Market Overview/Outlook (2022 to 2030)
The Global Heat Pump Market was valued at USD 53.29 Billion in 2022 and is projected to reach USD 109.13 Billion by 2030, registering a CAGR of 8.85% for the forecast period 2023-2030.
Market Definition
A heat pump is a device that use a refrigeration cycle to transfer thermal energy, cooling the cold space and warming the warm space, to move heat from a cool room to a warm space. A heat pump can move heat from the cool outside to warm a house in cold weather, in warm weather the pump may be made to move heat from the inside to warmer outside. They are more energy efficient than alternative methods of home heating because they transfer heat rather than creating it. Air source heat pump is the most common, the other types are ground source, water source and exhaust air heat pumps.
Market Size:
The Global Heat Pump Market was valued at USD 53.29 Billion in 2022 and is projected to reach USD 109.13 Billion by 2030, registering a CAGR of 8.85% for the forecast period 2023-2030.
Market Definition
A heat pump is a device that use a refrigeration cycle to transfer thermal energy, cooling the cold space and warming the warm space, to move heat from a cool room to a warm space. A heat pump can move heat from the cool outside to warm a house in cold weather, in warm weather the pump may be made to move heat from the inside to warmer outside. They are more energy efficient than alternative methods of home heating because they transfer heat rather than creating it. Air source heat pump is the most common, the other types are ground source, water source and exhaust air heat pumps.
Market Size:
- 2022: USD 53.29 billion
- 2030: USD 109.13 billion
- CAGR (2023-2030): 8.8%
Heat Pump Market Dynamics
Drivers Propelling the Demand for Heat Pump include:
Heat pump technologies contribution to reducing carbon impact:
Energy as a power source in other places, houses, hospitals and schools and others. However, its creation and used lead to a sizable amount of greenhouse gas emission. Therefore, in order to reduce greenhouse gas emission, major economies throughout the world are gradually shifting away from non-renewable energy sources and toward renewable one. A promising method for reducing greenhouse gas emission is heat pump technology. Geothermal and aerothermal heat pumps provide a room heating method that is energy-efficient.
Huge thermal energy reserve exists in both air and ground, heat pump use energy input, primarily electricity, to raise the temperature while extracting ambient heat from the air and low temperature surface. The heat pump has the capacity to capture 77% of energy in the air. Therefore, compared to other heat transfer method the usage of heat pump can significantly reduce the consumption of fossil fuel, thereby reducing the carbon footprint. All sectors are installing more heat pumps as a result, which is boosting the global heat pump market growth.
For instance, in 2023, according to The Colorado Sun, new Belgium brewing preparing for an industrial heat pump system that could lower its greenhouse gas emission. Fort Collins based Atmos-Zero to test a drop in heat pump system that could assist in lowering carbon footprint of other businesses in its sector, which are responsible for 7% of the country greenhouse gas emission.
Growing demand for heat pumps in the residential buildings:
The rising need of HVAC (Heating, Ventilation and Air Conditioning) systems, which is primarily driven the increase in heat pump demand in residential buildings. Air to air heat pumping technologies dominate the global market for residential buildings among the various types heat pumps. With the use of this technologies indoor room can be heated or cooled by using the surrounding air as heat source or heat sink. Due to its affordability and capacity to reduce reliance on geothermal and water source, air to air heat pumps have grown in popularity, the utilization of this heat pump contributes overall growth of the market. Due to its efficiency in HVAC systems, affordability, and low use of geothermal and water resource, heat pump re becoming more and more popular in residential houses and apartments. There is noticeable acceptance of this movement in China, United States and Japan.
For instance, in 2022, according to Clean Technica, Gradient and Midea America will develop 60 heat pumps, which they will install in dozens of apartments during the fall of 2023 and monitor throughout the winter months. After the trial period, they expect to ramp up production and deploy thousand of units in 2024.
Recent Developments
In June 2023, Thermino heat batteries from Sunamp will be provided to Trianco, a UK based manufacturer of heating and hot water equipment’s, as a part of ground breaking heat pump package that is expected to transform renewable energy sector. It is first time a heat pump manufacturer has opted to provide a complete package solution that solely uses a heat battery as opposed to other type of thermal storage.
In May 2023, The Trailblazer HP, an air-cooled scroll chiller that combines heat pump technology to provide electricity powered heating and cooling for commercial buildings and industrial operation just introduced by Daikin Applied Americas.
Restraint
High maintenance cost associated with heat pump are expected to hinder the growth of heat pump market:
A form of heating and cooling system known as heat pump uses electricity to move heat from interior to outdoor air, they are very effective way to heat and cool your house, but they have costly maintenance. In general, heat pump maintenance entails making repairs to the thermostat or the actual machine. The average cost of repairing and replacing a thermostat, which normally cost around $200, is less expensive and easier than maintaining the actual device. Depending on the particular component that need services, repairs to the machine can differ greatly. Your technician identified the problem when fixing the heat pump before he can give you advice on what do next. The majority of time, heat pump repair cost will fall into technician cost, repair coils, condenser repair, furnace or air handler repair. Overall, the market of heat pump is severely restricted due to its high maintenance cost.
For instance, in 2023, according to Forbes home, a heat pump that won’t turn on cost between $100 to $500 to fix, to repair a thermostat $90 for simple thermostat and $600 for Wi-Fi connected one, the compressor typically cost between $800 to $3000 to repair or replace, a non-working fan cost between $140 to $375 to get it up and running again, inconsistent temperature takes $100 to $490.
Challenges
Lack of awareness regarding advantages associated of heat pump:
Many people are unaware about the function of heat pumps function on their advantage because they are relatively new technology in many parts of the world. Traditional heating and cooling system like furnaces and air conditioner are generally well known, since heat pump are most recent invention not many people are aware of them possibility. The heat pump is sophisticated piece of technology there is lack of technical knowledge among end users in emerging and undeveloped nations, as well as understanding of energy efficiency, cost efficiency and environmental benefit linked to a heat pump, there rate of penetration in emerging economies is predicted to be hampered by this factor. Developing a heat pump can be more expensive than building a conventional cooling and heating system this could make some people to choose heat pump less. This all factor is expected to hinder the growth of heat pump market.
For instance, in 2023, according to European Heat Pump Association’s and chief of the European Knowledge Hub’s professor Kristina Lygnerud stated that, one of the causes of the lack of awareness of heat pumps benefits among the general people, more information and education on the importance on renewable heating and cooling could fill the gap of heat pump accelerator.
Opportunities
Internet of Things (IoT) and other cutting-edge technologies are being integrated with heat pump:
Modern heat pump solution that uses the Internet of Things and cutting-edge technologies like artificial intelligence are intended to automate these pumps, making them more even energy efficient and able to manage the environment without the need for human interaction. Heat pumps connected on the Internet on Things allow for component real time monitoring and proactive maintenance. Smart thermostat that helps monitor environmental changes and connect with their water heater equipment are a part of Internet of Things based heat pumps. Heat pumps are adopted by the end customers from various industries. The development of next generation of heat pumps are placed a high priority on automation and remote control. Research is also conducted globally for incorporating machine learning and artificial intelligence in heat pump to reduce electricity consumption and enhance efficiency. The need for manually switching on or off heat pumps is eliminated by the heat pump integrated with machine learning and artificial intelligence which can investigate consumer consumption pattern and analyze their operational time and length, this factor are increase to demand for heat pumps and produce profitable opportunity for the market participants.
Snapshot
| Attributes | Details |
| Market Size in 2022 | USD 53.29 Billion |
| Market Forecast in 2030 | USD 109.13 Billion |
| Compound Annual Growth Rate (CAGR) | 8.85 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Technology, By Capacity, By Operation Type, By Application and By Region |
| By Technology |
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| By Capacity |
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| By Operation Type |
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| By Application |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018-2022 |
| Forecast Year | 2023-2030 |
The Heat Pump market is segmented by technology, capacity, operation type, application, and region.
By Technology
The air source segment held the largest market share in 2022:
By technology the market is sub segmented into air source, water source, and geothermal. The air source technology segment held the largest market share in 2022. In order to heat radiators and supply hot water, air source heat pumps are used in wet central heating system. Similar how-to refrigerator operates, air source pump absorbs the heat and transmit it into other mediums. Air to air heat pumps is used in the majority of air source heat pump integration to warm and cool the air. In addition to water heating solution is anticipated to increase demand for air source technology during the anticipated years.
The water source technology is expected to significant share during forecast period due to their high operating efficiency with respect to other heat pumps also its extract thermal energy from water and turns into heat.
By Capacity
The up to 10 kW segment was the leading segment in 2022:
By capacity, the heat pump market is segmented into Up to 10 kW, 10 to 20 kW, 20 to 50 kW, 50 to 100 kW, 100 to 200 kW, above 200 kW. The sector with rated capacity up to 10 kW held a largest share of the market. The segment growth is attributed to the capacity type being suitable for wide range uses such as commercial use including hotels, swimming pool, factories, restaurants and schools, which consequently increase the demand for the heat pump market over the forecast period. The up to 10 kW segment is expected to e driven by the main advantage suitably for single family residential houses.
On the other hand, the majority of heat pump with 10-20 kW capacity provide quiet operation are environmentally friendly offer high efficiency and wide range of hydraulic options due to this factor, 10-20 kW segment grows reliable during forecast period.
By Operation type
The electric operation type segment was the leading segment in 2022:
By operation type, the heat pump market is segmented into electric and hybrid. The electric operation type segment is accounted for the largest revenue market share. The electric heat pump transfer heat from cold space to warm space using electricity. Instead of being used for heating, this heat pumps are additionally used for cooling during the summer. Electric heat pump provides numerous benefits over gas heat pump including greater air quality, energy economy, silent operation and safety, as a result market is grown economically.
Hybrid heat pump lower the end user monthly energy costs, ensuring long term savin. End use who utilizes hybrid heat pump may potentially qualify for tax credit or rebate which will help this market growth.
By Application
The residential segment dominated the heat pump market in 2022:
In terms of revenue share, the residential application segment held largest 79.9% market share of the heat pump market in 2022. Heat pump is anticipated to be high demand in the residential market due to rapid urbanization and rising demand for energy efficient products. The demand for heat pump is anticipated to increase over the next years as a result of favorable governments efforts and tax breaks provided for installation of energy saving products.
Over the projection period, it is projected that a growing emphasis on energy efficiency along with increased effort by commercial stakeholder to prevent global warming will increase demand for heat pump.
Regional Analysis
Asia Pacific occupied the largest market share in 2022:
Asia Pacific is leading market segment accounted for 53.1% global revenue share in 2022. In the Asia Pacific there are availability of large labor in low cost. The rising tendency of moving production bases to emerging economies particularly China and India, is anticipated to positively impact market growth. Energy saving technologies are anticipated to become increasingly popular in country like China, India, Japan, and Indonesia.
On the other hand, North America accounted for the significant share of the global heat pump market in 2022. It is anticipated that government program in the US and Canada to encourage adoption of energy saving and environmentally friendly technology would increase demand for advanced heat pumps.
Segmentation Analysis of the Heat Pump Market
By Technology
- Air Source
- Water Source
- Geothermal
By Capacity
- Up to 10 kW
- 10 to 20 kW
- 20 to 50 kW
- 50 to 100 kW
- 100 to 200 kW
- above 200 kW
By Operation Type
- Electric
- Hybrid
By Application
- Residential
- Industrial
- Commercial
List of the prominent players in the Heat Pump Market:
- Carrier
- Daikin Industries Ltd
- Robert Bosch GmbH
- Lennox International
- Johnson Controls Inc.
- Midea Group
- Hitachi Ltd
- Ingersoll Rand Plc,
- Rheem Manufacturing Company
- Mitsubishi Electric Corporation
- Danfoss Group Global
- Panasonic Corporation
- United Technologies Corporation
- Stiebel Eltron Group
- Glen Dimplex Group
- NIBE Group
Impact of the COVID-19 Pandemic on the Heat Pump Market:
Due to the COVID 19 outbreak and substantial effect it had on residential, industrial and commercial activities. The company have seen limited operation, mostly because of lack of raw material from lower tier suppliers, a lack of available labor, limited investment in new infrastructure, and a gradual recovery of the capacity of the transportation network due to geographical closure. However, in order to meet their production goal and favorable support the growth of the sector, the corporation are employing resourceful and innovative approaches to attract workers.
Post COVID-19 as economies recovered from the pandemic, heat pump is become more popular in residential, commercial and industrial applications such as, offices, warehouse and hotels. Additionally, after the COVID new technologies are being developed, Heat pump market is grown strongly in the post COVID.
