Republic of Korea: Heat Pump Market 2024

Heat Pump Market Size in Republic of Korea

The South Korean heat pump market contracted rapidly to $X in 2021, declining by -34.2% against the previous year. In general, the total consumption indicated measured growth from 2012 to 2021: its value increased at an average annual rate of +2.5% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Heat pump consumption peaked at $X in 2020, and then dropped rapidly in the following year.

Heat Pump Production in Republic of Korea

In value terms, heat pump production declined to $X in 2021 estimated in export price. Over the period under review, the total production indicated strong growth from 2012 to 2021: its value increased at an average annual rate of +7.9% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, production increased by +14.3% against 2019 indices. The most prominent rate of growth was recorded in 2013 with an increase of 33%. Heat pump production peaked at $X in 2020, and then fell in the following year.

Heat Pump Exports

Exports from Republic of Korea

In 2021, the amount of heat pumps (other than air conditioning machines) exported from South Korea skyrocketed to X units, picking up by 181% compared with the year before. Overall, exports recorded a significant expansion. The pace of growth was the most pronounced in 2016 when exports increased by 4,588%. The exports peaked in 2021 and are expected to retain growth in years to come.

In value terms, heat pump exports skyrocketed to $X in 2021. In general, exports recorded a significant expansion. The pace of growth was the most pronounced in 2016 with an increase of 4,906% against the previous year. Over the period under review, the exports attained the peak figure in 2021 and are expected to retain growth in the immediate term.

Exports by Country

The Netherlands (X units) was the main destination for heat pump exports from South Korea, accounting for a 51% share of total exports. Moreover, heat pump exports to the Netherlands exceeded the volume sent to the second major destination, Sweden (X units), more than tenfold. Turkey (X units) ranked third in terms of total exports with a 2.3% share.

From 2012 to 2021, the average annual rate of growth in terms of volume to the Netherlands amounted to +128.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: Sweden (+47.2% per year) and Turkey (+12.4% per year).

In value terms, the Netherlands ($X) remains the key foreign market for heat pumps (other than air conditioning machines) exports from South Korea, comprising 62% of total exports. The second position in the ranking was held by Sweden ($X), with a 3.5% share of total exports. It was followed by Turkey, with a 2.7% share.

From 2012 to 2021, the average annual rate of growth in terms of value to the Netherlands totaled +161.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: Sweden (+43.8% per year) and Turkey (+16.5% per year).

Export Prices by Country

The average heat pump export price stood at $X per unit in 2021, shrinking by -30.8% against the previous year. Over the period under review, export price indicated a perceptible expansion from 2012 to 2021: its price increased at an average annual rate of +2.6% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, heat pump export price decreased by -35.9% against 2018 indices. The pace of growth appeared the most rapid in 2014 when the average export price increased by 59% against the previous year. The export price peaked at $X per unit in 2018; however, from 2019 to 2021, the export prices failed to regain momentum.

There were significant differences in the average prices for the major export markets. In 2021, amid the top suppliers, the country with the highest price was Bulgaria ($X per unit), while the average price for exports to Bangladesh ($X per unit) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to the Netherlands (+14.3%), while the prices for the other major destinations experienced more modest paces of growth.

Heat Pump Imports

Imports into Republic of Korea

In 2021, heat pump imports into South Korea expanded notably to X units, with an increase of 8.3% against the previous year's figure. Overall, imports saw resilient growth. The most prominent rate of growth was recorded in 2015 with an increase of 114%. Over the period under review, imports hit record highs in 2021 and are likely to see gradual growth in the near future.

In value terms, heat pump imports surged to $X in 2021. Over the period under review, imports showed buoyant growth. The pace of growth appeared the most rapid in 2018 when imports increased by 118% against the previous year. Imports peaked in 2021 and are likely to see steady growth in the immediate term.

Imports by Country

In 2021, Japan (X units) was the main supplier of heat pump to South Korea, accounting for a 107% share of total imports. Moreover, heat pump imports from Japan exceeded the figures recorded by the second-largest supplier, China (X units), threefold. The United Arab Emirates (X units) ranked third in terms of total imports with a 10% share.

From 2012 to 2021, the average annual rate of growth in terms of volume from Japan amounted to +2.9%. The remaining supplying countries recorded the following average annual rates of imports growth: China (-10.0% per year) and the United Arab Emirates (+267.4% per year).

In value terms, Japan ($X) constituted the largest supplier of heat pumps (other than air conditioning machines) to South Korea, comprising 101% of total imports. The second position in the ranking was held by China ($X), with a 31% share of total imports. It was followed by Germany, with a 13% share.

From 2012 to 2021, the average annual rate of growth in terms of value from Japan totaled -2.2%. The remaining supplying countries recorded the following average annual rates of imports growth: China (-4.8% per year) and Germany (-8.6% per year).

Import Prices by Country

In 2021, the average heat pump import price amounted to $X per unit, with an increase of 7.9% against the previous year. Over the period under review, the import price, however, recorded a noticeable curtailment. The growth pace was the most rapid in 2018 an increase of 26% against the previous year. Over the period under review, average import prices hit record highs at $X per unit in 2012; however, from 2013 to 2021, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major supplying countries. In 2021, amid the top importers, the country with the highest price was Iceland ($X per unit), while the price for Australia ($X per unit) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the United Arab Emirates (+37.2%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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