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.
Residential Heat Pump Market Report Attributes
| 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 |
- Growing demand for energy-efficient systems
- Flourishing investments across real estate sector
- Favorable regulatory landscape with supportive financial aids
|
| Pitfalls & Challenges |
- Growing inclination toward available conventional alternatives
|
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Residential Heat Pump Market Trends
As more people move to cities and build new homes, the demand for home heat pumps is skyrocketing. Governments around the world are also offering incentives to make heat pumps more affordable, encouraging people to switch from traditional heating systems like furnaces and boilers. For example, the UK recently increased its heat pump grants by 50%. This helps homeowners replace their old, fuel-guzzling heating systems with energy-efficient heat pumps that run on electricity or geothermal energy. With more people able to afford heat pumps and a growing preference for smart home technology, the heat pump industry is poised for even more growth in the coming years.
Residential Heat Pump Market Analysis
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The market for air source heat pumps is predicted to explode, reaching over $120 billion by 2032. This is because more and more homes and businesses need heating and hot water, and people are switching from traditional heating systems to greener alternatives. One example is the federal tax credit in 2024, which will give homeowners back 30% of the cost of installing an air source heat pump, up to $2,000. Plus, governments are offering tax breaks, subsidies, and other incentives to encourage people to use energy-efficient technologies, which is a great boost for the air source heat pump industry.
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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In the next decade, the Asia Pacific residential heat pump market is predicted to skyrocket to over 49 billion US dollars. This surge is primarily driven by a booming population, rapid construction of new homes, and increased investment in real estate. As a result, the demand for efficient heating and cooling systems has soared, bolstering the industry's growth. Another key factor fueling this growth is the growing awareness of climate change. Governments and individuals alike are eager to reduce carbon emissions and make buildings more energy-efficient. Heat pumps, which offer both heating and cooling in a single unit, are emerging as a prime choice for achieving these goals. For example, China is actively implementing energy efficiency standards that encourage the use of heat pumps. The government believes that these advanced technologies will help reduce energy consumption and meet their carbon reduction targets. Furthermore, governments across the Asia Pacific region are offering tax breaks, subsidies, and other incentives to encourage the adoption of heat pumps. These policies are expected to further boost the industry's growth and make heat pumps even more accessible to consumers.
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
- 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
