Europe Heat Pump Water Heater Market Size - By Capacity (≤ 50 Gallons, > 50 - ≤ 100 Gallons, > 100 - ≤ 200 Gallons, > 200 Gallons), By Application (Residential {Single-Family, Multi-Family}, Commercial) & Global Forecast, 2023 - 2032

Europe Heat Pump Water Heater Market Size

Europe Heat Pump Water Heater Market size was valued at USD 590 million in 2022 is projected to grow at a CAGR of 17% between 2023 and 2032. The rising demand for reliable and efficient hot water solutions in various application verticals along with the ongoing development across buildings infrastructure will positively complement the industry landscape. The elevating demand for energy efficient units across commercial and residential verticals coupled with shifting focus toward replacement of prevailing heating systems to limit carbon emissions further augmenting the industry growth. Moreover, significant variation in climatic conditions across various countries attributed by the growing pollution and global warming levels together with increasing demand for enhanced technological systems have propelled the product deployment rate across the region. The global market of heat pump water heater is set to reach USD 7.6 billion by 2032.
 

A heat pump water heater (HPWH), also known as sanitary hot water heat pump, is a type of air to water heat pump unit that uses electricity for transferring heat from one place to the another, rather than producing heat directly. This makes them more energy-efficient than traditional water heaters, which uses electricity to directly heat water and work by using a compressor to move heat from the outside air into the water tank. The compressor is powered by electricity, but the heat that is moved into the water tank is free and can save energy bills, while also providing hot water.

The respective governments have implemented various policies to support the transition to energy-efficient alternatives across different industries and address climate change. For instance, in April 2022, a study by the IEA Heat Pumping Technologies Technical Collaboration Programme (HPT TCP) verified that air-to-water heat pump systems using propane (R290) offer superior energy efficiency compared to other alternatives. As a result, these systems are gaining traction in both the German and European markets. In addition, continuous technological advancements to develop advanced heat pump water heater units with improved installation flexibility and operational benefits will propel the Europe heat pump water heater market dynamics.
 

COVID- 19 Impact

The COVID-19 pandemic has significantly impacted the region's economic and industrial growth. Governments and authorities implemented lockdown rules, leading to temporary or permanent halts in manufacturing operations. This resulted in a shortage of human resources, raw materials, and labor, disrupting the supply chain network and infrastructure development projects. Furthermore, favorable government regulations and increasing investments in advanced technological systems are expected to contribute to the industry's recovery. Several administrations have also set positive targets to embrace low pollution and support renewable technologies, which are aligning with the green wave prompted by the pandemic and offsetting the demand for heat pump water heaters.
 

Europe Heat Pump Water Heater Business Trends

The Europe heat pump water heater market is anticipated to witness a significant momentum on account of the rising demand for reliable hot water and along with the government legislation directing the replacement of existing heating systems from sustainable heating and hot water solutions to limit the GHG emissions. The paradigm shift toward adoption of energy-efficient systems coupled with the rising income levels of consumer and introduction of enhanced technological units are some of the key factors stimulating the industry growth.
 

Growing utilization of fossil fuels has elevated the carbon footprint across the region, fueling the demand for clean and sustainable heat pump water heater technologies. Moreover, the industry's expansion is being shaped by ongoing advancements towards a decarbonized economy, driven by legislative energy policies and incentives. The increasing demand for high-level flexibility and comfort, coupled with a rise in refurbishment activities, is expected to further boost the Europe heat pump water heater market growth.
 

Europe Heat Pump Water Heater Market Analysis

Based on the capacity the ≤ 50 gallons capacity heat pump water heaters segment is predicted to see a significant growth on account of rapidly developing residential applications along with growing construction activities across single and multi-family houses. In addition, financial assistance provided by the respective government bodies to reduce dependency on fossil fuels along with the replacement of prevailing heating systems across households will augment the industry landscape. Additionally, industry players are continuously focusing on introducing technologically advanced HPWH units with innovative features including smart controls, Wi-Fi connectivity, advanced monitoring systems, and enhanced energy-saving capabilities positively catering to the Europe heat pump water heater market outlook.
 

