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Heat Pump Market to Hit $118 Billion by 2030

Building electrification is picking up momentum quickly.   December 7, 2022

By Greg Zimmerman, senior contributing editor

Lest you think the trend toward building electrification is merely a flash in the pan, a new report by Market Research Future will set you straight. The report indicates that the global market for heat pumps – an alternative to heating with natural gas – will hit $118.4 billion by 2030. That’s a compounded annual growth rate of 11.37 percent, according to the report. 

Much of the growth is simply due to economics. As the war in Ukraine wears on, and natural gas prices continue to skyrocket, heat pumps offer a more affordable alternative for facility managers. As well, several state and local governments – like Washington state – are passing legislation mandating building electrification.  

Though currently, the highest demand for heat pumps is in Europe – especially, Germany, according to this New York Times story – the report says the growth in North America will be most dramatic. “The demand for heat pumps in the residential and commercial sectors of North America is increasing, and this growth is attributed to various government programs, corporate policies, and individual tax credits, incentive plans, and clean heating and cooling initiatives,” according to the report. 

Greg Zimmerman is senior contributing editor for FacilitiesNet.com and Building Operating Management magazine. 


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