Residential Heat Pump Market Size - By Product (Air Source, Ground Source, Water Source), By Application (Single Family, Multi Family) & Global Forecast Report, 2024 - 2032

Residential Heat Pump Market Size

Residential Heat Pump Market size surpassed USD 41.3 billion in 2023 and is anticipated to expand at 13.3% CAGR from 2024 to 2032 credited to rapid developments in renewable heating & cooling systems.
 

Many governments in developing and developed countries are investing heavily to support the deployment of non-fossil-based heating and cooling systems. In February 2022, the U.S. EPA launched ENERGY STAR Home Upgrade Initiative for accelerating the clean energy transition across U.S. households. Such developments will boost the demand for residential heat pumps and other heating technologies.
 

The implementation of renewable heating and cooling infrastructure incurs a high operational expenditure, which may shift consumer interest towards more easily available low-cost conventional fossil-based heating systems. However, regulatory support for the deployment of energy-efficient residential heat pumps in the wake of the ongoing energy crisis will favor residential heat pump market growth. Many governments in developed countries are also providing financial benefits in the form of subsidies for deploying energy-efficient systems in homes.
 

COVID-19 Impact

The COVID-19 pandemic impacted the energy sector due to supply chain disruptions. Additionally, an acute shortage of energy due to the ongoing energy crisis in Europe worsened the industry scenario. However, growing energy demand coupled with favorable government support for the installation of energy-efficient heating and cooling systems is likely to help the industry witness normalcy in the post-COVID-19 era. In April 2023, the U.S. government made an investment of more than USD 82 million for strengthening America’s clean energy grid.
 

Residential Heat Pump Industry Trends

Growing efforts to mitigate carbon emissions are contributing to the shift toward more energy-efficient space heating and cooling solutions in recent years, which may foster residential heat pump market expansion. Additionally, varying climatic conditions, alongside increasing investments in R&D initiatives worldwide will generate lucrative prospects for the advancement of residential heat pump technologies by 2032.
 

Residential Heat Pump Market Analysis

The air source segment held more than 94% of the residential heat pump industry share in 2022. Low maintenance, ease of installation, and low operational costs of these heat pumps support their adoption. Moreover, growing regulatory policies for accelerating the transition towards clean heat pump technologies will further contribute to industry expansion. In April 2023, the U.S. government announced an investment of over USD 250 million to support electric heat pump manufacturing across America. This initiative was geared towards increasing the use of electric heat pumps in the nation, in order to enable households to reduce energy costs. The water source heat pump segment is set to witness 5% growth rate in the coming seven years.
 

Single family residential heat pump market accounted for 64% of the global share in 2022. Consistent retrofitting operations across single family residential spaces for the integration of energy-efficient solutions will increase product uptake. Moreover, financial benefits offered by government bodies for the installation of renewable systems have increased the demand for heat pumps in single-family housing units. Additionally, these pumps incur low upfront costs and entail a short installation duration which favors their adoption.
 

Asia Pacific residential heat pump market is estimated to amass USD 48 billion by 2032. Growing disposable incomes coupled with increasing investments across real estate sector has increased the product demand. As per the IBEF, the real estate sector in India will be worth USD 1 trillion by 2030. Moreover, the rising demand for efficient space heating and cooling systems will support the industry development in the region. The market for North America residential heat pump is likely to witness 8% CAGR during the forecast period.
 

Residential Heat Pump Market Share

Key players operating in the residential heat pump business landscape are :

• Vaillant Group
• Mitsubishi Electric Corporation
• Lochinvar
• Kensa Heat Pumps
• Panasonic Corporation
• LG Electronic
• Glen Dimplex Group
• Daikin
   

Residential Heat Pump Industry News:

• In March 2023, Viessmann, a leading manufacturer of heating systems, unveiled its new range of ground source heat pump systems, Vitocal 222-G for use in domestic applications. The series features three units with heating output in the range of 5.8 -10.4 kW, COP levels of up to 4.8, and a seasonal COP level of 5.4 to cater to heating requirements during extreme temperatures.
   
• In April 2023, LG Electronics announced its plans to showcase R290 Ecodan or propane-based residential air-to-water heat pump systems across Europe by early 2024. The systems will be used for retrofitting operations and replacement of traditional heating systems in residential spaces with natural refrigerant-based advanced heat pumps.
   

This market research report on residential heat pump includes in-depth coverage of the industry with estimates & forecast in terms of revenue USD Million from 2018 to 2032, for the following segments:

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Market, By Product

• Air Source
• Ground Source
• Water Source

Market, By Application

• Single Family
• Multi Family

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