The > 200 gallons capacity heat pump water heater market is set to observe substantial growth on account of rising demand for hot water across commercial and large residential or multi storey structures. Shifting consumer’s preference toward adoption of enhanced technological systems, reduction in electricity bills and energy efficiency are some of the key factors shaping the business dynamics.
 

The residential applications accounted for around 79% share of the Europe heat pump water heater industry in 2022. The rapidly increasing urban population along with the government's focus on energy conservation through strict mandates are driving the adoption of heat pump water heaters across domestic applications. Moreover, the transforming living standards backed by the growing demand for compact and efficient heating technologies are contributing to the surge in popularity of these systems.
 

Europe heat pump water heater market across commercial applications is likely to showcase appreciable momentum on account of varying climatic conditions along with introduction of stringent energy codes for buildings by the respective regulatory authorities and several nations. Rapidly growing service industry has been a vital factor influencing the penetration of commercial structures and other establishments. Accelerating urbanization along with government measures to raise investments across the service sector industry will positively influence the industry growth. In addition, increasing disposable income along with elevating demand for efficient space heating and hot water across commercial structures will further segment product deployment.
 

Germany heat pump water heater industry reached USD 109 million in 2022 and is anticipated to witness fast-paced growth through 2032. Rapid development of commercial & residential infrastructure along with robust economic conditions across the nation is set to positively influence the business dynamics. Favorable government policies along with introduction of financial plans by the government including beneficial financial aids, subsidies and tax benefits are some of the parameters encouraging the product deployment. In addition, the government's efforts to encourage green building infrastructure and the increasing focus on reducing carbon emissions from households, commercial spaces, and residential buildings have significantly will proliferate the industry dynamics.
 

Europe Heat Pump Water Heater Market Share

Major players operating across the Europe heat pump water heater market are making strategic alliances, collaborations, and partnerships to introduce new technologies and are emphasizing on expanding their manufacturing capacities to strengthen their industry presence. Key manufacturers in the industry include

• A.O. Smith Water Products Company B.V.
• Daikin
• STIEBEL ELTRON GmbH & Co. KG
• Glen Dimplex Group
• Panasonic Marketing Europe GmbH
• SAMSUNG
• LG Electronics
• Ariston Holding N.V.
• Haier A/C
• Hubbell Heaters
• Vaillant Group International GmbH
• SmartHeat Deutschland GmbH
• Mitsubishi Electric Corporation
• Thermax Limited
• Aermec S.p.A.
   

Europe Heat Pump Water Heater Market News

• In March 2023, Midea's Building Technology Division has introduced a diverse range of products, including the R290 air to water heat pump, carbon-neutral air to water heat pump, Atom T and Midea Kong Energy Solution. Another noteworthy product from Midea is the R290 Heat Pump Water Heater that utilizes the environmentally friendly R290 refrigerant and delivers excellent A+ energy efficiency. The added advantage of being wall-mounted and hybrid makes it easy to install, making it an ideal choice for those looking to reduce their electricity costs and carbon footprint in a simple and effective way.
   
• In February 2023, LG Electronics unveiled a new series of heat pump water heater designed for residential use. The Therma V models come in two sizes, with the capacity to heat water of 200 liters and 270 liters. The 200-liter unit offers COP of 3.30 at 7°C and 3.50 at 15°C, while the 270-liter model boasts a COP of 3.45 at 7°C and 3.85 at 15°C. Both models have a power input of 2 kW at 230 V. These units are versatile and can be easily installed in various locations within the household, making them a practical and energy-efficient solution for residential hot water needs.
   

This Europe heat pump water heater market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” & “USD Million” from 2019 to 2032, for the following segments:

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By Capacityy

• ≤ 50 Gallons
• > 50 - ≤ 100 Gallons
• > 100 - ≤ 200 Gallons
• > 200 Gallons

By Application

• Residential
  • Single family
  • Multi-family
• Commercial

The above information has been provided for the following countries:

• Austria
• Norway
• Denmark
• Finland
• France
• Germany
• Italy
• Switzerland
• Spain
• Sweden
• UK
• Netherlands