Centrifugal Heat Pump Market Size, Share, Growth, Trends, and Global Industry Analysis: By Capacity (Less than 5 MW, 5–10 MW, more than 10 MW), By Source type (Air Source, Water Source, Ground Source, Waste Heat Source, Others), By Application (District Heating, Industrial Heating & Cooling, Commercial Buildings, Data Centers, Food & Beverage Processing, Chemical & Petrochemical, Paper & Pulp Industry, Others) and Region Forecast 2020-2031

Centrifugal Heat Pump Market size was valued at US$ 40.6 billion in 2024 and is expected to reach US$ 54.9 billion by 2031, growing at a significant CAGR of 4.4% from 2025-2031. Moreover, the U.S.  Centrifugal Heat Pump Market is projected to grow at a CAGR of 4.3% over the forecast period. The market encompasses the global industry involved in the manufacturing, distribution, and deployment of centrifugal heat pumps high-capacity, electrically driven systems that use centrifugal compressors to transfer thermal energy. These pumps are primarily used for large-scale heating and cooling applications in commercial, industrial, and district energy systems. Operating on the principle of vapor compression, centrifugal heat pumps are known for their energy efficiency, low emissions, and ability to utilize low-grade waste heat sources.

The market is witnessing significant growth driven by increased demand for energy-efficient and sustainable heating solutions across various industries. With growing environmental regulations and a global push toward decarbonization, the adoption of centrifugal heat pumps has accelerated in sectors such as chemical processing, food & beverage, district heating, and data centers. Technological advancements in compressor design, integration with renewable energy sources, and government incentives for green heating technologies further support market expansion. Asia-Pacific and Europe are leading regions, driven by robust industrial bases and climate commitments.

Facts & Figures

• In fact, Centrifugal heat pumps can achieve a COP (Coefficient of Performance) between 4.0 and 6.5, offering high energy efficiency for large-scale heating.
• Over 70% of district heating in Denmark is powered by heat pumps or waste heat recovery systems, many of which include centrifugal technology for large-scale efficiency.
• These systems can deliver output temperatures up to 120°C, making them ideal for industrial and district heating applications.
• In industrial operations, waste heat recovery using centrifugal heat pumps can reduce energy consumption by 20–30%.
• Electric-driven centrifugal heat pumps emit 50–70% less CO? compared to traditional gas or oil-based boilers.
• Over 70% of the energy in data centres is expelled as heat, much of which can be recovered using centrifugal heat pumps.
• A single large-scale centrifugal heat pump can replace multiple smaller heating systems, handling capacities of over 10 MW efficiently.

Key Developments:

• In June 2025, Johnson Controls launched new commercial heat pump models, expanding its global portfolio to address growing demand in industrial, institutional, and municipal sectors. These advanced systems contributed to a 60% reduction in emissions and a 53% decrease in heating expenses for customers in 2024, compared to traditional natural gas boilers.
• In February 2025, Mitsubishi Heavy Industries Thermal Systems announced the upcoming launch of its new "EC-8" model under the "Ene-Conductor" Heat Source Control System. This upgraded version enables integrated control of up to eight centrifugal chillers along with related equipment like pumps and cooling towers. Designed for large-scale facilities, it enhances energy efficiency and expands applicability in overseas markets.
• In December 2024, Vertiv announced that its Chinese subsidiary acquired key assets and technologies of BiXin Energy Technology (BSE), a leading manufacturer of chillers, heat pumps, and heat-recovery solutions. The acquisition aims to expand Vertiv’s chiller portfolio and enhance its capabilities to support high-performance computing and AI applications globally. BSE brings established market presence in China and Asia, along with valuable patents and advanced R&D capabilities, strengthening Vertiv’s global offering.

Centrifugal Heat Pump Market Segmentation:

Based on the capacity:

• Less than 5 MW
• 5–10 MW
• More than 10 MW

Based on capacity, the “More than 10 MW” segment is anticipated to lead the market, driven by rising demand for large-scale heating in industrial and district energy applications. This capacity range is ideal for supporting high-volume, continuous operations such as chemical manufacturing, food processing, and municipal district heating networks. A key driver for this segment is the growing emphasis on energy efficiency and decarbonization across heavy industries and urban infrastructure. Governments in Europe and Asia-Pacific are encouraging the deployment of large-capacity systems through regulatory incentives and climate targets, making high-capacity centrifugal heat pumps a preferred choice for sustainable thermal energy solutions.

Based on the source type:

• Air Source
• Water Source
• Ground Source
• Waste Heat Source
• Others

Based on source type, the “Waste Heat Source” segment is expected to lead the market due to its superior energy recovery potential and alignment with global sustainability goals. Industrial facilities generate vast amounts of low-grade waste heat during processes such as manufacturing, refining, or data center operations. Centrifugal heat pumps can efficiently capture and upgrade this waste heat to usable temperatures for heating applications, reducing both energy consumption and emissions.

This capability directly supports carbon neutrality goals in sectors like chemicals, pulp & paper, and district heating. With increased environmental regulations and energy cost pressures, industries are prioritizing waste heat recovery technologies, making centrifugal systems utilizing waste heat an economically and environmentally attractive solution.

Based on the application:

• District Heating
• Industrial Heating & Cooling
• Commercial Buildings
• Data Centers
• Food & Beverage Processing
• Chemical & Petrochemical
• Paper & Pulp Industry
• Others

Based on application, the “District Heating” segment is projected to lead the market due to its large-scale demand for sustainable, centralized thermal energy solutions. As urban areas strive to decarbonize and modernize their heating infrastructure, centrifugal heat pumps are being integrated into district heating networks for their ability to deliver high-capacity, efficient heat using renewable or waste heat sources. European countries like Denmark, Germany, and Sweden are investing heavily in district heating upgrades as part of their climate action plans, often choosing centrifugal systems for their scalability and low environmental impact.

These systems reduce reliance on fossil fuels, cut greenhouse gas emissions, and lower operational costs over time. The growing trend toward urban energy efficiency and the expansion of smart city projects globally further solidifies district heating as the dominant application for centrifugal heat pumps in the foreseeable future.