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Air to Water Heat Pump Market Size by Application (Residential {[Single Family, Multi Family], Product [Domestic Hot Water Heat Pump, Room Heat Pump]}, Commercial {Education, Healthcare, Retail, Logistics & Transportation, Offices, Hospitality}), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032

  • Report ID: GMI5414
  • Published Date: Jan 2023
  • Report Format: PDF

Industry Statistics

Air to Water Heat Pump Market size valued at USD 26.5 billion in 2022 and is projected to expand at over 15.5% CAGR from 2023 to 2032. Prominent public and private institutions have made significant efforts towards increasing the operational performance of heat pump technologies on a global scale. Citing an instance from April 2022, a study published by the IEA Heat Pumping Technologies Technical Collaboration Programme (IEA HPT TCP) confirmed that the air-to-water (ATW) heat pump systems utilizing propane (R290) considerably enhance the energy efficiency of a place, as compared to other counterparts.

The air to water (ATH) heat pump systems are also increasingly deployed across the residential sector of Europe and North America. For instance, new house building projects in the U.S. increased by nearly 6.8% in February 2022, with a stunning 22% year on year growth.

Air to Water Heat Pump Market

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Rising popularity of conventional heating technologies

The higher availability of traditional heating and cooling systems that deploy renewable energy or fossil fuels may negatively influence the industry growth. The access to functional advantages in terms of operational costs, incentives, and tax refunds, on the other hand, might alleviate these constraints. To balance the cost inhibitions for customers, respective administrative authorities have also created advantageous schemes such as subsidies in power bills and tax incentives, further complimenting the use of these systems.

Increasing rate of urbanization to fuel residential air to water heat pump demand

Residential applications in the air to water heat pump market are set to witness a substantial growth with the rising population and urbanization trends. Nearly 54% of the global urban population resides in Asia.  In fact, by 2050, urban population in the region is expected to grow by 50%. This enlarging population pool will lead to an increase in the hot water heating demand. The surging space cooling and heating requirements across residential establishments owing to varied climatic conditions is also likely to propel the regional landscape. Moreover, the introduction of favourable measures to meet the increasing consumer demand have led to the significant usage of enhanced technologies, further boosting the product adoption.

North America Air to Water Heat Pump Market, By Application, 2022, Market Share (%)
Application Market Share, 2022
Residential 68.40%
Commercial 31.60%

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Air to water heat pump market from the multi-family residential application is anticipated to surpass USD 30 billion by 2032. The rising influx of private and government investments for the building of multi-story residential structures has resulted in a positive influence for multi-family structures. One of the key factors pushing the popularity of air-to-water heat pumps for residential use is the increasing inclination toward sustainable alternatives to minimize energy consumption. The growing government support in all regions will also play a major role in lowering the energy use.

Europe Air to Water Heat Pump Market, From Residential

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Thriving public investments in energy efficient technology across North America

North America air to water heat pump market is poised to witness more than 18% growth rate through 2032 on account of the rising demand for space heating and cooling systems and the expansion of the real estate sector. The regional government is working on several significant initiatives for the adoption of reliable technologies to cater to the rising energy consumption needs. For instance, in November 2022, the U.S. government announced a funding of USD 9 billion to support the installation of energy efficient systems including heat pumps across residential applications. Furthermore, the presence of stringent regulatory measures toward limiting the carbon emissions have accelerated the demand for these units, subsequently instigating a favorable business scenario.

Expansion strategies to favor the competitive landscape

Major companies operating in the air to water heat pump market include Trane, Bosch Thermotechnology Corp., Glen Dimplex Group, DAIKIN INDUSTRIES Ltd., Carrier Corporation, Panasonic Corporation, NIBE Industrier AB, Vaillant Group, SAMSUNG, STIEBEL ELTRON GmbH & Co. KG, Viessmann, Toshiba Air Conditioning, LG Electronics, WOLF GmbH, FUJITSU GENERAL LIMITED, and Guangzhou SPRSUN New Energy Technology Development Co., Ltd. These prominent manufacturers and suppliers are consistently restructuring their research & development investments to enhance their product portfolios and cater to the surging need for efficient and reliable space heating technologies.

For instance, in October 2022, Daikin announced the expansion of its manufacturing facility in Güglingen, Germany, to produce heat pumps. The company acquired a piece of land spanning across 22.000 m², with the office & production facilities located in Güglingen. The integration and refurbishment of facilities into the company’s existing manufacturing site will allow Daikin to manufacture over three times its present volume by 2025.

Impact of the COVID-19 pandemic on air to water heat pump market outlook

In addition to being essential for daily life since it powers companies, hospitals, residences, and schools, energy production results in the emission of greenhouse gases. According to the EIA, in 2021, U.S. energy-related CO2 emissions surged by 7%, or 325 MMmt. Due to increased CO2 emissions, several nations are attempting to reduce their energy consumption and establish measures to restrict greenhouse gases in the environment. This factor will provide the air to water heat pump industry significant scope for expansion since it is one of the key energy-efficient method of space heating. Over three times efficient than traditional fossil fuel boilers, heat pumps are slated to see increased adoption in individual buildings by 2030.

The air to water heat pump market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’Units” and “USD Million” from 2019 to 2032, for the following segments:

Market Insights, By Application

  • Residential
    • Single Family
    • Multi Family
    • 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


Authors: Ankit Gupta, Divyendu Sharma

Frequently Asked Questions (FAQ) :

The market size of air to water heat pump crossed USD 26.5 billion in 2022 and is expected to showcase more than 15.5% gains through 2032, owing to the rising urbanization trends.

The residential applications segment is anticipated to witness significant growth driven by the rising population and high-living standards.

The North America market is projected to witness over 18% CAGR through 2032 due to the rising demand for space heating and cooling systems.

Major companies operating in the industry include Trane, Bosch Thermotechnology Corp., Glen Dimplex Group, DAIKIN INDUSTRIES Ltd., Carrier Corporation, Panasonic Corporation, NIBE Industrier AB, Vaillant Group, Viessmann, Toshiba Air Conditioning, LG Electronics, WOLF GmbH, and FUJITSU GENERAL LIMITED.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 16
  • Tables & Figures: 1081
  • Countries covered: 29
  • Pages: 550

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