The global heat pump market size was exhibited at USD 86.4 billion in 2022 and it is expected to hold USD 209.28 billion by 2032 with a registered CAGR of 9.3% from 2023 to 2032. APAC and North America regions are expected to garner a revenue share of around 74% by 2032.
Growth Factors
The global heat pump market is expected to foresee a strong growth in the forthcoming years owing to the growing demand for the heat pumps for heating and cooling applications across the commercial and residential buildings. The cost effectiveness and energy efficiency are the two prominent features of the heat pumps that foster its demand across the globe. The rising government initiatives in the form of incentives, rebates, and tax credits to promote sustainability and adoption of clean and green heating and cooling solutions is expected to have a significant impact on the growth of the global heat pump market. Further, the rising corporate and government efforts to curb the carbon footprint and increase the adoption of renewable energy sources is anticipated to fuel the growth of the global heat pump market during the forecast period.
Furthermore, the integration of the novel technologies like artificial intelligence and internet of things (IoT) in the heat pump technology is expected to offer numerous growth opportunities to the market players in the foreseeable future. Moreover, the emergence of the dual source technology in the heat pumps is expected to boost the demand. The dual source technology are capable of drawing heat from both the ground and air source. The convenient source is utilized by the dual source technology and thus offers cost-effectiveness as compared to other technologies.
Report Scope of the Heat Pump Market
| Report Coverage | Details |
| Market Size by 2032 | USD 209.28 Billion |
| Growth Rate from 2023 to 2032 |
CAGR of 9.3% |
| Asia-Pacific Market Share in 2022 | 46% |
| Residential Segment Market Share in 2022 | 80% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Technology, Application, Rated Capacity, Refrigerant, Geography |
| Companies Mentioned | Daikin Industries Ltd., Glen Dimplex Group, Ingersoll Rand Plc, Melrose Industries PLC, Mitsubishi Electric Corporation, NIBE Industrier AB, StiebelEltron, Vaillant Group, ViessmannWerke GmbH & Co. KG, Panasonic Corporation |
Technology Insights
Based on the technology, the global heat pump market was dominated by the air source technology segment that accounted for over 81% of the market share in 2022 with CAGR of 7%. This segment is anticipated to remain dominant throughout the forecast period owing to the rising government initiatives to curb carbon emission and rising awareness regarding the ill-effects of greenhouse gases on the environment. Air source technology serves as an efficient hot water source and it also caters to the heating and cooling needs in various applications with minimal carbon emission. Furthermore, the low costs, easy installation, and low maintenance are the other prominent features that have significantly fueled the growth of the air source technology segment in the global heat pump market.
On the other hand, the ground source technology is expected to witness growth at a CAGR of around 9.1% during the forecast period. The ground source technology ensures the supply of consistent and stable temperature regardless of the external temperature conditions, which is a significant factor behind the burgeoning demand for the ground source technology segment. Further, it involves features such as energy efficiency, low pollution owing to the usage of renewable energy sources, and low operating costs. These benefits are estimated to be the most prominent factors behind the growth of this segment during the forecast period.
Application Insights
The residential was the leading segment with a revenue share of around 80% in the global heat pump market in 2022. The higher needs for the hot water, space cooling, and space heating in the residential sector has led to the huge demand for the heat pumps across the globe. The continuously rising global population and rising number of residential projects owing to the growing investments in urbanization is expected to have a significant and positive impact on the demand for the heat pumps during the forecast period. The increasing demand for heat pumps for cooling and heating applications in residential sector at low costs and in a sustainable way is anticipated to drive the sales of the heat pumps.
The industrial segment is expected to exhibit the highest CAGR 7.9% during the forecast period. The increasing applications of heat pumps in various industries such as automotive, food & beverages, paper & pulp, and chemical industries is expected to boost the growth of this segment significantly. The rising investments in the adoption of sustainable technology in the industrial sector are propelling the market growth. The industrial sector is one of the leading contributors to the global warming. Furthermore, the low operational costs, low maintenance cost, utilization of renewable energy sources, and rising adoption of sustainable solutions in the industrial sector across the globe are the major factors behind the rising demand for the heat pumps across the industries.
Regional Insights
Asia Pacific was the leading heat pump market with a revenue share of over 46% in 2022. This growth is simply attributable to the increased investments in the industrialization and urbanization. The favorable government policies to attract investments and boost the industrialization of the region have significantly fostered the demand for the heat pumps in this region. Asia pacific is the manufacturing hub of the globe owing to the presence of almost all the industries in the region. The favorable government policies and availability of cheap labor and other factors of production has resulted in the dominance of the Asia Pacific region in the global heat pump market. Further, the region is the home to world’s largest population and the rapid urbanization of rural areas is expected to boost the demand for the heat pumps in the residential sector. The growing number of modern residential projects and rising infrastructure along with the increasing number of commercial spaces are some of the prominent drivers of the Asia Pacific heat pump market.
Europe is anticipated to be the fastest-growing market with CAGR of 8.7% during the forecast period. The government in Europe has imposed strict regulations pertaining to the carbon emission and adoption of renewable energy sources, which is significantly boosting the demand for the heat pumps across the various commercial, industrial, and residential applications. The increased consumer awareness regarding the environment protection, sustainable products, and green energy is resulting in the burgeoning demand for the heat pumps across Europe. Further, the cold climatic conditions in Europe is boosting the adoption of the heat pumps for heating applications in the residential sector, thereby driving the Europe heat pump market.
Key Market Developments
The heat pump market is moderately fragmented with the presence of several top players in the market. These market players are constantly engaged in various developmental strategies such as mergers, joint ventures, business expansion, acquisitions, partnerships, collaborations, and new product launches to strengthen their position and expand their market share.
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Segments Covered in the Report
(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)
By Technology
By Application
By Rated Capacity
By Refrigerant
By Geography
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