The Future of Industrial Heating: Why Heat Pumps Are Leading India’s Sustainable Revolution
Industrial heating is one of the largest energy-consuming sectors in India, accounting for nearly two-thirds of all industrial energy use.
Traditionally powered by coal, furnace oil, and gas boilers, this space is under immense pressure to cut costs and reduce emissions. With rising energy prices, stricter ESG mandates, and a national push toward clean energy, heat pumps have emerged as a solid option.
Heat Pumps Are Acing the Industrial Heating Race.
Rather than generating heat by burning fuel, heat pumps transfer heat from the air, water, or ground using electricity. This allows them to reach energy efficiencies of 200-300% (COP 2 or more) compared to the 85–95% efficiency of traditional boilers.
The result?
Lower operating costs, cleaner operations, and compliance with India’s aggressive decarbonization goals.
Let’s get into a bit more detail.
1. Unmatched Energy Efficiency
Heat pumps are remarkably efficient because they move existing heat rather than create it.
For every 1 unit of electricity consumed, a heat pump can deliver 2 to 3 units of thermal energy, cutting industrial heating bills by 25–40%. This makes them especially useful in industries like food processing, chemicals, pharmaceuticals, paper, automobile, and textiles, where heating often makes up 30–50% of energy use.
In contrast, gas and oil-fired boilers convert chemical energy into heat with inherent losses. Also, input costs fluctuate wildly in fossil fuel markets (plus, they are not environmentally friendly).
Heat pumps offer optimised performance powered by electricity, especially attractive when paired with renewable sources.
2. A Powerful Tool for Decarbonization
India has committed to achieving 50% of its energy from non-fossil sources by 2030, and industrial decarbonization is central to this transition.
Heat pumps reduce emissions, especially when powered by solar or wind electricity. In fact, studies show that high-temperature heat pumps (HTHPs) can cut CO₂ emissions by up to 70%.
Moreover, they enable waste heat recovery, which further improves overall system efficiency.
For example, IIT Madras developed an HTHP capable of delivering 2.26 units of steam heat for every unit of electricity, making it ideal for energy-intensive sectors like sugar mills and automotive manufacturing.
3. Improving Cost Competitiveness
The sector is gearing up for this increasing demand and has invested in innovations.
Thanks to improving technology and economies of scale, heat pumps are becoming increasingly competitive. According to market projections:
The industrial heating equipment market in India is set to reach $1.33 billion by 2033.
The heat pump segment alone is projected to grow to $3.4 billion, at a CAGR of 5.6%.
With proven COPs of 3 or more 2 or more, heat pumps are now cost-competitive with gas boilers over their lifecycle. This is even before factoring in government subsidies and carbon savings.
There is absolutely no doubt why this positions them as both an economic and environmental win.
Real-World Deployments Show Real Results
DCM Shriram (Sugar Mills): Deployed high-temperature heat pumps generating 80kg/hr steam at 110°C, cutting reliance on bagasse and improving process control.
WABCO India: Uses heat pumps for steam-based cooking in its cafeteria, reducing LPG dependency and operating expenses.
Hyperscale Data Centres: Employ liquid cooling with heat pumps for waste-heat recovery, improving overall PUE (Power Usage Effectiveness).
Just a few of many installations, these examples demonstrate the scalability and adaptability of heat pumps in both traditional and tech-forward industries.
A Policy-Backed Transition
India’s industrial decarbonization strategy is backed by regulatory support:
NMEEE (National Mission for Enhanced Energy Efficiency) promotes clean technologies like heat pumps.
The PAT Scheme (Perform, Achieve and Trade) incentivises industries to adopt energy-saving measures in exchange for tradable energy-saving certificates.
FAME and PLI schemes indirectly support components and technologies associated with heat pump manufacturing and application.
In parallel, innovation in refrigerants and CO₂-based transcritical heat pumps is enhancing the temperature range and performance of these systems, expanding their viability for even high-heat applications.
The Bottom Line? Heat Pumps Are the Future
For us at Aqua Chill, it is very clear that heat pumps are not just a cleaner heating option—they’re a smarter one.
Offering 40–60% lower operating costs, seamless integration with renewables, and eligibility for clean energy incentives, they present an ideal solution for industries striving toward net-zero.
As a global expert in energy efficiency says:
“When designed well, heat pumps don’t just match fossil systems—they outperform them economically and ecologically.”
India is just starting its journey to industrial sustainability, and heat pumps are leading the pack—quietly, efficiently, and powerfully transforming the way we generate heat.
Sources:iea.org, imarcgroup.com, https://mnre.gov.in,https://www.makreo.com, etc.