PUBLISHER: The Business Research Company | PRODUCT CODE: 1691844
PUBLISHER: The Business Research Company | PRODUCT CODE: 1691844
A heat pump water heater (HPWH) is a water heating system that employs a heat pump to transfer heat from the surrounding air or ground to warm water for domestic use. By utilizing this technology, these water heaters contribute to a reduction in electricity consumption and greenhouse gas emissions compared to conventional water heating methods.
The primary categories of heat pump water heaters encompass air-to-air, air-to-water, water source, ground source (geothermal), and hybrid models. Air-to-air heat pump water heaters utilize surrounding air as a heat source for water heating, relying on electricity or dual-fuel (electric and gas) options. They are available in capacities suitable for both traditional and advanced heat pump water heaters. Price options range from economy to mid-range and premium, catering to residential, commercial, and industrial applications.
The heat pump water heaters market research report is one of a series of new reports from The Business Research Company that provides heat pump water heaters market statistics, including heat pump water heaters industry global market size, regional shares, competitors with a heat pump water heaters market share, detailed heat pump water heaters market segments, market trends and opportunities, and any further data you may need to thrive in the heat pump water heaters industry. This heat pump water heaters market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The heat pump water heater market size has grown strongly in recent years. It will grow from $2.45 billion in 2024 to $2.66 billion in 2025 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to energy efficiency incentives, utility cost savings, environmental awareness, market penetration, building codes and standards, consumer preferences.
The heat pump water heater market size is expected to see strong growth in the next few years. It will grow to $3.6 billion in 2029 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to increasing electricity grid integration, increasing net-zero building trends, increasing market competition and innovation, increasing energy performance labeling, increasing residential and commercial retrofit programs, increasing climate resilience and adaptation. Major trends in the forecast period include shift towards energy-efficient solutions, adoption of heat pump water heaters, integration with smart home systems, growth in demand driven by government incentives, expansion of offerings with improved efficiency, increasing use in conjunction with renewable energy, development of hybrid heat pump water heaters, integration in sustainable building designs, innovation in heat pump technology.
The growing adoption of renewable energy sources is expected to drive the expansion of the heat pump water heater market in the coming years. Renewable energy refers to energy derived from natural processes that are continuously replenished, such as solar, wind, and geothermal power. Increasing public concern over climate change has fueled the demand for renewable energy and environmental protection measures. Heat pump water heaters are highly energy-efficient and support clean energy initiatives by promoting sustainability and energy conservation in both residential and commercial applications. For example, in January 2024, the European Commission reported that the European Union (EU) achieved a 23.0% share of its gross final energy consumption from renewable sources in 2022, marking an increase of approximately 1.1 percentage points. This growing focus on renewable energy is propelling the demand for heat pump water heaters, which align with global sustainability goals.
Prominent companies in the heat pump water heater market are intensifying their focus on developing hybrid electric heat pump water heaters to gain a competitive edge. Hybrid electric heat pump water heaters combine heat pump technology with traditional electric resistance heating elements, allowing them to operate in multiple modes based on surrounding conditions and hot water demand. In September 2022, A. O. Smith Corporation, a US-based manufacturer of water heaters and boilers, launched the Voltex AL (anti-leak) smart hybrid electric heat pump water heater line. This innovative model boasts the highest overall uniform energy factor (UEF) of 4.02 with the 66-gallon unit and features iCOMM smart connectivity for homeowner control and alerts through the A.O. Smith app. The Voltex AL model also incorporates integrated leak detection, smart connectivity, and updated water connections, catering to various new and retrofit applications.
In January 2023, Johnson Controls, an Ireland-based conglomerate company, completed the acquisition of Hybrid Energy AS for an undisclosed amount. This strategic move aims to enhance Johnson Controls' industrial heat pump portfolio and address high-temperature heating needs with a hybrid heat pump solution. The acquisition positions Johnson Controls to set new global standards for clean energy and significantly reduce greenhouse gas emissions. Hybrid Energy, based in Norway, specializes in providing high-temperature energy management solutions with a focus on heat pumps for district heating and industrial processes.
Major companies operating in the heat pump water heater market are Samsung Electronics Co. Ltd., Robert Bosch GmbH, Panasonic Holdings Corporation, LG Electronics Inc., Midea Group, Haier Group Corporation, Mitsubishi Heavy Industries Ltd., Daikin Industries Ltd., Johnson Controls International plc, Carrier Global Corporation, Whirlpool Corporation, Trane Technologies Company LLC, Danfoss, A. O. Smith Corporation, Rinnai Corporation, Havells India Ltd., Ariston Thermo S.p.A, Rheem Manufacturing Company, Stiebel Eltron Inc., Vaillant Group International GmbH, V-Guard Industries Ltd., Bradford White Corporation, NORITZ Corporation, Glen Dimplex Deutschland GmbH, Bryant Heating & Cooling Systems
Asia-Pacific was the largest region in the heat pump water heater market in 2024. The regions covered in the heat pump water heater market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the heat pump water heater market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The heat pump water heater market consists of sales of evaporator coils, refrigerants, compressors, condenser coils, and heat exchangers. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Heat Pump Water Heater Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on heat pump water heater market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for heat pump water heater ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The heat pump water heater market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.