South Africa Heat Pump Market Overview, 2029

In South Africa, the heat pump industry has emerged as a major contributor to energy security and sustainability over a period characterized by historical milestones, key advancements, challenges, and government support within an inclusive policy framework. The foundation of the heat pump industry in South Africa had its origin dating back to the 1980s when the first heat pumps came to the market. In this year, the arrival was made by the industry, at that time, that was characterized by improved current-generating capacity, increasing because of boilers of low capacity. It was over time that the industry grew and evolved, driven by the country's needs to reduce its greenhouse gas emissions and address the energy needs. The latest significant developments within the South African heat pump industry include technological advancements and adaptation to catering to different climatic conditions, as well as installations with solar power to increase efficiency and energy sustainability. The challenges faced by the industry are mostly high upfront costs, together with low consumer awareness, and the need for professional skills in the installation and maintenance of a system. The government commitment to issues on energy efficiency and renewable energies has seen the industry surmount such hurdles. The South African government has put in place various schemes, policies, and frameworks to enable the adoption of heat pumps and other renewable energy technologies. Schemes such as the EESL, NEES, and the Greencape initiative, which help in supporting the green economy in the Western Cape Province, assist the SWH. The major role the South African government has taken is through the Department of Energy's SWH program, where it seeks to replace electric geysers with water heating devices such as solar water heaters or heat pumps in new and existing building structures.

According to the research report "South Africa Heat Pump Market Overview, 2029," published by Bonafide Research, the South Africa heat pump market is anticipated to add to more than USD 160 Million by 2024–29. Heat pumps provide a promising decentralized solution for both heating and cooling, reducing dependence on the centralized grid infrastructure. The combined with the ability to provide heating and cooling without fail even during grid disruptions, makes PV systems a good option for consumers in search of uninterrupted services in heating and cooling, as a feature to find its place in regions prone to electricity supply side constraints. In this regard, apart from enhancing energy security, heat pumps deliver related multiple benefits regarding water conservation and efficiency, porting well into the water-scarce conditions in South Africa. In a country plagued by water scarcity and drought, the ability of heat pumps to provide heating solutions in a way that is friendly to water use is outstanding. Unlike traditional heating systems such as geysers and boilers, which typically lead to considerable water evaporation and withdrawals, heat pump water heaters use heat from the ambient air or even ground, which sufficiently caters to hot water needs in domestic and commercial utilization without loss of water to the atmosphere. The saving of water is important because, in these countries, water stress is prevalent, and any drop saved is crucial for the overall process of water conservation in the region. Heat pumps play an important role in rural electrification to expand heating and cooling technology access in off-grid areas in South Africa.

In South Africa, air-to-air heat pumps are used for heating and cooling applications. In the heating season, heat is extracted from outdoor air and comes into the room, and in the cooling season, it comes out of the room and sends heat into the air. In such a varied climate condition, keeping indoor temperatures comfortable throughout the year is a function these heat pumps perform with a great deal of energy efficiency for South Africans. These are deployed in residential, commercial, and industrial buildings and provide inexpensive heating and cooling while reducing the dependence on traditional heating fuels. Air-to-water heat pumps in South Africa are popular for the heating of domestic hot water and swimming pools. The systems take heat from the outside air and transfer it to a water-based heating system, like an underfloor heating or radiator antenna. Utilizing the country's abundant sunlight together with moderate temperatures found in many areas, air-to-water heat pumps bring a more efficient and green alternative to the traditional methods of water heating. They can be widely applied for both commercial and residential use to lower energy consumption and carbon emissions and to maximize comfort and convenience for people in such places.

Water source heat pumps are widely used in some niche applications in South Africa, especially where there are readily available ground-water or surface-water sources. The systems make use of water for heat exchange to provide heating, cooling, and hot water for buildings. The water source allows heat pumps to provide energy-efficient HVAC solutions for residential, commercial, and industrial developments in these water-rich countries. Married to renewable energy sources like solar thermal collectors or geothermal wells, it will further ensure the sustainability of such developments and the reduction of operating costs over the long term. Geothermal heat pumps, also known as ground source heat pumps, are gaining rapid popularity in South Africa for their saving in energy and sustainability to the environment. This relatively constant ground temperature is used to heat, cool, and provide hot water to buildings. When geological conditions are favorable within a region, ground source heat pumps offer reliable and efficient HVAC solutions for residential, commercial, and institutional buildings. These up-front costs are higher for ground source heat pumps in comparison to the conventional air source heat pumps or other systems; however, the savings on the energy bill and the relative reduction in environmental damages work in favor of ground source heat pumps in the overall economics for sustainable building projects in South Africa. Hybrid heat pumps provide a useful option in the South African HVAC market at present, capturing flexibility and energy efficiency through multiple heat source integration. These systems naturally incorporate an air-to-air or air-to-water heat pump with a secondary heat source, possibly a gas boiler, or a solar thermal system.

