Heating & Cooling Market Analysis

Heating & Cooling Market Analysis

Growing utilization of floor heating across huge industries for workers across extreme climatic conditions will favor the business outlook. A favorable regulatory framework will support the transition toward low carbon technology solutions for heating & cooling applications. For instance, in 2020, the Japanese government implemented the amended version of the Renewable Energy Act to promote Feed-In-Premium (FIP) programs for renewable projects. Rising investments in the construction of huge industrial structures and buildings along with ongoing urbanization will complement the business landscape.
 

The integration of renewable energy sources together with increasing utilization of green energy across the industrial sector will complement the business landscape. Major utilities are focusing on the development of Concentrated Solar Power (CSP), geothermal, biomass, solar PV & wind owing to favorable policies to increase the utilization of sustainable energy sources across the total energy mix will thrust industry penetration.
 

The growing share of electrical energy have facilitated the increasing heating demand across Nordic regions which have instigated the overall industry statistics. Ongoing renewable energy integration along with stringent energy efficiency standards and rising focus toward power optimization will stimulate the industry dynamics. In addition, refurbishment and expansion of district heating systems in accordance with energy efficiency norms will positively influence the business outlook.
 

Increasing surface temperature coupled with extreme climatic environments across equatorial zones will thrust the district cooling industry. A rise in the number of hot climatic days together with global warming issues has set grounds for deployment of an efficient & effective cooling infrastructure. Furthermore, the rising luxury lifestyle is a prominent factor encouraging the adoption of advanced cooling systems, thus further accelerating market demand.
 

Growing demand for efficient heating & cooling solutions in accordance to favorable regulatory inclination on HVAC systems across residential structures will augment the industry dynamics. In addition, the ongoing & continuing integration of HEMS (energy management systems) accompanied by green building directives has established favorable foundations for the adoption of enhanced technologies. Moreover, accelerating real estate expenditure & investments in line with an upsurge in urban population together with escalating demand for decentralized heat-generating systems will boost the market expansion.
 

The industrial heating and cooling market crossed USD 300 billion in 2020. A decline in conveyance losses along with operational safety from leakages is a prominent factor driving the efficient district heating demand for networks across industrial peripherals. Rising dependency and reliability on biomass & geothermal units has managed to enhance energy efficiency and minimize environmental effects across industries including chemical plants, refineries, and food & beverages, amongst others.
 

Rapid infrastructural expansion and developments owing to ongoing urbanization across prominent regions including the Middle East, Europe & Asia Pacific will boost the demand for efficient heating & cooling systems. Elevated heating and cooling degree days across these regions along with rising government efforts toward energy conservation as a result of the development of green building structures will positively accelerate the heating & cooling market share.
 

The COVID -19 pandemic has slowed down the overall industry growth on account of the effects from first and second wave. However, proper vaccination programs by the respective government authorities across several nations has resulted in rising industry trends. Additionally, the requirement to provide instant heating & cooling solutions to the numerous sectors including residential homes and buildings, healthcare and food & beverage will positively strengthen the business outlook.
 

North America heating & cooling market share is projected to witness a CAGR of over 3% through 2027. Escalating demand for efficient cooling & space heating solutions together with increasing residential and commercial consumer expenditure along with rising living standards will boost the industry potential. For instance, in August 2021, the Department of Natural Resources Canada (NRC) declared to award monetary support worth over USD 165 thousands to Inukshuk Synergie to commercialize the biomass energy-powered heating systems. Government initiatives to encourage energy-efficient technologies backed by stringent carbon emission norms will stimulate regional industry trends.