Report Overview

Global Heat Pump Market- Industry Trends & Forecast Report 2028

The global heat pump market was worth USD 53.3 billion in 2021 and is further projected to reach USD 99.7 billion by the year 2028, growing at a CAGR of 9.40% during the forecast period. The market is gaining traction owing to various factors such as rising focus towards energy efficiency for cost reduction and energy conservation along with favorable government initiatives and subsidies on its components and adoption. Furthermore, increasing construction of residential and commercial facilities is also driving the growth of the market.

Global Heat Pump - Overview

A heat pump is a system that has the primary purpose of transferring thermal energy between spaces. Some of the most common types of heat pumps used are air source heat pumps, ground-source heat pumps, water source heat pumps, and exhaust air heat pumps. These devices are emerging as an energy-efficient alternative for air conditioners since it is capable of transferring 3 to 6 kWh of thermal energy into a building with 1 kWh of electricity.

Global Heat Pump Market Forecast and Trends

Growth Drivers

Rising Demand for Energy-Efficient Equipment

The rising focus and demand for energy-efficient devices are emerging as the major driving factor for the growth of the global heat pumps market. Heat pumps are considered to offer better energy efficiency than other cooling or heating equipment such as air conditioners. According to the Energy Efficiency Council, heat pumps installed in residential spaces can deliver heat at 600% efficiency, compared to the gas heaters at 50% to 90%. This is anticipated to propel the demand for heat pumps in the forecast period.

Favorable Government Initiatives to Boost Heat Pump Installation

The governments of several countries are taking various initiatives to boost the adoption of heat pumps in residential and commercial facilities such as funding their installation and offering subsidies. Canada, for instance, is providing up to USD 5000 for upgrades (including certain heat pumps) from the year 2022. The United Kingdom too is following suit and is taxing the heat pumps at the reduced rate of 5% instead of the usual level of VAT of 20% for most other products.

Restraints

High Installation Cost of Heat Pumps

The initial cost of heat pump installation is extremely high and acts as a huge restraining factor for the growth of the global heat pump market. The average cost of heat pump installation may range between USD 4,900 and USD 12,500, which includes the cost of components, labor, and other variable costs. The labor cost of installation is also extremely high since the consumers need to hire an HVAC contractor.

Impact of COVID-19 on Global Heat Pump Market

The global heat pump market was negatively impacted by the unprecedented COVID-19 pandemic outbreak. The manufacturing operations and supply chains of heat pumps were completely halted due to lockdown restrictions, due to which the heat pump manufacturing companies had to register huge losses. Furthermore, the demand for heat pumps declined several folds from residential and commercial facilities in the lockdown period. The obstruction of construction activities of new buildings and residential spaces is expected to influence the demand for heat pumps in the long term.

Global Heat Pump Market - By Type

Based on type, the global heat pump market is segmented into air-to-air heat pump, air-to-water heat pump, water source heat pump, ground-source (geothermal) heat pump, and hybrid heat pump. The air-to-air heat pump segment accounts for the largest market share owing to its extremely high efficiency, with its seasonal efficiency rating (SCOP) reaching 3.0-4.0, meaning that for every 1 kW of electricity 3 to 4 kW of heat is generated, according to GreenMatch UK.

Global Heat Pump Market - By End-User

Based on end-user, the global heat pump market is segmented into residential, commercial, and industrial. The residential segment accounts for the largest market share. The growth of this segment is mainly attributed to the government initiatives and investments towards boosting the installation of heat pumps. For instance, the European Union ministers have announced grants of 5,000 euros to allow people to install home heat pumps and other low-carbon boiler replacements as part of the wider heat and buildings strategy.

Global Heat Pump Market - Regional Insights

Geographically, the global heat pump market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle East & Africa. North America dominates the global heat pump market owing to the rising focus towards energy-efficient equipment along with favorable government benefits and tax rebates. Europe also holds a substantial market share owing to the government initiatives and partnerships with heat pump companies to boost the installation of this equipment in residential spaces. However, the Asia-Pacific region is projected to register the highest CAGR during the forecast period.

