Air Source Heat Pump Market Size

 Air Source Heat Pump Market Size

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.

To get key market trends

  Download Free Sample

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.