The global Heat Pump Market is estimated to be valued at Us$ 10674.44 Mn in 2023 and is expected to exhibit a CAGR Of 10.% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Heat pumps are mechanical devices that use electricity to tap the energy from external air or water sources and concentrate it as interior heat. They serve as an energy-efficient alternative to furnaces and air conditioners for heating and cooling homes and business spaces. The rising environmental consciousness is driving demand for these clean technologies.
Market key trends:
One of the major trends in the heat pump market is the growing popularity of variable refrigerant flow (VRF) systems. VRF systems employ a variable-speed compressor that can modulate output according to heating or cooling demands at different zones. This makes them 30-50% more efficient compared to conventional split systems. They offer individual zone control, integration of heating and cooling in one device, and are gaining adoption in hospitality, retail and office buildings. Another key trend is the development of high-temperature heat pumps for industrial processes. Traditionally, heat pumps could deliver only lower temperature heat of up to 60°C. However, new models entering the market can produce temperatures from 80°C to 150°C, unlocking broader usage in food and beverage, chemical and paper industries.
The global heat pump market is segmented on the basis of type, capacity, category, end use and geography. By type, the market is segmented into air source heat pumps, geothermal heat pumps and water source heat pumps. Air source heat pumps dominated the market in 2022 and are expected to continue their dominance over the forecast period, owing to their affordable pricing and ease of installation compared to other heat pump types.
By capacity, the market is segmented into upto 10 kW, 10-20 kW, 20-30 kW and above 30 kW. The upto 10 kW segment held the largest share in 2022 owing to high demand for residential heating and cooling applications.
The Global Heat Pump Market Share is expected to witness high growth, exhibiting CAGR of 10. % over the forecast period, due to increasing demand for energy efficient heating and cooling solutions.
The Asia Pacific region dominated the global market in 2022 and is expected to grow at the fastest rate during the forecast period. China, Japan, South Korea and India are major markets in the region owing to high construction activities and growing manufacturing industry. Rising population and improving economic conditions are also anticipated to drive the regional market.
Key players operating in the heat pump market are Daikin Industries Limited, Viessmann Group, NIBE Group, Danfoss Group Global, Stiebel Eltron Group, Mitsubishi Electric Corporation, United Technologies Corporation, Panasonic Corporation, Glen Dimplex Group, The Bosch Group. Daikin Industries and Mitsubishi Electric captured significant market share in 2022 owing to their wide product portfolio and global distribution network.