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Heat Pump Market - By Product (Air Source, Ground Source, Water Source), By Application (Residential, Commercial {Educational Institutes, Healthcare, Retail, Logistics & Transportation, Offices, Hospitality}, Industrial), & Global Forecast, 2024 – 2032

  • Report ID: GMI1426
  • Published Date: May 2023
  • Report Format: PDF

Heat Pump Market Size

Heat Pump Market size surpassed USD 57.9 billion in 2023 and is anticipated to grow at 12.9% CAGR from 2024 to 2032. Rapidly rising greenhouse gas (GHG) emissions leading to adverse environmental impacts coupled with the introduction of new measures to support clean energy alternatives will augment the product deployment by 2032. In addition, high energy efficiency, low carbon footprint, availability of financial incentive schemes, and quiet operations are some of the key factors bolstering the industry landscape.

Heat Pump Market

The growing need for energy efficient space & water heating technologies along with continuous research & development initiatives by public and private players will augment the market outlook. Moreover, introduction of favorable regulatory framework and the promptly increasing new & retrofitting construction activities with energy efficient alternatives will boost the industry landscape. The global market for industrial heat pump is poised to surpass USD 2.2 billion by 2032.

COVID-19 Impact

Several nations across the globe had introduced stringent lockdown protocols amid the COVID-19 pandemic imparting detrimental effects on the heat pump market supply and demand . As a result of the pandemic-induced disruptions, manufacturers observed additional difficulties on account of various factors including economic downturns, low purchasing power of customers, constrained cross-border trade flows, and halting of industrial & building operations. However, encouraging initiatives by key governments to uptake the low emission levels caused by curtailed industrial functions amid the pandemic will offset the restraining factors by 2032.

Heat Pump Market Analysis

Heat Pump Market Size, By Product, 2021 - 2032 (USD Billion)

Air source heat pump market is projected to hold the dominating position across the industry and observe a strong growth of over 13% by 2032 on account of their optimized performance, low installation cost, and ability to deliver space heating & hot water needs, among other parameters. Continuous adoption of sustainable energy technologies for energy efficient use in residential, commercial, and industrial applications is set to propel the heat pump industry outlook.

Moreover, the air source heat pump systems can be broadly divided into air to air and air to water heat pump systems. In addition, various government bodies offer a wide range of incentives, subsidies, tax credits, and other forms of financial support to boost the deployment of renewable systems positively catering to the market growth. According to another report, water source heat pump market revenue will cross USD 1.4 billion by 2030.

The growing expenditure on new & renovation infrastructure projects across residential & commercial buildings together with substantial financial support from respective administrations will further propel the heat pump market expansion. Moreover, positive outlook by the heat pump manufacturers to support green energy transition with environmentally friendly HVAC systems transition will unveil lucrative growth opportunities in the deployment of air source heat pump systems.

Heat Pump Market Revenue Share, By Application, 2022

The residential heat pump industry size is estimated to amass USD 35 billion in 2022 and is projected to observe substantial growth by end of 2032. The space & water heating demand in domestic applications has increased significantly on account of the fast-paced population growth along with the expansion in the number of households in urban localities positively catering to the heat pump business statistics. Moreover, positive outlook for the adoption of energy-efficient systems attributed by the stringent building energy performance standards will unveil new opportunities for the market expansion. Commercial heat pump industry is likely to cross USD 43.3 billion by 2032.

Asia Pacific Heat Pump Market Size, 2021 - 2032 (USD Billion)

The Asia Pacific heat pump market was worth USD 23 billion in 2022 with major growth prospects attributed by key nations including China, Japan, Australia, and South Korea. Variations in the climatic conditions, rapid rate of urbanization, rising disposable incomes across customers, and shifting trends towards clean energy technologies are some of the key parameters catering to the regional industry landscape. In addition, Europe heat pump industry is also set to observe strong growth backed by the stringent building energy efficiency norms, encouraging emission reduction targets, availability of financial benefit policies, and substantial presence of various heat pump manufacturing companies. Moreover, the market size for Heat Pump in the U.S. is poised to surpass USD 29.6 Billion by 2032.

Heat Pump Market Share

Various small- and large-scale manufacturers are operating in the market for heat pump at the regional and global levels. The continuous introduction of new strategic initiatives including product launch, expansion of manufacturing facilities, and mergers & acquisitions by key industry players will play a key role in shaping the industry dynamics by 2032.

Major heat pump market companies operating in the industry consist of

  • Carrier
  • Vaillant Group
  • Danfoss
  • Viessmann
  • Bosch Thermotechnology Corp.
  • Trane
  • Panasonic Corporation
  • WOLF GmbH
  • Bard HVAC
  • Glen Dimplex Group
  • Kensa Heat Pumps
  • Johnson Controls
  • NIBE Industrier AB
  • Mitsubishi Electric Corporation
  • Finn Geotherm UK Limited 
  • Lochinvar

Heat Pump Industry News

  • In April 2023, Daikin Europe N.V. confirmed starting the construction of a new manufacturing base with the investment of over USD 330 million in ?ódz, Poland and focusing on the production of residential heat pump units. The new facility is scheduled to be completed by April 2024 and start the operations by July 2024.
  • In November 2022, Mitsubishi Electric introduced a new line of cascaded air source heat pump called Ecodan CAHV-R primarily designed for commercial applications. The new product range has a heating capacity range from 7.8 kW to 640 kW and is set to be integrated in different infrastructures including schools and hospitals.

This market research report on heat pump 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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Market, By Product

  • Air Source
  • Ground Source
  • Water Source

Market, By Application

  • Residential
    • Single family
    • Multi family
  • Commercial
    • Educational 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


Authors: Ankit Gupta, Divyendu Sharma

Frequently Asked Questions (FAQ) :

The market size of heat pump surpassed USD 57.9 billion in 2023 and is anticipated to observe 12.9% CAGR from 2024 to 2032, says this GMI report.

The heat pump market size is estimated to surpass USD 165 billion by 2032 impelled by surging need for cost-effective heating & cooling operations with minimal environmental footprint.

Residential heat pump business size exceeded USD 35 billion in 2022 and is predicted to expand through 2032 due to the growing space & water heating demand across domestic applications.

Asia Pacific heat pump industry reached more than USD 23 billion in 2022 and will grow substantially during 2023-2032 on account of the rapid rate of urbanization and rising disposable incomes.

Carrier, Vaillant Group, STIEBEL ELTRON GmbH & Co. KG, Danfoss, Viessmann, Bosch Thermotechnology Corp., Trane, Panasonic Corporation, WOLF GmbH, Bard HVAC, and Glen Dimplex Group are the major heat pump manufacturers and suppliers.

Heat Pump Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 973
  • Countries covered: 24
  • Pages: 620
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