Competitive Landscape

The leading market players of the global heat pump market are Trane Inc., Efficiency Maine, Midea Group, WOLF (Centrotec Sustainable AG), NIBE Group, Flamingo Heat Pumps, Panasonic Corporation, Viessmann Werke GmbH & Co KG, Mitsubishi Electric Corporation, Glen Dimplex Group, Daikin Industries, Ltd., Stiebel Eltron Gmbh & Co. Kg, Swegon Group AB, Earthlinked Technologies, Bryant Heating & Cooling Systems, Bosch Thermotechnology, Kensa Heat Pumps, OCHSNER Warmepumpen, Nortek Global HVAC, Carrier Corporation, and other prominent players.

The market is highly competitive and concentrated due to the presence of multinational corporations. However, several regional companies are also emerging and giving tough competition to the established players. The companies are constantly introducing new products as well as significantly investing in research and development activities for offering innovations. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.

Recent Development

• In February 2022, Lennox Industries, a US-based HVAC products company, announced the launch of the Dave Lennox Signature Collection model SL25xPV heat pump at the National Association of Home Builders (NAHB) International Builders’ Show.
• In February 2022, Clean Energy Technologies, Inc., announced its strategic partnership with Enertime to offer a wider range of heat recovery solutions including heat pumps in North America.

Scope of the Report

By Type

• Air-To-Air Heat Pump
• Air-To-Water Heat Pump
• Water Source Heat Pump
• Ground Source (Geothermal) Heat Pump
• Hybrid Heat Pump

By Refrigerant Type

• R410A
• R407C
• R744
• Others

By Rated Capacity

• Up To 10 Kw
• Up To 10 Kw
• 20–30 Kw
• Above 30 Kw

By End User

• Residential
• Commercial
• Industrial

By Region

• North America
• Europe
• Asia-Pacific (APAC)
• Latin America (LATAM)
• Middle East & Africa (MEA)

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. Global Heat Pump Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Advancement/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. Global Heat Pump Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Air-to-Air
         2. Air-to-Water
         3. Water Source
         4. Geothermal
         5. Hybrid
      2. By Refrigerant
         1. R410A
         2. R407C
         3. R744
      3. By Rated Capacity
         1. Up to 10 kW
         2. 10-20 kW
         3. 20-30 kW
         4. >30 kW
      4. By End User
         1. Residential
         2. Commercial
         3. Industrial
      5. By Region
         1. North America
         2. Europe
         3. The Asia Pacific
         4. Latin America
         5. The Middle East and Africa
6. North America Heat Pump Market
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Refrigerant
      3. By Rated Capacity
      4. By End User
      5. By Application
      6. By Country
         1. United States
         2. Canada
7. Europe Heat Pump Market
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Refrigerant
      3. By Rated Capacity
      4. By End User
      5. By Country
         1. Germany
         2. United Kingdom
         3. Italy
         4. France
         5. Spain
         6. Rest of Europe
8. Asia-Pacific Heat Pump Market
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Refrigerant
      3. By Rated Capacity
      4. By End User
      5. By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Rest of Asia Pacific
9. Latin America Heat Pump Market
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Refrigerant
      3. By Rated Capacity
      4. By End User
      5. By Country
         1. Brazil
         2. Mexico
         3. Rest of Latin America
10. Middle East & Africa Heat Pump Market
    1. Market Size & Forecast by Value, 2018-2028
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Type
       2. By Refrigerant
       3. By Rated Capacity
       4. By End User
       5. By Country
          1. Saudi Arabia
          2. UAE
          3. South Africa
          4. Rest of Middle East & Africa
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis, 2021
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Development (Merger, Acquisition, Partnership.)
12. Impact of Covid-19 on Global Heat Pump Industry
13. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
    1. SAMSUNG
    2. DENSO CORPORATION
    3. Midea Group
    4. Panasonic Corporation
    5. Mitsubishi Electric Corporation
    6. Johnson Controls
    7. DAIKIN INDUSTRIES, Ltd.
    8. Carrier
    9. LG Electronics
    10. Trane Technologies
    11. GEA Group Aktiengesellschaft
    12. FUJITSU GENERAL
    13. Thermax Limited
    14. Lennox International
    15. Danfoss A/S
    16. GLEN DIMPLEX
    17. Other prominent players

