Heat Pump Market

Global Heat Pump Market Size (2024 to 2032)

The global heat pump market was worth USD 50.11 billion in 2023 and is anticipated to reach a valuation of USD 104.42 billion by 2032 from USD 54.37 billion in 2024. It is predicted to register a CAGR of 8.5% during the forecast period 2024-2032.

Current Scenario of the Global Heat Pump Market

The growing demand for action plans to fight climate change is providing future opportunities for vendors and companies in the heat pump market. Heat pumps can be powered by a grid that uses renewable energy sources or by solar panels installed at home. Also, utilizing green electricity to power the gadgets can aid in the fight against climate change. According to IEA, by 2030, heat pumps might decrease world carbon dioxide emissions by at least 500 million metric tonnes or yearly CO2 emissions of all present European cars. Furthermore, only about ten percent of global heating needs are currently met by heat pumps in buildings, which is less than the amount of deployment needed to satisfy the Net Zero Emissions by 2050 Scenario.

MARKET DRIVERS

Increasing government initiatives to reduce carbon emissions and the development of energy-efficient technologies are driving the heat pump market.

A major factor in the rapid adoption of heat pumps was increased legislative support and incentives due to rising natural gas prices and efforts to minimize greenhouse gas emissions. According to research, global sales of heat pumps increased by eleven percent in 2023, representing the second year of double-digit growth for the key technology in the global shift to safe and sustainable heating. Likewise, heat pump sales in Europe rose by nearly 40 percent, particularly in air-to-water models, while in the US, they outpaced gas furnaces. However, sales remained stable in China.

Due to growing recognition as an important technology for heat decarbonization, the heat pump market is propelling further. The demand for heat pumps is growing as people become more aware of the need to minimize greenhouse gas emissions. These pumps are utilized by different sectors to improve renewable energy sources, which are ultimately driving the heat pump market.

The adoption of heat pumps is growing due to the elevated demand for energy-efficient, environmentally friendly heating and cooling systems. These pumps are generating interest in end users because they are economical, energy-efficient, and perform well. Heat supplied by heat pumps is classed as renewable in markets like Japan, the European Union, and, to some extent, Korea. This allows them to support specific renewable energy policy programs. Heat pumps were officially acknowledged as a renewable energy technology in China in 2023.

MARKET RESTRAINTS

In certain nations, heat pumps have had difficulties in becoming widely adopted. One factor that has significantly affected the heat pump market is the cost.

Homes have no reason to switch because natural gas has stayed comparatively inexpensive for decades, even though the devices are far more expensive than gas heating systems. In addition to this, the lack of heat development and infrastructure is another barrier limiting the growth of growth of the market. Nonalignment of national and local interests regarding heating and cooling infrastructure, cost reduction, etc. Furthermore, the lack of a clear regulatory framework for the repair and recycling of materials and refrigerants in heat pumps is causing concerns.

One of the main challenges facing the heat pump market is the dominance of gas boilers. Since gas boilers are one of the most widely used heating methods today, they account for most greenhouse gases produced by home heating. Compressor, evaporator, and source heat exchanger faults were more common than those in other large-scale heat pump parts. With all factors considered, the most frequent errors were refrigerant leaks and heat exchanger fouling. Large-scale heat pumps for home heat supply usually have more components, greater complexity, and higher reliability requirements than small-scale heat pumps.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Heat Pump Market Analysis By Rated Capacity

The up to 10 KW segment holds the largest share under this category of the heat pump market. The primary benefit is that it's useful in single-family homes, which propels it up to the 10 kW category. Hence driving the market demand for heat pumps throughout the projected period. They can effectively heat and cool smaller houses and flats. Smaller heat pumps frequently have high levels of efficiency, which can save households money on electricity costs and energy use. Another advantage of 10 Kw heat pumps is that they are generally less expensive and easier to install than larger systems, thus appealing to both contractors and homeowners.

Global Heat Pump Market Analysis By Type

The exhaust air segment under this category is projected to have the maximum share of the heat pump market in the future. These pumps are very popular among end customers because of their adaptability and affordability. As per recent studies, introducing an air source heat pump to your house could increase its value by up to three percent. An exhaust air heat pump can significantly increase the value of your home by improving EPC ratings and energy efficiency, potentially increasing property value by up to 2.5 percent during warm summer months.

