Strong growth of the global ATW heat pump market in 2017

According to JARN¹, global air-to-water (ATW) heat pump demand reached 2.66 million units in 2017, 14.8% more than in 2016. Air-to-water heat pumps collect heat from the air which is used as a heat source to heat water for space heating and hot water supply. In many countries, heat pumps are considered as using renewable energy and are supported by energy conservation and environmental protection policies, which contribute to the development of the heat pump market.

China – which now accounts for 68.8% of the global market – launched the Coal to Electricity policy to reduce the air pollution caused by fossil fuel heating, especially in Northern China. This policy has actively promoted the development of the ATW heat pump market which reached 1.83 million units in 2017, an increase of 41% vs 2016. It is estimated that heat pump water heaters secured a market share of 41%, while heat pumps used for space heating accounted for 56%.

Japan, which represents 16.8% of the global ATW heat pump market, is a mature market. Sales in 2017 reached 437,000 units, up 3.9% over the previous year. Eco Cute residential ATW heat pumps using CO₂ as a refrigerant play a central role in the residential sector. They were designed only for hot water supply when they were first launched in 2001. At present, however, multi-functional Eco Cute heat pumps also capable of floor heating have appeared and their market is expected to expand since the Ministry of Economy, Trade and Industry (METI) is promoting the penetration of Zero Energy Houses.

In Europe (10.8% of the global ATW market), the ATW heat pump market reached 287,000 units in 2017, an increase of 12.1% over 2016. Of this total, France accounted for 54%, followed by Germany (13.9%) and Italy (7%). The market is stimulated by national policies, including the 2012 energy consumption for new buildings (RT2012) in France and the Renewable Heating Initiative (RHI) in the UK. There is still a huge market potential for ATW heat pumps in Europe since the proportion of heat pumps to boilers is around only 10%.

¹ JARN, Special Issue July 25, 2018