USD 5.3 billion
Heat Pump Water Heater Market Size, Share, and Growth Analysis
Heat Pump Water Heater Market By Type (Air-to-Air heat pump water heater, Air-to-Water heat pump water heater), By Refrigerant Type (R410A, R407C), By Storage Tank Capacity, By Rated capacity, By End User, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG25H2055 |
Region:
Global |
Published Date: January, 2025
Pages:
196
|Tables:
94
|Figures:
72
Format -
Heat Pump Water Heater Market Insights
Global Heat Pump Water Heater Market size was valued at USD 5.3 billion in 2023 and is poised to grow from USD 6.02 billion in 2024 to USD 16.57 billion by 2032, growing at a CAGR of 13.5% during the forecast period (2025-2032).
Heat pump water heaters are distinguished by their ability to harness air, water, or geothermal heat for hot water production, establishing them as a compelling option for energy-efficient water heating solutions. The global market for these systems has experienced consistent growth, propelled by rising demand and favorable regulatory environments. The incorporation of heat pump water heaters with renewable energy sources, like solar panels, is also playing a vital role in increasing the adoption of the heaters. The increasing use of water heaters helps in the efficiently using huge amount of renewable energy to heat water, which is reducing dependence on fossil fuels. This aligns with the objective of moving towards cleaner and sustainable energy solutions, driving the expansion of the market.
The heat pump water heater market is also experiencing huge growth because of the advantages it offers over conventional water heating systems. These benefits consist of energy efficiency, environmental friendliness, and cost savings. One of the heat pump water heater market trends is the integration of smart technologies, like remote diagnostics and real-time monitoring, which enhance system performance and user convenience. Another trend is the development of advanced heat exchanger designs and control systems, which improve energy efficiency and reduce installation costs.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Residential
Fastest Growth
Commercial
Growth Rate
13.5% CAGR
Global Heat Pump Water Heater Market ($ Bn)
Country Share for North America Region (%)
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Heat Pump Water Heater Market Segments Analysis
Global Heat Pump Water Heater Market is segmented by Type, Refrigerant Type, Storage Tank Capacity, Rated capacity, End User and region. Based on Type, the market is segmented into Air-to-Air heat pump water heater, Air-to-Water heat pump water heater, Water source heat pump water heater, Ground source (geothermal) heat pump water heater and Hybrid heat pump water heater. Based on Refrigerant Type, the market is segmented into R410A, R407C, R744 and Others. Based on Storage Tank Capacity, the market is segmented into Upto 500 liters, 500–1,000 liters and Above 1,000 liters. Based on Rated capacity, the market is segmented into UP TO 10 KW, 10–20 KW, 20–30 KW, 30–100 KW and 100–150 KW. Based on End User, the market is segmented into Residential, Commercial and Industrial. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Type
Based on type, the air-to-air segment is dominating with the largest heat pump water heater market share. The air-to-air heat pump water heater is leading in the market because the operating expenses are less. Moreover, the air-to-air heat pumps provide immense flexibility for heating and cooling, which increases its appeal as an efficient temperature control solution among homeowners. The air-to-air heat pumps are also ideal for absorbing various types of climates because they can easily absorb heat from the outside air. The popularity of air source heat pumps is also increasing because of the initiative to decrease carbon footprints and minimize dependency on conventional fossil fuel-based home heating processes.
The water source segment is expected to witness significant growth during the forecast period. Water source have a reduced environmental impact in comparison with conventional heating methods. By relying on renewable energy from water sources, these systems can successfully minimize the reliance on non-renewable energy sources. It also contributes to the reduced greenhouse gas emissions, which meets the objective of sustainability. Water source can provide heating and cooling, which make them ideal for different applications. They are frequently utilized for domestic hot water heating, space heating, and radiant floor heating in residential and commercial buildings. This dual functionality increases their attraction and value for users.