Global Heat Pump Market Analysis By Application

The residential segment is expected to have a healthy growth rate during the forecast period. The demand for residential heat pumps is rising due to the growing need for efficient heating and cooling systems. By providing environmentally efficient and sustainable heat pumps, the government is significantly contributing to the improvement of the residential sector and mitigating environmental problems. Because heat pumps are comfortable, inexpensive, simple to install, and energy-efficient, more people are becoming aware of their advantages, which is driving growth in the residential market. Additionally, other industries, including commercial and industrial, are capturing a significant portion of the world market.

Global Heat Pump Market Analysis By Technology

The air source segment is the most significant, with a considerable share of the heat pump market. Air source heat pumps offer high energy efficiency and provide superior comfort without high power consumption.

REGIONAL ANALYSIS

The North American heat pump market is estimated to have a higher CAGR during the forecast period.

The demand for large-scale heat pumps is rising due to the region's boosting residential and commercial sector need for increased energy efficiency. The market for heat pumps in the US is expanding dramatically because of growing concern about the effects on the environment and lowering carbon emissions.

The European heat pump market continues to grow at a faster pace. In Europe, 2.17 million units were sold, of which 1.93 million were heating units and 0.24 million were hot water heat pumps. Also, France, Italy, Spain, and Portugal have the highest rates of heat pump installations during the past ten years, with installations per household more than double in that time.

The Asia Pacific heat pump market is expected to witness exponential growth opportunities during the forecast period. The Asia Pacific region, primarily China and India, boasts a significant global population, thereby serving as a significant consumer base for various industries. Likewise, sales of air source heat pumps increased by over seven percent in China, which is the largest market for these systems worldwide, to hit 12.5 million units in 2021.

The Latin American heat pump market is projected to expand its share in the coming years because of the growing emphasis on sustainability and energy efficiency. The market size is also driving forward by supporting legislation and growing consumer awareness.

The Middle East and Africa's heat pump market is anticipated to grow at a steady pace in the coming years. The desire to reduce reliance on fossil fuels and find energy-efficient alternatives to heaters and air conditioners and changes in climate conditions are key drivers predicted to propel the expansion of the heat pump market over the forecast period.

KEY PLAYERS IN THE GLOBAL HEAT PUMP MARKET

Companies playing a prominent role in the global heat pump market include  Daikin (Japan), United Technologies (US), Midea (China), NIBE (Sweden), Ingersoll Rand (Ireland), Dimplex (Ireland), Stiebel Eltron (Germany), Viessmann (Germany), Panasonic (Japan), Mitsubishi (Japan), Vaillant (Germany) and Danfoss (Denmark).

RECENT HAPPENINGS IN THE GLOBAL HEAT PUMP MARKET

• In November 2023, LG released a new version of the air-to-water V R290 Monobloc domestic heat pump. It is designed to function at maximum efficiency and capacity even in extreme weather with temperatures as low as -15 C. The new product has a global warming potential of three and uses propane or R290 as a refrigerant.
• In September 2023, a smart heating system was introduced by the Octopus Energy. It is the next phase of the smart heat revolution. It includes the new Octopus heat pump, "Cosy 6," a home control system, room sensors, "Cosy Pods," a customized smart tariff, and the renowned Octopus 5-star service. Furthermore, Cosy Octopus will be a free home system after the Boiler Upgrade Scheme and features a 6kW heat pump with larger models expected in six months.

DETAILED SEGMENTATION OF THE GLOBAL HEAT PUMP MARKET INCLUDED IN THIS REPORT

This global heat pump market research report has been segmented and sub-segmented based on rated capacity, type, application, technology, and region.

By Rated Capacity

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

By Type

• Air To Water Monobloc
• Air To Water Cylinder
• Air To Water Split
• Exhaust Air
• Ground-To-Air
• Ground-To-Water

By Application

• Residential
• Commercial
• Hospitality
• Retail
• Education
• Industrial
• Food & Beverage
• Paper & Pulp
• Chemicals & Petrochemicals
• Others

By Technology

• Air Source
• Water Source
• Ground Source

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa