Key highlights
- 1The Asia Pacific high-temperature heat pump market is expected to reach USD 1.16 billion by 2036, at a CAGR of 13.6% from 2026 to 2036, driven by industrial decarbonisation, steam electrification, and refrigerant advances, as the technology commercialises.
- 2Steam above 100 degrees is the target. High-temperature heat pumps address process heat and steam above 100 degrees Celsius, the "missing middle" where boilers dominate, and the IEA projects them to become a preferred industrial process-heating technology by 2026.
- 3Steam-supplying systems have commercialised. Kobe Steel's Steam Grow Heat Pump supplies steam at 120 to 165 degrees Celsius with a coefficient of performance around 2.5, and carbon dioxide and R-1234ze systems reach 130 to 150 degrees for breweries, dairies and other industries.
- 4The frontier is advancing. Water-refrigerant systems have delivered output up to about 150 degrees Celsius, and systems above 160 degrees are advancing through demonstration, though high discharge temperatures and materials remain challenges.
- 5China leads deployment; Japan leads technology. China's decarbonisation drive and scale make it the largest market, while Japan leads in high-temperature and natural-refrigerant technology, with adoption accelerating in the Chubu and Kansai industrial belts.
- 6Policy sharpens the case. Carbon pricing, including Japanese carbon fees from April 2026, imposes real penalties on fossil steam and improves the economics of high-temperature heat pumps.
- 7Key companies include Kobe Steel, Ltd. (Kobelco), Mayekawa Mfg. Co., Ltd., Mitsubishi Heavy Industries, Ltd., GEA Group AG, and Johnson Controls International.
Report Overview
The Asia Pacific high-temperature heat pump market covers heat pumps delivering heat above about 90 degrees Celsius for industrial process heat, hot water and steam, spanning temperature ranges from 90 to 120 degrees, 120 to 160 degrees and above 160 degrees, natural and low-global-warming-potential refrigerants, and hot-water, steam and thermal-oil outputs, across food and beverage, chemicals, pulp and paper, pharmaceuticals, textiles and other industries. Conventional lower-temperature heat pumps below about 90 degrees and residential and commercial heating are outside the scope. The market is the higher-temperature, faster-growing frontier of industrial heat pumps, addressing steam and process heat above 100 degrees, and is moving from pilots to commercial deployment. Demand is shaped by decarbonisation, carbon pricing, energy cost, and refrigerant and compressor technology. This report examines the size, drivers, temperature ranges, applications, outputs, refrigerants, countries, pricing, competition, recent developments, and outlook of the market, and provides recommendations. Sizing is built bottom-up from high-temperature heat pump installations by temperature range, application and country, and reflects systems delivering above about 90 degrees in Asia Pacific.
Market dynamics
Drivers
- 01Decarbonisation and steam electrification are the primary driver as industry seeks to replace fossil-fuel boilers that supply process heat and steam above 100 degrees Celsius, the "missing middle" where electrification has been difficult, and high-temperature heat pumps can supply this heat electrically by upgrading waste heat, with the IEA projecting them to become a preferred process-heating technology by 2026.
- 02Carbon pricing and energy cost are a driver as carbon fees, including those imposed in Japan from April 2026, penalise fossil steam and improve the economics of heat pumps, and high energy costs favour efficient electrification.
- 03Advances in refrigerants and compressors are a driver of achievable temperature, as natural refrigerants such as carbon dioxide and water and low-global-warming-potential refrigerants such as R-1234ze and R-1233zd enable higher output temperatures, with systems reaching 150 to 165 degrees.
Opportunities
- 01Steam generation is the leading opportunity because supplying steam above 100 degrees Celsius replaces fossil boilers in a large share of industrial energy, and steam-supplying heat pumps such as Kobe Steel's reach 120 to 165 degrees.
- 02Mid-capacity systems for food and beverage are an opportunity as breweries and dairies have concentrated steam demand in a narrow temperature range that heat pumps can meet without full thermal redesign, and this mid-capacity layer is underserved.
- 03Reaching higher temperatures is an opportunity at the frontier as systems above 160 degrees advance through demonstration and would open more processes to electrification.
Trends
- 01The move from innovation to industrial reality is the defining trend as high-temperature heat pumps advance from pilots toward commercial industrial decarbonisation.
- 02Natural and low-global-warming-potential refrigerants are a trend with carbon dioxide, water and R-1234ze and R-1233zd replacing high-global-warming-potential refrigerants and enabling higher temperatures.
- 03Steam-generating systems are a trend as heat pumps using water and other refrigerants supply steam up to about 150 to 165 degrees.
- 04Carbon-pricing-driven adoption is a regional trend with Japanese carbon fees from April 2026 accelerating installs in the Chubu and Kansai industrial belts.
Report Summary
| Base Year | 2025 |
|---|---|
| Forecast Period | 2026-2036 |
| Market Size (2025) | USD 285 million |
| Market Size (2026) | USD 325 million |
| Market Size (2036) | USD 1.16 billion |
| CAGR (Value) | 13.6% (2026-2036) |
| Format | PDF & Excel |
| Segments Covered | By Temperature Range: 90-120C, 120-160C, Above 160C. By Application: Food & Beverage, Chemicals, Pulp & Paper, Pharmaceuticals, Textiles, Others. By Heat Output; By Country. |
| Geographies Covered | China, Japan, South Korea, India, Australia, and Rest of Asia Pacific |
| Key Companies | Kobe Steel, Ltd. (Kobelco), Mayekawa Mfg. Co., Ltd., Mitsubishi Heavy Industries, Ltd., Daikin Industries, Ltd., Fuji Electric Co., Ltd., GEA Group AG, Johnson Controls International, MAN Energy Solutions, BROAD Group, Guangdong Phnix Eco-energy Solution, Other Companies |
Segmental analysis
By Temperature Range
- Systems delivering 90 to 120 degrees hold the largest share at about 50% of the market in 2026, with the remaining share divided across 120 to 160 degrees and above 160 degrees.
- The 90 to 120 degree range is the largest because it is the most commercially mature high-temperature band, covering much steam and process heat demand and served by systems such as those the IEA identifies as commercialising by 2026.
- The 120 to 160 degree range is a growing segment served by steam-supplying systems such as Kobe Steel's, which reaches 165 degrees, and carbon dioxide and R-1234ze systems reaching 130 to 150 degrees.
- Systems above 160 degrees are emerging with many still in demonstration, and represent the frontier.
The position of the 90 to 120 degree range reflects its commercial maturity, while higher ranges grow as technology advances.
By Application
- Food and beverage holds the largest share at about 35% of the market in 2026, with the remaining share divided across chemicals, pulp and paper, pharmaceuticals, textiles and others.
- Food and beverage is the leading application because breweries dairies and food processors have large, concentrated steam and process-heat demand in the temperature range high-temperature heat pumps serve; in beer production, for example, saccharification and wort boiling alone consume a large share of steam.
- Chemicals use high-temperature heat pumps for distillation concentration and process heat.
- Pulp and paper use them for drying pharmaceuticals for sterilisation, and textiles for drying and dyeing.
- Other industries complete the segment.
The dominance of food and beverage reflects its concentrated, temperature-appropriate steam demand and suitability for commercial systems.
By Heat Output
- Steam holds the largest share at about 45% of the market in 2026, with the remaining share divided across hot water and hot air or thermal oil.
- Steam is the largest output because supplying steam above 100 degrees Celsius is the defining capability of high-temperature heat pumps and the main opportunity to replace fossil boilers, with systems supplying steam up to 150 to 165 degrees.
- Hot water above 90 degrees serves processes and cleaning that do not require steam.
- Hot air and thermal oil serve drying and specific process needs.
The dominance of steam reflects the focus of high-temperature heat pumps on the steam demand that boilers have supplied and that is central to industrial decarbonisation.
By Refrigerant
- Natural refrigerants including carbon dioxide, ammonia and water, hold a large share, as they combine low environmental impact with the ability to reach high temperatures, and water in particular can supply steam up to about 150 degrees, though at high discharge temperatures.
- Low-global-warming-potential synthetic refrigerants chiefly the hydrofluoroolefins R-1234ze, R-1233zd and R-1336mzz, are widely used in high-temperature heat pumps for their favourable properties and moderate discharge temperatures, enabling compact designs.
The choice of refrigerant shapes the achievable temperature, efficiency and equipment design, and the trend toward natural and low-global-warming-potential refrigerants reflects environmental regulation and high-temperature performance.
Geographic analysis
China High-Temperature Heat Pump Market
China is the largest market in the region driven by its decarbonisation targets and manufacturing scale, and accounts for roughly one-third of global heat consumption. The country deploys high-temperature heat pumps across food, chemicals, textiles and industrial heating, and hosts manufacturers such as BROAD Group and Guangdong Phnix. China's dual-carbon goals, industrial base and manufacturing capacity make it the dominant and fastest-scaling market, and its production also supplies systems across the region.
