Air Source Heat Pump Market Outlook:
Air Source Heat Pump Market size was over USD 56.68 billion in 2025 and is anticipated to cross USD 103.44 billion by 2035, witnessing more than 6.2% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of air source heat pump is assessed at USD 59.84 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.
