Heat Pump Market Size & Trends 

The global heat pump market size was estimated at USD 88.7 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 9.4% from 2024 to 2030. Favorable government policies for energy-efficient solutions and lowering carbon footprint are anticipated to boost market growth over the forecast period. Many governments are providing subsidies or incentives and tax credits & rebates for the installation of heat pumps are expected to further fuel the demand for energy-efficient heat pumps, thereby, benefitting the growth of heat pump industry.

According to the U.S. Department of Energy, a 30% tax credit can be claimed for buying a property in the U.S. that has qualified heat pumps installed in connection with an existing or new dwelling unit. Italy's Conto Termico incentive scheme provides grants that cover 30-35% of costs of installing renewable heating systems in buildings. Australia also provides national grants to municipals for heat pump installation. Moreover, heat pump industry is significantly affected by the availability of raw materials, such as metals like iron & steel, adhesives, rubber, chemicals, and plastics. Thus, fluctuations in raw material prices have a direct impact on manufacturing costs, which can limit market growth to some extent. 

Gather more insights about the market drivers, restrains and growth of the Heat Pump Market 

The temperature of soil in most areas of the U.S. is warmer than air during winters and cooler in summers. Ground source heat pumps use the ground's constant temperature to cool and heat buildings. According to the Environmental Protection Agency (EPA), GHPs are the most cost-effective, environmentally clean, and energy-efficient systems for cooling and heating buildings, including homes, offices, schools, and hospitals, owing to which demand for heat pumps is expected to increase in the U.S. over the forecast period. 

The U.S. government has provided personal tax credits and direct incentives on product installation, which encourage the installation of heat pumps. Improving energy efficiency across various industries is one of the major objectives of governments across the world. The rising need for renewable energy sources, along with extensive government support in the form of subsidies, incentives, and other monetary benefits, is projected to fuel market growth over the forecast period. Air Source technology is expected to dominate the market in the U.S. over the forecast period due to rising awareness about adverse effects of greenhouse gas emissions. Furthermore, increasing population along with increasing need for eco-friendly air conditioning in housing sector is expected to drive demand for air-source technology in the U.S. 

Fast-paced industrialization along with growing population has resulted in massive energy consumption across the world. According to EIA’s U.S. residential energy consumption survey, heating, cooling, & ventilation accounted for half of total home energy consumption. In 2021, based on total fuel consumption, natural gas accounted for 44%, and fuel oil & propane accounted for a 9.0% share. Furthermore, electricity was the most consumed energy source across the U.S. with households accounting for 47%. Thus, increasing demand for energy-efficient solutions and growing carbon footprints across the globe are expected to drive the market’s growth over the forecast period. 

Browse through Grand View Research's Advanced Interior Materials Industry Research Reports.

• The global aerostructure materials market size was estimated at USD 82.63 billion in 2023 and is projected to grow at a CAGR of 7.2% from 2024 to 2030. This growth is attributed to the increasing preference for sustainable and efficient aerostructure to decrease the overall weight of an aircraft and reduce fuel consumption. Additionally, the growing number of regulations and standards to reduce carbon emissions is further increasing aircraft manufacturers' inclination toward eco-friendly aerostructure materials, thereby, fueling the market growth.
• The global CNC router machine market size was estimated at USD 691.0 million in 2023 and is projected to grow at a CAGR of 3.5% from 2024 to 2030. The increasing need for automation and precision in manufacturing processes across various industries primarily drives the rising demand for CNC router machines. CNC routers have become essential tools as companies strive to enhance efficiency, reduce human errors, and maintain consistent product quality. For example, the automotive industry utilizes CNC routers for precise component manufacturing, aligning with the trend toward electric vehicles and advanced manufacturing techniques.  

Heat Pump Market Segmentation

Grand View Research has segmented the global heat pump market based on technology, capacity, operation type, application, and region: 

Heat Pump Technology Outlook (Revenue, USD Billion, 2018 - 2030)

• Air Source
• Air to Air
• Air to Water
• Water Source
• Geothermal 

Heat Pump Capacity Outlook (Revenue, USD Billion, 2018 - 2030)

• Up to 10 kW
• 10-20 kW
• 20-50 kW
• 50-100 kW
• 100-200 kW
• Above 200 kW 

Heat Pump Operation Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Electric
• Hybrid 

Heat Pump Application Outlook (Revenue, USD Billion, 2018 - 2030)

• Residential
• Industrial
• Commercial 

Heat Pump Region Outlook (Revenue, USD Billion, 2018 - 2030)

• North America
• US
• Canada
• Mexico
• Europe
• Germany
• France
• Italy
• Sweden
• Norway
• Spain
• Finland
• Asia Pacific
• China
• Japan
• Australia
• India
• South Korea
• Central & South America
• Brazil
• Argentina
• Middle East & Africa
• UAE
• Saudi Arabia 

Order a free sample PDF of the Heat Pump Market Intelligence Study, published by Grand View Research. 

Key Companies profiled:

• Carrier
• Daikin Industries, Ltd
• Robert Bosch GmbH
• Lennox International
• Johnson Controls, Inc.
• Midea Group
• Hitachi, Ltd.
• Ingersoll Rand Plc.
• Rheem Manufacturing Company
• HAIER(GENERAL ELECTRIC)
• Panasonic Holdings Corporation
• Danfoss
• Fujitsu
• LG Electronics, Inc.
• Samsung

Recent Developments

• In January 2023, Johnson Controls acquired Hybrid Energy AS. Hybrid Energy's innovative technology will provide customers with fresh, cost-effective solutions while tackling decarbonization and sustainability efforts in Europe and beyond.