Japan High-Temperature Heat Pump Market
Japan is the region's technology leader home to Kobe Steel's Steam Grow Heat Pump supplying steam at 120 to 165 degrees Celsius and Mayekawa's carbon dioxide and ammonia systems, with Daikin, Fuji Electric and Mitsubishi also active. Adoption is accelerating in the Chubu and Kansai industrial belts, where breweries, dairies and manufacturers replace fossil boilers with carbon dioxide and R-1234ze systems reaching 130 to 150 degrees, and carbon fees from April 2026 improve the economics. Japan's leadership in high-temperature and natural-refrigerant technology gives it a distinctive role.
South Korea, India, Australia, and Rest of Asia Pacific
South Korea deploys high-temperature heat pumps in manufacturing and process industries under decarbonisation policy. India is a growing, cost-sensitive market with large food, chemical and textile industries. Australia uses high-temperature heat pumps in food and dairy processing, supported by renewable electricity, with international and Japanese suppliers active. The rest of Asia Pacific, including Southeast Asia, is an emerging market for food and chemical steam and process heat. These markets add growing demand across the region's industries.
Pricing Analysis
Pricing in high-temperature heat pumps reflects capital cost, temperature and refrigerant, and payback against fossil steam and carbon prices. High-temperature heat pumps are capital-intensive and cost more than conventional heat pumps and boilers, and higher output temperatures raise cost, so the investment is weighed against savings from replacing fossil boilers and against carbon costs. The coefficient of performance falls as the temperature lift increases, so economics depend on the lift, the electricity-to-fuel price ratio, and operating hours. Several factors set economics. Temperature and lift are central, as higher output and larger lift raise cost and lower the coefficient of performance, which for water-refrigerant systems can fall from high values at small lift to around three at large lift. Refrigerant and compressor choice affect cost and achievable temperature. Electricity and fuel prices and carbon pricing are decisive, as heat pumps are favoured where electricity is competitive with fuel and where carbon fees penalise fossil steam. Operating hours and waste-heat availability improve payback. Scale and commercialisation lower cost.
The trajectory of economics depends on technology cost, refrigerant advances, energy prices and carbon policy, and adoption grows where high-temperature heat pumps deliver acceptable payback against fossil steam.
Competitive landscape
The market is served by Japanese technology leaders, global industrial suppliers, and Chinese manufacturers. Kobe Steel, Ltd. produces the Steam Grow Heat Pump supplying steam up to 165 degrees Celsius, and Mayekawa Mfg. Co., Ltd. offers carbon dioxide and ammonia high-temperature systems, giving Japan leadership in high-temperature and natural-refrigerant technology. Mitsubishi Heavy Industries, Daikin Industries and Fuji Electric bring heat-pump and compressor engineering. Global suppliers GEA Group, Johnson Controls and MAN Energy Solutions compete in large high-temperature and steam-generating heat pumps, with GEA supplying breweries and other industries. Chinese manufacturers such as BROAD Group and Guangdong Phnix supply the region's largest market.
Competition turns on achievable temperature, efficiency, refrigerant and compressor technology, and cost and service, and the region combines Japanese and global technology leadership with Chinese manufacturing scale. Decarbonisation, steam electrification and carbon pricing favour suppliers that can deliver efficient, high-temperature, clean-refrigerant systems, and Kobe Steel, Mayekawa and global suppliers hold strong technology positions while Chinese manufacturers lead on volume and cost. The field is competitive and fast-growing, and will expand as higher-temperature systems mature and industrial decarbonisation accelerates.
Voice of Customer
Our steam demand for saccharification and wort boiling sits in a temperature range that high-temperature heat pumps can now meet, and recovering waste heat to make steam cuts our gas use and emissions. With carbon fees now penalising fossil steam, the economics have improved, and we look at systems reaching 130 to 150 degrees, though the highest-temperature needs still require boilers.
Utilities engineer, brewery (Japan):
High-temperature heat pumps fit our pasteurisation and process heat, and with renewable electricity they cut both cost and emissions. The coefficient of performance falls as we push to higher temperatures, so we match the system to our loads and prioritise waste-heat recovery, and mid-capacity systems suit our site without a full redesign.
Energy manager, dairy processor (Australia):
We use high-temperature heat pumps to upgrade waste heat into process heat and steam, supporting our decarbonisation targets. The technology is maturing, and natural and low-global-warming-potential refrigerants let us reach higher temperatures, though capital cost and the temperature ceiling for some processes are still considerations.
Plant engineer, chemical manufacturer (China):
Analyst perspective
Asia Pacific's high-temperature heat pump market is the fast-growing frontier of industrial heat pumps, targeting the steam and process heat above 100 degrees Celsius that boilers have supplied. The rationale is strong: high-temperature heat pumps address the "missing middle" of process heat, and the IEA projects them to become a preferred industrial process-heating technology by 2026, as they upgrade waste heat to useful temperatures far more efficiently than combustion. The technology has commercialised in the lower part of the high-temperature range, with steam-supplying systems reaching 120 to 165 degrees, exemplified by Kobe Steel's Steam Grow Heat Pump, and carbon dioxide and R-1234ze systems serving breweries and dairies. China leads deployment, Japan leads technology, and carbon pricing, including Japanese carbon fees from April 2026, sharpens the case.
