Global Heat Pump Market By Type Technology (Water Source, Air Source, Ground Source, Solar assisted, Absorption, Exhaust Air), By Application (Residential, Commercial, and Industrial), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Heat Pump Market size is expected to be worth around USD 151.3 Billion by 2032 from USD 66.5 Billion in 2022, growing at a CAGR of 8.80% during the forecast period from 2023 to 2032.

A device that is used to convert heat energy to a thermal reservoir is known as a heat pump. Transformation of heat from a cold body to a hot body at the expense of mechanical energy can be carried out with the help of heat pumps.

There are various types of heat pumps, like water-source heat pumps, air-source heat pumps, ground-source heat pumps, solar-assisted heat pumps, absorption heat pumps, and Exhaust Air pumps. These air pumps are used for residential, commercial, and industrial applications. Demand for space heating and cooling solutions in commercial and residential housing is expected to drive industry growth.

Driving Factors

Energy Efficient Technology of Heat Pumps is Boosting the Market Growth

Energy is essential in hospitals, homes, schools, and others. Production of energy releases emission of greenhouse gases on a large scale. This creates the need to produce renewable energy sources and reduce dependency on non-renewable energy sources. Heat pump technology is energy efficient and helps reduce greenhouse gasses.

In the residential, industrial, and commercial sectors, heat pumps are used on a large scale for cooling, space heating, and water heating, driving market growth. In addition, growing government programs to promote sustainability and clean and green heating and cooling solutions are anticipated to expand the market growth.

Another factor driving the heat pump market size is air source technology which is a convenient source of hot water, with an assurance of low carbon footprint, easy installation process, cost-effective and low maintenance, thus widely used in residential areas.

As industrialization continues to accelerate, the need for heat pumps in various industries, such as heating, refrigeration, storage, and process heat/steam applications, has grown. Middle Eastern nations particularly need cooling solutions, while North American and European construction and residential sectors are experiencing rapid expansion. All these factors combine to fuel growth in this market.

Restraining Factors

High Maintenance Costs Associated with Heat Pumps are Expected to Hinder the Market Growth

On the contrary, high maintenance costs associated with heat pumps are expected to hinder their adoption globally. Climate changes and their consequent heating/cooling needs in residential and industrial sectors have been identified as a recent heat pump market trend across various nations. In developing and underdeveloped economies, a lack of awareness about the cost efficiency, energy efficiency, and environmental benefits associated with heat pumps is restraining market growth. Moreover, contractors are unaware of the ISO standards for heat pumps since heat pumps are technically complex equipment.

Growth Opportunity

Artificial Intelligence in Modern Heat Pump Solutions Will Create New Opportunities

Integrating the Internet of Things (IoT) and cutting-edge technologies like artificial intelligence in modern heat pump solutions aims to automate these pumps, making them even more energy-efficient and capable of maintaining ambient conditions without user intervention. Such advancements are expected to drive growth in the heat pump market over the coming years. Market growth is expected to be influenced by respective government rebates, incentive programs, corporate tax credits, personal and corporate taxes, and clean heating and cooling initiatives.

Trending Factors

Affordable Cost and Energy-Efficient Technology of Heat Pumps are Trending In the Market

Developing interest in a heat pump for warming and cooling applications across business and private structures is supposed to have areas of strength for anticipation in the upcoming years. This is attributable to the increase worldwide heat pump market.

Cost-viability and energy effectiveness are the two major advantages of heat pumps that encourage their worldwide interest. The rising government drives as motivating forces, refunds, and tax reductions to advance supportability and the reception of perfect and green warming and cooling arrangements are supposed to fundamentally affect the worldwide heat pump market’s development.

Further, the rising corporate and government endeavors to check carbon emissions and increment the reception of sustainable power sources are expected to fuel the worldwide heat pump market development during the gauge time frame.

Besides, the combination of novel advancements like computerized reasoning and the Internet of Things (IoT) in heat pump innovation is supposed to offer various learning experiences to the market players soon. In addition, the rise of double source innovation in a heat pump is supposed to help the interest. The double-source creation can draw heat from both the ground and air sources. The double source innovation uses the useful source and hence offers cost-adequacy contrasted with different advances.

