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

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).