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 and Others), Industrial}, Industry Analysis Report, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2019–2025

Published Date: Mar 2019  |  Report ID: GMI1426  |  Authors: Ankit Gupta, Aditya Singh Bais

Report Format: PDF   |   Pages: 390   |   Base Year: 2018

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Global Heat Pump Market was over USD 44 billion in 2018 and the annual installation is projected to exceed 14 million units by 2025.


U.S. Heat Pump Market Size, By Product, 2018 & 2025 (USD Million)

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Increasing demand for reliable, energy efficient and cost-effective heating technologies to minimize the electricity consumption across the commercial, industrial and residential sector will drive the global heat pump market size. Ongoing industrialization coupled with rising consumer awareness toward effective energy utilization will stimulate the product demand. In addition, incentives & subsidies including tax rebate, renewable heat incentives, zero interest rate loans and direct grants introduced by policy makers will significantly fueled the installation. For instance, as per the International Energy Agency, in 2019, the total purchase of global heat pumps witnessed an increase over 9 % between 2017 and 2018 and was nearly double the growth rate for the year 2016-2017.

Rising environmental concerns due to excessive CO2 emissions discharged by systems operating on fossil fuels will drive the industry size. Growing focus toward the adoption of energy conservation directives will further influence the business growth over the forecast period. Policy makers have introduced multiple standards and norms to curb GHG emissions. For instance, the European Union is implementing multiple policies for achieving its goal of climate-neural Europe by 2050.

Heat Pump Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: 44 Billion (USD)
Historical Data for: 2014 to 2018 Forecast Period: 2019 to 2025
Forecast Period 2019 to 2025 CAGR: 4.5% 2025 Value Projection: 60 Billion (USD)
Pages: 390 Tables, Charts & Figures: 624
Geographies covered (16): U.S., Canada, Sweden, Germany, France, Finland, Austria, Netherlands, Switzerland, China, South Korea, Japan, Iran, Turkey, South Africa, Saudi Arabia
Segments covered: Product, Application and Region
Companies covered (25): Trane, Vaillant Group, Viessmann, Glen Dimplex, Stiebel Eltron GmbH & Co., Bosch Thermotechnology, Danfoss, Daikin, Carrier Corporation, NIBE Industrier AB, MODINE Manufacturing Company, Bryant Heating & Cooling Systems, Bard HVAC, Green Planet Supply Technologies, Earthlinked Technologies, OCHSNER Warmepumpen, Mitsubishi Electric Corporation, Nortek Global HVAC, WOLF GmbH, The Weishaupt Group, Finn Geotherm UK Limited, Kensa Heat Pumps, Swegon Group AB, Thermic Energy RZ GmbH, Solarbayer GmbH,
Growth Drivers:
  • Europe
  • Positive outlook toward renewable sector
  • Surging demand for space heating
  • Asia Pacific
  • Rapid urbanization and commercialization
  • North America
  • Increasing demand for energy-efficient systems
  • Favourable measures to reduce carbon footprints
Pitfalls & Challenges:
  • High upfront cost

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Heat Pump Market, By Product

Air source heat pump market will witness growth over 3% by 2025. Cost effectiveness and minimal space requirements are some of prominent features fueling the product demand. The units reduces the greenhouse gas emission by 35-40% in comparison with conventional HVAC systems and units. Ongoing technological advancements in designs aimed towards improving product efficiency will boost the installation of these units over the forecast timeline.

Rising demand of sustainable space conditioning solutions to provide efficient cooling and heating services across establishments will propel the installation of GSHP units. Minimal heat transfer loss, and low O&M & installation costs are few of the key underlying features favoring the installation of these systems. The ability of ground heat extraction by the circulation of an antifreeze solution via buried pipe makes the installation preferable over other available alternatives.

By Application

Heat pump market from residential applications is anticipated to witness growth over 3% by 2025. Increasing purchasing power parity coupled with growing investments toward the development of new establishments will boost the product penetration. Growing consumer focus toward reduced energy prices along with shifting trends to improve standard of living will complement the industry dynamics. In addition, easy integration with legacy systems across establishments will further enhance the industry growth.

Installation of commercial heat pump units is set to witness gains on account of implementation of extensive codes and standards pertaining to green building infrastructure aimed at enhancing the utilization rate of renewable energy technologies and curb carbon emissions. Increasing investments from public and private financial institutions on account of compliance with the regulatory mandates will further boost the installation of these units over the forecast timeline.

By Region

Europe Heat Pump Market Size, By Country, 2025 (USD Million)
Europe Heat Pump Market Size, By Country, 2025 (USD Million)

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Asia Pacific market size will witness growth over 3% by 2025. Introduction of stringent energy efficiency regulations coupled with ongoing efforts to replace the conventional heating units with the sustainable solutions will drive the industry growth. In addition, development of new industrial centers and the presence of a robust manufacturing sector further complements the product installation. Moreover, aggressive developments toward smart city programs & initiatives have resulted in increased spending toward the adoption of smart & high-performance HVAC systems which in turn will boost the installation of heat pumps. For instance, the Government of India (GOI) has released total funds amounting over USD 1 billion under the Smart Cities Mission.

Europe heat pump industry will grow on account of supportive regulatory framework from the respective governments along with the shifting trends toward energy conservation. Growing demand for heating applications across the residential sector on account of harsh environmental conditions will further proliferate the business growth. For instance, according to the European Heat Pump Association (ehpa), the sales of heat pumps across Europe witnessed market development over 10% between 2015 and 2016.

Competitive Market Share

Eminent players across the industry comprises Trane, Vaillant, Green Planet Supply Technologies, Thermic Energy, Glen Dimplex, Viessmann, Solarbayer, Earthlinked Technologies, Stiebel Eltron, Swegon, Bard HVAC, Bosch Thermotechnology, Kensa Heat Pumps, Danfoss, Modine, Daikin, NIBE, Carrier, OCHSNER Warmepumpen, Nortek, Mitsubishi Electric, Wolf, Finn Geotherm, Weishaupt, amongst others.

Continuous product development and geographical expansion are the key strategies adopted by heat pump manufacturers to attain the competitive advantage. In addition, growing application of heat pumps across residential and commercial establishments will further create new business opportunities for the industry participants.

Heat Pump Industry Background

Heat pump is an HVAC system that transfers heat from source of heat to another by circulation of refrigerants through the process of condensation and evaporation. It uses external power to transfer the energy from heat source. In addition, the main components of heat pumps are a condenser, an evaporator, an expansion valve, and compressor. It possesses high energy efficiency when compared to a conventional heating system and is suitable for heating application across residential, commercial and industrial sectors.

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