This site uses cookies, including third-party cookies, that help us to provide and improve our services. Privacy Policy

Heat Pump Water Heater Market

Heat Pump Water Heater Market

Heat Pump Water Heater Market Analysis By Application (Heat Pump Water Heaters for Residential and Commercial Applications) By Capacity and By Region – Global Market Insights 2022 to 2032

Heat Pump Water Heater Market
FACT7583MR

Heat Pump Water Heater Market Outlook (2022-2032)

The heat pump water heater market was valued at US$ 1.4 Billion in FY 2021, reaching US$ 1.6 Billion in 2022. During the forecast period ranging from 2022 to 2032, the market is poised to incline at a 6.8% value CAGR, concluding at a valuation of US$ 3.08 Billion.

The utilization of air, water, or geothermal heat to generate hot water is one of the prominent features offered by heat pump water heaters, which in turn, will proliferate their industry outlook in the coming years.

The Market demand for Heat Pump Water Heater has majorly increased, documenting a historical CAGR of 2.0% from 2017 to 2021. Strict governmental regulations and policies to curb emissions from HVAC equipment across the residential and commercial sectors will augment product penetration. Governments across major regions including North America and Asia Pacific are retrofitting heating & cooling equipment across buildings to meet their emission targets, which will further boost market expansion.

Report Attributes

Details

Anticipated Base Year Value (2021)

US$ 1.5 Billion

Expected Current Market Value (2022)

US$ 1.6 Billion

Projected Forecast Value (2032)

US$ 3.08 Billion

Global Growth Rate (2022-2032)

6.8% CAGR

Key Heat Pump Water Heater Providers

  • STIEBEL ELTRON GmbH & Co. KG
  • Daikin Industries Ltd.
  • Glen Dimplex Group
  • Panasonic Corporation
  • Samsung Electronics Co. Ltd.
  • LG Electronics
  • Rheem Manufacturing Company
  • Ariston Holding N.V
  • Bradford White Corporation
  • Rinnai Corporation
  • Hubbell Electric Heater Co.
  • Vaillant Group
  • SmartHeat Deutschland GmbH
  • Mitsubishi Electric Corporation
  • Lochinvar Limited
  • Thermax Ltd.
  • Thermex Corporation

Various policymakers are offering various rebates and schemes to promote the deployment of sustainable technologies, which is anticipated to fuel the heat pump water heater market growth over the analysis period.

Interested to Procure The Data

2017-2021 Heat Pump Water Heater Demand Analysis vs. Forecast 2022-2032

According to market research and competitive intelligence provider Fact.MR- the market for Heat Pump Water Heater reflected a value CAGR worth 6.8% during the forecast period. Ongoing urbanization across developing nations including India, Brazil, and others has influenced the real estate business during the last few years. Increasing investments across the industry will foster the implementation of small capacity heat pump water heater technologies.

Rising necessity for sustainable technologies from the residential sector will bolster the product requirement. The majority of governments around the globe are implementing various policies and schemes to promote the distribution of clean technologies in the residential and commercial sectors, improving the technology perception.

Additionally, stringent emission norms and regulations will compel constructors to install energy-efficient and renewable technologies, will stimulate the heat pump water heater market demand.

Factors driving the growth of the heat pump water heater market include the energy efficient technology along with the usage of non-conventional sources of energy to heat the water. In addition, supportive regulations and grants for using renewable sources of energy in different applications are also expected to play a key role in the growth of this market during the forecast period.

Heat pump water heater market forecast by Fact.MR

Prominent Heat Pump Water Heater Market Drivers

Integration of Internet of Things (IoT) with Heat Pump Water Heaters to play a Pivotal Role in Market Expansion

Internet of Things (IoT)-enabled heat pump water heater systems offer real-time monitoring, predictive maintenance, and remote diagnostics for heat pump water heaters. IoT-enabled heat pump water heater systems consist of smart thermostats that help in monitoring environmental changes and communicating with the heat pump water heater equipment.

The technologically advanced software enables heat pump water heater systems to leverage data for continuous improvements in efficiency and energy-savings.

For instance, building management systems (BMS) involve the installation of sensors, software, a network, and a cloud-based data store. Their functions include the management of boilers, chillers, pumps, air handling units, rooftop units, heat pumps, VAV boxes, radiators, fan coil units, exhaust fans, and security & safety operations. Such systems help facility managers to easily manage heat pump water heater systems, thus saving time and cost.

The integration of Heat Pump Water Heater with IoT helps in tracking the abnormalities in heat pump water heaters, subsequently reducing system failure. Thus, the integration is expected to provide lucrative opportunities for the growth of the Heat Pump Water Heater market during the forecast period.

Efforts to Reduce in Carbon Dioxide Emissions to further Heat Pump Water Heater Adoption

The production and consumption of energy lead to the emission of carbon dioxide (CO2), which is released in substantial amounts through the burning of fossil fuels, such as coal, oil, and natural gas. Many countries are aiming to reduce their primary energy demand due to the increasing CO2 emissions and implement policies to restrict the emission of greenhouse gases. Heat pump water heater is one of the most promising technologies for reducing greenhouse gas emissions.

