Air Source Heat Pump Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, UK, Germany - Size and Forecast 2024-2028

Air Source Heat Pump Market 2024-2028

The air source heat pump market size is estimated to increase by USD 50.80 billion and grow at a CAGR of 11.41% between 2023 and 2028. Environmental apprehensions are on the rise, accompanied by increased energy expenses and a heightened emphasis on energy-saving technologies. Market expansion is propelled by government incentives like subsidies, tax credits, and rebates, although initial expenses remain a concern. The efficacy is contingent upon climate conditions, posing challenges. Moreover, the shift towards low-global warming potential (GWP) solutions could hinder the market growth.

What will be the Size of the Air Source Heat Pump Market During the Forecast Period?

Market Forecast 2024-2028

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Market Segmentation by Product, Application, and Geography

The report offers extensive research analysis on the market, with a categorization based on Product, including air-to-water and air-to-air. It further segments the market by Application, encompassing residential, industrial, and commercial. Additionally, the report provides geographical segmentation, covering APAC, Europe, North America, the Middle East and Africa, and South America. Market size, historical data (2017-2021), and future projections are presented in terms of value USD million for all the mentioned segments.

Product Segment Analysis: 

The air-to-water segment is estimated to witness significant growth during the forecast period. One of the main factors that is fuelling the growth of the air-to-water segment is the increasing focus on environmental sustainability and energy efficiency. In addition, air-to-water heat pumps are becoming increasingly common because of their cost-effectiveness, eco-friendliness, and adaptability to different climates. Furthermore, these pumps effectively transfer heat from the outside air to provide hot water and space heating.

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The air-to-water segment was the largest segment and was valued at USD 26.97 billion in 2018. Moreover, the demand for air-to-water heat pumps is further supported by government incentives and regulations that encourage the adoption of energy-efficient heating solutions. In addition, air-to-water heat pumps are expected to develop at a strong rate and become a dominant product in the global market as more people and businesses look to cut back on their energy use and carbon footprint. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.

Regional Analysis

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North America is estimated to contribute 37% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. One of the main factors that is contributing to the growth of air-source heat pumps in North America is the growing need for heat pump systems due to the focus on environmental sustainability and energy efficiency. In addition, initiatives like the US's Clean Energy for America Act, offer tax breaks for the installation of energy-efficient heating and cooling equipment. Moreover,  a greater awareness among customers of their energy expenses and carbon footprint has resulted in a higher uptake of these systems. Furthermore, since air-source heat pumps can provide both heating and cooling, they have become increasingly popular in regions of North America with extreme weather, such as harsh winters in the north and scorching summers in the south. Hence, such factors are driving the market growth in North America during the forecast period.

Market Dynamics and Customer Landscape

The market is experiencing a surge in demand due to the increasing focus on energy efficiency and environmental sustainability. This technology, which utilizes renewable energy sources like propane and solar thermal systems, helps reduce greenhouse gas emissions and reliance on non-renewable energy sources. With features such as ductless heat pumps and air-to-water heat pumps, it caters to both residential and commercial sectors, contributing to significant energy savings and improved indoor air quality. As businesses and homeowners prioritize infrastructure renovation to enhance efficiency, air-source heat pumps emerge as a key solution for heating and cooling needs. Additionally, advancements in smart home platforms further optimize energy usage patterns, emphasizing the market's role in combating climate change while providing substantial initial savings and operational cost reductions.

Driver - Growing environmental concerns

The global market is witnessing significant growth driven by the pressing need to reduce greenhouse gas emissions and combat climate change. With increasing awareness of environmental issues, there's a notable shift towards energy-efficient and sustainable heating and cooling systems. Air source heat pumps, utilizing heat from the air for heating and cooling purposes, are gaining traction due to their small carbon footprint. Initiatives like the European Union's emission reduction goals are driving the replacement of traditional heating systems with air source heat pumps, leading to substantial reductions in carbon emissions. Additionally, rising environmental consciousness worldwide, particularly in North America and APAC, is fueling the adoption of these systems to lower energy usage and address climate concerns.

Trends - Integration of smart technology and Internet of Things (IoT) features into the systems

The integration of smart technology and IoT features is a major trend in the global market as it improves the functionality and efficiency of these systems. In addition, users can remotely monitor and operate their heating and cooling systems by connecting them to the internet. Furthermore, this allows for immediate changes through web interfaces or smartphone apps.

Moreover, to maximize energy use, homeowners can, for example, pre-cool or pre-heat their spaces before returning home. In addition, real-time diagnostics and predictive maintenance help personnel find problems early, cutting down on maintenance expenses and downtime. Furthermore, this trend, which is in line with the larger shift towards energy-efficient and environmentally friendly HVAC solutions, not only increases user convenience but also helps with energy savings and sustainability by allowing more accurate and effective management of these pumps. Hence, such factors are expected to drive the growth of the global market during the forecast period.

Challenge - High initial costs

Even though these systems promise long-term energy savings, the initial upfront cost of purchasing and installing them is a major challenge in the global market, turning off potential customers. In addition, due to the equipment, installation, and, in certain situations, required home changes, these systems are relatively costly.

Moreover, the installation of a high-efficiency air source heat pump can be expensive, and there may be further costs if the house does not have enough ducting or insulation. In addition, though over time, air source heat pumps can significantly lower heating and cooling expenditures, this financial barrier may deter consumers on a tight budget from making the initial purchase. Hence, such factors are hindering the market growth during the forecast period.

Who are the Major Air Source Heat Pump Market Companies?

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.

A. O. Smith India Water Products Pvt. Ltd:  The company offers air source heat pump products such as heat pump water heater, which has a dedicated outdoor unit that can be placed on a terrace, balcony, and service areas.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Alibaba Group Holding Ltd., Ariston Holding NV, BDR Thermea Group, Carrier Global Corp., Colmac Industries Inc., Daikin Industries Ltd., Danfoss AS, Emerson Electric Co., Fujitsu General Ltd., Glen Dimplex Europe Holdings Ltd., Grant Engineering UK Ltd., Groupe Airwell, Haier Smart Home Co. Ltd., Hitachi Ltd., Ingersoll Rand Inc., Jaquar Group, Mitsubishi Electric Corp., NIBE Industrier AB, and Robert Bosch GmbH

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.  

Segment Overview

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. 

• Product Outlook 
  • Air-to-water
  • Air-to-air
• Application Outlook 
  • Residential
  • Industrial
  • Commercial
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing significant growth driven by increasing environmental concerns and a focus on energy efficiency. These pumps, which operate without oil, offer lower energy consumption and operational costs, leading to initial savings. Widely utilized in various industries including pharmaceuticals, biotechnology, and agriculture, they provide efficient heating and cooling solutions. With cutting-edge technologies like micropumps and field-emission electron sources, along with adaptability to different sectors such as healthcare, the market is expanding rapidly. However, challenges such as noise concerns and efficacy depending on climate persist. Integration with renewables like solar panels and geothermal energy offers opportunities for energy savings, making air source heat pumps a sustainable choice for residential, commercial, and industrial applications.

Moreover, the market is experiencing substantial growth, driven by its adaptability across various sectors including pharmaceuticals, chemicals, and healthcare. With a focus on sustainability, these pumps offer efficient heating and cooling solutions while reducing carbon dioxide emissions and air pollution. Their compatibility with renewable energy sources like solar thermal systems and geothermal heat pumps further contributes to the market's expansion. As urbanization and construction projects increase, the demand for energy-efficient HVAC systems and smart home platforms rises. Despite challenges such as startup costs and greenhouse gas footprints, innovative solutions like cold-climate heat pumps and hybrid systems pave the way for a greener future in both commercial and residential applications, emphasizing sustainability and improved indoor air quality.

The market is witnessing a surge in demand, especially in sectors like pharmaceuticals, healthcare, and oil and gas, where efficiency and adaptability are crucial. These pumps, including dry vacuum pumps, play a vital role in various applications, from laboratory setups to ground source heat pump units in the HVAC industry. With a focus on sustainability, hybrid heat pump systems and heat pump water heaters offer eco-friendly heating and cooling solutions, reducing greenhouse gas emissions. As the world transitions towards renewable energy sources, such as solar heating and ground-source heat pumps, there's a growing emphasis on infrastructure renovation projects and the adoption of sustainable refrigerants. From commercial to residential applications, the market is driven by the need for energy-efficient solutions and smart, connected systems to meet diverse heating and cooling needs.

Electrical infrastructure serves as the backbone of modern society, powering everything from homes to industries. In laboratory settings, specialized equipment such as vacuum pumps plays a critical role in various scientific processes, including pharmaceutical research and production. The pharmaceutical industry, in particular, relies heavily on laboratory vacuum pumps for tasks such as filtration, evaporation, and drying, essential in drug formulation and development. However, the operation of such equipment contributes to the generation of greenhouse gases, which are known to contribute to climate change.

As environmental concerns continue to mount, industries are increasingly focused on reducing their greenhouse gas footprint. This involves implementing measures to minimize emissions associated with their operations, including the use of more energy-efficient equipment, the adoption of cleaner energy sources, and the implementation of carbon capture and storage technologies. In the case of laboratory vacuum pumps, efforts to reduce their greenhouse gas footprint may involve the development of more efficient pump designs, the use of alternative gases with lower global warming potentials, and the implementation of recycling and recovery systems to minimize emissions. Overall, addressing the greenhouse gas footprint of electrical infrastructure, including laboratory equipment such as vacuum pumps, is crucial for mitigating climate change and building a more sustainable future. It requires collaboration between industry stakeholders, policymakers, and researchers to develop and implement effective strategies for reducing emissions and promoting environmental stewardship.

Air Source Heat Pump Market Scope
Report Coverage	Details
Page number	157
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 11.41%
Market Growth 2024-2028	USD 50.80 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	10.75
Regional analysis	North America, Europe, APAC, South America, and Middle East, and Africa
Performing market contribution	North America at 37%
Key countries	US, Canada, China, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	A. O. Smith India Water Products Pvt. Ltd., Alibaba Group Holding Ltd., Ariston Holding NV, BDR Thermea Group, Carrier Global Corp., Colmac Industries Inc., Daikin Industries Ltd., Danfoss AS, Emerson Electric Co., Fujitsu General Ltd., Glen Dimplex Europe Holdings Ltd., Grant Engineering UK Ltd., Groupe Airwell, Haier Smart Home Co. Ltd., Hitachi Ltd., Ingersoll Rand Inc., Jaquar Group, Mitsubishi Electric Corp., NIBE Industrier AB, and Robert Bosch GmbH
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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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