PUBLISHER: Grand View Research | PRODUCT CODE: 1654472
PUBLISHER: Grand View Research | PRODUCT CODE: 1654472
The global heat pump market size is anticipated to reach USD 148.0 billion by 2030, according to a new report by Grand View Research, Inc. The market is projected to grow at a CAGR of 9.5% from 2025 to 2030. Favorable government policies for energy-efficient solutions and lowered carbon footprint are expected to boost the market growth over the forecast period. In addition, consumer-driven demand for energy-efficient heat pumps to reduce energy consumption and lower operating expenses are expected to benefit the overall market over the forecast period.
The emergence of climate and energy as a political priority has spurred an increased interest in heating and energy efficiency gains to be realized within buildings. Increasing disposable income has led to the growing demand for technologically advanced equipment and comfortable housing solutions, which is further projected to boost the demand for heat pumps. These factors are expected to play a vital role in driving the market growth.
Governments across the globe are becoming increasingly aware of the risks associated with fossil fuels and are adopting environment-friendly options. Furthermore, initiatives like the federal tax credit for new residential heat pumps in the U.S. was extended until the end of 2022. The California Energy Commission passed a new building energy code in August 2021, which encouraged the use of heat pumps for space and water heating in newly constructed buildings. All these aforementioned factors are expected to boost the demand for heat pumps in the coming years.
According to International Energy Agency, heat pumps continue to cover only a small portion of domestic heat demand, while fossil fuel-based solutions accounted for roughly half of the global heating equipment sales in 2020, with the majority of heat pumps being installed in new buildings. However, various factors including regulatory development, enhanced construction requirements favoring heat pumps in new buildings, and rising air conditioning demand are likely to boost the adoption of heat pump technologies in the coming years.
Heat pump players are seeking mergers & acquisitions, partnerships, and investments to develop advanced and innovative solutions. In addition, players are also adopting several strategies such as product launches, research & development, and geographical expansion to increase their market penetration. For instance, in April 2023, Daikin invested USD 327.9 million and expanded its production facility in Poland. This new factory will start the production of the heat pumps and it will cater to various European countries such as Belgium, Germany, and the Czech Republic.
In February 2023, LG introduced an air source heat pump (ASHP) capable of heating 200-270 liters of residential water. The pump has a coefficient of performance (COP) of up to 3.85 and uses R134a as a refrigerant.