Residential Heat Pump Water Heater Market - By Application (Single Family, Multi Family), By Operation (Inverter, Non-Inverter) & Forecast, 2024 - 2032

Residential Heat Pump Water Heater Market Size

The global residential heat pump water heater market size stood at USD 10.1 billion in 2023 and is set to attain a CAGR of 8.9% between 2024 and 2032. Rising demand for efficient water heating systems, increasing need for hot water in households along with ongoing investments in sustainable technologies will complement the industry landscape.
 

Growing population and shifting preference for environmentally friendly solutions and inclination for energy efficiency will augment the product deployment. For instance, in April 2024, the U.S. Department of Energy revealed energy-efficiency standards for residential water heaters, projected to save American households USD 7.6 billion annually. Furthermore, stringent regulations for emission reduction coupled with ongoing replacement of traditional hot water systems, will augment the industry outlook.
 

Residential Heat Pump Water Heater Market Trends

Residential heat pump water heater industry is set to grow owing to extensive combustion of fossil fuels for water heating, rising development of residential infrastructure driven by increasing urbanization and adoption of energy efficient water heating systems. Government authorities are rolling out various schemes to replace conventional heating systems, enhance energy management, and reduce carbon footprint. For instance, in May 2024, the Danish Energy Agency offered subsidies for residential heat pump installations. Citizens can receive a grant of DKK 17,000 for air-to-water heat pumps, applicable to all home sizes if the installation reduces energy consumption. Furthermore, stringent energy efficiency standards for building infrastructure coupled with stern regulatory mandates to reduce carbon emissions will complement the industry landscape.
 

Residential Heat Pump Water Heater Market Analysis

Single family segment is anticipated to grow over USD 10.8 Billion by 2032. Increasing demand for reliable space heating, and hot water solutions, along with paradigm shift towards energy efficiency and focus on reducing carbon emissions is shaping the industry landscape. Strong population growth, flourishing housing construction and renovations, and concerted efforts to replace traditional units to enhance energy efficiency and reducing energy consumption will complement the industry outlook.
 

Inverter segment is anticipated to witness a CAGR of over 8.5% between 2024 and 2032. Residential heat pump water heaters with inverter technology are witnessing significant growth owing to increased efficiency and cost savings. These systems offer consistent temperature control and optimized energy use, making them ideal for eco-conscious households and adjusts compressor speed based on hot water demand, reducing energy use and utility bills. For instance, in April 2023, LG Electronics USA launched Inverter heat pump water heater, offering homeowners up to 70% energy savings. With a Uniform Energy Factor of 3.75 UEF, this product helps reduce energy usage and carbon footprint. Moreover, rising energy costs, favorable government incentives, and ongoing technological advancements will drive the product adoption.
 

U.S. residential heat pump water heater is projected to cross USD 1.3 billion by 2032 driven by a combination of environmental, economic, and regulatory factors. The growing emphasis on reducing carbon emissions and reliance on fossil fuels with focus on clean and energy-efficient systems will positively influence the U.S. heat pump industry dynamics. Additionally, the U.S. government has allocated fundings to research and development initiatives aimed at improving heat pump efficiency and lowering costs stimulating the industry size. For instance, in August 2024, the U.S. DOE declared about USD 85 million funding across four heat pump manufacturers to boost the production of heat pump hot water heaters, electric heat pumps, and other related components within the country.
 

Residential Heat Pump Water Heater Market Share

Key companies operating in the residential heat pump water heater industry aiming to expand their market share through innovation and strategic initiatives. Leading companies, such as Ariston Holding, LG Electronics, Daikin, Panasonic, Rinnai Corporation and SAMSUNG, among others are differentiating their offerings by integrating advanced technologies, emphasizing energy efficiency, and reducing energy cost. These initiatives are focusing to introduce diverse air-to-water heat pump systems suitable for hot water applications.
 

Residential Heat Pump Water Heater Market Companies

Key industry players operating across industry include:

• A. O. Smith
• American Water Heaters
• Ariston Holding
• Bradford White Corporation
• Daikin
• LG Electronics
• Lochinvar
• MIKEE
• Panasonic Marketing Europe
• Rheem Manufacturing Company
• Rinnai America Corporation
• SAMSUNG
• State Industries
• Stiebel Eltron
• Vaillant Group International
• Vaughn Thermal Corporation
   

Residential Heat Pump Water Heater Industry News

• In February 2024, GE Appliances has launched the GE Profile GeoSpring Smart Hybrid Heat Pump Water Heater. This innovative product uses heat pump technology to achieve 3 to 4 times the efficiency of standard electric models, addressing the 18% energy consumption attributed to water heating in homes. The GeoSpring features FlexCAPACITY, which provides up to 60% more hot water, and includes the CTA-2045 Smart Home Solution for demand response readiness, optimizing energy usage and communicating with utility companies.
   
• In January 2024, LG Air Conditioning Technologies USA introduced the inverter heat pump water heater At AHR Expo 2024. This energy-efficient model, available in 58- and 80-gallon capacities, achieves up to UEF 3.93, surpassing ENERGY STAR® standards. It offers up to 76% energy savings compared to conventional electric heaters. Featuring inverter heat pump technology and a dual inverter compressor, it heats water quickly and quietly. Compliant with U.S. EPA standards, it supports environmental sustainability and includes LG ThinQ technology for Wi-Fi and smartphone control.
   

The residential heat pump water heater 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 Operation

• Inverter
• Non-Inverter

The above information has been provided for the following regions:

• 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