Residential Heat Pump Water Heater Market - By Application (Single Family, Multi Family), By Operation (Inverter, Non-Inverter) & Forecast, 2024 - 2032

Residential Heat Pump Water Heater Market Size

The global residential heat pump water heater market size was valued at USD 10.1 billion in 2023 and is set to attain a CAGR of 8.9% by 2032. Rising demand for efficient water heating systems, increasing need for hot water in households along with ongoing investments in sustainable technologies will complement the industry landscape. Growing population and shifting preference for environmentally friendly solutions and inclination for energy efficiency will augment the product deployment.
 

For example, the U.S. DoE unveiled provisions for energy efficiency standards for residential water heaters in April 2024, which will aid American households in saving USD 7.6 billion on an annual basis. In addition to this, tight emission curtailment regulation together with gradual phasing out of conventional hot water systems will further boost the industry outlook.

Residential Heat Pump Water Heater Market Trends

Residential heat pump water heater industry is set to grow owing to extensive combustion of fossil fuels for water heating, rising development of residential infrastructure driven by increasing urbanization and adoption of energy efficient water heating systems. Government authorities are rolling out various schemes to replace conventional heating systems, enhance energy management, and reduce carbon footprint.
 

For instance, in May 2024, the Danish Energy Agency promised subsidies for heat pump installation at households. Citizens will also be able to obtain a grant in the amount of over USD 2,360 (DKK 17,000) for ATW heat pumps regardless of house size, as long as the installation is energy-saving. Moreover, proper energy efficiency requirements for building structures as well as harsh regulations aimed at lowering carbon emissions will enhance the legislative environment.
 

Residential Heat Pump Water Heater Market Analysis

Single family segment is anticipated to grow over USD 10.8 billion by 2032. Increasing demand for reliable space heating, and hot water solutions, along with paradigm shift towards energy efficiency and focus on reducing carbon emissions is shaping the industry landscape. Strong population growth, booming housing construction, and renovations and concerted efforts to replace traditional units to enhance energy efficiency and reducing energy consumption will complement the outlook of the industry.
 

The residential heat pump water heater market from inverter segment is anticipated to witness a CAGR of over 8.5% between 2024 and 2032. Residential heat pump water heaters equipped with inverters are rapidly becoming popular. This is primarily attributed to its efficiency and saving, ensuring temperature consistency, thereby reducing energy wastage and utilizing energy optimally for homes to become more environmentally friendly, while modifying the compressor speed as a function of the hot water requirement to avoid over- and under-sizing.
 

For example, LG Electronics USA brought on the market in April 2023 the Inverter heat pump water heater, allowing the consumers for more than 70% saving on energy cost. The product has a UEF of 3.75 meaning the energy consumption and carbon emission are reduced. Furthermore, growing energy costs, government support, and innovations in technology will increase the adoption of the product.
 

U.S. residential heat pump water heater market is projected to cross USD 1.3 billion in 2032 driven by a combination of environmental, economic, and regulatory factors. An increase in carbon emissions reduction and decrease in dependence on fossil fuels along with clean energy-efficient systems would have a positive impact on the U.S. heat pump industry dynamics. Besides, the state & federal governments have allocated funding to research and development projects towards enhancing heat pump efficiency and lowering costs.
 

For example, the U.S. DOE announced USD 85 million financing in August 2024 across four heat pump manufacturers whose obligation will be to boost the production of heat pump hot water heaters, electric heat pumps, and other components within the country.
 

Residential Heat Pump Water Heater Market Share

Key companies active in the residential heat pump water heater industry are in pursuit of enhanced market share with innovation and strategic initiatives. Major players including Ariston Holding, LG Electronics, Daikin, Panasonic, Rinnai Corporation and SAMSUNG, amongst others, create differentiation in offerings by integrating advanced technologies, putting emphasis on energy efficiency, and reducing energy cost. The initiatives are focusing to introduce diverse air-to-water heat pump systems suitable for hot water applications.
 

Residential Heat Pump Water Heater Market Companies

Key industry players operating across industry include:

• A. O. Smith
• American Water Heaters
• Ariston Holding
• Bradford White Corporation
• Daikin
• LG Electronics
• Lochinvar
• MIKEE
• Panasonic Marketing Europe
• Rheem Manufacturing Company
• Rinnai America Corporation
• SAMSUNG
• State Industries
• Stiebel Eltron
• Vaillant Group International
• Vaughn Thermal Corporation
   

Residential Heat Pump Water Heater Industry News

• In February 2024, GE Appliances has launched the GE Profile GeoSpring Smart Hybrid Heat Pump Water Heater. This ground-breaking HPWH system utilizes advanced heat pump units that are 3 – 4 times more efficient compared to traditional water heaters, solving the 18% of energy spent on water heating inside households. The GeoSpring has FlexCAPACITY that permits up to 60% more hot water, and it also comes with the CTA-2045 Smart Home Solution which is meant for demand-response functionalities which optimizes energy consumption, while communicating with the electricity providers.
   
• In January 2024, at the AHR Expo 2024, LG Air Conditioning Technologies USA showcased its new inverter HPWH. Designed for efficiency, this model is available in 58 and 80-gallon sizes and offers a UEF of up to 3.93, exceeding the benchmarks set by ENERGY STAR standards. Compared to traditional electric heaters, it provides an energy savings of 76% by utilizing the inverter technology and a dual inverter compressor which greatly diminishes the sound produced during operation. In addition, it meets the requirements stated by the U.S. EPA for the preservation of the environment, supports LG ThinQ technology, thereby enabling Wi-Fi and smartphone control.
   

The residential heat pump water heater market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” and “USD Million” from 2021 to 2032 for the following segments:

Click here to Buy Section of this Report

Market, By Application

• Single Family
• Multi Family

Market, By Operation

• Inverter
• Non-Inverter

The above information has been provided for the following regions:

• 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
  • Türkiye
  • South Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina