Variable Speed Heat Pump Water Heater Market – By Application (Residential {Single Family, Multi Family}, Commercial, Industrial) & Forecast, 2024 - 2032

Variable Speed Heat Pump Water Heater Market Size

Variable Speed Heat Pump Water Heater Market Size was valued at USD 9.1 billion in 2023 and is projected to observe a growth rate of 9% between 2024 and 2032. The industry is undergoing significant transformation backed by a combination of technological advancements, increasing environmental awareness, and evolving regulatory frameworks.
 

Moreover, the implementation of stern energy efficiency standards and availability of financial incentives, including tax credits, rebates, and subsidies, to encourage the switch to more sustainable water heating solutions will sway the industry size. For instance, in May 2024, Efficiency Vermont, a U.S. state government body, unveiled a new program enabling the eligible domestic users opting for new HPWHs with a rebate of USD 5,000 and USD 4,500 for low- and moderate-income households, respectively.
 

Variable Speed Heat Pump Water Heater Market Trends

Variable speed heat pump water heater industry is anticipated to observe significant expansion on account of rapid technological advancements to enhance the performance & reliability of systems coupled with ongoing integration of smart technology with remote monitoring & control capabilities. In addition, stringent environmental regulations and strong government support have led to widespread adoption of clean water & space heating technologies thereby catering to the heat pump industry growth. For instance, in April 2024, the U.S. DoE has established new energy-efficiency mandates for residential water heaters with the ability to generate annual savings of approximately USD 7.6 billion across the national housing. The mandate emphasizes replacing conventional electric water heaters with high-efficiency heat pump technology aiming to alleviate the load on the electric grid while ensuring substantial cost savings.
 

Variable Speed Heat Pump Water Heater Market Analysis

Based on application, the industry can be broadly trifurcated into residential, commercial, and industrial segments. Residential sector is projected to surpass USD 18 billion by 2032 owing to the increasing demand for energy-efficient and environmentally friendly water heating solutions. Advent of new technological innovations with manufacturers developing advanced water heaters offering improved efficiency, faster heating times, and greater reliability will further sway the industry size. For instance, in May 2024, Germany based ait-group introduced a new range of air to water heat pump called Hybrox with propane refrigerant primarily designed for large homes and multi-family buildings. Additionally, the lineup is available in 11 & 16 kW to serve heating, cooling and domestic hot water (DHW) requirements across new & renovated buildings.
 

The Asia Pacific variable speed heat pump water heater is anticipated to cross USD 14 billion through 2032. The industry is witnessing significant growth propelled by a combination of rapid urbanization, rising disposable incomes, and expanding residential construction. Moreover, continuous R&D initiatives to boost technological advancements along with increasing consumer awareness favoring advanced systems with enhanced energy efficiency will boost the residential heat pump industry size. For instance, in March 2024, Chinese heat pump manufacturer called Guangzhou Sprsun New Energy Technology Development Co., Ltd. unveiled R290 DC inverter air source heat pump unit designed for cooling, heating, and DHW operations. Additionally, the product has a peak heating capacity of 9.1 kW with low noise operation to deliver a coefficient of performance (COP) rating of 4.2 at 7 °C.
 

Variable Speed Heat Pump Water Heater Market Share

The variable speed heat pump water heater industry is characterized by intense competition, driven by the growing demand for energy-efficient HVAC solutions and rapid technological advancements. Leading manufacturers including Daikin, Mitsubishi Electric Trane HVAC, Ariston Holding, Panasonic, and Rinnai, among others, are at the forefront, continuously innovating to enhance the performance and efficiency of their product portfolio to enhance their position in variable speed heat pump industry. Moreover, the companies are leveraging cutting-edge technologies including inverter-driven compressors and advanced control systems, to offer products that adjust dynamically to varying heating & cooling needs, thereby maximizing energy savings.
 

Variable Speed Heat Pump Water Heater Market Companies

Key companies actively participating across the market includes:

• Advantix S.p.A.
• Ariston Holding N.V.
• DAIKIN INDUSTRIES, Ltd.
• Guangzhou Sprsun New Energy Technology Development Co., Ltd.
• Glen Dimplex Group
• Lochinvar
• LG Electronics
• Mitsubishi Electric Trane HVAC US LLC
• Nihon Itomic Co.,Ltd.
• Panasonic Corporation
• Rheem Manufacturing Company
• Rinnai Corporation
• SUNRAIN
• SAMSUNG
• Zhejiang Jiadele Technology Co, Ltd.
   

Variable Speed Heat Pump Water Heater Industry News

• In June 2024, Itomic revealed that its CHP-80Y HPWH unit utilizing air-to-water CO2 (R744) technology, has secured approval for Australian government rebates in New South Wales and Victoria. This product line boasts HPWHs with heating capacities reaching 76 kW and a coefficient of performance (COP) of up to 4.2, making them eligible for rebates that promote energy-efficient solutions in commercial and industrial settings.
   
• In March 2024, ECO2 Systems, a U.S.-based company, unveiled its plans to launch the fifth generation (Gen5) of its heat pump water heater models, now featuring Modbus connectivity. This innovative product line empowers users to interact seamlessly with utilities, promoting efficient demand-based system control and aligning with the nation's decarbonization goals. Furthermore, the company is enhancing the Uniform Energy Factor (UEF) of its Gen5 lineup by integrating inverter compressors, ensuring optimal performance across diverse states in the U.S.
   

The variable speed heat pump water heater market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” & “USD Million” from 2021 to 2032 for the following segments:

Click here to Buy Section of this Report

Market, By Application

• Residential
  • Single family
  • Multi family 
• Commercial
• Industrial

The above information has been provided for the following 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
  • Turkey
  • South Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina