Heat pumps are key to reaching net zero which is why manufacturers have been busy ramping up production in recent years.
At the same time governments around the globe have introduced subsidies to stimulate demand.
Welcome to the golden age of heat pumps with global sales increasing 11 per cent in 2022.
It marked the second year of double digit growth for the technology which has enjoyed plenty of policy support and incentives as a result of high gas prices and efforts to reduce greenhouse gas emissions.
In Europe, heat pumps enjoyed a record year, with sales growing by nearly 40 per cent. Air to water models were particularly popular because they are compatible with typical radiators and underfloor heating systems.
In the United States, heat pump purchases exceeded those of gas furnaces. However, in China, the world’s largest heat pump market, sales remained stable amidst a general slowdown of the economy.
Globally, heat pumps, when used as a main heating device, cover around 10 per cent of heating needs in buildings today.
This corresponds to over 100 million households, meaning that one in ten homes that require substantial heating are served by heat pumps today, according to the latest figures from the International Energy Agency (IEA).
To align with all existing national energy and climate pledges worldwide, heat pumps will have to meet nearly 20 per cent of global heating needs in buildings by 2030.
The world is almost on track to reach this milestone if new installations continue to grow at a similar rate globally as they did the last two years. However, sales need to expand by well over 15 per cent per year this decade if the world is to achieve net zero emissions by 2050.
The IEA said installations of heat pumps remain concentrated in new buildings and existing single-family homes. Multistorey apartment buildings and commercial spaces will need to be a priority area if solid growth is to continue. Energy efficiency retrofits also need to accelerate to ensure that new heat pumps installed in existing buildings are as efficient as possible and not oversized.
This will lower upfront and operating costs for consumers and reduce strains on power systems, especially if combined with smart controls for flexible operation.
Heat pump sales have been boosted by financial incentives that are currently available in over 30 countries around the world. Collectively, these countries make up more than 70 per cent of global heating demand for buildings. Many of these support schemes were introduced or strengthened in 2022, the IEA said.
The five largest global manufacturers have their headquarters in Asia Pacific. However, around half of the production capacity of manufacturers headquartered in that region is located elsewhere.
Breakdown of 2022 sales
Across Europe, nearly three million heat pumps were sold in 2022, an increase of almost 40 per cent compared with the previous year.
North America has the largest capacity of heat pumps installed today used for heating buildings. In the United States, heat pumpms overtook gas furnace sales in 2022 after years of almost equal growth.
Most residential units in the country are air-to-air models in ducted air systems.
These are larger than those typically used in Asia, where there is often one unit for each room.
There were more heat pump units sold in China in 2022 than in any other country despite a slowdown in sales growth.
In Australia and New Zealand, air-to-air heat pumps are already the most common source of heating, with market penetration increasing in regions with colder climates thanks to improved efficiencies.