Residential Air to Water Heat Pump Market Size (2024 - 2029)

The residential air-to-water heat pump market is poised for growth, driven by a favorable regulatory environment and a shift towards sustainable energy solutions. The increasing urban population and the development of the residential sector further contribute to the market's expansion. Despite challenges posed by the COVID-19 pandemic, such as investment declines and supply chain disruptions, the demand for energy-efficient technologies remains strong. The market's potential is underscored by the growing adoption of heat pumps, which, despite their current limited share in global building heating demand, offer significant efficiency advantages over traditional systems.

Market Size of Residential Air to Water Heat Pump Industry

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Residential Air to Water Heat Pump Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 9.00 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Residential Air to Water Heat Pump Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Residential Air to Water Heat Pump Market Analysis

The Global Residential Air-to-Water Heat Pump Market is expected to register a CAGR of 9% over the forecast period.

A favorable regulatory framework, coupled with clean cooling & heating programs to promote the enactment of heating, ventilation, and air conditioning (HVAC) units, will positively influence the residential air-to-water heat pump market share. Continuous approval and deployment of sustainable systems to lessen the adverse environmental influence are expected to further accelerate product regression. The growing shift toward sustainable solutions to reduce energy consumption is one of the major factors that is driving the adoption of air-to-water heat pumps for residential use. Governments across all regions play a major role in reducing energy consumption.

The development in the residential sector in line with the growing urban population is also a factor influencing the market's growth. According to FMI Corporation, in 2020, new residential construction in the United States increased by USD 15.0 billion, despite the impact of the COVID-19 pandemic. Such growth creates new opportunities for the market.

According to International Energy Agency, the number of heat pumps installed globally is expected to rise from 180.0 million in 2020 to around 600.0 million in the next few years. At least three times more efficient than traditional fossil fuel boilers, the installation of heat pumps in individual buildings is expected to rise from 1.5 million per month currently to around 5.0 million in the next few years. Although heat pumps have even become the most common technology in newly built houses in many countries, they meet only 5.0% of the global building heating demand, thus creating new opportunities for the market.

The COVID-19 pandemic affected investments in energy-efficient technologies. According to International Energy Agency (IEA) World Energy Investment 2020, investment in energy-efficient technologies in 2020 fell due to the economic downturn. In addition, the pandemic led to an effect on the supply chain of the major players in the market owing to the lockdowns and restrictions on working capacity. Companies, such as Daikin and Fujitsu, among others, experienced backhauls due to supply chain disruptions.

Residential Air to Water Heat Pump Industry Segmentation

Air-to-water heat pumps can provide adequate heating and cooling for houses, particularly in a moderate climate. After proper installation, an air-to-water heat pump can give one and a half to three times more thermal energy to a home than the electricity it uses. Air-to-water heat pumps do not work very well under freezing temperatures. Air-to-water heat pumps specially designed for cold climates have started to provide encouraging results.

The residential air-to-water heat pumps are segmented by geography (United States, China, France, Italy, and the Rest of the World). The market also includes an assessment of the impact of COVID-19 on the market. For each segment, the market sizing and forecasts have been provided on the basis of value (in USD million) and volume (in metric tons).

Geography
United States
China
France
Italy
Rest of the World
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Residential Air to Water Heat Pump Market Size Summary

The residential air-to-water heat pump market is poised for significant growth, driven by a favorable regulatory environment and increasing adoption of sustainable heating and cooling solutions. The shift towards energy-efficient technologies is being supported by government initiatives aimed at reducing carbon emissions and energy consumption. This trend is further bolstered by advancements in heat pump technology, making it a viable option even in colder regions. The market is experiencing a surge in demand due to the expanding urban population and the recovery of the construction industry, particularly in regions like the United States, which is catching up with leaders such as China and Japan. The market's expansion is also supported by the growing emphasis on reducing carbon footprints and the implementation of programs like Energy Star, which aim to enhance the efficiency of residential heating and cooling systems.

The competitive landscape of the residential air-to-water heat pump market is moderately high, with major players like Daikin Industries Ltd, Mitsubishi Electric Europe BV, and others leading the charge through innovation and strategic expansions. These companies are actively investing in production capabilities and expanding their market presence through mergers and acquisitions. The market is witnessing increased production capacities, as seen with Panasonic's investment in its Czech Republic factory and Daikin's expansion plans in India. Additionally, new product launches, such as PHNIX's GreenThermSeries heat pump, highlight the ongoing innovation and adaptation to meet diverse market needs. The combination of technological advancements, strategic investments, and supportive policies is expected to drive the market's growth trajectory in the coming years.

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Residential Air to Water Heat Pump Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Intensity of Competitive Rivalry

      5. 1.2.5 Threat of Substitute Products

    3. 1.3 Impact of COVID-19 on the Heat Pump Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Geography

      1. 2.1.1 United States

      2. 2.1.2 China

      3. 2.1.3 France

      4. 2.1.4 Italy

      5. 2.1.5 Rest of the World

Residential Air to Water Heat Pump Market Size FAQs

The Residential Air to Water Heat Pump Market is projected to register a CAGR of 9% during the forecast period (2024-2029)

Daikin Industries Ltd, Mitsubishi Electric Europe B.V, Ariston Thermo SpA, Ferroli S.p.A and Baxi Heating UK Ltd (BDR Thermia Group) are the major companies operating in the Residential Air to Water Heat Pump Market.

Residential Air to Water Heat Pump Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)