In South Africa, heat pumps with a capacity limit of up to 10 kW find applications primarily in residential buildings. These lower-capacity units are ideal for detached and apartments, offering efficient heating and cooling according to the conditions and requirements of each individual household. In the South African region, where weather variation is significant and winters are generally on the milder side, these heat pumps are found to be very useful in ensuring maintaining indoor environments at comfortable temperatures all year round. Heat pumps with a 10–20 kW range find their application in bigger-sized residential properties and light commercial buildings. This golf pit between the capacity and efficiency needs works well for houses with big people, multi-family houses, and small commercial establishments, such as offices and retail shops. In South Africa, this capacity band is particularly relevant for properties that form part of new developments with a big focus on energy efficiency.. Medium-range heat pumps are normally rated between 20 and 30 kW. They are mainly used in big commercial buildings like office buildings, schools, and small industrial areas. They are suitable for this capacity because of the relatively higher heating and cooling loads that these buildings have. In South Africa, such is the capacity to be found in commercial and institutional buildings where energy efficiency retrofits and improvements are being carried out. In some residential complexes and gated communities in South Africa, such heat pumps are prevalent whenever there is a need for centralized heating and cooling. Heat pumps of over the 30-kW mark are considered a necessary addition to commercial and industrial needs. The case is mainly for South Africa because of large heating and cooling capacity areas such as hospitals, big office buildings, manufacturing area, district scale. The South African industrial sector, this being mining and manufacturing, is highly seeking energy-efficient systems in a bid to drive down operational costs while at the same time achieving sustainability. Large-size heat pumps are used in South African large residential developments and commercial presence where large centralized heating and cooling systems have to be installed.



The heat pump market is growing in South Africa, in areas where the residential sector is increasingly looking for more effective and sustainable heating solutions. In large parts of South Africa, heat pumps offer an effective solution to provide both heating and cooling, particularly in its urban and metropolitan areas where energy efficiency is currently on their fast uptake. The government in South Africa, through various policies and programs like the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), is working toward demanding more residential heat pumps as it is encouraging the use of renewable energy technologies. The commercial sector is the next in line, witnessing a rise in the adoption of heat pumps, with offices buildings, shopping malls, and hotels proving to be some of the biggest adopters. The increased adoption can be justified by the need for these business establishments to comply with green building standards for building codes and reduce the carbon print left as a result of the commercial operations. such actions absorb the rising government policy pressures related to the implementation of efficient energy utilization techniques in the target establishments. Currently, the South African government implements a variety of policies and incentives that are likely to promote energy efficiency strategies and renewable energy utilization within the bounds of commercial operations. Examples include the energy efficiency tax incentive, which offers benefits to business through an allowance or deduction. Commercial facilities currently account for at least 25% of the national volume of electricity consumption, directly translating to an equal percentage contribution towards greenhouse gas emissions in the country.. The industrial sector in South Africa is taking up an increased investment in heat pumps, particularly the high-capacity gadgets. Heat pumps remain more useful to higher capacity levels attributed to this sector's unique production needs compared to the smaller consumption needs of both commercial and domestic establishments. For instance, most manufacturing plants or food processing establishments will tend to adopt heat pumps in pursuit of reduced electricity consumption levels across the target facilities.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Heat Pump market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Air-to-Air Heat Pump
• Air-to-Water Heat Pump
• Water Source Heat Pump
• Ground Source Heat Pump
• Hybrid Heat Pump

By Capacity
• Up to 10 kW
• 10–20 kW
• 20–30 kW
• Above 30 kW

By End User
• Residential
• Commercial
• Industrial

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Heat Pump industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.