International. According to a new report from Guidehouse Insights, the global decarbonized heating equipment market is expected to grow to US$156.5 billion by 2030 at a compound annual growth rate (CAGR) of 6.3%.
The heating market is still dominated by fossil fuel-based equipment and less efficient electric heating technologies. However, technologies that provide heating decarbonization solutions are available, such as heat pumps, variable refrigerant flow (VRF) systems, and hydrogen boilers.
"The opportunities for heat decarbonization in buildings are becoming more prominent as the transition to a low- or zero-carbon environment accelerates," says Sasha Wedekind, senior research analyst at Guidehouse Insights. "The proliferation of renewable energy, new policies and regulations, hydrogen initiatives and advances in technology are all driving the drive towards heat decarbonisation."
Despite these factors, many market barriers still exist. Few consumers are aware of heat pumps and are averse to the high initial cost. In addition, hydrogen infrastructure is lacking, making the widespread adoption of hydrogen boilers unrealistic for the next decade. In addition, consumer education and engagement are scarce when it comes to new technologies.
According to the United Nations (UN), the global construction sector accounts for nearly 40% of global energy use and 38% of energy-related CO2 emissions annually. In 2019, global CO2 emissions from building operations reached the highest levels ever recorded. The continued use of coal, oil and natural gas for heating combined with regions where electricity remains carbon-intensive has resulted in a steady level of direct and indirect emissions. According to the UN, almost 55% of global electricity consumption is due to construction operations.
An executive summary of the report is available for free download on the Guidehouse Insights website.
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