Analysis by End User
Based on end user, the residential segment is dominating the heat pump water heater market. Heat pump water heaters are more cost-effective in the long run than standard water heaters since they use less energy and require less maintenance. The popularity of heat pump water heaters is increasing among consumers who prefer energy-efficient, affordable, and ecologically friendly water heating options. Moreover, governments are also providing incentives and subsidies for encouraging the usage of energy-efficient devices like heat pump water heaters. These incentives are decreasing the expense of heat pump water heaters for homeowners. The demand for hot water is increasing among residential households, which is also increasing the requirement for heat pump water heater, leading to the growth of the market.
As per the heat pump water heater market analysis, the commercial segment is expected to be the fastest-growing segment. The commercial segment is growing rapidly because of the increasing utilization of heat from them in the commercial facilities. The heat pump water heater helps in saving huge amounts of energy when associated with oil fired boilers or electric water heaters. Furthermore, the demand for hot water is also increasing in the commercial establishments in the foodservice industry, like restaurants and cafes. This is because hot water is used for cooking, cleaning, and dishwashing. Moreover, schools, colleges, and universities also have diversified requirements of hot water for restrooms, cafeterias, laboratories, and other facilities, leading to growth of the segment in the market.
Global Heat Pump Water Heater Market Analysis by End User
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Heat Pump Water Heater Market Regional Insights
North America is dominating with the largest heat pump water heater market share. This region is leading in the market because of the increasing focus on renewable energy and energy-efficient products. North America is actively promoting the usage of renewable energy sources, like heat pump water heaters because of the rising emphasis on sustainability. The increased investment in renewable energy projects, especially in the United States, is boosting the growth of the market in North America. There are also many other factors that have contributed to the market growth, such as the rapid growth of construction, the implementation of new energy-efficiency standards, and increased incentives from manufacturers and utilities.
The region of Asia Pacific is anticipated to witness the fastest growth during the epichlorohydrin market forecast period. As Asia-Pacific countries strive for sustainable development and energy saving, demand for heat pump water heaters has increased significantly. These systems are very attractive in the region since they provide an energy-efficient alternative to standard water heating techniques. Rising awareness and attention on energy efficiency contribute to the rapid expansion of the Asia-Pacific heat pump water heater market. Asia Pacific has been investing heavily in technology and infrastructure, leading to the establishment of high installations across the region. China is dominating the Asia Pacific region with its initiatives towards a 13th five-year plan. The project aims to develop compressed high-efficiency heat pumps for industrial waste heat, high-efficiency absorption heat pumps and chemical heat pumps for upgrading the grade of low-temperature heat energy.
Global Heat Pump Water Heater Market By Geography
- Largest
- Fastest
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Heat Pump Water Heater Market Dynamics
Drivers
Growing Demand for Reducing Operating Expenses
- The accelerated deployment of heat pumps brings a range of benefits. Increasing demand for heat pumps to save consumers’ money and shield them from price shocks is driving market growth. The average household or business that uses a heat pump invests less on energy than those utilizing a gas boiler. These energy savings processes help in balancing the higher upfront costs of the heat pumps.
Growing Demand for Commercial and Residential Water Heating
- The growing demand for residential and commercial water heating solutions is transforming the global heating industry. This increase in demand is highlighting the extensive changes driven by factors like population growth, urbanization, and heightened expectations for comfort and convenience. This heat pump water heater market trend is acting as a significant catalyst, influencing product development, market strategies, and the overall course of the industry.
Restraints
High Expense of Installation
- High upfront costs can discourage consumers irrespective of long‐term savings. However, even the most affordable air‐to‐water models, including modifications to the existing radiator systems are extremely expensive compared to natural gas boilers in major heating markets. Regardless of the type of property, the upfront capital cost for installing a heat pump today is particularly higher than for hydrogen-ready boilers, and this discrepancy increases once home upgrades such as energy efficiency measures and new heat distribution systems are required.
Changes in Performance due to Climatic Condition
- Heat pump water heaters are good for gathering heat from the surrounding air, which makes them highly efficient in moderate and warmer climates. However, this efficiency can be significantly impacted by cold temperatures, which shows the climatic sensitivity of the system, creating challenges for regions that have longer periods of low temperatures. This challenge will minimize efficiency and increase energy consumption, restricting the growth of the market.
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Heat Pump Water Heater Market Competitive Landscape
The competitive landscape for the market for heat pump water heaters has been continuously merging, giving rise to the current market dominance of a small number of large players. The market is in the growing stage, and its primary factors for expansion are the growing demand for reliable & efficient water heaters, as well as the rising energy security concerns because of macroeconomic conditions. However, the market is restricted by intense price competition among manufacturers and the absence of distinct product features. Furthermore, the major players in the heat pump water heater industry are also adapting new strategies based on constantly evolving consumer needs and preferences. Key companies in the heat pump water heater market are investing in major research and development activities in order to maintain their leading position in the market.
Top Players in Heat Pump Water Heater Market
- Solvay (Belgium)
- LOTTE FINE CHEMICAL (South Korea)
- Sumitomo Chemical Co., Ltd. (Japan)
- Hexion (USA)
- Grasim Industries Limited (India)
- Aditya Birla Chemicals (Thailand) Pvt. Ltd (Thailand)
- Kashima Chemical Co., LTD (Japan)
- KUMHO P&B CHEMICALS.,INC. (South Korea)
- Momentive (USA)
- Nama Chemicals (Saudi Arabia)
- Parchem fine & specialty chemicals (USA)
- Shandong Haili Chemical Industry Co. Ltd (China)
- SPOLCHEMIE (Czech Republic)
- Allnex (Germany)
- Chemoxy International Ltd (United Kingdom)
Recent Developments
- In March 2023, Rheem launched its advanced Endeavo Line of heat pumps, which has been entirely redesigned. This new lineup shows the energy-efficiency, dependability, and sustainability of the Rheem.
- In January 2023, Bradford White Water Heaters, introduced Bradford White Connect. This is an external adapter featuring app-driven monitoring technology for their Aerotherm heat pump water heater series.
- In December 2022, The Ariston Group developed an advanced absorption heat pump that uses heat for initiating thermal compression. The solution is known as the thermally driven heat pump, which utilizes a unique thermodynamic cycle, allowing it to deliver high flow temperatures.
Heat Pump Water Heater Key Market Trends
- Incorporation of IoT with Heat Pump Water Heaters: The heat pump water heaters that are connected to the internet of things (IoT) offer remote diagnostics, predictive maintenance, and real-time monitoring. Smart thermostats that monitor environmental changes and communicate with the heat pump water heater equipment are a part of IoT-enabled heat pump water heater systems. Heat pump water heater systems can make use of data to continuously improve performance and save energy due to advanced software.
- Increasing Eco-Friendly Initiatives: Today, hot water has become a necessity, which can be used for bathing, washing, cooking, and more. The growing prices of gas or oil heating systems are increasing the popularity of heat pumps because they are more affordable. Moreover, with the initiatives to reduce the burning of fossil fuels for producing heat and minimizing release of CO2 emissions, heat pumps make use of renewable energy like air, solar, and water. This eco-friendly nature of the water heater is making them more popular among consumers.
Heat Pump Water Heater Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the heat pump water heater industry is experiencing significant growth due to the advantages it offers over traditional water heating systems. These advantages consist of energy efficiency, environmental friendliness, and cost savings. One of the major trends boosting market growth is the integration of smart technologies, such as remote diagnostics and real-time monitoring. These smart technologies help in improving system performance and user convenience. Furthermore, the development of advanced heat exchanger designs and control systems, which enhance energy efficiency and reduce installation costs, is also fueling the market growth. The heat pump water heaters market will witness continuous growth as consumers prefer sustainable and cost-efficient water heating solutions.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 5.3 billion |
| Market size value in 2032 | USD 16.57 billion |
| Growth Rate | 13.5% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Heat Pump Water Heater Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Heat Pump Water Heater Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Heat Pump Water Heater Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Heat Pump Water Heater Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Heat Pump Water Heater Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Heat Pump Water Heater Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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