In an era marked by growing environmental concerns and the pursuit of more sustainable energy solutions, heat pumps have emerged as a versatile and eco-friendly solution. They have revolutionized the water heating solutions landscape in India. A heat pump is a highly efficient heating system that transfers heat from one location to another. This makes it an essential component of energy-efficient and environmentally responsible renewable systems. The heat pump industry in India is experiencing rapid growth, driven by a convergence of factors such as the rising demand for energy-efficient heating solutions, supportive government initiatives, and growing environmental consciousness.
In this article, we have compiled the deep knowledge and insights of industry experts, who have dedicated their expertise to understanding and advancing the heat pump category and the broader industry. These experts bring a wealth of knowledge, experience, and perspective to shed light on the current state and future trends within this dynamic field.
Heat Pumps Market in India – Brand Perspective
Husain Quettawalla, Executive Director and Board Member, Stiebel Eltron India Private Limited
The market in India is driven by the boom in the premium and luxury housing segment where customers seek energy-efficient solutions not only for space heating and cooling but also for water heating and other appliances. The Indian heat pump market is still at a very nascent stage compared to more developed markets like Europe, USA, Japan, Australia/NZ, and China which are leading the boom due to the following:
- Government subsidies/policy
- Technical innovation and local/global manufacturing investments
- Mature sales and distribution network
- Higher consumer awareness and education
- Investments in upskilling the installer and service workforce
The market data on heat pumps is still not available and the residential market is fuelled by imports of either leading players such as our Company or local players who are importing units from China OEMs. Stiebel Eltron is one of the very few global companies that have made an investment and long-term commitment to the Indian market.
There is a lot to be done on all aspects mentioned above which has led to the boom in the global markets. For example, to increase penetration, the reduction of cost of ownership is important but given we don’t have large-scale manufacturing in India. India can be a part of the China + 1 plan for global heat pump manufacturing but to do that, we first have to build a larger domestic market as well. The custom duty for heat pumps is at 15% which is totally misaligned with the energy transition goals. There is no domestic manufacturing base/market to protect. So, the government should not only implement a reduction in custom duties for this category but also provide incentives /subsidies to consumers.”
Stiebel Eltron heat pump
Heat pump
Mohit Narula, Managing Director, Ariston Group India Private Limited
India is growing and so is the need for sustainable water heating solutions and we play a pivotal role in this success story. We have seen wide acceptance for this growing category from a generation who cares for Mother Earth. The primary challenge for Heat Pump is low category awareness amongst both, the end users and influencers. Where there is awareness, we see demand for this category. We come across instances where the demand for Heat Pumps comes almost towards the finishing of the new construction, limiting the scope for plumbing customization. As a generation, we have started to care more for our ecosystem and the acceptance of sustainable products is growing. The increasing urbanization and better lifestyle will give an impetus to this new age water heater.”
Heat Pumps Market in India – Consultant Perspective
Nilesh Gandhi, CEO, M/s Ace Consultant, Pune
Options for domestic hot water generation include electric storage geysers, gas-based instant heaters, heat pumps, electric-based instant heaters, and solar hot water systems. Each option has distinct pros and cons in the following points of comparison:
- Quantity of hot water generated throughout the year
- Cost of hot water generation
- Space required
- Maintenance cost
- Duration of continuous supply of hot water
- Flow rate of hot water generation
For modern houses, a heat pump will score maximum considering all the above points. One of the most important aspects is a 50% reduction in the cost of generation and long-duration hot water supply with good flow rates. Also, if you do proper planning at the design stage then you can use the cool air generated as by product of the heat pump for ventilation purposes. The new, branded company heat pump boasts an architect-friendly aesthetic. Additionally, the majority of these heat pumps in India are IoT-enabled, empowering end-users to remotely manage and control them via their smartphones.
As the heat pump works on reverse Carnot cycle of refrigeration, like AC units, it requires yearly maintenance. We have observed that a company having its establishment locally to offer AMC services can sustain itself in the Indian market.”
Heat Pumps Market in India – Retailer Perspective
Satish Bhargav, CEO, Aparna Enterprises Limited (Unispace), Hyderabad
Customers are increasingly inclined towards eco-friendly options, and heat pumps offer a compelling proposition. Their cost-effectiveness, energy efficiency, and ability to substantially reduce electricity consumption resonate well with consumers. Witnessing their satisfaction upon realizing significant savings on energy bills has been immensely gratifying.
However, amid this growth, challenges persist. One of the primary hurdles is the initial installation cost, which is higher compared to traditional water heating systems. Educating consumers about the long-term benefits and savings, despite the initial investment, remains crucial. Nevertheless, amidst these challenges, opportunities abound. The increasing awareness and acceptance of sustainable solutions provide ground for innovation and market expansion. So, with strategic approaches to address obstacles and capitalize on opportunities, this segment is poised for continued growth.”
Conclusion
The energy efficiency and environmental benefits of heat pumps make them a worthy player in the pursuit of sustainable living. As technology continues to advance, we can anticipate even more innovative applications and improved efficiency in heat pumps.
The insights shared by industry experts in this article provide a comprehensive overview of the heat pump market in India. These expert perspectives have illuminated the current market trends, technological innovations, and dynamics. Additionally, they offer valuable projections for the future of this industry. In this evolving landscape, it’s evident that the heat pump sector in India is on a path of sustained growth. These insights serve as a valuable resource for businesses and consumers, helping them make informed decisions. This ensures that heating solutions in the country are energy-efficient, environmentally friendly, and aligned with the evolving needs of modern society.
For further insights and inquiries, WhatsApp us or reach out to us at:
- Email: support@buildingandinteriors.com
- WhatsApp: +91 9811057547 (Message only)
