Heat Pump Market Size & Share, Growth, Market Research and Industry Forecast Report, 2019-2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Heat Pump Market


The global heat pump market size was valued at USD 58.6 billion in 2018 and is estimated to progress at a CAGR of 8.5% from 2019 to 2025 owing to the rising need for renewable energy sources along with extensive government support in the form of subsidies, incentives, and other monetary benefits.
The growth of construction and housing sector for single-unit and multi-unit dwellings is projected to boost the demand for heat pumps over the forecast period. Increasing consumer spending habits are anticipated to surge the revenue of restaurants and other commercial establishments, which is expected to further drive the demand for these pumps in commercial sector.

Increasing carbon emission and fluctuating energy prices have led the consumers to use renewable heat sources, which is expected to drive the market in the country over the forecast period. The U.S. government offers numerous benefits on installation of these pumps. The government also offers direct incentives for their installation, which in turn, is expected to drive the product demand over the forecast period. Growing demand for energy-efficient products is expected to drive the market over the forecast period. Rising energy consumption in residential and industrial sectors is estimated to drive the demand for energy-efficient products and technologies that decrease operation cost and enhance energy savings.

Growing water and space heating requirements in countries of Europe, North America, and Asia Pacific are anticipated to boost the product demand in these regions. Energy-efficient heating solutions are expected to gain prominence over the coming years. Favorable government initiatives are anticipated to provide necessary support for the growth of this market. The demand for these pumps is expected to witness a significant growth every year with growing demand for upgraded equipment, which, in turn, is expected to significantly contribute to the growth of the market. Air source heat pump (ASHP) technology segment is projected to dominate the market, in terms of sales, owing to the rising demand for space heating and cooling applications.

Technology Insights of Heat Pump Market

Based on technology, the market is segmented into air source, water source, and ground source.Air source heat pump (ASHP) segment dominated the market accounting for 80.8% of the revenue share in 2018 and is expected to grow at a CAGR of 8.6% from 2019 to 2025. ASHP absorbs heat from outside air and transfers it to an indoor space, including home, office or building for space heating and cooling applications, through heat radiator.
There are two types of ASHP, which are air to air and air to water system. In air to air, ambient energy is transferred to home by fan system for space heating or cooling requirements. In air to water heat pumps, ambient energy is transferred to central heating to provide both hot water heating and heating for an indoor space.
Ground source heat pumps (GSHP) segment is expected to grow significantly over the forecast period owing to the advantage of stable temperature of its geothermal subsoil heat source. This segment is expected to advance with a CAGR of 8.1% from 2019 to 2025. Growing importance of GSHP in the global market owing to its high energy-efficiency is expected to drive the market over the forecast period.

Water source heat pump (WSHP) segmentis expected to grow at an estimated CAGR of 7.5% from 2019 to 2025. WSHP is similar to ASHP wherein instead of air it extracts and dissipates heat by water. It is most suitable for those who live near well, lake, river or other natural water sources.

Application Insights of Heat Pump Market

Based on application, the market has been segmented into residential, industrial, and commercial. Residential industry is one of the booming industries, which is projected to propel the product demand. Residential application segment dominated the market accounting for 81.3% revenue share of overall market. These pumps are highly energy-efficient products, which are used for space heating, cooling, and sanitary hot water generation applications at homes. Favorable government policies and tax rebates offered on installing energy saving products are expected to augment the demand for heat pump in residential sector.

The product demand in industrial sector was valued at USD 5.4 billion in 2018. Increasing demand for waste heat recovery heat pumps is projected to drive the demand for these pumps over the coming years. The pumps are used in many industrial processes including distillation, dehumidification, evaporation processes, and water heating or cooling applications. Food & beverage, chemical, and petroleum are the major end-use sectors. The product demand in commercial sector is projected to grow at a CAGR of 7.1% over the forecast period. Increasing use of large heat pumps in commercial buildings for space heating or cooling is expected to be one of the major factors influencing the market growth.

Regional Insights of Heat Pump Market

Asia Pacific emerged as the leading regional market and accounted for 41.2% of the overall market in 2018. The region is expected to witness significant growth rate of 9.4% from 2019 to 2025. Industrial production processes, such as chemical industry, papermaking, pharmaceuticals, textiles, iron & steel, and others, require heat as the primary energy input, which is expected to drive the demand for the pumps over the forecast period.
Growing residential and commercial construction activities in developing countries of Asia Pacific are expected to positively influence the growth of the market. Major regional markets, such as China and India, continue to emerge as major manufacturing hubs with leading players shifting their production facilities to these countries.

North America was the second-largest market in 2018 and is expected to grow with a CAGR of 7.0% over the forecast period. Rapidly recovering construction industry in the U.S. complemented with repair & renovation activities is projected to drive the demand for technologically advanced and compact heating solutions in residential sector.
Europe is projected to experience high demand for energy-efficient products. Favorable government policies related to reducing energy consumption are projected to boost the demand for these pumps. The recovering construction sector is projected to contribute to the growth of the market.

Market Share Insights of Heat Pump Market

The global heat pump market comprises both global as well as regional players that are engaged in the design, manufacturing as well as distribution of the product. Key manufacturers in the market include United Technologies Corporation, Daikin Industries, Ltd., NIBE Group, The Viessmann Group, Ingersoll-Rand, Stiebel Eltron, Vaillant Group, Robert Bosch GmbH, The Danfoss Group, and Mitsubishi Electric Corporation.

Companies are investing heavily in research & development activities and innovation centers to gain a competitive edge in the market. Companies engaged in product manufacturing are also concentrating on improving and expanding their after sales and service network through acquisitions & mergers.For instance, in November 2017, NIBE Industrier AB signed a contract to acquire Rhoss S.p.A.In May 2018, Stiebel Eltron signed a contract to acquire Danfoss Varmepumpar AB.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Heat Pump Market Research Report:
This report forecasts revenue growth at global, regional & country levels, and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the global heat pump market report on the basis of technology, application, and region.

Technology Outlook (Revenue, USD Billion, 2019 - 2030)

  
Air Source
  
Water Source
  
Ground Source

Application Outlook (Revenue, USD Billion, 2019 - 2030)

  
Residential
  
Industrial
  
Commercial