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A heat pump is a device used for cooling and heating by extracting heat from lower heat sources and deliver it to higher potential for water, space, and floor heating/cooling. Technically air conditioner and refrigerator are two prime examples where heat pump is used. Refrigerator and air conditioner work only on cooling cycle, whereas heat pumps can operate on fully reversible cooling cycle. Condenser, evaporator, expansion valve, and compressor are some of the common examples of heat pump. The heat transferred through these components is called refrigerant. Moreover, heat pumps are increasingly used in domestic hot water for kitchen, bathroom, and clothes washer.

Recent Developments:

  • In July 2022, Viessmann Group, a company that supplies sustainable climate and renewable energy solutions invested 200 million euros for a new technology site in Poland. This new site will accelerate the production of heat pumps.
  • In June 2022, NIBE Energy Systems, a company that provides eco-friendly and energy-efficient solutions launched a new Air Source Heat Pump (NIBE S2125) which is designed to work efficiently. This heat pump uses R290 all-natural refrigerant.

Growing urbanization and complementary regulatory policies are expected to drive growth of the global heat pump market during the forecast period. Significant growth of construction industry combined with growing implementation of strict regulatory policies by governments, especially in China, South Korea, Japan, and the U.S. are expected to boost the demand for heat pumps for residential application. Moreover, subsidies on purchase of heat pumps provided by the government, tax credit schemes and increasing use of energy are expected to boost the market. Countries such as the U.S., Australia, Japan, and European offer subsidies purchase for heat pumps, in order to reduce carbon footprint and increase use of renewable energy for heating and cooling purpose. For instance, the European Union has adopted renewable energy policy, which includes contribution of heat pumps to the EU target of reaching 20% of renewable energy share by 2020. In 2016, the U.K. Government adopted a ‘Zero Carbon’ policy for new homes. Moreover, In Europe, the government provides subsidies for purchase of heat pumps and has implemented several stringent new building regulations such as mandatory use of renewable energy for heating purpose in new buildings. Thus, these factors are expected to boost the market growth during the forecast period.

Restraint:

High installation cost is expected to restrain growth of the global heat pump market over the forecast period. Heat pump requires significant cost for installation, which in turn, is expected to hinder its demand in the near future. The total cost installation includes cost of heat pumps, installation cost, cost of groundwork for ground source heat pumps and cost of ancillary items (buffer tank, manifolds, hot water cylinder). For instance, if per unit cost of heat pump for 11kW capacity is US$ 1,000–US$ 2,000, the cost increases by 25%–30% when installation cost is included. Furthermore, cost-sensitivity is a major issue in emerging economies such as India, Brazil, South Africa, and Poland, which is major factor hindering its adoption.

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Global Heat Pump Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 9,050.77 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 8.6 % 2030 Value Projection: US$ 18,787.23 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East and Africa: GCC Countries, South Africa, and Rest of Middle East and Africa
Segments covered:
  • By Type: Air-water Heat Pump, Air-air Heat Pump, Ground Source Heat Pump, Hybrid Heat Pump
  • By Power Source: Electric, Others (Gas Driven)
  • By End User: Residential, Industrial, Commercial
  • By Refrigerants: HFC, CO2, Ammonia, Hydrocarbon, Others
Companies covered:

Daikin Industries Limited, Viessmann Group, NIBE Group, Danfoss Group Global, Stiebel Eltron Group, Mitsubishi Electric Corporation, United Technologies Corporation, Panasonic Corporation, Glen Dimplex Group, The Bosch Group

Growth Drivers:
  • Growing urbanization and complementary regulatory policies 
  • Increasing demand for eco-friendly and technologically advanced devices
Restraints & Challenges:
  • Lack of awareness concerning benefits heat pumps

Global Heat Pump Market- Impact of Coronavirus (Covid-19) Pandemic:

Globally, most countries have been affected by COVID-19 and most of the countries announced a lockdown. This disrupted businesses across the globe. People also lost their jobs during the pandemic which led to financial crises because of which the spending power of people decreased. People spent less on luxurious goods. This led to low demand for heat pumps in the residential sector. Hence, the global heat pump market witnessed slow growth during pandemic.

Asia Pacific held a dominant position in the global heat pump market in 2021

Statistics:

Asia Pacific held a dominant position in the global heat pump market in 2021, accounting for 33.0% share in terms of volume, followed by North America region.

Figure 1: Global Heat Pump Market Share (%), By Region, 2021

Heat Pump  | Coherent Market Insights

Asia Pacific held a dominant position in the global heat pump market in 2021 and is expected to maintain its dominance during the forecast period. The demand for heat pumps is rising in emerging economies such as India, China, Japan, and South Korea due to rising disposable income, the spending power of people have increased and people are inclined towards living a standard lifestyle and spend on luxurious things. Hence, the demand for heat pumps in the Asia Pacific region has increased.

North America is expected to emerge as the fastest-growing region for the heat pump market in the forecast period. This growth is attributed to the various government schemes, policies, corporate and personal tax credits, incentive plans and clean heating and cooling programs which are driving the demand for heat pumps in the residential and commercial sectors in North America.

Air-water heat pump segment is expected to drive the global heat pump market during the forecast period

Among type, air-to-water heat pumps have gained significant popularity and the demand for air-to-water heat pumps is expected to grow significantly during the forecast period. This is owing to significant shift in perspective of air-to-water heat pumps among consumers. Moreover, air-to-water heat pumps are extensively used for domestic hot water due to their high cost-effectiveness and relatively high efficiency compared to conventional heating systems. This trend is expected to continue over the forecast period.

Figure 2: Global Heat pump Market (US$ Mn) Analysis and Forecast, 2018 - 2030

Heat Pump  | Coherent Market Insights

The global heat pump market was valued at US$ 9,050.77 Mn in 2021 and is expected to reach US$ 18,787.23 Mn by 2030, growing at a CAGR of 8.6% between 2022 and 2030.

Major players operating in the global heat pump market include Daikin Industries Limited, Viessmann Group, NIBE Group, Danfoss Group Global, Stiebel Eltron Group, Mitsubishi Electric Corporation, United Technologies Corporation, Panasonic Corporation, Glen Dimplex Group, and The Bosch Group

A heat pump is a mechanical device that transmits thermal energy from a source to a thermal reservoir. Heat pumps transfer heat energy in the opposite direction of spontaneous heat transfer by absorbing heat from cold space and releasing it a warmer one. Refrigerator and air conditioner are the most commonly known heat pumps. Refrigerator and air conditioner work only on cooling cycle, whereas heat pumps can operate on fully reversible cooling cycle. Increasing demand for eco-friendly and technologically advanced devices in heating and cooling applications is expected to boost the demand for heat pumps. Growing demand for eco-friendly devices worldwide is directly proportional to the global heat pumps demand, as heat pumps are very useful in reducing CO2 emission.

Market Dynamics

Heat pumps require low operation and maintenance cost, which is the major factor boosting its demand. Moreover, growing demand for heat pumps for residential application and significant contribution of heat pump technology in reducing carbon emissions is a major factor that is expected to boost the growth of heat pump market globally. Significant growth of construction industry combined with growing implementation of strict regulatory policies by governments, especially in China, South Korea, Japan, and the U.S. are expected to boost the demand for heat pumps for residential application. Moreover, subsidies on purchase of heat pumps provided by the government, tax credit schemes and increasing use of energy are expected to boost the market.

Key features of the study:

  • This report provides an in-depth analysis of global heat pump market size (US$ Million) and compound annual growth rate (CAGR %) for the forecast period (2022 to 2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by the leading  market players
  • It profiles leading players in the global heat pump market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, market capital, key developments, strategies, and future plans
  • Companies covered as a part of this study include Daikin Industries Limited, Viessmann Group, NIBE Group, Danfoss Group Global, Stiebel Eltron Group, Mitsubishi Electric Corporation, United Technologies Corporation, Panasonic Corporation, Glen Dimplex Group, The Bosch Group
  • Insights from this report would allow marketers and management authorities of companies to make informed decisions regarding future product launches, product upgrades, market expansion, and marketing tactics
  • The global heat pump market report caters to various stakeholders in this industry including investors, suppliers, managed service providers, third-party service providers, distributors, new entrants, and value-added resellers
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global heat pump market

Detailed Segmentation

  • Global Heat Pump Market, By Type:
    • Air-water Heat Pump
    • Air-air Heat Pump
    • Ground Source Heat Pump
    • Hybrid Heat Pump
  • Global Heat Pump Market, By Power Source:
    • Electric
    • Others (Gas Driven)
  • Global Heat Pump Market, By End User:
    • Residential
    • Industrial
    • Commercial
  • Global Heat Pump Market, By Refrigerants:
    • HFC
    • CO2
    • Ammonia
    • Hydrocarbon
    • Others
  • Global Heat Pump Market, By Region:
    • North America
      • By Country:
        • U.S.
        • Canada
    • Europe
      • By Country:
        • Germany
        • Italy
        • U.K.
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By Country:
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • ASEAN
        • Rest of Asia Pacific
    • Latin America
      • By Country:
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Middle East and Africa
      • By Region:
        • GCC Countries
        • South Africa
        • Rest of Middle East and Africa
  • Company Profiles
    • Daikin Industries Limited *
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments/ Updates
    • Viessmann Group
    • NIBE Group
    • Danfoss Group Global
    • Stiebel Eltron Group
    • Mitsubishi Electric Corporation
    • United Technologies Corporation
    • Panasonic Corporation
    • Glen Dimplex Group
    • The Bosch Group

“*” marked represents similar segmentation in other categories in the respective section.

Frequently Asked Questions

The global heat pump market is expected to reach US$ 18,787.23 million by 2030.
The market is expected to witness a CAGR of 8.6% during the forecast period (2022-2030).
Growing urbanization and complementary regulatory policies is expected to drive the growth of the market.
The air-water heat pump segment held the largest market share among the type segment in 2021.
Asia pacific held the largest share in the market in 2021.
Key players operating in the market include Daikin Industries Limited, Viessmann Group, NIBE Group, Danfoss Group Global, Stiebel Eltron Group, Mitsubishi Electric Corporation, United Technologies Corporation, Panasonic Corporation, Glen Dimplex Group, and The Bosch Group

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