Heat Pump Market Size By Product (Air Source, Ground Source, Water Source), By Application (Residential {Single Family, Multi Family}, Commercial {Educational Institutes, Healthcare, Retail, Logistics & Transportation, Offices, Hospitality}, Industrial), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2022 – 2030

Industry Statistics

Heat Pump Market size valued at USD 54 billion in 2021 and is projected to expand at a CAGR of over 5% from 2022 to 2030. Government initiatives to support the adoption of efficient heating solutions will be a key driver for market growth.
 

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Rising demand for energy-efficient heating systems and rapid growth in population across colder regions will boost the adoption of advanced heat pumps. These devices have gained popularity among residential and commercial consumers seeking to reduce their expenditure on energy consumption. The use of heat pumps has several advantages including safety, low running cost, and longer lifespan. Growing awareness associated with the environmental benefits of adopting sustainable heating solutions will positively influence the supply and demand for these systems.
 

New administrative policies promoting the usage of low-energy heating solutions and the introduction of renewable heat incentive schemes, such as Domestic RHI, will complement the industry progression. In 2022, the U.S. government signed the Inflation Reduction Act into law, which allocates about USD 370 billion for eco-friendly tech and programs. It included tax credits and rebates to incentivize Americans to switch from old air conditioners or furnaces to equipment such as heat pumps.
 

The availability of sustainable alternatives to existing heat pump systems will be a major factor restraining the heat pump industry expansion. The various substitutes to these products include gas boilers, district heating & cooling systems as well as other HVAC technologies. However, fossil fuels are a predominant source of energy for most of these devices, indicating a high dependence on non-renewable sources. With innovation in heat pump technology and ambitious initiatives empowering renewable energy use, the industry is likely to witness lucrative growth.
 

Integration of advanced technologies in air source heat pumps

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The air source heat pump market is predicted to observe a 6% growth rate till 2030. These solutions are growing popular as they enable both space heating and supply of hot water. They can also deliver up to three times more heat energy compared to the electricity consumed. Additional benefits include low installation cost, high seasonal coefficient of performance (SCOP), and optimized performance. Technological advancements in variable speed blowers, coil design, thermostatic expansion valves, and electric motors have enabled the development advanced air-source heat pumps.
 

Use of heat pumps to surge across industrial applications

The heat pump market from the industrial applications accounted for USD 1 billion revenue in 2021. The presence of stringent industrial emission standards will drive the need for sustainable heating solutions across the sector. New investments in expansion activities and refurbishment of existing industrial infrastructure will accelerate the usage of these systems.
 

Currently, heat pumps are extensively used in the chemical, automotive, paper, food & beverage, metal, and textile industries. For instance, these systems are widely used in the food sector in sugar refining, beer brewing, dairy products, and manufacturing of juices & soft drinks. The devices are also used in paper pulp manufacturing and waste water heating process.
 

Rising net-zero carbon emission initiatives across North America

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North America heat pump market size is poised to register around 4% gains between 2022 and 2030. The region is expected to attract significant investments into product development and emerge as a hotspot for heat pump companies. Rapid urbanization and industrialization have propelled the demand for sustainable heating & cooling solutions. To address the impacts of critical weather conditions across countries such as the U.S. and Canada, new initiatives are rolled out that will support that development of HVAC technologies.
 

In November 2021, the U.S. Department of Energy (DOE) announced a partnership with six industry leaders including Daikin, Mistubishi Electric, Johnson Controls, Lennox International, Carrier, and Trane Technologies to pioneer the Cold Climate Heat Pump Technology Challenge. The initiative aims to address the carbon footprint of cold climate heating solutions by enhancing the efficiency and affordability of these pumps.
 

New strategic partnerships to support heat pump business development

Top manufacturers operating in the heat pump industry are Panasonic Corporation, Daikin, Viessmann, Bosch Thermotechnology Corp, Finn Geotherm UK Ltd, Valliant Group, Trane, Carrier, NIBE Industries AB, SAMSUNG, Johnson Controls, Mitsubishi Electric Corporation, Kensa Heat Pumps, WOLF GmbH, Lochinvar, Bard HVAC, Danfoss, and OCHSNER. These leaders are entering into strategic alliances and collaborations to expand their business footprint.
 

For instance, in July 2022, Daikin Europe N.V. announced an investment worth USD 302 million for the construction of a new manufacturing base in Poland, marking its first foray into the country. The new unit scheduled to begin operations in 2024 will ramp up the company’s production of residential heat pump systems.
 

Impact of COVID-19 on heat pump industry

The COVID-19 pandemic had a negative impact on the supply and demand of heat pump systems given to lockdowns imposed across various countries worldwide. The pandemic-led disruptions proposed new challenges for manufactures as financial volatility and economic disruptions led to a sense of among customers about their spending. The demand for these solutions also reduced significantly due to a halt in industrial and construction activities. Despite the lower demand, new efforts to escalate the adoption and utilization of renewable energy systems will favor the market demand.
 

The heat pump market research report includes in-depth coverage of the industry with estimates & forecast in terms of “Units” & “USD Million” from 2018 to 2030, for the following segments:

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Market, By Product

• Air Source
• Ground Source
• Water Source

Market, By Application

• Residential
  • Single Family
  • Multi Family
• Commercial
  • Education institutes
  • Healthcare
  • Retail
  • Logistics & Transportation
  • Offices
  • Hospitality
  • Others
• Industrial

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
• Asia Pacific
  • China
  • Japan
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • Turkey
  • South Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina