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Air Source Heat Pump Market size worth $155 Bn by 2032

  • Published Date: January 17, 2023

Air Source Heat Pump Market size is set to surpass USD 155 billion by 2032, according to a new research report by Global Market Insights Inc.

The report reveals that favorable legislative frameworks and financial policies for clean heat pump development will boost air source heat pump installation. For instance, in November 2022, the U.S. DOE announced the joint Notice of Intent and Request for Information to dedicate a USD 250 million investment in heat pumps in line with the Inflation Reduction Act. With the rapid net-zero transition, investment in renewable energy is also slated to rise. The presence of strict clean energy norms will therefore stimulate the use of renewable energy-powered air source heat pumps.

Strict commercial building codes to foster air source heat pump consumption

The commercial application segment held over 15% share of the air source heat pump market in 2022, on account of the introduction of stringent commercial building codes to limit carbon energy use. The proposed 2024 IECC (International Energy Conservation Code), for example, was intended to reduce net energy adoption in new commercial buildings by a quarter. This major step toward carbon-neutral buildings, along with the increasing focus on infrastructure renovation, will hasten the development of commercial air source heat pumps.

Preference for low-carbon heating & cooling technologies to drive usage of air-to-air heat pumps

In terms of product, the air-to-air heat pump segment is poised to depict nearly 8.5% CAGR through 2032. The strong demand for space heating and cooling systems with low carbon footprints is one of the major drivers promoting air-to-air heat pump adoption. The product is associated with reduced low installation costs since it does not require the drilling of boreholes and use of other expensive equipment. Furthermore, other key attributes including enhanced heat transfer capacity and limited maintenance requirements are also likely to hasten the production of air-to-air heat pumps.

Browse key industry insights spread across 680 pages with 1279 market data tables & 40 figures & charts from the report, “Air Source Heat Pump Market Size, By Product (Air to Air, Air to Water), By Application (Residential {[Single Family, Multi Family], Product [Domestic Hot Water Heat Pump, Room Heat Pump]}, Commercial {Education, Healthcare, Retail, Logistics & Transportation, Offices, Hospitality}), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 – 2032”, in detail along with the table of contents:

Europe to emerge as a prominent consumer hub for air source heat pump developers

Europe air source heat pump market value crossed USD 11 billion in 2022, given the rising emphasis on mitigating greenhouse gas emissions. According to the European Commission, the European Union has set a target to achieve carbon neutrality and net-zero GHG emissions across member states by 2050, by encouraging the deployment of green energy technologies. The report cites that the growing prevalence of extreme climatic conditions and the strong focus on attaining energy independence will further stimulate air source heat pump installation across the region.

Business expansion strategies to influence industry outlook

Key participants operating in the air source heat pump market are Systemair AB, WOLF GmbH, Grant UK, Lennox International Inc., Fujitsu General, LG Electronics, Toshiba Air Conditioning, Mitsubishi Electric Corporation, Swegon Group AB, Bosch Thermotechnology Ltd., Colmac Industries, Samsung, Daikin Industries Ltd., Glen Dimplex Group, and Viessmann. These firms are focusing on facility expansions, acquisitions, and new product launches to reinforce their presence in the industry.

Citing an instance, in October 2022, Daikin announced an increase in the production capacity of its heat pump manufacturing plant in Germany as part of its strategic management plan for 2025. This plan was intended to achieve a three-fold increase in the firm’s heat pump output volume by 2025 and address the growing heat pump demand across Europe.

Authors: Ankit Gupta, Divyendu Sharma