PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1804837
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1804837
The global large scale natural refrigerant heat pump market is projected to reach USD 14.90 billion by 2030 from USD 7.28 billion in 2025, registering a CAGR of 15.4%.
Scope of the Report | |
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Years Considered for the Study | 2020-2030 |
Base Year | 2024 |
Forecast Period | 2025-2030 |
Units Considered | Value (USD Million/Billion) |
Segments | Refrigerant, Capacity, End Use, Technology |
Regions covered | North America, Europe, Asia Pacific, South America, Middle East, and Africa |
In response to growing pressure from stakeholders and regulatory bodies, large corporations are increasingly adopting natural refrigerant heat pumps across industrial and commercial facilities as part of their Environmental, Social, and Governance (ESG) strategies. These systems align with sustainability and climate action goals by reducing greenhouse gas emissions and enhancing transparency in ESG reporting. By integrating low-GWP technologies, companies demonstrate proactive climate leadership, improve brand reputation, and future-proof operations against evolving environmental regulations and investor expectations.
"By end use, the industrial segment is expected to be the fastest-growing market during the forecast period."
Industrial sectors are facing growing regulatory and societal pressure to reduce carbon emissions from energy-intensive thermal processes. Traditional systems reliant on fossil fuels, such as boilers and steam generators, contribute significantly to industrial CO2 emissions. Large scale heat pumps utilizing natural refrigerants like ammonia (R717) and CO2 (R744) present a clean, energy-efficient solution for delivering high-temperature heat. These systems enable industries to electrify their heating operations, significantly lower their carbon footprint, and align with national and corporate decarbonization goals-without compromising on performance or reliability. Large scale heat pump systems are providing high-temperature output with remarkable efficiency, creating a potential solution to the many industrial processes to deliver a range of temperatures encountered within industrial applications, in the chemical, food & beverage, pulp & paper, and metallurgy sectors. Large scale natural refrigerant heat pumps are viable solutions for industries to pivot from combustion-based systems to an electrified thermal energy. By electrifying thermal energy, industries can define long-term GHG emissions reduction strategies and meet ESG reporting, national climate targets, and global decarbonization commitments. As industries not only position for sustainability strategies, they are likely to prioritize operational continuity, and it is highly likely that large scale natural refrigerant heat pumps may deliver performance, compliance, and environmental benefits together.
"By refrigerant, the Carbon dioxide (R-744) segment is anticipated to dominate the market in 2025."
With the global shift toward carbon accountability, industries reliant on fossil-fuel-based heating systems are increasingly burdened by carbon taxes, emissions trading schemes, and regulatory penalties. These financial pressures are driving demand for cleaner, more sustainable technologies. CO2-based heat pumps offer a compelling alternative by significantly lowering direct greenhouse gas emissions. Their adoption enables industries to minimize carbon liabilities, access emissions reduction incentives, and improve long-term cost predictability-while aligning with climate commitments and sustainability targets. Its capability to recover and upgrade low-grade waste heat makes it highly effective for industrial decarbonization. Moreover, CO2-based systems are increasingly eligible for government subsidies, carbon credit schemes, and tax incentives, which improve their financial viability for both retrofits and greenfield projects. With a growing number of OEMs scaling up production and enhancing R-744 system performance, the segment is set to lead the natural refrigerant market by 2025-serving as a cornerstone in the global shift toward net-zero heating technologies.
"By region, North America is expected to account for the second-largest market share during the forecast period."
As part of broader efforts to decarbonize operations, North American industries are accelerating the shift toward electrified process heating. This transition is driven by the need to reduce dependence on fossil fuels, comply with evolving climate regulations, and meet corporate sustainability targets. Large scale heat pumps using natural refrigerants like ammonia and CO2 are emerging as strategic solutions for replacing conventional gas-fired boilers. These systems offer high energy efficiency, lower greenhouse gas emissions, and seamless integration with renewable electricity sources-making them vital tools in the industrial electrification landscape.
By Company Type: Tier 1 - 60%, Tier 2 - 30%, and Tier 3 - 10%
By Designation: Managers - 45%, CEO's and Directors - 30%, and Executives - 25%
By Region: North America - 40%, Europe - 25%, Asia Pacific - 20%, Middle East & Africa - 5% and South America - 10%
Note: The tiers of the companies are defined based on their total revenues as of 2024. Tier 1: > USD 1 billion, Tier 2: USD 500 million to USD 1 billion, and Tier 3: < USD 500 million. Others include sales managers, engineers, and regional managers.
Siemens Energy (Germany), Johnson Controls (Ireland), Copeland LP (US), GEA Group Aktiengesellschaft. (Germany), Mitsubishi Electric Corporation (Tokyo), Guangdong PHNIX Eco-energy Solution Ltd. (China), ARANER (United Kingdom), Star Refrigeration (United Kingdom), Clade Engineering Systems Ltd (United Kingdom), AGO GmbH Energie + Anlagen (Germany), Lync (US), SKADEC GmbH. (Germany), MAYEKAWA MFG. CO., LTD. (Japan), Fenagy A/S. (Denmark), Pure Thermal (US), Enerblue srl (Italy), ALFA LAVAL (Sweden), NH3 Solutions (Denmark), Thermax Limited (India) are the key players in the large scale natural refrigerant heat pump market. The study includes an in-depth competitive analysis of these key players in the large scale natural refrigerant heat pump market, with their company profiles, recent developments, and key market strategies.
The report defines, describes, and forecasts the large scale natural refrigerant heat pump market by Refrigerant (Ammonia (R-717), Carbon dioxide (R-744), Hydrocarbons, Other Refrigerants), Capacity (20-200 kW, 200-500kW, 500-1000kW, Above 1000 kW), End Use (commercial, Industrial), Technology (Air-to-Air Heat Pumps, Air-to-Water Heat Pumps, Water Source Heat Pumps, Ground-Source (Geothermal) Heat Pumps, Hybrid Heat Pumps), and region (North America, Europe, Asia Pacific, Middle East & Africa, and South America). The report's scope covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of large scale natural refrigerant heat pump market. A thorough analysis of the key industry players has provided insights into their business overview, solutions, and services; key strategies such as contracts, partnerships, agreements, mergers, and acquisitions; and recent developments associated with the large scale natural refrigerant heat pump market. This report covers the competitive analysis of upcoming startups in the large scale natural refrigerant heat pump market ecosystem.
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