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

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

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.

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For instance, in February 2024, in U.S. nine state environmental agencies, led by NESCAUM, collaborated to reduce carbon emissions by making electric heat pumps the standard for new home HVAC sales by 2040. Moreover, increasing inclination toward low emission and renewable heating & cooling systems coupled with increased investments for the development of residential buildings is shaping the industry dynamics.
 

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Residential Heat Pump Market Trends

The residential heat pump industry is set to observe significant growth owing to rising population, urbanization that has led to expansion of residential infrastructure across various nations. Favorable schemes and policies by the authorities for deployment of energy efficient systems and shifting focus toward replacement of traditional heating systems has favored the business dynamics. For instance, in October 2023, the government of UK enhanced the heat pump grants by 50% from USD 6,325 (GBP 5,000) to USD 9,400 (GBP 7,500). The Boiler Upgrade Scheme offers these grants to encourage replacing fossil fuel heating with efficient, low-carbon systems like air source heat pumps, ground source heat pumps. Moreover, rising consumer purchasing power and shifting preference for smart systems is accelerating product demand.

Residential Heat Pump Market Analysis

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Air source heat pump segment is anticipated to surpass over USD 120 billion by 2032. Growing demand for space heating and hot water requirement across residential and commercial establishments along with ongoing replacement of tradition heating systems will accelerate the product demand. For instance, in 2024, homeowners can benefit from a federal tax credit that covers 30% of the installation costs for air-source heat pumps, with a maximum credit of USD 2,000 Favorable initiatives by respective authorities including tax rebates, subsidies and credit schemes for the adoption of low carbon technologies is set to augment the air source heat pump business dynamics.

Ground source heat pump market is set to witness significant growth on account of increasing adoption of low energy systems along with stringent energy efficiency mandates by the authorities to curb emissions. Rapid expansion of commercial and residential establishments and shifting inclination toward improving energy efficiency of buildings will further augment the industry outlook.

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Single family segment is set to observe a CAGR of over 13% through 2032. Ongoing development of residential establishments, rising demand for heating & cooling and shifting focus toward limiting carbon emissions is set to augment the product deployment. Growing adoption of these units in single-family homes owing to zoning, temperature control features, and a focus on energy efficient is driving the product demand. Favorable schemes including tax credit, financial rebates and subsidies for installation heat pumps, along with rising income levels and a preference for enhanced comfort, will further influence the industry landscape.

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Asia Pacific residential heat pump market valued is set to grow over USD 49 billion by 2032. Rapid population growth, robust expansion of residential establishments, increased investments in real estate, have increased demand for efficient heating and cooling solutions positively impacting the industry growth. Growing inclination to reduce carbon emissions and improve energy efficiency of building infrastructure will augment the industry landscape. For instance, China's National Development and Reform Commission established energy efficiency standards aims to accelerate energy conservation through advanced technologies including heat pumps, to achieve carbon reduction goals, and enhance energy-saving standards for products. Moreover, Government regulations, tax benefits, and subsidies aimed at promoting heat pump deployment will complement the industry landscape.

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

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