Air Source Heat Pump Market Size, By Product (Air to Air, Air to Water), By Application (Residential, Product, Commercial {Education, Healthcare, Retail, Logistics & Transportation, Offices, Hospitality}) & Forecast, 2023 – 2032

Industry Drivers

Air Source Heat Pump Market size exceeded USD 44 billion in 2022 and is poised to exhibit a 13% CAGR from 2023 to 2032, given the continued shift toward low-carbon heating and cooling technologies.
 

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Climate change is becoming a driving force for energy efficiency, resulting in the introduction of stringent regulations to limit carbon emissions. According to the DOE, in 2023, new minimum energy efficiency standards for heat pumps are set to rise by 1.0 SEER to 15.0 SEER in the U.S. Air-source heat pumps have the potential to curb the greenhouse gas footprint while ensuring significant energy use reductions. The shifting preference toward sustainable refrigerants and low-carbon alternatives to meet space heating and cooling needs will therefore augment air source heat pump installation. The global market size for heat pumps is expected to cross USD 165 billion revenue by 2032.
 

Global expenditures on commercial and residential infrastructure renovation projects are also surging, given the increasing financial support from administrators. Such factors have encouraged market participants to undertake R&D initiatives to develop sustainable HVAC systems. For instance, in June 2022, Trane unveiled the Ascend model ACX, an air-to-water heat pump solution, designed to allow homeowners to reach decarbonization targets through electric cooling and heating. The rapid green transition will create lucrative growth opportunities for electric air source heat pump developers over the forecast period. The global air to water heat pump industry is poised to surpass USD 113.9 billion by 2032.
 

Rising costs and availability of conventional heating technologies may act as growth barriers

Despite energy efficiency and other key attributes, air-source heat pumps involve relatively higher installation costs than their conventional counterparts. The awareness about the presence of cleaner energy technologies such as solar heating and district heating has also risen, leading to their integration across a range of establishments. This presence of alternative heat pump technologies and the increased deployment costs may create some roadblocks to air source heat pump market development.
 

Shift toward clean energy economy to boost demand for air-to-water heat pumps

Air source heat pump market value from the air-to-water product segment accounted for USD 26 billion in 2022, owing to supportive regulatory frameworks for renewable heating solutions. For example, in April 2022, the Clean Heat Grant was introduced to help existing small buildings transition to low-carbon heating systems including air-to-water heat pumps. The product offers a range of benefits, including low noise, lesser heating time, and minimal installation expenses. The strong focus on minimizing environmental impacts will thus promote the utilization of efficient air-to-water heating and cooling technologies.
 

Urban migration & affordable housing schemes to fuel residential air-source heat pump installation

Based on the application, the residential segment is slated to depict over 13% CAGR through 2032, attributed to the consistent rise in population and rapid urbanization. Government initiatives are also being introduced to address the requirement for adequate housing infrastructure. For instance, in May 2022, the U.S. government released a Housing Supply Action Plan to limit the housing supply shortfall and create affordable housing units. These factors will escalate the usage of clean heating technologies such as air-source heat pump boilers across the residential sector.
 

APAC to emerge as a lucrative hub for air source heat pump production

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Regionally speaking, the Asia Pacific air source heat pump market size will expand at a CAGR of 10% till 2032, on account of increasing population and construction expenditure. According to statistics from the International Trade Administration, in 2021, the Korean construction-related sector, including civil engineering services and public and private infrastructure, recorded a 9.2% growth. Furthermore, with the rising disposable income and positive outlook toward the deployment of efficient heating and cooling solutions to cut energy bills. The market for U.S. air source heat pump is poised to surpass USD 25 Billion by 2032.
 

Product range expansion strategies to define competitive industry landscape

Prominent players operating in the air source heat pump market include Mitsubishi Electric Corporation, Vaillant Group, Trane, Swegon Group AB, Viessmann, NIBE Industrier AB, Bosch Thermotechnology Ltd., Carrier, Fujitsu General, Toshiba Air Conditioning, Panasonic Corporation, Lennox International Inc., LG Electronics, SAMSUNG, Glen Dimplex Group, and Systemair AB. These companies are targeting to make hefty investments to design sustainable and efficient solutions and expand their foothold in the global market.
 

For instance, in November 2022, Mitsubishi Electric unveiled the Ecodan CAHV-R, a range of cascaded air source heat pumps, with an output capacity of 7.8 kW to 640 kW for hospitals, schools, and other commercial applications. This initiative was meant to enable the company to establish a strong presence in the industry.
 

Impact of COVID-19 on air source heat pump market outlook

The air source heat pump industry suffered a setback due to the COVID-19 outbreak. The imposition of stringent lockdown mandates and social distancing norms have severely disrupted supply chain operations. Despite the pandemic-induced disruptions, awareness about the prevention of coronavirus transmission through the replacement of ducted HVAC units with ductless heat pumps has increased. The rising need for improved indoor air quality will assert a positive influence on the production of ductless air source heat pumps and in turn, strengthen industry dynamics over the forthcoming years.
 

The air source heat pump market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments:

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Market, By Product

• Air to Air
• Air to Water

Market, By Application

• Residential
  • Single Family
  • Multi Family
  • Residential, By Product
    • Domestic Hot Water Heat Pump
    • Room Heat Pump
• Commercial
  • Education
  • Healthcare
  • Retail
  • Logistics & Transportation
  • Offices
  • Hospitality
  • Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Austria
  • Norway
  • Denmark
  • Finland
  • France
  • Germany
  • Italy
  • Switzerland
  • Spain
  • Sweden
  • UK
  • Netherlands
  • Poland
  • Belgium
  • Slovakia
  • Ireland
  • Czech Republic
• Asia Pacific
  • China
  • Japan
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • Turkey
  • South Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina