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Report: Commercial Heat Pump Market Expected to Grow 8.6% Annually from 2020-2029

A new report from Guidehouse Insights, Commercial Building Electrification, looks at the global market for commercial heat pump and variable refrigerant flow (VRF) systems with a focus on North America.

Although multiple options exist to decarbonize heat in commercial buildings, electrification is considered the most commercially viable. According to the new report, the global commercial heat pump market is estimated at US$25.2 billion in 2020, growing to US$52.8 billion in 2029, at a compound annual growth rate (CAGR) of 8.6%.

“Around the world, new climate-related targets are spurring added growth and competition among market players,” says Sasha Wedekind, research analyst with Guidehouse Insights, in a media release. “Heat pumps and VRF systems have seen sustained growth in adoption over the past five years, and the market is now reaching a tipping point.”

The U.S. market is expected to be the fastest growing opportunity for heat pump and VRF manufacturers in the short term. Growth is expected to be driven by the speed of regulations around decarbonization and electrification and low adoption of heat pump and VRF systems in the region to date.

Guidehouse Insights