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.
Growth Drivers
Challenges
|
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 |
|
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 |
|
|
End User |
|
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.
Author Credits: Payel Roy, Dhruv Bhatia
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?