Heat Pump Water Heater Market size surpassed USD 2.9 billion in 2022 and is anticipated to register 10.3% CAGR from 2023 to 2032. The industry growth is flourishing on account of the increasing inclination toward efficient heating & cooling systems and soaring hot water demand across residential and commercial establishments along with ongoing investments toward the development of sustainable technologies.
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Ongoing deployment of efficient systems to offer secure heating services on account of rapid growth in the population along with rising adoption of environment friendly sources will augment the market dynamics. The products are gaining significant momentum over the recent years, owing to their ability to provide space heating and hot water in line with improved environmental performance, limited maintenance requirements, lower operating costs, less emissions, and a longer lifespan. The rising demand for advanced technological systems in commercial sector and constant replacement of conventional heating systems to curb carbon emissions will augment the business growth.
|Heat Pump Water Heater Market Size in 2022:||USD 2.9 Billion|
|Forecast Period:||2023 to 2032|
|Forecast Period 2023 to 2032 CAGR:||10.3%|
|2032 Value Projection:||USD 7.6 Billion|
|Historical Data for:||2019 to 2022|
|No. of Pages:||430|
|Tables, Charts & Figures:||737|
|Segments covered:||Capacity, Application and Region|
|Pitfalls & Challenges:|
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The introduction of enhanced technologies to allow users to monitor and control their water heaters remotely, optimize energy consumption and integrate them with smart home systems for enhanced convenience and energy management will further boost the heat pump water heater market growth. Respective government authorities are focusing on introducing various beneficial schemes for replacement of existing conventional heating systems, enhanced energy management and reduction in the carbon footprint.
For instance, in May 2022, the U.S. Department of Energy (DOE) introduced the Advanced Water Heating Initiative (AWHI), a new nationwide campaign to boost the deployment of innovative heat pump technology aiming to substantially minimize energy usage and carbon emissions. Moreover, increasing population, continuing urbanization and rising hot water demand across residential & commercial establishments will complement the industry statistics.
The COVID-19 outbreak has had a modest impact on the heat pump water heater market. The manufacturing process experienced a decline, and temporarily shut down of facilities, and disturbance in supply chain networks had created a disturbance in the overall industry landscape. Additionally, several announced projects faced delays, and limited product deployment are some of the vital factors that have restrained the business dynamics. However, the introduction of vaccination drives and the subsequent reduction in the number of infected cases have helped the industry regain its business potential. Furthermore, favorable government regulations and increasing investments in the development of advanced technological systems are set to drive the heat pump industry statistics.
Ongoing requirement for the refurbishment of traditional units with on-demand water heating systems is projected to bolster the product demand across several verticals. The ability of these systems to offer quick functioning, efficient operation, compact size and reduced power consumption are some of the main attributes which is set to boost the product deployment. Hence, continuous investments toward the development of green building infrastructure in line with shifting consumer inclination toward the requirement of high-capacity and enhanced technological systems will foster the heat pump water heater market dynamics.
The introduction of energy efficiency targets by the respective governments to limit carbon emissions have led to the industry participants to introduce low emission and enhanced technological systems. For example, in August 2022, the government of U.S. introduced the Climate Smart Buildings initiative to setup and meet emission reduction targets for buildings, which is set to bring private sector investment of over USD 8 billion by 2030 to modernize facilities through the energy savings performance agreements. The program is projected to aid in diminishing about 2.8 million metric tons of GHG discharges per year by 2030. Moreover, the new initiatives to keep a check on the overall energy consumption while decreasing the net carbon emissions is set to favor the industry landscape.
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≤ 50 gallons capacity heat pump water heater market is expected to observe a significant growth and will continue to dominate the industry owing to the rapidly developing residential applications coupled with growing construction of single and multi-family houses globally. Hence, the growing financial support from several governments to reduce dependency on fossil fuels and replace the existing heating systems from households will favor the industry landscape.
Respective authorities have implemented diverse schemes aimed at promoting the replacement of traditional boilers, water heaters, and other water heating appliances with sustainable heat pump systems which will spur increase the product deployment. Also, the increasing population in developing nations has led to significant growth in real estate investments, driving the integration of cleaner heating and cooling technologies in new construction projects further contributing to the widespread product implementation.
The increasing deployment of advanced technological units to cater to high-capacity hot water requirements across the commercial establishments will positively complement > 200 gallons heat pump water heater market demand. The shifting inclination of industry leading manufacturers on development of high-capacity product with large capacity output is set to boost the product espousal.
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Residential heat pump water heater market is set to grow due to the of rising demand for hot water across domestic applications along with increasing inclination toward bergy efficient technologies. The respective governments are focusing on introducing favorable policies to replace the prevailing conventional water heating systems to heat pump water heaters in residential applications to play a vital role in propelling the demand across various sized residential establishments In addition, improved standard of living, rising disposable income and variations in climatic conditions is set to propel the demand for residential heat pumps.
The current investments and expenditure toward the development of commercial infrastructure together with the introduction of energy optimization norms and stringent emission policies have stimulated the commercial heat pump water heater market progression. Growing concerns toward the GHG emissions and energy consumption from heating will accelerate the requirement for clean technologies propelling the product deployment potential
Additionally, the swiftly growing service industry has been a crucial factor and is positively impacting the penetration of commercial complexes and other infrastructures further segmenting the industry development. The growth is set to be positively influenced by flourishing economic structures and government initiatives aimed at increasing investments in the service sector industry.
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Asia Pacific heat pump water heater market has witnessed a revenue of USD 2 billion in 2022 driven by increasing focus on renewable energy sources together with shifting consumer’s inclination toward acceptance of energy efficient systems to lower their energy bills. Respective governments and organizations are promoting the use of clean energy technologies to reduce carbon emissions and achieve sustainability goals. The advent of smart and connected technologies has increased the product demand as manufacturers are incorporating advanced features such as Wi-Fi connectivity, remote control, and smart scheduling into their products further prompting the business statistics.
Furthermore, in March 2023, PHINX, a manufacturer of heat pumps in China showcased its products at the ISH exhibition and unveiled its innovative green energy solution for residential applications. The company aims toward combining their advanced heat pump technology with a photovoltaic (PV) system considered to be a comprehensive solution focusing on optimizing energy management efficiency for homes.
Moreover, it also showcased their latest air-to-water heat pump, the Everest Series, which sets a new industry benchmark for R290 heat pump solutions. Several nations are establishing stringent measures led by the increased CO2 emissions to restrict greenhouse gases, achieve their emission reduction targets and increase efforts to protect the environment will favor the heat pump water heater business expansion.
Eminent players operating across the heat pump water heater market landscape are focusing on making strategic partnerships and collaborations along with M&A (mergers and acquisitions) to increase their market presence and competitive edge over the others. Major manufacturers operating across the industry include:
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Market, By Capacity
Market, By Application
The above information has been provided for the following regions: