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					</table>Sales of heat pumps worldwide increased by 11% in 2022, spurred by the global shift towards reliable and environmentally friendly heating, a recent analysis by the International Energy Agency (<a href="https://www.iea.org/" target="_blank" rel="noopener">IEA</a>) said. This is the second consecutive year with a double-digit growth rate.
The increase in policy support and incentives is driving the surge in demand for heat pumps globally, especially in Europe, where sales have reached an all-time high, with air-to-water models experiencing a growth rate of almost 50%.
In the U.S., heat pump purchases have surpassed those of gas furnaces. However, China&#8217;s heat pump market has remained constant due to a general economic slowdown.
To achieve net-zero emissions by 2050, global heat pump sales must increase by more than 15% annually over the next decade.
Heat pumps currently provide heating for 10% of building heating requirements worldwide, but they need to cater to almost 20% by 2030 to meet all existing national energy and climate commitments.
The report said that the installation of heat pumps in multi-story apartment buildings and commercial spaces should be prioritized, along with energy efficiency retrofits, to ensure maximum efficiency and appropriate sizing.
<img loading="lazy" decoding="async" class="wp-image-52331 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/annual-growth-in-sales-of-heat-pumps-in-buildings-worldwide-and-in-selected-markets-2021-and-2022.png" alt="Figure 1 Annual growth in sales of heat pumps in buildings worldwide and in selected markets, 2021 and 2022" width="1200" height="1000" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/annual-growth-in-sales-of-heat-pumps-in-buildings-worldwide-and-in-selected-markets-2021-and-2022.png 1200w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/annual-growth-in-sales-of-heat-pumps-in-buildings-worldwide-and-in-selected-markets-2021-and-2022-300x250.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/annual-growth-in-sales-of-heat-pumps-in-buildings-worldwide-and-in-selected-markets-2021-and-2022-768x640.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/annual-growth-in-sales-of-heat-pumps-in-buildings-worldwide-and-in-selected-markets-2021-and-2022-650x542.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/annual-growth-in-sales-of-heat-pumps-in-buildings-worldwide-and-in-selected-markets-2021-and-2022-624x520.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/annual-growth-in-sales-of-heat-pumps-in-buildings-worldwide-and-in-selected-markets-2021-and-2022-600x500.png 600w" sizes="(max-width: 1200px) 100vw, 1200px" /> Figure 1: Annual growth in sales of heat pumps in buildings worldwide and in selected markets, 2021 and 2022 | Source: IEA
 
Heat Pump Sales in Europe Reach Record High
Europe saw a significant increase in heat pump sales in 2022, with almost 3 million units sold, a 40% increase from the previous year.
The spike was caused by a rise in natural gas and electricity prices due to Russia&#8217;s invasion of Ukraine, prompting consumers to switch to more efficient heat pumps.
According to IEA’s World Energy Outlook <a href="https://mercomindia.com/global-energy-crisis-expedite-to-sustainable-clean-sources-iea/" target="_blank" rel="noopener">published</a> recently, the global energy crisis caused by Russia’s invasion of Ukraine is accelerating the transition to a more sustainable and secure energy system.
The European Commission aims to double the deployment rate of heat pumps in the region, and most EU countries offer financial incentives to achieve this goal.
France&#8217;s heat pump sales surpassed those of fossil fuel boilers in 2022, coinciding with a national ban on gas boilers in new buildings. 
<img loading="lazy" decoding="async" class="wp-image-52334 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/pic-22.png" alt="Figure 2 Ratio between sales of heat pumps and fossil fuel-based heating systems for buildings in selected countries, 2021 and 2022" width="1732" height="895" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/pic-22.png 1732w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/pic-22-300x155.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/pic-22-768x397.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/pic-22-1536x794.png 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/pic-22-650x336.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/pic-22-624x322.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/pic-22-600x310.png 600w" sizes="(max-width: 1732px) 100vw, 1732px" /> Figure 2: Ratio between sales of heat pumps and fossil fuel-based heating systems for buildings in selected countries, 2021 and 2022 | Source: IEA
Asia and North America Dominate the Market 
North America leads in heat pump capacity for building heating, with the United States surpassing gas furnaces in sales last year.
IEA projected that constant policy support like the Inflation Reduction Act <a href="https://mercomindia.com/inflation-reduction-act-a-gamechanger-solar/" target="_blank" rel="noopener">passed</a> by the United States would boost the deployment and adoption of heat pumps globally.
Air-to-air models are prevalent in residential units, with larger ducted air systems commonly used. In China, the largest global market, heat pump sales slowed but still exceeded all other countries.
District heating is still popular in Northern China, while air-to-air reversible units are common in the milder South. Japan and Korea have stable sales of air-to-air heat pumps, focusing on replacing less efficient models.
Upfront costs limit heat pump deployment in Central Asia and some parts of Eastern Europe, but they could play a role in decarbonizing district heating networks.
Incentives Drive Heat Pump Deployment
Financial incentives available in over 30 countries around the world have boosted heat pump sales, with these countries accounting for more than 70% of global building heating demand.
Many of the schemes were strengthened or introduced in 2022, with subsidy levels increasing in several countries since the beginning of the year.
In most major markets, financial incentives now make the purchase of cheaper heat pump models comparable to that of a new gas boiler for consumers.
However, there are still some countries where electricity tariffs and energy taxation put heat pumps at a disadvantage relative to fossil fuel boilers.
The report further said that the continued growth of heat pumps also requires secure and resilient supply chains, as manufacturers with headquarters in Japan and China account for nearly 70% of the global market.
Expanding production capacity by 2030 to the level outlined in the IEA&#8217;s pathway to net zero emissions would require additional investments of $15 billion globally.
Better Data Crucial Expedited Deployment
The report further suggests that to speed up the adoption of heat pumps, it is important to have detailed information on their usage, capacity, and building type. Better international collaboration could help share best practices and standardize reporting.
The need for more data on large-scale heat pumps used in industry and district heating is a concern, as they play an important role in decarbonizing heat.

Global Demand for Heat Pumps Rises Sharply as Climate Concerns Escalate

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					</table>The sales of heat pumps are expected to soar to record levels this decade as countries look to shift away from fossil fuel dependence for heating requirements, primarily due to the current global energy crisis, the International Energy Agency (<a href="https://www.iea.org/" target="_blank" rel="noopener">IEA</a>) said in a report.
The installed capacity of heat pumps in buildings worldwide is over 1,000 GW currently. IEA has projected the installed capacity of heat pumps to hit 2,600 GW by 2030.
Global heat pump sales rose by nearly 15% in 2021, double the average of the past decade. It was primarily led by Europe, where it surged by around 35%, the report titled ‘The Future of Heat Pumps’ said.
A heat pump extracts heat from a source, such as the surrounding air, geothermal energy stored in the ground, nearby water sources or waste heat from a factory. It then amplifies and transfers the heat to where it is needed.
Because most of the heat is transferred rather than generated, heat pumps are far more efficient than conventional heating technologies such as boilers or electric heaters and can be cheaper to run.
<a href="https://mercomindia.com/wp-content/uploads/2022/12/Image-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-45949" src="https://mercomindia.com/wp-content/uploads/2022/12/Image-1.png" alt="Heat Pumps-1" width="600" height="416" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Image-1.png 800w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Image-1-300x208.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Image-1-768x532.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Image-1-650x450.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Image-1-624x432.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Image-1-600x416.png 600w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Figure 1: Annual growth in sales of heat pumps in buildings in selected regions, 2021 (IEA)
Fossil fuel-based heating
Natural gas meets 42% of building heating energy demand worldwide.
While one-sixth of global natural gas demand is for heating buildings, it is about one-third in the European Union (EU).
A spike in heat pump adoption would eventually lead to a 9% electricity demand rise by 2030.
Increasing deployment of heat pumps will contribute to over half of the 29% decrease in demand for fossil fuels in space and water heating by 2030.
The IEA projected that such rapid growth would cut gas consumption by 7 billion cubic meters (bcm) in 2021 and by 21 bcm in 2030— equaling 15% of the EU’s imports from Russia last year.
IEA projects that to cut its <a href="https://mercomindia.com/germany-installs-solar-moves-russian-gas-dependency/" target="_blank" rel="noopener">dependence</a> on natural gas imports from Russia before 2030, Europe will require at least 45 million heat pumps, three times more than currently in use.
An increase in the deployment of heat pumps would massively decrease global dependence on gas by over 160 bcm by 2030.
Global scenario
The increased adoption of electric pumps in colder nations like the EU and the U.S. helped mitigate nearly three-quarters of heating-related emissions in 2021.
Annual installations of heat pumps in Europe alone are set to total nearly 7 million by the decade’s end, up from just 2 million in 2021. The report projected China, North America, and Europe to lead the heat pump markets globally by 2030, addressing 20% of the global heating needs.
Heat pumps will also fulfill nearly 40% of the industrial demand by 2030, the report said.
<a href="https://mercomindia.com/wp-content/uploads/2022/12/Image-2.png"><img loading="lazy" decoding="async" class="alignnone wp-image-45951" src="https://mercomindia.com/wp-content/uploads/2022/12/Image-2.png" alt="Heat Pumps-2" width="600" height="416" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Image-2.png 800w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Image-2-300x208.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Image-2-768x532.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Image-2-650x450.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Image-2-624x432.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Image-2-600x416.png 600w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Figure 2: Country/region-wise heat pump capacity in buildings for 2021 and 2030 (IEA)
“Heat pumps address many of policymakers’ most pressing concerns on energy affordability, supply security and the climate crisis. Policy measures are in place today, but they need to be reinforced urgently to allow heat pumps to fulfill their significant economic and environmental potential,” said IEA’s Executive Director Fatih Birol.
IEA projected that constant policy support like the Inflation Reduction Act <a href="https://mercomindia.com/inflation-reduction-act-a-gamechanger-solar/" target="_blank" rel="noopener">passed</a> by the United States would boost the deployment and adoption of heat pumps globally.
A surge in the deployment of heat pumps would also increase global employment threefold to over 1.3 million workers over 2021-30, with a third of the new jobs in China, 20% in Europe, and 15% in North America.
These three regions will witness faster expansion in heat pump installation and manufacturing capacity.
According to IEA’s World Energy Outlook <a href="https://mercomindia.com/global-energy-crisis-expedite-to-sustainable-clean-sources-iea/" target="_blank" rel="noopener">published</a> recently, the global energy crisis caused by Russia’s invasion of Ukraine is accelerating the transition to a more sustainable and secure energy system.

Installed Capacity of Heat Pumps to Grow 2.6 Times to 2,600 GW by 2030: IEA

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