Air Source Heat Pump Market Size

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.