Air Source Heat Pump Market Size & Share, by Type (Air-to-Air, Air-to-Water), End User (Residential, Commercial, Industrial) - Global Supply & Demand Analysis & Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5428
  • Published Date: Nov 30, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Air Source Heat Pump Market size is anticipated to reach USD 21 billion by the end of 2036, growing at a CAGR of 7% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of air source heat pump was over USD 11 billion. One pivotal factor propelling the robust growth of the air source heat pump (ASHP) market is the steadfast support provided by government incentives and policies worldwide. Governments, recognizing the imperative shift towards sustainable energy solutions and the pivotal role of ASHPs in achieving this transition, have implemented various measures to incentivize their adoption. Governments across the globe have introduced an array of financial incentives, subsidies, and tax credits to encourage individuals, businesses, and industries to invest in air source heat pump technology. These initiatives aim to alleviate the initial cost barrier associated with the installation of ASHPs, making them more economically viable for consumers. In 2021, jurisdictions offering significant fiscal support experienced a 25% year-on-year growth in ASHP installations, underscoring the pivotal role of government incentives in driving air source heat pump market expansion.

Air source heat pumps are devices that transfer heat from the outside air to the inside of a building, providing heating and sometimes cooling. They are considered an environmentally friendly and energy-efficient alternative to traditional heating systems. ASHPs are recognized for their energy efficiency and lower environmental impact compared to traditional heating systems. As concerns about climate change and energy consumption rise, more individuals and businesses are seeking sustainable heating solutions.


Air Source Heat Pump Market
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Air Source Heat Pump Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~7%

Base Year Market Size (2023)

~ USD 11 Billion

Forecast Year Market Size (2036)

~ USD 21 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)
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Air Source Heat Pump Market: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Urbanization and Population Density- Urbanization and the increasing population density in metropolitan areas emerge as a significant growth drivers for the air source heat pump (ASHP) market. As cities continue to expand and more people reside in densely populated urban centers, the demand for efficient and space-saving heating and cooling solutions becomes paramount. Air source heat pumps, with their compact designs and versatility, address the challenges posed by limited space in urban environments. According to a study, metropolitan areas experiencing a population density increase of 10% or more over the last five years have seen a corresponding 22% rise in air source heat pump installations. This underscores the pivotal role of urbanization trends in shaping the demand for ASHPs, positioning them as integral components of sustainable heating solutions in densely populated regions.
  • Increasing Demand for Energy Efficiency- A primary driver fueling the growth of the air source heat pump market is the escalating demand for energy-efficient heating solutions. As global awareness of climate change intensifies, consumers and businesses alike are increasingly prioritizing technologies that reduce energy consumption and environmental impact. Air source heat pumps, renowned for their high energy efficiency, serve as a pivotal solution in meeting these sustainability objectives. With an average coefficient of performance (COP) ranging from 2.5 to 4, ASHPs can generate more heating or cooling energy than the electrical energy they consume.
  • Technological Advancements- Ongoing advancements in air source heat pump technology constitute a significant growth driver for the air source heat pump market. Continuous research and development efforts have led to improvements in efficiency, performance, and overall reliability of ASHPs. These technological enhancements not only enhance the value proposition of ASHPs but also contribute to their broader acceptance among consumers. Recent innovations include the integration of smart controls, variable-speed compressors, and improved refrigerants, all aimed at optimizing the operation of ASHPs.

Challenges

  • Upfront Costs and Return on Investment (ROI)- The initial cost of purchasing and installing air source heat pump systems can be relatively high compared to traditional heating systems. Although the long-term operational savings can offset this investment, many consumers are still deterred by the upfront costs. Calculating and demonstrating a clear and attractive return on investment is crucial for convincing potential buyers to invest in ASHP technology.
  • Cold Climate Performance
  • Lack of Public Awareness and Education


Air Source Heat Pump Segmentation

Type (Air-to-Air, Air-to-Water)

The air-to-water segment is estimated to hold 60% share of the global air source heat pump market by 2036. The air-to-water segment experiences significant growth owing to a heightened focus on residential energy efficiency and retrofitting initiatives. In regions where homeowners and property developers prioritize energy-efficient building practices, air-to-water heat pumps become integral components of sustainable heating solutions. Retrofitting existing buildings with these systems further drives the adoption of air-to-water heat pumps, contributing to the overall growth of the segment. A survey indicated that residential properties incorporating air-to-water heat pumps experienced a 30% reduction in overall energy consumption for space heating. This reduction, coupled with government incentives for retrofitting projects, resulted in a notable 35% increase in air-to-water heat pump installations in the residential sector. These findings emphasize the segment's role in achieving energy efficiency goals in both new constructions and retrofitting initiatives.

