Residential Heat Pump Market Size
Residential Heat Pump Market was valued at over USD 38.7 billion in 2023 and is set to grow at a CAGR of 13.9% through 2032. Growing preference for energy-efficient HVAC systems along with favorable government schemes for adoption of residential heating & cooling systems is augmenting the business landscape.
For example, in February 2024, nine state environmental agencies in the U.S., lead by NESCAUM, worked together to cut carbon emissions by making electric heat pumps the standard for new home HVAC sales by 2040. The business is also changing because more people want low-emission and renewable heating and cooling systems, and more money is being put into developing new homes.
| Report Attribute | Details |
|---|---|
| Base Year | 2023 |
| Residential Heat Pump Market Size in 2023 | USD 38.7 Billion |
| Forecast Period | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR | 13.9% |
| 2032 Value Projection | USD 124.5 Billion |
| Historical Data for | 2021 to 2023 |
| No. of Pages | 100 |
| Tables, Charts & Figures | 40 |
| Segments covered | Product, Application, and Region |
| Growth Drivers |
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| Pitfalls & Challenges |
|
Residential Heat Pump Market Trends
The need for house heat pumps is growing quickly as more people migrate to cities and build new homes. Governments all over the world are also giving people money to make heat pumps cheaper, which makes people more likely to switch from furnaces and boilers to heat pumps. For instance, the UK just raised its heat pump allowances by 50%. This helps households get rid of their old heating systems that use a lot of fuel and replace them with energy-efficient heat pumps that run on electricity or geothermal energy. The heat pump market is going to grow even more in the next several years since more people can afford them and smart home technology is becoming more popular.
Residential Heat Pump Market Analysis
The market for air source heat pumps is expected to grow quickly, reaching more than $120 billion by 2032. More and more houses and businesses need heat and hot water, and people are transitioning from old heating systems to more environmentally friendly ones. For example, in 2024, homeowners will get back 30% of the cost of installing an air source heat pump, up to $2,000, through a federal tax credit. Governments are also giving individuals tax breaks, subsidies, and other incentives to utilize energy-efficient technologies. This is a big boost for the air source heat pump business.
The market for ground source heat pumps is going to develop a lot since more people are using low-energy systems and the government is making it harder for people to use energy inefficiently to cut down on emissions. The industrial picture will get even better as businesses and homes grow quickly and people become more interested in making buildings more energy efficient.
The single-family category is expected to grow at a rate of more than 13% each year until 2032. The product's use is expected to grow because of the ongoing construction of homes, the increased need for heating and cooling, and the shift in attention toward reducing carbon emissions. The product's popularity is growing since more and more single-family houses are using these units because of zoning, temperature control capabilities, and a focus on energy efficiency. Tax credits, financial rebates, and subsidies for installing heat pumps are all good things for the sector. Rising incomes and a desire for more comfort will also have an impact.
It is expected that the Asia Pacific home heat pump industry will grow to more than 49 billion US dollars in the next ten years. A growing population, quick building of new homes, and more money going into real estate are the main reasons for this rise. Because of this, the need for efficient heating and cooling systems has skyrocketed, which has helped the sector develop. More people are becoming aware of climate change, which is another important factor driving this growth. People and governments both want to cut down on carbon emissions and make buildings more energy-efficient. Heat pumps, which can heat and cool a space at the same time, are becoming a popular choice for reaching these aims. For instance, China is putting energy efficiency rules into place that promote the use of heat pumps. The government thinks that these new technology will help them use less energy and reach their carbon reduction goals. In addition, governments in the Asia Pacific region are giving tax exemptions, subsidies, and other incentives to get people to use heat pumps. These rules should help the business grow even more and make heat pumps even easier for people to buy.
Residential Heat Pump Market Share
Major manufacturers operating across the residential heat pump industry are focusing on introducing innovations, new technologies and products, along with forming strategic agreements, partnerships, joint ventures, to strengthen their competitive market share. Key players including, Carrier, Daikin, Mitsubishi Electric Corporation, LG Electronics, Panasonic Corporation, and Samsung among other, holds the major market share across the industry.
Residential Heat Pump Market Companies
Major players operating across the industry include
- American Standard Heating and Air Conditioning
- alpha innotec
- Bosch Thermotechnology Corp.
- Carrier
- Colmac Industries
- Daikin
- Glen Dimplex Group
- Kensa Heat Pump
- Lennox International Inc.
- LG Electronics
- Lochinvar
- Mitsubishi Electric Corporation
- OCHSNER
- Rheem Manufacturing Company
- SAMSUNG
- STIEBEL ELTRON GmbH & Co. KG
- Trane
- Panasonic Corporation
- Vaillant
Residential Heat Pump Industry News
- In March 2024, Kensa Heat Pump introduced an enhanced Shoebox NX residential ground source heat pump. Th product has a 4.6 coefficient of performance and can generate 65 degrees Celsius of hot water. the company claims it to be the smallest heat pump and can deliver passive cooling at a less cost than air conditioning for households in summer.
- In February 2024, Daikin Europe introduced Nepura, a new residential air-to-air heat pump series designed to deliver reliable heating performance even in temperatures as low as -30°C. With heating efficiency ratings reaching up to A+++, Nepura is tailored specifically for Nordic climate conditions. This launch marks Daikin's strategic move to upgrade from the current Optimised Heating 4 series, offering enhanced features and setting a new standard in heating technology for cold climates.
The residential heat pump 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
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
- Türkiye
- South Africa
- Latin America
- Brazil
- Mexico
- Argentina
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