Residential Air Source Heat Pump Market Size - By Product (Air to Air, Air to Water), By Application (Single Family, Multi Family), Reginal Outlook & Forecast, 2024 - 2032

Residential Air Source Heat Pump Market Size

Residential Air Source Heat Pump Market was valued at USD 37.1 billion in 2023 and is projected to achieve around 14.2% CAGR from 2024 to 2032, driven by a combination of technological advancements, environmental concerns, and supportive government policies.
 

Moreover, increasing adoption of energy-efficient heat pump technologies facilitating significant reductions in carbon emissions and achieving climate goals will further proliferate the industry growth. For instance, in December 2023, the U.S. DoE announced an investment of approximately USD 530 million in technical grants aiming to bolster the adoption of modern energy codes, building performance standards, and zero energy mandates, designed to achieve optimized energy savings and efficiency.
 

Residential Air Source Heat Pump Market Trends

The residential air source heat pump industry is set to attain significant uptake owing to the development of heat pumps using low global warming potential (GWP) refrigerants with reduced environmental impact coupled with prevalence of financial incentives from governments encouraging homeowners. In addition, innovations in heat pump design and introduction of smart HP units that integrate with home automation systems, are among the key factors augmenting the industry landscape.
 

Residential Air Source Heat Pump Market Analysis

Residential air to water heat pump industry is projected to surpass USD 89 billion by 2032. The rising demand for hot water in residential environments, coupled with a strong shift toward energy-efficient solutions, is driving the market for advanced heating units. These systems are engineered to deliver high-performance efficiency while ensuring ease of installation, offering both space heating and hot water capabilities, making them well-suited to meet a variety of consumer needs. This dual functionality enhances their appeal in the market, addressing the growing consumer preference for comprehensive, cost-effective, and energy-conscious solutions, thereby proliferating the air to water industry growth.
 

The residential air-to-air heat pump industry is experiencing robust growth fueled by the introduction of advanced newer models are equipped with enhanced compressors & refrigerants to operate effectively even when outdoor temperatures are low. Additionally, the integration of smart technology to deliver enhanced control and monitor heat pumps remotely via smartphones and other connected devices, offering greater accessibility and energy savings augmenting the industry landscape.
 

Single family segment is set to observe a CAGR of over 14% through 2032, on account of the integration of heat pumps is becoming increasingly prevalent, driven by the push for energy efficiency, sustainability, and advanced home automation. In addition, the integration of heat pumps across single-family applications is further bolstered by incentives & rebates from governments and utilities, which are encouraging the transition away from fossil fuel-based heating systems.
 

The Asia Pacific residential air source heat pump market is set to cross 49 billion by 2032, driven by a combination of economic expansion, urbanization, and a heightened focus on energy efficiency. The rising living standards and the population expansion coupled with the rapid urbanization, economic growth, and growing construction expenditures will add to the air source heat pump industry growth.
 

Residential Air Source Heat Pump Market Share

The residential air source heat pump industry is propelled by intense competition owing to the combination of growing demand for energy-efficient home heating and cooling solutions and rapid technological advancements. The residential heat pump industry is shaped by various global & regional players including Daikin, Mitsubishi Electric, Panasonic, and LG Electronics, expanding their product reach with extensive distribution networks and established product portfolios.
 

Residential Air Source Heat Pump Market Companies

Major manufacturers working across the industry consist of:

• AERMEC S.P.A.
• Bosch Thermotechnology Ltd.
• Clivet S.p.A.
• Daikin
• FUJITSU GENERAL
• JOHNSON CONTROLS - HITACHI AIR CONDITIONING COMPANY
• Lennox International Inc.
• LG Electronics
• Midea
• Mitsubishi Electric Corporation
• Panasonic Corporation
• SAMSUNG
• Trane Technologies International Limited
• Vaillant Group
• Viessmann
• WOLF
   

Residential Air Source Heat Pump Industry News

• In June 2024, Viessmann launched Vitocal 250-A Pro ATW heat pump unit with a heating output and a cooling output of up to 39.5 kW and 21.7 kW, respectively, designed for larger residential & commercial establishments. The new low noise product is manufactured at the company’s manufacturing facility in Berlin, Germany and features a COP of 5.6, strengthening its position across the residential and commercial air to water HP industry.
   
• In April 2024, Daikin Europe announced plans to launch the Altherma 4 HS-S+ series domestic ATW heat pump by fall of 2024, featuring propane refrigerant along with ability to seamlessly operate with alternative refrigerants, such as HFO-HFC blend R454C and HFC-R32. This unit will be offered in capacities of 8, 10, 12, and 14 kW and is designed for extreme conditions, with reliable operations in temperatures as low as −28°C and water flow temperatures up to 75°C.
   

This residential air source heat pump market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” and “USD Million” from 2021 to 2032 for the following segments:

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Market, By Product

• Air to Water
• Air to Air

Market, By Application

• Single Family
• Multi Family

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Austria
  • Norway
  • Denmark
  • Finland
  • France
  • Germany
  • Italy
  • Switzerland
  • Spain
  • Sweden
  • UK
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • Türkiye
  • South Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina