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The residential air to water heat pump market size is forecast to increase by USD 2.60 billion, at a CAGR of 7.08% between 2024 and 2028. The residential air-to-water heat pump market is experiencing significant growth, driven by the expanding residential construction industry and increasing adoption of innovative technologies. With a rising focus on improving energy efficiency and savings, homeowners are turning to air-to-water heat pumps as an effective solution for heating and hot water needs. These systems offer high energy efficiency ratings, reducing energy consumption and lowering utility bills. Additionally, the integration of smart technology and renewable energy sources, such as solar panels, further enhances the appeal of air-to-water heat pumps for eco-conscious homeowners. The market is expected to continue its upward trajectory, driven by these trends and government incentives promoting sustainable energy solutions.
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A bathroom water heater, also known as a geyser, is a convenient device for heating water in residential settings, providing immediate hot water for showers and other uses. It operates similarly to an air source heat pump or other heat pump variants like water source and ground source options, offering efficient heating solutions. One of the benefits of a bathroom water heater is its compact size and ability to fit into smaller spaces, making it ideal for bathrooms. Some models even include a cooling function alongside their primary heating capabilities, enhancing comfort throughout the year. Integrated with technologies such as EnergyPlus and District Hot Water Systems, these heaters contribute to energy management within HVAC systems by optimizing the Coefficient of Performance based on outside air temperature and supply water temperature. These systems promote renewable heating, address environmental concerns through efficient use of renewable energy sources, and offer quiet operation with zoning and individual control options, ensuring comfort and energy savings.
One of the key factors driving the global residential air to water heat pump industry growth is the growing residential construction industry. For instance, the growth of the construction industry in Singapore will stay strong as the Building Construction Authority (BCA) of Singapore expects a steady improvement in construction activities over the medium term. In recent years, residential construction has been the largest segment of the construction industry in Singapore. According to the Singapore Government Agency, on January 18, 2021, total construction demand in 2021 is projected to recover to between USD 17 billion and USD 20 billion, with the public sector contributing about 65% of the total demand. In addition, heat pumps are now becoming central to residential sectors in various countries such as Romania, Slovakia Cuba, and others. For instance, Europe's 2020 energy targets partly depend on this technology. Such factors will drive the market growth during the forecast period.
Significant Market Trends
Increased adoption of solar-powered heat pumps is one of the key residential air to water heat pump market trends that is expected to impact the industry positively in the forecast period. Installing a heat pump and a solar PV system offers dual benefits in energy savings and reduces dependency on fossil fuels. In addition, most state governments are emphasizing increasing the dependency on clean sources of energy. For instance, a grid-tied solar electric array is an ideal source for heat pumps. General Motors South Africa has installed more than 280 solar panels and heat pumps to provide hot water in its factory. The company is expected to use 100% of renewable sources of energy for its production process by 2050. Such factors will increase the demand for solar-powered heat pumps and decrease the demand for electricity, which will increase the demand for the market in focus in the forecast years.
Major Market Challenge
One of the key challenges to the global residential air to water heat pump industry growth is the high installation/upfront cost. Heat pumps are used primarily for space heating and cooling and have found a wide range of applications in residential buildings. Therefore, the deployment of heat pumps and their retrofitting depend on consumer preferences and disposable incomes. Though the savings realized from the use of heat pumps can offset the high initial costs in the long term, the market still faces significant challenges because of the capital-intensive nature of heat pumps. Considering the uncertainty in the global economic scenario, where businesses are looking for cost-saving measures, it has become difficult for SMEs to procure heat pumps. Hence, the high equipment cost will hinder the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
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 Corp. - The company offers high-efficiency hybrid electric heat pump water heaters that provide an energy-efficient and innovative water heating solution.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The domestic hot water heat pump segments is estimated to witness significant growth during the forecast period. Domestic hot water heat pumps are mostly used in the residential sector. These heat hot water supply using outdoor air without electric backup. These heat pumps, unlike standard air to water heat pumps, only supply domestic hot water for showers and sinks. If a domestic hot water system is serving more than eight residential units, then there should be two hot water recirculation loops, each serving the same number of units.
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The domestic hot water heat pump segments accounted for USD 3.15 billion in 2018 and showed a gradual increase during the forecast period. The loops may be connected to the same heater or separate water heater equipment. Each loop will have its pumps, demand controller, and thermostat sensor. According to the regulations, pumps can be installed externally or internally in water heaters. Manual switches for these pumps can be located near the kitchen, washroom, or other hot water fixtures. Such factors will increase the demand for residential air to water heat pumps and will contribute to the growth of the market in focus in the domestic hot water heat pump segment during the forecast period.
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APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the key driving factors for the increased demand for residential air to water heat pumps in APAC is the growth of the construction industry, which is expected to grow further during the forecast period. Growing urbanization, increased spending on infrastructural development, and the advent of affordable housing projects are growth drivers for the construction industry in the region. In addition, China represents the largest market for construction in APAC. The country has the largest population across the world and a high economic growth rate. These factors have solidified its position as a leading construction market globally. The growth in the middle-class population and rise in income levels in the country are boosting the demand for luxury apartments and high-rise condominiums. In 2021, under the latest edition of the Singapore Green Building Masterplan (SGBMP), more ambitious targets to green the built environment sector have been set. Buildings account for over 20% of Singapore emissions. Greening building is a key strategy to achieve sustainability ambitions under the Singapore Green Plan 2030. All these factors are expected to drive the growth of the residential air to water heat pump market in the region during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
You may also interested in below market reports:
1. Air Source Heat Pump Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, UK, Germany - Size and Forecast
2. Heat Pump Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, South Korea, Germany - Size and Forecast
3. Heat Pump Water Heater Market by Application, Type, and Geography - Forecast and Analysis
The water source heat pump and ground source heat pump are advanced systems for efficient heating and cooling, utilizing water or ground heat to regulate indoor temperatures effectively. These pumps offer numerous advantages over traditional heating methods, including the ability to heat a significant volume of water while maintaining eco-friendly operations with lower electric energy consumption compared to conventional systems. Benefits of a bathroom water heater include its capability to provide immediate hot water, enhancing all-weather comfort and reducing rising energy costs through efficient heating and cooling capability. Installation and maintenance are simplified, with ease of installation and space savings in residential and commercial applications. These systems integrate seamlessly into District Hot Water Systems and HVAC systems, managed by energy management systems and remote control and monitoring features for optimal performance. With a focus on durability and noise reduction, they support premium shower enclosures and ensure quiet operation with radiant panel heating, radiators, and fan coils. As infrastructure development continues, consumer awareness grows regarding the benefits of these systems in different regional climate variations.
Market Scope |
|
Report Coverage |
Details |
Page number |
138 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.08% |
Market growth 2024-2028 |
USD 2.60 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.49 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 51% |
Key countries |
China, US, Japan, France, and Sweden |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A. O. Smith Corp., Aermec Spa, Carrier Global Corp., Daikin Industries Ltd., Danfoss AS, Fujitsu General Ltd., Johnson Controls International Plc., LG Electronics Inc., Mitsubishi Electric Corp., NIBE Industrier AB, Panasonic Holdings Corp., Robert Bosch GmbH, Sanden Corp., Vaillant GmbH, and Viessmann Climate Solutions SE |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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