14. Key Strategic Recommendations

*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List Of Figures

Figure 1        Global Heat Pump Segmentation

Figure 2        Global Heat Pump Market Value Chain Analysis

Figure 3        Company Market Share Analysis, 2021

Figure 4        Global Heat Pump Market Size, By Value (USD Million), 2018-2028

Figure 5        Global Heat Pump Market Share, By Type, By Value, 2018-2028

Figure 6        Global Heat Pump Market Share, By Refrigerant, By Value, 2018-2028

Figure 7        Global Heat Pump Market Share, By Rated Capacity, By Value, 2018-2028

Figure 8        Global Heat Pump Market Share, By End-User, By Value, 2018-2028

Figure 9        Global Heat Pump Market Share, By Region, By Value, 2018-2028

Figure 10       North America Heat Pump Market Size, By Value (USD Million), 2018-2028

Figure 11       North America Heat Pump Market Share, By Type, By Value, 2018-2028

Figure 12       North America Heat Pump Market Share, By Refrigerant, By Value, 2018-2028

Figure 13       North America Heat Pump Market Share, By Rated Capacity, By Value, 2018-2028

Figure 14       North America Heat Pump Market Share, By End-User, By Value, 2018-2028

Figure 15       North America Heat Pump Market Share, By Country, By Value, 2018-2028

Figure 16       Europe Heat Pump Market Size, By Value (USD Million), 2018-2028

Figure 17       Europe Heat Pump Market Share, By Type, By Value, 2018-2028

Figure 18       Europe Heat Pump Market Share, By Refrigerant, By Value, 2018-2028

Figure 19       Europe Heat Pump Market Share, By Rated Capacity, By Value, 2018-2028

Figure 20       Europe Heat Pump Market Share, By End-User, By Value, 2018-2028

Figure 21       Europe Heat Pump Market Share, By Country, By Value, 2018-2028

Figure 22       Asia-Pacific Heat Pump Market Size, By Value (USD Million), 2018-2028

Figure 23       Asia-Pacific Heat Pump Market Share, By Type, By Value, 2018-2028

Figure 24       Asia-Pacific Heat Pump Market Share, By Refrigerant, By Value, 2018-2028

Figure 25       Asia-Pacific Heat Pump Market Share, By Rated Capacity, By Value, 2018-2028

Figure 26       Asia-Pacific Heat Pump Market Share, By End-User, By Value, 2018-2028

Figure 27       Asia-Pacific Heat Pump Market Share, By Country, By Value, 2018-2028

Figure 28       Latin America Heat Pump Market Size, By Value (USD Million), 2018-2028

Figure 29       Latin America Heat Pump Market Share, By Type, By Value, 2018-2028

Figure 30       Latin America Heat Pump Market Share, By Refrigerant, By Value, 2018-2028

Figure 31       Latin America Heat Pump Market Share, By Rated Capacity, By Value, 2018-2028

Figure 32       Latin America Heat Pump Market Share, By End-User, By Value, 2018-2028

Figure 33       Latin America Heat Pump Market Share, By Country, By Value, 2018-2028

Figure 34       Middle East & Africa Heat Pump Market Size, By Value (USD Million), 2018-2028

Figure 35       Middle East & Africa Heat Pump Market Share, By Type, By Value, 2018-2028

Figure 36       Middle East & Africa Heat Pump Market Share, By Refrigerant, By Value, 2018-2028

Figure 37       Middle East & Africa Heat Pump Market Share, By Rated Capacity, By Value, 2018-2028

Figure 38       Middle East & Africa Heat Pump Market Share, By End-User, By Value, 2018-2028

Figure 39       Middle East & Africa Heat Pump Market Share, By Country, By Value, 2018-2028

List Of Tables

Table 1         Global Heat Pump Market Size, By Type, By Value, 2018-2028                      

Table 2         Global Heat Pump Market Size, By Refrigerant, By Value, 2018-2028                       

Table 3         Global Heat Pump Market Size, By Rated Capacity, By Value, 2018-2028                           

