The Global Heat Pump Water Heater Market size is expected to reach $10.7 billion by 2030, rising at a market growth of 11.2% CAGR during the forecast period.
The higher capacity of 20–30 kW heaters make them suitable for integration into various industrial processes requiring hot water. Therefore, the 20–30 KW segment captured $788.9 million revenue in the market in 2022. This includes applications in manufacturing, chemical processing, and other industrial sectors. Hotels with numerous guest rooms, multiple kitchens, and extensive laundry facilities can efficiently utilize 20–30 kW models to meet their significant hot water requirements. Large office buildings with multiple floors and numerous occupants may benefit from the higher heating capacity of 20–30 kW models. These systems can efficiently supply hot water for restrooms, kitchens, and other facilities.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In November, 2023, LG Electronics, Inc. launched an updated version of its Therma V R290 Monobloc residential heat pump. The new model uses propane (R290) with a low global warming potential of 3. Additionally, In November, 2023, Mitsubishi Electric Corporation launched the Ecodan R290 heat pump, contributing to home heating decarbonization. Manufactured in Scotland, the Ecodan R290, featuring a low-GWP refrigerant, provides sustainable heating with high performance and energy savings during a cost-of-living crisis.
As new buildings and construction projects emerge, there is an opportunity to integrate heat pump water heaters from the initial design phase. Infrastructure development allows for the seamless incorporation of these systems into modern and energy-efficient buildings. Infrastructure development often involves updates to building codes and regulations. Incorporating incentives and requirements for energy-efficient water heating solutions, including these, encourages their adoption in new construction projects. Infrastructure development in the residential sector includes multi-unit buildings and apartment complexes. These, suitable for serving multiple units efficiently, become attractive options for developers and property managers. Thus, because of the expansion of infrastructure development, the market is anticipated to increase significantly.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
The higher capacity of 20–30 kW heaters make them suitable for integration into various industrial processes requiring hot water. Therefore, the 20–30 KW segment captured $788.9 million revenue in the market in 2022. This includes applications in manufacturing, chemical processing, and other industrial sectors. Hotels with numerous guest rooms, multiple kitchens, and extensive laundry facilities can efficiently utilize 20–30 kW models to meet their significant hot water requirements. Large office buildings with multiple floors and numerous occupants may benefit from the higher heating capacity of 20–30 kW models. These systems can efficiently supply hot water for restrooms, kitchens, and other facilities.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In November, 2023, LG Electronics, Inc. launched an updated version of its Therma V R290 Monobloc residential heat pump. The new model uses propane (R290) with a low global warming potential of 3. Additionally, In November, 2023, Mitsubishi Electric Corporation launched the Ecodan R290 heat pump, contributing to home heating decarbonization. Manufactured in Scotland, the Ecodan R290, featuring a low-GWP refrigerant, provides sustainable heating with high performance and energy savings during a cost-of-living crisis.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal Matrix; Carrier Global Corporation is the forerunner in the market. In September, 2023, Carrier, part of Carrier Global Corporation, introduced a new line of high-temperature heat pumps for industrial and commercial use. The AquaForce and AquaSnap models, with capacities ranging from 30 to 735 kW, aim to reduce carbon emissions and energy costs by utilizing a low-GWP refrigerant. Companies such as Mitsubishi Electric Corporation, Robert Bosch GmbH, Daikin Industries Ltd. are some of the key innovators in the market.
Market Growth Factors
Integrating heat pump water heaters with solar energy systems is a significant trend. Solar thermal collectors or solar photovoltaic panels can be combined with these to enhance energy efficiency. This integration allows users to harness renewable solar energy to meet their hot water needs. The electrification of heating systems, driven by the desire to transition away from fossil fuel-based heating, creates opportunities for these models. With electricity increasingly sourced from renewable energy, the electrification trend aligns with the sustainable operation of these models. The global push towards achieving net-zero carbon emissions and carbon-neutral goals creates a favourable environment for these heaters. These systems contribute to reducing the carbon footprint of water heating, aligning with broader sustainability objectives. Therefore, the market is expanding significantly due to the global trends in renewable energy.As new buildings and construction projects emerge, there is an opportunity to integrate heat pump water heaters from the initial design phase. Infrastructure development allows for the seamless incorporation of these systems into modern and energy-efficient buildings. Infrastructure development often involves updates to building codes and regulations. Incorporating incentives and requirements for energy-efficient water heating solutions, including these, encourages their adoption in new construction projects. Infrastructure development in the residential sector includes multi-unit buildings and apartment complexes. These, suitable for serving multiple units efficiently, become attractive options for developers and property managers. Thus, because of the expansion of infrastructure development, the market is anticipated to increase significantly.
