Heat Pump Market Size & Share, by Application (Industrial, Commercial, Residential); Technology (Water Source, Air Source, Ground Source); Operation (Heating Only, Heating & Cooling, Integrated System, Water Heater) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4834
  • Published Date: Apr 17, 2023
  • Report Format: PDF, PPT

Global Heat Pump Market Size, Forecast, and Trend Highlights Over 2023 - 2035

The global heat pump market size is estimated to reach ~USD 180 Billion by the end of 2035 by growing at a CAGR of ~9% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of the heat pump market was ~USD 70 Billion. The growth of the market can be attributed to the growing use as well as the expanding sales of energy-efficient heating products such as heat pumps worldwide for cost-effective space heating and cooling applications in residential and commercial spaces. According to the International Energy Agency (IEA), in 2021, there were around 190 million heat pump units in operation in buildings worldwide. These factors are predicted to boost the market growth in the forecast period.

Discussing further, factors that are believed to fuel the market growth of the demand for heat pumps across the globe include the soaring prices of oil & gas as well as the depleting stock of fossil fuels along with the rising need to curb dependence on fossil fuels and look for an energy-efficient alternative to furnaces and air conditioners. As per recent data, fossil fuels such as oil, & natural gas is anticipated to last just up to 50 more years. Additionally, speeding up the replacement of gas boilers by doubling heat pump installations in the industrial sector is predicted to present the potential for market expansion over the projected period.

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Global Heat Pump Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

~ USD 70 Billion

Forecast Year Market Size (2035)

~ USD 180 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 the Middle East and Africa)

Global Heat Pump Market: Growth Drivers and Challenges


Growth Drivers


Global Heat Pump Market Segmentation

The global heat pump market is segmented and analyzed for demand and supply by application into industrial, commercial, and residential. Out of the three applications of heat pumps, the industrial segment is estimated to gain the largest market share of about ~45% in the year 2035. The growth of the segment can be attributed to the expansion of the industrial sector which is exhibited by the significantly growing volume of industrial output. For instance, the world manufacturing output in 2021 grew nearly 18.25% from 2020, amounting to ~USD 16,047 Billion. Moreover, the residential segment is projected to witness a massive CAGR during the forecast period, owing to the rising pool of the escalating global population as well as the increasing construction of residential buildings and residential spaces.  

The global heat pump market is also segmented and analyzed for demand and supply by technology into the water source, air source, and ground source. Amongst these three segments, the air source segment is expected to garner a significant share of around ~46% in the year 2035. Factors such as the increasing efforts towards green energy transition as well as the adoption of technologies that are affordable and are expected to reduce the global carbon footprint worldwide are anticipated to propel the market growth.

On the other hand, the ground source segment is projected to witness a massive CAGR during the forecast period, owing to the increasing exploration & adoption of geothermal energy globally for heating, cooling, and electricity generation. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.

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

          By Application

  • Industrial
  • Commercial
  • Residential

          By Technology

  • Water Source
  • Air Source
  • Ground Source

         By Operation

  • Heating Only
  • Heating & Cooling
  • Integrated System
  • Water Heater


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Global Heat Pump Market Regional Synopsis

The market share of the heat pump in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035. The growth of the market can be attributed majorly to the rapidly growing industrialization in the region, especially with the expanding chemical, paper, textile, and automotive industries besides the increasing demand for efficient space and water heating solutions in single and multi-family residential buildings with the rising population and their disposable income. As per findings, the Asian region had the largest regional chemical market in the world. Asia accounted for a nearly 59% share of the global chemical industry's revenue in 2021.

The North American heat pump market is estimated to be the second largest, registering a share of about ~25% by the end of 2035. The growth of the market can be attributed majorly to the increasing adoption of policies to phase out fossil fuels as a means of heating backed by the climate policy revolution and government initiatives. For instance, as per the plan approved by the New York Commission, all new houses built in the state after 2025 need to use electric systems rather than those running on natural gas, oil, or propane, seeking to require homeowners to replace all fossil-fuel-burning systems with non-carbon-emitting ones after 2030.

Further, the market in European, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The regional market is anticipated to grow on the back of the European Union’s strategy to curb annual emissions as well as increase investment in renewable energy besides the adoption of heat pumps in buildings for heating and cooling. As per findings, the United Kingdom plans to introduce a ban on oil and gas boilers within the next 5 years and has announced a target of selling ~600,000 heat pumps annually by 2028. Moreover, research that covered data from 21 countries unveiled that a total of over 16 million heat pump units were installed in these countries of Europe in 2021.

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Top Featured Companies Dominating the Global Heat Pump Market

    • Viessmann Climate Solutions SE
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Carrier Global Corporation
    • Daikin Industries, Ltd.
    • Johnson Controls
    • NIBE Group
    • Midea Group
    • Ingersoll Rand Plc.
    • Vaillant Group
    • Robert Bosch GmbH
    • The Danfoss Group


In The News

  • Daikin Industries, Ltd. decided to invest USD 320 million to establish a new factory for heat pump units at the Ksawerów Industrial Park in Lodz Province, Poland. The operations of this new production base will start in July 2024 and will meet the rapidly increasing demand for heat pumps in Europe.

  • Viessmann Climate Solutions SE unveils next-generation heat pumps and invisible heating systems at the world’s leading trade fair ISH in Frankfurt. Viessmann invisible is set to revolutionize heating technology in new builds and its new heat pump generation with natural refrigerant is one of the recent highlights.

Author Credits:  Rushikesh, Richa Gupta

  • Report ID: 4834
  • Published Date: Apr 17, 2023
  • Report Format: PDF, PPT

Key Questions Answered in the Report

1) What are the major factors driving the growth of the heat pump market?

Ans: Increasing installation of heat pumps in residential as well as industrial spaces as well as rising adoption of clean energy to reduce CO2 emissions are the major factors driving the market growth.

2) What would be the CAGR of heat pump market over the forecast period?

Ans: The market size of the heat pump is anticipated to attain a CAGR of ~9% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the heat pump market growth?

Ans: Ban on F-gas as well as reluctance in adoption are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of heat pump market in future?

Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future

5) Who are the major players dominating the heat pump market?

Ans: The major players in the market are Viessmann Climate Solutions SE, Daikin Industries, Ltd., Johnson Controls, NIBE Group, and others.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the heat pump market?

Ans: The market is segmented by application, technology, operations, and by region.

8) Which segment captures the largest market size in the application segment in the heat pump market?

Ans: The industrial segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.


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