Table 4         Global Heat Pump Market Size, By End-User, By Value, 2018-2028                         

Table 5         Global Heat Pump Market Size, By Region, By Value, 2018-2028                             

Table 6         North America Heat Pump Market Size, By Type, By Value, 2018-2028                    

Table 7         North America Heat Pump Market Size, By Refrigerant, By Value, 2018-2028                      

Table 8         North America Heat Pump Market Size, By Rated Capacity, By Value, 2018-2028                          

Table 9         North America Heat Pump Market Size, By End-User, By Value, 2018-2028                        

Table 10        North America Heat Pump Market Size, By Country, By Value, 2018-2028                          

Table 11        Europe Heat Pump Market Size, By Type, By Value, 2018-2028                     

Table 12        Europe Heat Pump Market Size, By Refrigerant, By Value, 2018-2028                      

Table 13        Europe Heat Pump Market Size, By Rated Capacity, By Value, 2018-2028                           

Table 14        Europe Heat Pump Market Size, By End-User, By Value, 2018-2028                        

Table 15        Europe Heat Pump Market Size, By Country, By Value, 2018-2028                          

Table 16        Asia-Pacific Heat Pump Market Size, By Type, By Value, 2018-2028                        

Table 17        Asia-Pacific Heat Pump Market Size, By Refrigerant, By Value, 2018-2028                          

Table 18        Asia-Pacific Heat Pump Market Size, By Rated Capacity, By Value, 2018-2028                     

Table 19        Asia-Pacific Heat Pump Market Size, By End-User, By Value, 2018-2028                             

Table 20        Asia-Pacific Heat Pump Market Size, By Country, By Value, 2018-2028                    

Table 21        Latin America Heat Pump Market Size, By Type, By Value, 2018-2028                     

Table 22        Latin America Heat Pump Market Size, By Refrigerant, By Value, 2018-2028                       

Table 23        Latin America Heat Pump Market Size, By Rated Capacity, By Value, 2018-2028                           

Table 24        Latin America Heat Pump Market Size, By End-User, By Value, 2018-2028                         

Table 25        Latin America Heat Pump Market Size, By Country, By Value, 2018-2028                           

Table 26        Middle East & Africa Heat Pump Market Size, By Type, By Value, 2018-2028                       

Table 27        Middle East & Africa Heat Pump Market Size, By Refrigerant, By Value, 2018-2028                       

Table 28        Middle East & Africa Heat Pump Market Size, By Rated Capacity, By Value, 2018-2028                            

Table 29        Middle East & Africa Heat Pump Market Size, By End-User, By Value, 2018-2028                          

Table 30        Middle East & Africa Heat Pump Market Size, By Country, By Value, 2018-2028                            

Table 31        SAMSUNG Company Overview                          

Table 32        SAMSUNG Financial Overview                          

Table 33        DENSO CORPORATION Company Overview                            

Table 34        DENSO CORPORATION Financial Overview                   

Table 35        Panasonic Corporation Company Overview                   

Table 36        Panasonic Corporation Financial Overview                    

Table 37        Mitsubishi Electric Corporation Company Overview                           

Table 38        Mitsubishi Electric Corporation Financial Overview                   

Table 39        DAIKIN INDUSTRIES, Ltd. Company Overview                       

Table 40        DAIKIN INDUSTRIES, Ltd. Financial Overview                        

Table 41        LG Electronics Company Overview                    

Table 42        LG Electronics Financial Overview                     

Table 43        Trane Technologies Company Overview                       

Table 44        Trane Technologies Financial Overview                        

Table 45        GEA Group Aktiengesellschaft Company Overview                   

Table 46        GEA Group Aktiengesellschaft Financial Overview                    

Table 47        FUJITSU GENERAL Company Overview                        

Table 48        FUJITSU GENERAL Financial Overview                         

Table 49        Thermax Limited Company Overview                          

Table 50        Thermax Limited Financial Overview                           

Table 51        Lennox International Company Overview                     

Table 52        Lennox International Financial Overview                      

Table 53        Danfoss A/S Company Overview                       

Table 54        Danfoss A/S Financial Overview                        

Table 55        GLEN DIMPLEX Company Overview                   

Table 56        GLEN DIMPLEX Financial Overview