The heat pump market is anticipated to grow at a CAGR of 10.58% during the forecast period to reach a total market size of US$96.908 billion by 2027, increasing from US$47.930 billion in 2020.
Heat pumps are designed to move heat from a colder place to a warmer, one with the help of electricity. In regions where heating and cooling needs are moderate, these pumps are efficient alternatives to furnaces and air conditioners.
Increasing investment in both the commercial and residential sectors is expected to drive the growth of the market in the coming years. However, the high initial installation cost for energy-efficient heat pumps is anticipated to restrain the growth opportunities.
Rapid urbanization and industrialization are driving the market during the forecast period.
The growth of this market is majorly attributed to rapid urbanization and industrialization in many regions across the globe. As the number of commercial, residential, and industrial establishments continues to grow, the demand for efficient heating solutions will continue to be driven significantly, thus boosting the growth of the heat pump market. In fact, according to the government of China, the country’s construction industry is growing by nearly five percent, reaching around US$968 billion in 2019. Also, in the United States, construction spending has increased from USD788,322 million in 2011 to USD1,293,982 million in 2018 (source: United States Census Bureau), while a similar trend has been noticed in Europe. Thus, the growing investment in the development of infrastructure and construction projects is expected to continue to drive the growth of the heat pump market during the forecast period.
Trends toward energy-efficient products are widening the growth opportunities
The increasing focus of market players on improving the efficiency of heat pumps is attracting substantial investments into research and development. Innovation, as a result of R&D, is bringing a good range of advanced heat pumps into the market, thus fueling their adoption by players across industries. Shifting focus towards sustainability is further fueling the adoption of these pumps by customers, thus augmenting the growth of this market. Increasing environmental awareness due to the growing emission of greenhouse gases is further encouraging market players to invest and introduce technologically advanced products into the market. In fact, the emission of greenhouse gases has been increasing globally as the trend of industrialization continues. Also, the percentage of countries committed to peaking their emissions is expected to increase from 36% in 2010 to 60% in 2030 (source: Emission Gap Report 2018, United Nations Environment Programme).
The residential segment is growing at an exponential rate during the forecast period
By End-user, the residential sector is expected to grow at a significant rate on account of the development of real estate coupled with rising disposable income in developing countries like China, India, and Brazil. Also, companies are investing heavily to cater to the demand of the residential sector by integrating the internet of things into the heat pump systems.
The Asia Pacific is anticipated to be the big player in the market
Geographically, Asia Pacific is expected to hold a significant share of the market owing to increasing investment in both the residential and commercial sectors in countries like China and India. Rapid urbanization in the region coupled with growing construction activities also propels the growth of the market in the region. According to the World Bank, the urban population (% of the total population) in China has increased from 51 % in 2011 to 63 % in 2021. While in India, it has increased from 31% in 2011 to 35% in 2021.
Major players in the heat pump market have been covered along with their relative competitive positions and strategies. The report also mentions recent deals and investments by different market players over the last year. For instance, recently, Toshiba and Carrier invested nearly £21million in a joint venture to establish a new facility in Poland to meet the demand for air conditioning equipment and heat pump technology. The operation of the new site is expected to commence at the end of 2020.
The pandemic had a negative impact on the global heat pump market owing to the disruption in the supply and demand of heat pump systems. The imposed lockdowns and restrictions across various countries worldwide caused fluctuation in the functioning of supply chain raw materials. Furthermore, the conservative behavior among the consumers due to uncertainties in the market further reduced the demand for non-essential goods like heat pumps in the market.
|Market Size Value in 2020||US$47.930 billion|
|Market Size Value in 2027||US$96.908 billion|
|Growth Rate||CAGR of 10.58% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Type, Capacity, End-User, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Enertech Group, Bosch Thermotechnology Corp., Panasonic, Danfoss, Carrier Corporation, Viessmann Group, STIEBEL ELTRON GmbH & Co. KG, Glen Dimplex, Toshiba, Johnson Controls, Electrolux|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global heat pumps market?
A1. Heat Pumps Market was valued at US$47.930 billion in the year 2020.
Q2. What will be the heat pumps market size by 2027?
A2. The heat pumps market is expected to reach a market size of US$96.908 billion by 2027.
Q3. What are the growth prospects for the heat pump market?
A3. The global heat pump market is anticipated to grow at a CAGR of 10.58% over the forecast period.
Q4. What factors are anticipated to drive the heat pumps market growth?
A4. The heat pump market growth is majorly attributed to rapid urbanization and industrialization in many regions across the globe.
Q5. Which region holds the largest share of the heat pump market?
A5. Geographically, Asia Pacific is expected to hold a significant share of the heat pump market owing to increasing investment in both the residential and commercial sectors in countries like China and India.
1.1. Market Introduction
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Heat Pumps Market Analysis, By Type
5.2. Air Source Heat Pumps
5.3. Water Source Heat Pumps
5.4. Ground Source (Geothermal) Heat Pumps
6. Heat Pumps Market Analysis, By Capacity
6.2. Up to 10kW
6.3. 10 to 30 kW
6.4. Above 30kW
7. Heat Pumps Market Analysis, By End User
8. Heat Pumps Market Analysis, By Geography
8.2. North America
8.3. South America
8.4.1. United Kingdom
8.5. Middle East and Africa
8.5.2. Saudi Arabia
8.6. Asia Pacific
8.6.4. South Korea
9. Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. Company Profiles
10.1. Enertech Group
10.2. Bosch Thermotechnology Corp.
10.5. Carrier Corporation
10.6. Viessmann Group
10.7. STIEBEL ELTRON GmbH & Co. KG
10.8. Glen Dimplex
10.10. Johnson Controls
Bosch Thermotechnology Corp.
STIEBEL ELTRON GmbH & Co. KG
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