End User (Residential, Commercial, Industrial)

The industrial segment in the air source heat pump market is expected to garner a significant share in the year 2036. The industrial segment is experiencing growth propelled by ongoing technological advancements in air source heat pump systems and their seamless integration into industrial processes. As technology evolves, air source heat pumps are becoming more adept at addressing the diverse and high-temperature demands of industrial applications. Enhanced compressors, advanced control systems, and improved refrigerants contribute to the adaptability of ASHPs, making them increasingly viable for a wide range of industrial heating and cooling needs. A survey highlighted a notable 15% increase in industrial facilities adopting air source heat pumps following the integration of advanced control systems. These technological enhancements not only improved system efficiency but also facilitated the integration of ASHPs into high-temperature industrial processes, broadening their applicability and fostering their acceptance within the industrial sector. As industries continue to prioritize environmental stewardship, the industrial segment within the ASHP market stands poised for sustained growth and transformative impact.

Our in-depth analysis of the global air source heat pump market includes the following segments:

           Type

  • Air-to-Air
  • Air-to-Water

End User

  • Residential
  • Commercial
  • Industrial

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Air Source Heat Pump Industry - Regional Synopsis

APAC Market Forecast

The air source heat pump market in the Asia Pacific region is projected to hold the largest revenue share of 41% by the end of 2036. Awareness and education campaigns are instrumental in fostering the adoption of air source heat pumps in the Asia Pacific region. As consumers and businesses become more informed about the benefits of air source heat pump technology, including energy efficiency and reduced environmental impact, the market experiences increased acceptance. Government agencies, industry associations, and manufacturers collaborate on educational initiatives to highlight the advantages of ASHPs and dispel misconceptions. A survey conducted in the Asia Pacific region demonstrated a 15% increase in consumer consideration of air source heat pumps following an intensive awareness campaign. This surge in consideration translated into a notable 18% rise in air source heat pump installations, emphasizing the instrumental role of awareness and education initiatives in driving market growth. Asia Pacific region's air source heat pump market is propelled by a combination of factors, including urbanization, government-led renewable energy initiatives, technological advancements, changing electricity prices, and awareness campaigns.

North American Market Statistics

The air source heat pump market in the North America region is projected to hold the second largest share during the forecast period. A primary driver catalyzing the growth of the ASHP market in North America is the robust support from government incentives and environmental policies. Federal and state-level programs offer financial incentives, tax credits, and rebates to encourage the adoption of energy-efficient technologies, including air source heat pumps. These initiatives align with broader environmental policies aimed at reducing carbon footprints and promoting the transition to renewable energy sources. According to the U.S. Department of Energy, states in North America with comprehensive incentive programs witnessed a 35% year-on-year increase in residential ASHP installations. This surge in adoption is a direct result of incentives such as the Residential Renewable Energy Tax Credit, which offers up to 26% in federal tax credits for qualifying ASHP installations, demonstrating the tangible impact of government support on market expansion. Increasing consumer awareness and a growing emphasis on energy efficiency contribute significantly to the adoption of air source heat pumps in North America.

Research Nester
Air Source Heat Pump Market size
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Companies Dominating the Air Source Heat Pump Market

top-features-companies
    • Daikin Industries, Ltd.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Mitsubishi Electric Corporation
    • Carrier Global Corporation
    • Panasonic Corporation
    • LG Electronics Inc.
    • Trane Technologies plc
    • NIBE Industrier AB
    • Fujitsu General Limited
    • Viessmann Werke GmbH & Co. KG
    • Bosch Thermotechnology Corp.

In-the-news

In The News

  • Carrier acquired Guangdong Giwee Group, a China-based HVAC manufacturer, for approximately USD 1.4 billion. The acquisition expanded Carrier's presence in the Chinese market and strengthened its portfolio of HVAC products and solutions.
  • Carrier announced plans to acquire Viessmann Climate Solutions, the largest segment of Viessmann Group, a German-based heating, ventilation, and air conditioning (HVAC) manufacturer, for USD 12 billion. The acquisition is expected to close in the first half of 2023 and will create a global leader in intelligent climate and energy solutions.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 5428
  • Published Date: Nov 30, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for industrial sector is the major factor driving the market growth.

The market size of air source heat pump is anticipated to attain a CAGR of 7% over the forecast period, i.e., 2024-2036.

The major players in the market Daikin Industries, Ltd., Mitsubishi Electric Corporation, Carrier Global Corporation, Panasonic Corporation, LG Electronics Inc., Trane Technologies plc, and others.

The industrial segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Air Source Heat Pump Market Report Scope
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