The honest considerations are the temperature ceiling, cost, and electricity economics. The frontier above about 160 degrees remains largely in demonstration, with challenges including high discharge temperatures, so high-temperature heat pumps today address the lower and middle part of the high-temperature range rather than the highest process temperatures. The coefficient of performance falls as the temperature lift increases, and systems are capital-intensive, so economics depend on the lift, the electricity-to-fuel price ratio, operating hours and carbon pricing, and where fuel is cheap or electricity high-carbon the case weakens. Adoption is accelerating but from a modest base, and scaling depends on technology progress, refrigerants, and supportive energy and carbon policy. The market should be assessed on higher-temperature technology progress, refrigerant advances, and energy and carbon economics rather than on the decarbonisation imperative alone, and the region's scale, technology leadership and carbon pricing support strong growth, with the temperature ceiling and cost determining the pace.
Strategic Recommendations
For manufacturers
The priority is to raise achievable temperature and efficiency and to lower cost, because the addressable market expands as high-temperature heat pumps reach higher steam temperatures and as payback improves, and steam electrification is the central opportunity. Companies should develop systems that reach higher temperatures with natural and low-global-warming-potential refrigerants, optimise steam generation and waste-heat recovery, and reduce capital cost, while offering mid-capacity systems suited to breweries and dairies. Serving China's scale, leveraging Japanese high-temperature technology, and providing engineering and service strengthen the position.
For industrial users
The recommendation is to adopt high-temperature heat pumps where steam demand, waste heat, operating hours, and electricity and carbon prices deliver acceptable payback, matching temperature capability to process needs and prioritising waste-heat recovery, and to plan for steam electrification as technology and carbon pricing advance. For engineering firms, integrating high-temperature heat pumps with steam systems and waste heat is the key task. For policymakers, carbon pricing, electricity pricing that favours efficient electrification, and support for high-temperature technology accelerate adoption. For investors, this is the fast-growing frontier of industrial heat pumps, to evaluate on higher-temperature technology progress, refrigerant advances, and energy and carbon economics rather than on the decarbonisation imperative alone, recognising that the region's scale, technology leadership and carbon pricing support strong growth while the temperature ceiling and cost remain the key determinants.
Sustainability impact
Decarbonising Steam and High-Temperature Heat
High-temperature heat pumps electrify steam and process heat above 100 degrees Celsius, replacing fossil-fuel boilers in a hard-to-decarbonise part of industry. High-temperature heat pumps support decarbonisation.
By supplying steam and process heat above 100 degrees that boilers have provided, high-temperature heat pumps electrify a difficult part of industrial heat, cutting emissions where the electricity is low-carbon and addressing the "missing middle" of process heat.
Efficiency and Waste Heat
High-temperature heat pumps upgrade low-grade waste heat to useful high temperatures, delivering more heat than the electricity they consume. High-temperature heat pumps support energy efficiency.
By recovering waste heat and upgrading it to steam and process heat at a coefficient of performance above one, high-temperature heat pumps use energy far more efficiently than combustion, reducing fuel use and recovering heat that would otherwise be lost.
Low-Impact Refrigerants
High-temperature heat pumps use natural and low-global-warming-potential refrigerants, avoiding high-impact synthetic refrigerants. High-temperature heat pumps support low-impact refrigerants.
By using carbon dioxide, water and low-global-warming-potential refrigerants such as R-1234ze and R-1233zd, high-temperature heat pumps reach high temperatures while limiting the climate impact of refrigerant leakage, aligning with environmental regulation.
Dependence on Clean Electricity
The climate benefit of high-temperature heat pumps depends on the carbon intensity of the electricity they use. High-temperature heat pumps depend on clean electricity.
By running on electricity, high-temperature heat pumps deliver their full climate benefit only where the grid is low-carbon, so their contribution to decarbonising industrial steam is tied to the greening of electricity across the region's diverse power systems.
Table of contents
15 chapters · 132 pages · click to expandFrequently asked questions
The Asia Pacific high-temperature heat pump market was valued at USD 285 million in 2025 and is projected to reach USD 1.16 billion by 2036, growing from USD 325 million in 2026, at a CAGR of 13.6% from 2026 to 2036, driven by industrial decarbonisation, steam electrification, and refrigerant advances.