COVID-19 Impact Analysis

Coronavirus Affected Practically all Ventures by Disturbing the Production Network

Coronavirus affected practically all ventures by upsetting modern activities and disturbing the production network. Driving organizations ended their tasks because of fewer assets. Hence, Coronavirus’s effect significantly declined the worldwide private heat pump market. The assembling offices of heat pumps have been exceptionally affected by the lockdown, and strict guidelines forced because of the Coronavirus pandemic and kept a colossal decrease in 2020 because of less labor force and upset supply chains.

Technology Analysis

Air Source Technology Dominated the Market with Assurance of a Low Carbon Footprint, Easy Installation Process, Cost Effectiveness, and Low Maintenance

The technology heat pump market is segmented into the water source, air source, ground source, solar-assisted, absorption, and exhaust Air pump. Air source technology dominated the market in 2022 with the highest revenue share of 78%. Air source technology is a convenient source of hot water, with an assurance of a low carbon footprint, easy installation process, cost-effective, and low maintenance. Air source heat pumps move heat between two heat exchangers.

The ground source segment is expected to grow at the highest CAGR during the forecast period. A ground-source heat pump is used to carry the heat exchange fluid from the groundwater. This heat pump can be used in cooling buildings by transferring heat from hot areas into the soil. The water source’s working mechanism is similar to a ground source except for releasing heat from the water body instead of the ground. Water source technology utilizes energy stored in-ground or seawater.

Application Analysis

Residential Segment Dominated the Market Heat pumps which Can Provide Heating Solution and Cooling Solution According to Season

The application market can be segmented into three types: Residential application, Commercial application, and Industrial segment. The residential segment dominated the market in 2022 with the highest revenue share of 80%. Increased demand from the residential sector due to the adaptive feature of heat pumps, which can provide a heating solution in winter and a cooling solution in summer, is driving the market growth.

Due to its energy efficiency technique, climatic changes and government initiatives also fuel the need for heat pumps in the residential sector. Heat pumps are used for large-scale space heating, cooling, and sanitary hot water generation in residential areas.

Key Market Segments:

Based on Technology

• Water Source
• Air Source
• Ground Source
• Solar-assisted
• Absorption
• Exhaust Air

Based on Application

• Residential
• Commercial
• Industrial

Regional Analysis

In 2022, Asia Pacific dominated the market with the highest revenue share of 47.2%. This growth is due to several key factors, including an increasing demand for energy-efficient heating solutions in residential and commercial buildings and growing awareness regarding climate change impacts and greenhouse gas emissions.

North America’s residential demand is growing due to increased energy-saving technology and government programs to reduce emissions and promote clean heating and cooling solutions. The major factor affecting residential market size is population growth and the increase in household units.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis:

The global heat pump industry is composed of both local as well as multinational manufacturers, making the industry more competitive. The manufacturers use strategies like enhancing product performance & price, developing new products, and portfolio expansion strategies through investments, mergers, and acquisitions to compete with the market.

In addition, several key players are now focusing on different marketing strategies, such as spreading awareness about greenhouse gases and renewable energy sources and boosting the target products’ growth.

Market Key Players:

Listed below are some of the most prominent heat pump industry players.

• Carrier Corporation
• Glen Dimplex Group
• Daikin Industries, Ltd.
• Midea Group
• Melrose Industries PLC
• Denso Corporation
• Mitsubishi Electric Corporation
• Stiebel Eltron
• Panasonic Corporation
• Ingersoll Rand Plc.
• BDR Thermea Group
• Lennox International
• Hitachi Ltd.
• LG Electronics
• Vaillant Group
• Other Key Players

Recent Developments:

• In January 2023- the California Energy Commission (CEC) introduced building energy efficiency standards. According to these standards, new construction for the residential sector must have electric heat pumps for water and air.
• In April 2022- Daikin announced its support for affordable, secure, and sustainable energy (REPowerEU), aiming to boost the heat pump market by a rollout of heat pumps from 10 mn to 30 mn in 2030.

Report Scope: