Global Heat Pumps Market Size (2024 - 2029)

Heat Pump Market Analysis

The Global Heat Pumps Market size is estimated at USD 68.71 billion in 2024, and is expected to reach USD 109.66 billion by 2029, growing at a CAGR of 9.80% during the forecast period (2024-2029).

The heat pump works on the principle of mechanical-compression cycle refrigeration that can even be reversed to heat or cool the desired space of a facility. Hence, the market studied is growing for cooling applications and space heating.

• Heat pumps are strategically placed to benefit from the drive to environmental sustainability. Furthermore, the European Union's strategy of sector integration suggests that 65% of all commercial buildings will be heated by electricity in 2030. The data indicate that heat pump sales are only expected to grow with buildings depending on them for heating and cooling.
• Furthermore, The growing demand for energy-efficient devices has been driving the deployment of technology, such as heat pumps, to provide end users with significant potential to contribute to renewable energy and climate targets across various regions worldwide.
• Moreover, The growing need to curb dependence on fossil fuels and look for an energy-efficient alternative to furnaces and air conditioners is expected to boost the demand for heat pumps over the forecast period. As heat pumps transfer heat rather than generate heat, they can offer equivalent space conditioning at as little as one-quarter of the operating costs of conventional heating or cooling appliances.
• Heating a few areas of the facility may save money on material costs for the air handler unit (AHU). However, these factors may affect the overall installation costs if heat pumps are installed as the main heating and cooling system.
• While it is realistic to expect slow growth or even a decline in heat pump sales owing to the COVID-19 pandemic, government policies and consumer demand are expected to drive the sales of heat pumps.

Heat Pump Industry Segmentation

A heat pump is an electrically-driven device that extracts heat from a source (a low-temperature place) and delivers it to a sink (a higher-temperature place). In other words, a heat pump is a device that uses a small amount of energy to move heat from one location to another. The working of heat pumps can also be reversed to cool a building.

The Heat Pumps Market is segmented by type (air source, water source, geothermal (ground) source), by end-user vertical (industrial, commercial, institutional, residential), and geography (North America [United States, Canada], Europe [Spain, France, Italy, Germany, Netherlands], Asia Pacific [China, Japan, India, South Korea, Australia], Rest of the World [Latin America, Middle East, and Africa]). The report offers market forecasts and size in value (USD) for all the above segments.