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The heat pump market size is forecast to increase by USD 43.45 billion at a CAGR of 8.9% between 2023 and 2028. The growth of the market depends on several factors, including the growing demand for heat pumps from the construction sector, the growing demand for high-temperature heat pumps (HTHPs), and the emergence of building energy management systems (BEMS).
The market research and growth report offers extensive research analysis on the market growth analysis , with a categorization based on Application, including residential, commercial, and industrial. It further segments the market by Product, encompassing air source heat pumps, ground source heat pumps, and exhaust air heat pumps. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
Market Forecast 2024-2028
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The construction sector plays a crucial role in fuelling the demand for heat pumps. In addition, with the ongoing increase in the construction of commercial and residential buildings, the demand for heat pumps has been increasing mainly due to their wide spectrum of applications in buildings. Furthermore, air conditioning, refrigeration, and space heating are common applications of heat pumps in both residential and commercial buildings.
Moreover, other applications include hot water supply in commercial buildings, cold storage warehouses, and process heat and steam for industrial applications. Furthermore, heat pumps are now becoming central to both commercial and residential sectors in various countries. Hence, such factors are driving the market growth during the forecast period.
Various government regulations to minimize the effect of GHGs, and the preference for fuels across industrial and commercial sectors have shifted toward renewables over the past few years with the growing environmental concerns and ongoing implementation. In addition, the same trend is having an impact on the industry.
Moreover, the surge in adoption is primarily due to the monetary benefits they offer. In addition, the installation along with a solar PV system offers dual benefits in terms of energy savings and reduced dependency on fossil fuels. Furthermore, this also helps organizations to cut down the overall cost structure and contribute toward minimizing carbon emissions in the atmosphere. Hence, such factors are setting a new tendency in the market growth and trends during the forecast year.
The main challenge that is faced by the market is the lack of awareness among potential consumers. In addition, it has been observed that many end-users are not aware that heat pumps make use of renewable energy and are significantly more efficient than other traditional equipment. Furthermore, this has led to a lower adoption rate of heat pumps.
Moreover, a lack of awareness leads to misconceptions and misunderstandings of technology, potentially causing potential buyers to hesitate due to fears of high costs, inefficiency, or unsuitability for their needs. In addition, consumers are accustomed to traditional heating and cooling systems and may be resistant to change or hesitant to invest in a technology they do not fully understand. Hence, such factors are hindering the growth of the market during the forecast period.
The residential segment is estimated to witness significant growth during the forecast period. The main use of residential heat pumps is for heating and cooling homes. In addition, they can replace traditional heating and cooling systems such as furnaces and air conditioners. Furthermore, heat pumps can be particularly efficient in moderate climates, where the temperature does not regularly drop to extreme lows.
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The residential segment was the largest segment and was valued at USD 46.17 billion in 2018. Moreover, air-source heat pumps are commonly used in residential applications. In addition, they extract heat from the outdoor air to warm the home in winter, and they can reverse the process to provide cooling in summer. Furthermore, heat pumps can be used to provide hot water for domestic use. In addition, they are often referred to as heat pump water heaters and are much more energy-efficient than traditional electric water heaters. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period. Furthermore, factors such as reduced cost of installation of air-source heat pumps, ongoing development of larger commercial and institutional buildings, and government initiatives to minimize greenhouse emissions are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
Based on the product, the segment is classified into air source heat pumps, ground source heat pumps, and exhaust air heat pumps. The air source heat pumps segment will account for the largest share of this segment. ASHP segment absorbs heat from the outside air and releases it inside the building for heating, cooling, and hot water preparation. In addition, heat transfer is achieved using a vapor compression cycle. Moreover, these pumps can be readily installed as compact units inside or outside the house and used to heat underfloor heating systems, radiators, air convectors, and water.
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APAC is estimated to contribute 43% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. There is a significant growth of the market in APAC due to continued contributions from markets in China, Japan, India, Vietnam, South Korea, Malaysia, and Australia. In addition, the growing commercial construction sector is the key driving factor in countries such as China and India. Moreover, the main factor for the increased demand for heat pumps in APAC is the growth in the construction industry. Furthermore, growing urbanization, increased spending on infrastructural development, and the advent of affordable housing projects are growth drivers for the construction industry in the region. Hence, such factors are driving the market growth in APAC during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Daikin Industries Ltd: T he company offers warmth pump that includes Air to Water heat pump systems which provides a total solution for domestic heating and hot water supply
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Bard HVAC, Danfoss AS, Dantherm Group AS, DENSO Corp., Emerson Electric Co., Fujitsu Ltd., Glen Dimplex Europe Holdings Ltd., Guangdong Aoxin Heat Pump Air Conditioning Co. Ltd., Hayward Holdings Inc., Ingersoll Rand Inc., Johnson Controls International Plc, Kensa Group, Lennox International Inc., Mitsubishi Electric Corp., NIBE Industrier AB, Nortek, Rheem Manufacturing Co., Robert Bosch GmbH, and STIEBEL ELTRON GmbH and Co. KG
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Heat Pump Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.9% |
Market Growth 2024-2028 |
USD 43.45 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.7 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bard HVAC, Daikin Industries Ltd., Danfoss AS, Dantherm Group AS, DENSO Corp., Emerson Electric Co., Fujitsu Ltd., Glen Dimplex Europe Holdings Ltd., Guangdong Aoxin Heat Pump Air Conditioning Co. Ltd., Hayward Holdings Inc., Ingersoll Rand Inc., Johnson Controls International Plc, Kensa Group, Lennox International Inc., Mitsubishi Electric Corp., NIBE Industrier AB, Nortek, Rheem Manufacturing Co., Robert Bosch GmbH, and STIEBEL ELTRON GmbH and Co. KG |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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