Heat Pump Market Size, Share, Growth Analysis, By Technology(Air Source, Water Source, and Ground Source), By Application(Commercial, Residential, and Industrial), By Region - Industry Forecast 2024-2031

Heat Pump Market size was valued at USD 68 Billion in 2021 and is poised to grow from USD 73.58 Billion in 2022 to USD 138.21 Billion by 2030, at a CAGR of 8.2% during the forecast period (2023-2030).

The heat pump market is highly competitive, with a large number of players operating at regional and levels. The companies operating in the market are primarily focused on product innovation, mergers and acquisitions, and partnerships to gain a competitive edge. In recent years, many companies have launched new and innovative products to stay competitive in the market. The competitive landscape of the heat pump market is highly fragmented, with several players competing for market share. The market is expected to witness increased competition over the forecast period, as companies strive to develop innovative products and expand their presence through strategic partnerships and mergers and acquisitions. 'Daikin Industries, Ltd. (Japan)', 'Carrier Corporation (US)', 'Mitsubishi Electric Corporation (Japan)', 'Panasonic Corporation (Japan)', 'Bosch Thermotechnology Ltd. (Germany)', 'NIBE Industrier AB (Sweden)', 'Stiebel Eltron GmbH & Co. KG (Germany)', 'Vaillant Group (Germany)', 'A.O. Smith Corporation (US)', 'Fujitsu General Ltd. (Japan)', 'Danfoss A/S (Denmark)', 'Glen Dimplex Group (Ireland)', 'Johnson Controls International plc (Ireland)', 'LG Electronics Inc. (South Korea)', 'Trane Technologies plc (Ireland)', 'Viessmann Werke GmbH & Co. KG (Germany)', 'Zehnder Group AG (Switzerland)', 'BDR Thermea Group BV (Netherlands)', 'Samsung Electronics Co., Ltd. (South Korea)', 'Wolf GmbH (Germany)'

Energy is an essential power source in homes, hospitals, and schools, among others. However, its production and usage result in the emission of greenhouse gasses in significant volumes. Thus, major economies across the globe are aiming to reduce their dependence on nonrenewable energy sources and are gradually inclining toward renewable energy sources to restrict the emission of greenhouse gasses. The heat pump technology is a promising solution for lowering greenhouse gas emissions. Heat pumps through aerothermal and geothermal technologies offer an energy-efficient approach to space heating. The heat pump is often regarded as a sustainable technology when used in heating, ventilation, and air conditioning (HVAC) systems. In the residential, commercial, and industrial sectors, heat pumps are widely used for space heating, cooling, and heating water.

Increasing Adoption of Renewable Energy Sources: The heat pump market is witnessing a trend of increasing adoption of renewable energy sources due to rising environmental concerns and the need for sustainable heating solutions. Renewable energy sources, such as solar energy, wind energy, and geothermal energy, are being used in heat pump systems to reduce greenhouse gas emissions and to promote sustainable energy consumption. For instance, in February 2021, Viessmann Group launched a new air-to-water heat pump with an integrated photovoltaic system for residential applications. This product combines the use of solar energy and heat pump technology, making it an energy-efficient and sustainable solution for heating and cooling.

In 2022, the Asia Pacific region held the largest share of the heat pump market, accounting for 46.9% of the revenue, attributed to the increasing demand for energy-efficient heating solutions in the residential and commercial sectors. The North American market is witnessing growth due to the increasing demand for energy-efficient systems and government initiatives to adopt clean heating and cooling technologies.