Residential Air to Water Heat Pump Market Size - By Application (Single Family, Multi Family), By Product (Domestic Hot Water Heat Pump, Room Heat Pump), & Forecast, 2024 - 2032

Residential Air to Water Heat Pump Market Size

Residential Air to Water Heat Pump Market was valued at USD 22.8 billion in 2023 and is projected to observe about 16.4% CAGR between 2024 and 2032, driven by the rising demand for efficient space heating technologies primarily across regions with cold climates.
 

Moreover, proactive initiatives from industry players and government bodies, carbon emission reduction targets, and stringent energy efficiency norms are some of the key factors fueling the industry expansion. For instance, in December 2023, the U.S. Department of Energy (DOE) declared to invest about USD 530 million in technical grants to support the deployment of modern energy codes, building performance standards, zero energy codes, and innovative codes that can attain optimized energy savings & efficiency.
 

Residential Air to Water Heat Pump Market Trends

The residential air to water heat pump industry is projected to achieve substantial expansion on account of the rising demand for energy-efficient space and water heating technologies. In addition, the ongoing R&D efforts from both public & private entities, aimed at introducing cutting-edge systems will further shape the industry dynamics. The new model works on R290 refrigerant with a cooling capacity between 4 to 16 kW along with a COP value between 2.75 to 5.3 and can be combined with PV or solar thermal systems.
 

Residential Air to Water Heat Pump Market Analysis

Domestic hot water heat pump market is anticipated to surpass USD 45 billion by 2032, backed by the increasing need for hot water in residential settings and a growing preference for energy-efficient solutions. These units are designed to not only provide efficient performance & easy installation but also cater to both space heating and hot water requirements enabling them to serve diverse requirements. Moreover, a favorable regulatory environment and the surge in new constructions, coupled with a trend towards retrofitting with energy-efficient options, will complement the air to water industry growth.
 

Single family application is projected to experience a growth rate of over 16% through 2032, owing to the supporting policies favoring the adoption of these systems coupled with consumer preference to replace traditional heating technologies. The initiative aims to slash carbon emissions and financially support lower income households with the funding of USD 25 million, USD 18.5 million, and USD 6.5 million sourced from three different regulatory bodies, aiming specifically for upgrading conventional heating systems.
 

Asia Pacific residential air to water heat pump market is anticipated to cross USD 40 billion by 2032, primarily backed by the region's surging population and the expanding footprint of residential buildings in both urban and suburban settings. For instance, in July 2024, the Australian Bureau of Statistics confirmed that the total value of residential construction in the country totaled about USD 5 billion in May 2024, observing around 4.5% increment from about USD 4.78 billion in May 2023.
 

Europe residential air-to-water heat pump industry is also poised for robust growth. This expansion is propelled by stringent energy efficiency regulations in construction, ambitious emission reduction goals, financial incentives, and a significant number of heat pump manufacturers in the region. Furthermore, a positive outlook on the adoption of advanced technological systems due to increasingly stringent building energy performance standards will create new opportunities for the Europe air to water market growth.
 

Residential Air to Water Heat Pump Market Share

Residential air to water heat pump industry is shaped by the continuous operations from small and large manufacturers operating at the regional and global scales. Moreover, key manufacturers including Daikin, Samsung, Panasonic, and LG are accounts for a considerable position across the industry on account of their innovation, strategic initiatives, facility expansions, product range, and technological advancements, among other parameters.
 

Residential Air to Water Heat Pump Market Companies

Key participants operating across the market consist of:

• Daikin
• FUJITSU GENERAL
• Glen Dimplex Group
• Guangdong PHNIX Eco-energy Solution Ltd.
• JOHNSON CONTROLS - HITACHI AIR CONDITIONING COMPANY
• LG Electronics
• Lochinvar
• Maritime Geothermal
• Midea
• Mitsubishi Electric Corporation
• Panasonic Corporation
• SAMSUNG
• STIEBEL ELTRON GmbH & Co. KG
• Vaillant Group
• WOLF
   

Residential Air to Water Heat Pump Industry News

• In July 2024, Diego Luxembourg S.A., headquartered in Luxembourg, has introduced a residential ATW monobloc heat pump named diego.intensity. This innovative product utilizes propane (R290) as its refrigerant and is available in four heat output variants of 7 kW, 10 kW, 15 kW, and 18 kW, boasting an impressive seasonal COP of up to 5.7.
   
• In January 2024, at AHR Expo 2024, LG Air Conditioning Technologies USA unveiled its R32 ATW HP system. The new monobloc model is designed to provide hot water solutions for a wide range of applications, from space heating to domestic hot water needs. The product boasts a wide range of leaving water temperatures including 59 to 149°F for heating, 41 to 80.6°F for cooling, and 59-176°F for hot water across both residential and light commercial air to water applications.
   

This residential air to water 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 Application

• Single Family
• Multi Family

Market, By Product

• Domestic Hot Water Heat Pump
• Room Heat Pump

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