the market. Lack of shortage of workforce familiar with natural refrigerant technologies such as carbon dioxide, ammonia, and hydrocarbons require specialized knowledge and expertise in installation, handling, and maintenance.

Several technicians and HVAC professionals need the necessary training and certification to work with these refrigerants effectively and safely, which hampers the market.

Emerging Opportunities

Growing technological advancements for the development of products is expected to create lucrative opportunities for the market players. Continuous research & development (R&D) efforts are leading to reliable, efficient, and versatile heat pump systems.

These technologies include improvements in compressor technology, control systems, and heat exchangers, resulting in high performance and improved operational flexibility. The increasing integration of digital controls, the Internet of Things and smart sensors allows remote monitoring and optimization of large-scale heat pump systems that improve efficiency and reliability.

• In July 2023, Carrier launched its innovative HeatCO2OL range of heat pumps. Featuring a compact, effective design that uses renewable energy sources. Carrier HeatCO2OL products lessen carbon emissions and help customers accelerate their sustainability efforts, all delivered with a low cost of ownership.

Scope of Large-scale Natural Refrigerant Heat Pump Market Report

The market report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Large-scale Natural Refrigerant Heat Pump Market Segment Insights

Natural Refrigerant Segment Analysis

Based on natural refrigerant, the large-scale natural refrigerant heat pump market is divided into carbon dioxide (R744), hydrocarbons, ammonia (R717), and others. The carbon dioxide (R744) segment is expected to expand at a significant pace during the projection period, due to its exceptional bear capacity and non-toxic chemical properties.

Carbon dioxide is a natural refrigerant that is not deplete the ozone layer and has a minimal contribution to global warming as compared to other refrigerants. It is non-toxic, non-inflammable, and non-explosive, which makes it a safe refrigerant to operate and handle. It is widely available and easily sourced, which makes it a cost-effective refrigerant with a secure supply chain as compared to other synthetic refrigerants that are costly and difficult to obtain.

Capacity Segment Analysis

In terms of capacity, the global market is segregated into 20 to 200 kW, 200 to 500 kW, 500 to 1000 kW, and above 1000 kW. The 20 to 200 kW segment is projected to register a considerable CAGR during the forecast period, as it commonly serves commercial end-users such as malls, hotels, and retail outlets.

The 20 to 200 kW large-scale natural refrigerant heat pumps are used in air conditioners, refrigerators, freezers, and other devices. Suitability for light commercial and small industrial activity is a major advantage that is expected to drive the segment.

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End-user Segment Analysis

On the basis of end-user, the large-scale natural refrigerant heat pump market is segmented into industrial and commercial. The industrial segment is expected to register a robust pace during the forecast period, owing to the rising government measures to increase industrial energy efficiency.

Industrial facilities typically require substantial amounts of heat for various processes, making them prime candidates for large-scale natural refrigerant heat pumps. These heat pumps are excellent in meeting the heating and cooling needs that are required for industries involved in chemical processes, manufacturing, and food production. This versatility and ability to meet high heating demands makes them naturally suitable for industrial applications.

Regional Analysis

In terms of region, the global large-scale natural refrigerant heat pump market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to the rising demand for eco-friendly and sustainable heat pumps.

Increasing consumer awareness and businesses in the region regarding the environmental impact of conventional refrigerants increases the demand for heat pumps. The regional market growth is further attributed to the increasing government regulations prompting the use of natural refrigerants and growing awareness about the harmful effects of conventional refrigerants.

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