GVR Report cover Heat Pump Market Size, Share & Trends Report

Heat Pump Market Size, Share & Trends Analysis Report By Technology (Water Source, Air Source, Ground Source), By Application (Commercial, Residential, Industrial), By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-3-68038-589-2
  • Number of Pages: 152
  • Format: Electronic (PDF)

Report Overview

The global heat pump market size was estimated at USD 67.7 billion in 2021 and is expected to expand at a compounded annual growth rate (CAGR) of 8.1% from 2022 to 2030. The industry growth is expected to be driven by increased demand for energy-efficient and cost-effective space heating and cooling applications in residential and commercial housing. The various lockdown measures put in place by governments across the world to curb the spread of the COVID-19 virus have made it difficult to obtain the raw materials required for the manufacture. Furthermore, the pandemic has adversely affected this industry due to the halt in the construction of residential and commercial facilities.

U.S. heat pump market size, by technology, 2020 - 2030 (USD Billion)

Air Source technology is expected to dominate the market in the U.S. over the forecast period due to the rising awareness about the adverse effects of greenhouse gas emissions. Furthermore, the increasing population along with the increasing need for ecofriendly air conditioning in the housing sector is expected to drive the demand for air source technology in the U.S.

The government initiatives including rebates, incentive plans, personal and corporate tax credits, and clean heating & cooling initiatives are expected to positively influence the growth of the market. The U.S. federal government has implemented renewable energy rebate programs in the country since 1998 for offering discounts on installing renewable energy systems including ground source systems in the buildings.

The various advantages of heat pumps such as low maintenance requirements, economical operations, low carbon footprint, and longer lifespan expectancy have greatly influenced their demand. Furthermore, its ability to provide water-heating solutions along with heating and cooling of space is expected to boost the demand for air source technology over the forecast years.

The increasing construction activities across residential units in North America along with increased surgical infrastructure investment and the rising demand for efficient space and water heating solutions will augment the demand in the single and multi-family residential building industry.

Technology Insights

The air source technology segment led the heat pump market and accounted for a revenue share of 81.1% in 2021. Air source technology is an efficient source of hot water, along with spacing heating and cooling applications by ensuring low carbon footprint, low maintenance, easy installation process, and cost-effective.

Water source technology utilizes energy stored in the ground, surface, or seawater, depending on which is more feasible. The heat pump extracts heat from the water and makes it available for heating, cooling, and hot water applications ensuring heat is evenly distributed in the provided space by employing a hydronic distribution system or by using fan coils/ ducted ventilation system.

The ground source segment is projected to register a CAGR of 9.0% over the forecast period. The increased growth in demand for these products can be attributed to their supply of stable temperature by maintaining consistency regardless of the outside temperature along with their low operating costs, energy-efficient features, and the use of renewable energy sources thereby helping to mitigate the pollution.

New technologies such as dual-source are emerging into the market which possess an added advantage of being able to draw heat from either air or the ground, depending on which source is more convenient which makes them more effective than other technologies. They are also built with variable-speed motors to boost energy savings and comfort.

Application Insights

The residential application segment has led in the year 2021 by accounting for 80.5% of global heat pump revenue. Residential applications for hot water along with space heating and cooling have witnessed a rise in demand due to the increasing population which in turn leads to the growth in demand for cost-effective and convenient air conditioning techniques.

These products are used in commercial facilities like office buildings, hotels, schools, house of worship, and historic buildings since their variable refrigerant flow heat pump systems enables them to offer cooling zones and heating to other zones simultaneously in a facility. These products also can help achieve carbon neutrality along with providing improved comfort and efficiencies.

Global heat pump market share, by application, 2021 (%)

The industrial application segment is likely to register a CAGR of 7.8% over the forecast period. Heat pumps find application in such as paper & pulp, food & beverage, chemical, automotive, and other prominent industries due to the rising focus to reduce the costs of energy, maintenance costs, and environmental effects amid emission of large amounts of greenhouse gases into the environment from the industries.

The growth in infrastructure development to facilitate the growing population and increased standards of living has greatly impacted the growing demand in residential and commercial sectors for their efficiency to maintain a consistent temperature in space heating and cooling applications by also facilitating hassle-free operation and low costs.

Regional Insights

The Asia Pacific region dominated the market and accounted for a revenue share of 46.9% in 2021, due to several factors, like the growing demand for energy-efficient heating solutions in the residential and commercial industries coupled with the rising awareness about climate change and greenhouse gas emission.

Increasing demand for energy-efficient systems along with government schemes to facilitate emission reduction and clean heating and cooling systems to adopt clean and sustainable technology has greatly influenced the rise in demand in North America. Furthermore, the population growth followed by the increase in household units will boost the growth in the residential segment.

Europe is expected to expand at a CAGR of 8.6% over the forecast period due to the government initiatives to curb carbon emissions along with rising environmental concerns that have elevated the demand for sustainable heating systems in the region. The increasing investments in the establishment of greenhouse infrastructure are expected to further fuel the growth of the market.

The growth in the demand for air conditioning and hot water systems due to the rising population is expected to drive the demand in the Middle East & Africa and Central & South America over the forecast period. The rising awareness about climate change and the need to curb pollution is anticipated to drive the growth of the market in the forthcoming years.

Key Companies & Market Share Insights

The global market for heat pumps is comprised of both multinational and local manufacturers, making it one of the competitive industries in the world due to the continuous growth in demand for air conditioning in the forthcoming years. The companies their products through various platforms, such as company websites, e-commerce websites, retailers, distributors, and end-users.

The product manufacturers compete based on various factors like product prices, product performance, product make, technology, reputation, and availability. New product launches, distribution network expansion, R&D investments, and mergers & acquisitions are some of the key strategies implemented by the companies to strengthen their reach and increase their market share. Some of the prominent players operating in the global heat pump market are:

  • Carrier

  • Daikin Industries, Ltd

  • NIBE GroupViessmann Group

  • Glen Dimplex

  • BDR Thermea Group

  • Midea Group

  • Hitachi, Ltd.

  • Ingersoll Rand Plc.


  • Vaillant Group

  • Robert Bosch GmbH

  • The Danfoss Group

Heat Pump Market Report Scope

             Report Attribute


Market size value in 2022

USD 72.4 billion

Revenue forecast in 2030

USD 136.8 billion

Growth rate

CAGR of 8.1% from 2022 to 2030

Base year for estimation


Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company market position analysis, competitive landscape, growth factors, and trends

Segments covered

Technology, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country Scope

U.S.; Canada; Mexico; Germany; France; Italy; Sweden; Norway; China; Japan; Australia; India; Brazil; Argentina; UAE; Saudi Arabia

Key companies profiled

Carrier; Daikin Industries, Ltd; NIBE Group; Viessmann Group; Glen Dimplex; BDR Thermea Group; Midea Group; Hitachi, Ltd.; Ingersoll Rand Plc.; STIEBEL ELTRON GmbH & Co. KG; Vaillant Group; Robert Bosch GmbH; The Danfoss Group

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. Grand View Research has segmented the global heat pump market report based on technology, application, and region:

  • Technology Outlook (Revenue, USD Million, 2017 - 2030)

    • Air Source

    • Water Source

    • Ground Source

  • Application Outlook (Revenue, USD Million, 2017 - 2030)

    • Commercial

    • Residential

    • Industrial

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • Italy

      • Sweden

      • Norway

    • Asia Pacific

      • China

      • Japan

      • Australia

      • India

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • UAE

      • Saudi Arabia

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