A heat pump water heater offers an energy-efficient way to provide heating through aerothermal and geothermal technologies. Exhaust air, groundwater, and surface water (lake, river, or pond) are the other examples of commonly used heat sources. Heat pump water heaters take the ambient heat from air, water, and ground at low temperatures and increase the water temperature level through energy input, mostly from electricity.

To heat the water, air sourced or water sourced heat pump use 66 to 80% lesser heat from renewable heat sources in the environment, and 20 to 33% electrical energy for the heat pump compressor. Hence, carbon emissions associated with energy consumption and generation can be reduced significantly by using heat pump water heater systems instead of fossil fuel-based systems.

This in turn is expected to result in an increase in the number of installations of heat pump water heaters in residential, commercial, and industrial segments. These factors are expected to accelerate the growth of the Heat Pump Water Heater Market over the analysis period.

An Adaptive Approach to Modern-day Research Needs

Key Challenges hindering Heat Pump Water Heater Market Growth

High Installation Costs emerges as the Major Pain Point in Adoption

Heat pump water heater systems are used to increase the energy-efficiency, reduce energy costs, and lower the carbon emissions in residential, commercial, and industrial sectors. Heat pump water heaters are of two types: aerothermal heat pumps (air source heat pumps) and geothermal heat pumps (ground source heat pumps). Air source heat pump water heaters are more common, as they are less expensive and efficient enough to service most homes and small commercial buildings.

Geothermal heat pump water heaters are typically costlier to install because of underground installation. High-density polyethylene pipes are required to be put in the ground, which takes a team of specialists at least three days to install the pipes and the entire system, although they are more efficient and can service bigger buildings.

The installation cost of heat pump water heater equipment for residential, commercial, and industrial applications depends on various factors. For instance, in the residential application, the installation cost of all heat pump systems depends on the size of homes, additional ductwork, type of equipment, and British Thermal Unit (BTU) value of the equipment.

The cost of installation of a heat pump water heater also depends on the complexity, type, brand, and size of the heat pump. Thus, the high installation cost is a major factor that is expected to impede the growth of the heat pump water heater market during the forecast period.

Lack of Awareness regarding benefits of Heat Pump Water Heaters

The awareness regarding energy efficiency, cost efficiency, and environmental benefits of heat pump water heaters is low among all end user segments. This is because they are typically perceived to be expensive, which acts as a restraint for market penetration in developing as well as underdeveloped economies. There is also a lack of awareness regarding the opportunities that heat pump water heaters provide for energy conservation and reduction of CO2 emissions.

According to a report published by the United Nations Environment Programme, there is a lack of awareness among the contractors regarding the International Organization for Standardization (ISO) standards for heat pumps.

Thus, the lack of awareness of heat pump technology across the entire supply chain (technicians, consultants, engineers, contractors, and end users) is a barrier to the adoption of heat pump water heaters in developing and underdeveloped countries. These factors are anticipated to hinder the growth of the Heat Pump Water Heater marker over the analysis period.

Comparative View of Adjacent Heat Pump Water Heater Markets

Global Heat Pump Water Heater Market :

Attributes

Global Heat Pump Water Heater Market

CAGR (2022- to 2032)

6.8%

Market Value (2032)

US$ 3.02 Billion

Growth Factor

Integration of Internet of Things (IoT) with heat pump water heaters is expected to fuel the market growth.

Opportunities

Stringent emission norms and regulations will compel constructors to install energy-efficient and renewable technologies, will stimulate the heat pump water heater market demand.

Global Heat Pump Water Heater Market :

Attributes

Global Heat Pump Water Heater Market

CAGR (2022- to 2032)

6.8%

Market Value (2032)

US$ 3.02 Billion

Growth Factor

Integration of Internet of Things (IoT) with heat pump water heaters is expected to fuel the market growth.

Opportunities

Stringent emission norms and regulations will compel constructors to install energy-efficient and renewable technologies, will stimulate the heat pump water heater market demand.

Global Hybrid Heat Pump Market :

Attributes

Global Hybrid Heat Pump Market

CAGR (2022- to 2032)

9.6%

Market Value (2032)

US$ 80.5 Billion

Growth Factor

Increased awareness of ozone-depleting material outflows from normal heating activities is projected to boost the whole industry. 

Opportunities

Different governments and corporate organizations are providing financial assistance, which is anticipated to propel interest in hybrid heat pumps.

Country-wise Analysis

How will the U.S perform in the Global Market for Heat Pump Water Heater?

Adoption of Energy Efficient Heating Systems

As per Fact.MR’s analysis, the U.S heat pump water heater market is expected to garner a revenue share of 30.5% in 2022. Sales of heat pump water heater in the US can be attributed to the growing emphasis towards energy efficient heating systems in the country.

Additionally, encouraging regulatory framework to mitigate carbon emissions is one of the major factors that is expected to escalate the growth of the Heat Pump Water Heater market in the U.S in the forthcoming years.

Will India be the Kingpin of the Heat Pump Water Heater Landscape across India?

Rise Infrastructure Spending and Rate of Urbanization

The heat pump water heater market across India is expected to hold a market share of 17.8% in 2022, and the trend is expected to continue, attributed to the increase in the use of renewable energy and energy efficient products.

India is taking various initiatives to enhance the installation of heat pump water heater in order to increase the energy efficiency and reduce environmental pollution. In addition, growing infrastructure spending and rate of urbanization in the country is among the major factors that is expected to propel the growth of the Heat Pump Water Heater market in India, during the forecast period.

Category-wise Analysis

By Application, which Category of Heat Pump Water Heaters is likely to be Prominent?

Residential Applications to tower over Commercial Applications

Based on application, Fact.MR forecasts heat pump water heaters for residential applications are expected to be most sought after. According to the report, the segment is projected to experience a CAGR of 4.8% during the 2022-2032 period of assessment. Growing urbanization in the developing countries has supplemented the construction of new residential buildings, which has propelled the urge for energy-efficient HVAC systems.

Retrofitting of single and multi-family buildings with cleaner technologies to effectively save energy and reduce carbon emissions is set to complement demand. Continuous technological advancements in the heat pump water heater technology to create a more efficient unit will also bode well for market expansion in forthcoming years.

The Start-Up Ecosystem: How key Players are opening Frontiers for Future Growth?

Heat Pump Water Heater Providers such as HoCoSto, Nostromo, Malta Inc., Inficold, Stash Energy, Nexol Photovolthermic, OffGridBox, Gelsons Corporate, and Solar Water Solutions, among others are adopting various marketing strategies such as new product launches, geographical expansion, merger and acquisitions, partnerships and collaboration to identify the interest of potential buyers and create a larger customer base. For instance,

  • In June 2022, Nostromo, which specializes in energy storage in buildings, signed an agreement with the Soroka University Medical Center of the Clalit Group for the installation of an energy storage system – the first to be installed in a hospital in Israel. The system will be installed in the refurbished energy center of the operating rooms at the hospital.
  • The collaboration between the two bodies was created as part of the Zero Carbon Hospital Challenge competition to promote solutions for energy efficiency and reduction of carbon emissions at Soroka Medical Center, held at the initiative of the HealthIL community and the PLANETech climate change community.

Avail customized purchase options for your needs

Competitive Landscape

The market for heat pump water heaters appears to be majorly consolidated, characterized by the presence of a few prominent manufacturers. To cement their geographical presence, these players are relying on a multitude of growth strategies- ranging from collaborations with government entities to rebranding of existing portfolios and penetrating new markets. Some prominent developments are as follows:

Recent Developments :

  • In August 2020, Panasonic Corporation partnered with Systemair on technology to launch heating and cooling products for offering its customers with more options related to HVAC products, including heat pumps. Both companies will have their separate sales channels and branding for these products.
  • In August 2020, Bosch Thermotechnology launched the Bosch Tronic 3000, a line of electric instantaneous water heaters that significantly reduce hot water wait times in light commercial applications. The new series, which includes four new types, is the first stage in Bosch’s intended cutting-edge, new dynamic electric instantaneous water heater portfolio.
  • In July 2020, Daikin launched Daikin SmartSource, a dedicated outdoor air system (DOAS) for heat pumps that enables efficient and cost-effective cooling and heating in all conditions using 100% fresh outside air. It also taps a water source heat pump's hot gas reheat coil in addition to the unit's primary DX coil; to enhance the efficiency of the heat pump.

Key Segments Covered in the Heat Pump Water Heater Market Report

  • By Application :

    • Residential Applications
      • Single Family
      • Multi-Family
    • Commercial Applications
  • By Capacity :

    • Less than 50 Gallons
    • 50-100 Gallons
    • 00-200 Gallons
    • Above 200 Gallons
  • By Region :

    • North America 
    • Latin America 
    • Europe 
    • Asia Pacific 
    • Middle East & Africa 

- FAQs -

According to Fact.MR, the heat pump water heater market was valued at US$ 1.6 Billion in 2021.
From 2017-2021, Heat Pump Water Heater industry growth flourished at a 2.0% CAGR.
By 2022-end, heat pump water heater sales will likely acquire a value of US$ 1.5 Billion.
A 6.8% CAGR is projected for the heat pump water heater industry from 2022-2032.
Fact.MR foresees the heat pump water heater market value to reach US$ 3.08 Billion by 2032.

Need an Exclusive Report for your Unique Requirement?

- Related Reports -

Oil Refining Pumps Market

Global Oil Refining Pumps Market estimates USD 6.2 Billion value in 2022 & forecasts USD 8.6 Billion...

Oil and Gas Pumps Market

Oil & Gas Pumps Market is estimated at USD 6,700 Million in 2022 & expects to surpass USD 10,800 Mil...

Self-priming Pumps Market

Automotive Lightweight Material Market Self-priming Pumps Market research report covers detailed inf...

Canned Motor Pumps Market

Global Canned Motor Pumps Market research report segmented by Product Type (Standard Pumps, High Tem...

- Our Clients -

Report Client