Market Restraining Factors
The primary impact of high initial costs is the potential barrier it creates for consumers, especially those with budget constraints. Affordability concerns can lead consumers to opt for traditional water heaters with lower upfront costs. In retrofitting projects where homeowners upgrade existing water heating systems, the high initial cost of these can be a deterrent. Homeowners may prioritize more budget-friendly options during renovations. Consumers may delay or avoid upgrading to these heaters due to financial concerns. This reluctance can result in the continuation of older, less energy-efficient water heating technologies. The success of market may become dependent on government incentives, subsidies, or tax credits. This limits their market growth and hinders the achievement of broader adoption goals.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
By Storage Tank Analysis
By storage tank, the market is segmented into upto 500 L, 500–1,000 L, and above 1,000 L. In 2022, the upto 500 L segment registered the maximum revenue share in the market. These heaters with capacities of upto 500 L are well-suited for commercial and industrial applications where there is a need for large amounts of hot water. This includes hotels, restaurants, manufacturing facilities, and other businesses with extensive hot water requirements. The primary reason for increasing the capacity of these is to meet higher hot water demand. Larger residential buildings, commercial spaces, and industrial processes often require a substantial volume of hot water, and a 500-liter capacity helps ensure an ample supply.By Refrigerant Type Analysis
On the basis of refrigerant type, the market is divided into R410A, R407C, R744, and others. The R407C segment garnered a significant revenue share in the market in 2022. R407C is often used in residential models to provide households with energy-efficient and cost-effective hot water solutions. These systems extract heat from the ambient air, water, or ground and transfer it to the water, offering an environmentally friendly alternative to traditional water heating methods. R407C models are employed to heat swimming pools efficiently. Extracting heat from the ambient air or another heat source and transferring it to the pool water makes these systems an energy-efficient option for maintaining comfortable swimming temperatures.By Type Analysis
By type, the market is categorized into air-to-air, air-to-water, water source, and geothermal & hybrid. The water source segment procured a promising growth rate in the market in 2022. Water source have a lower environmental impact compared to traditional heating methods. By relying on renewable energy from water sources, these systems reduce dependence on non-renewable energy sources and contribute to lower greenhouse gas emissions, aligning with sustainability goals. Water source can provide heating and cooling, making them suitable for various applications. They are frequently used for domestic hot water heating, space heating, and radiant floor heating in residential and commercial buildings. This dual functionality enhances their appeal and value for users.
By End-User Analysis
Based on end-user, the market is classified into residential, commercial, and industrial. The commercial segment acquired a substantial revenue share in the market in 2022. Commercial establishments in the foodservice industry, such as restaurants and cafes, have high hot water demands for cooking, cleaning, and dishwashing. HPWHs can efficiently meet these demands while offering businesses cost savings and environmental benefits. Schools, colleges, and universities have diverse hot water needs for restrooms, cafeterias, laboratories, and other facilities. HPWHs can be installed in educational institutions to provide energy-efficient hot water solutions, supporting the overall sustainability of campus operations.By Rated Capacity Analysis
Based on rated capacity, the market is fragmented into upto 10 KW, 10–20 KW, 20–30 KW, 30–100 KW, and others. In 2022, the upto 10 KW segment led the market by generating highest revenue share. Systems with up to 10 kW output may offer scalability to accommodate diverse needs. This flexibility permits customization based on specific hot water requirements, making the heat pump water heater adaptable to various applications. Some models with up to 10 kW output offer dual functionality, providing hot water and contributing to space heating or cooling. This versatility is advantageous for applications with desired integration of heating and cooling systems.By Regional Analysis
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region led the market by generating the highest revenue share. As countries in the Asia Pacific region focus on sustainable development and energy efficiency, these are considered efficient alternatives to traditional water heating methods. The demand for home appliances that improve comfort and convenience has increased as living standards in the Asia Pacific region have increased. Rapid urbanization and a construction boom in many Asia Pacific countries contribute to the demand for water heating solutions.Recent Strategies Deployed in the Market
- Nov-2023: Daikin Industries Ltd. unveiled two air-to-air heat pump systems for commercial buildings: the Mini-VRV system (up to 33.5 kW) and the Top-Blow series (56 kW). Both used difluoromethane (R32), with a GWP of 675, and claimed to reduce CO2 equivalent emissions by up to 71% compared to R-410A-based heat pumps.
- Oct-2023: Panasonic Holdings Corporation partnered with Reclaim Energy, specializing in energy-efficient and sustainable heating solutions, to offer a heat pump technology for quickly heating water up to 80 degrees Celsius, suitable for residential and commercial use. Panasonic's CO2 Heat Pump is combined with Reclaim Energy's hot water system design, utilizing a heat exchanger to collect outdoor air heat as energy for the refrigerant. Both the heat pump and storage tank are designed for external installation.
- Apr-2023: Carrier Global Corporation acquired Viessmann Climate Solutions (VCS), a German heat pump manufacturer, to accelerate its transformation into a global leader in intelligent climate and energy solutions.
- Apr-2023: Robert Bosch GmbH announced a €225 million investment for its first heat pump factory in Dobromierz, Poland. The facility, responding to growing demand, was set to start operations in early 2026, creating 500 new jobs by 2027. Construction was scheduled to begin in 2024, with production expected to start in late 2025 or early 2026.
- Mar-2023: Bosch launched the Compress 6800i AW heat pump at the ISH trade show in Frankfurt, Germany. Using R290 as the refrigerant, the Compress 6800i AW heat pump is designed for retrofits and new buildings, offering a heating capacity of 3.9 kW to 6.7 kW with dimensions of 800 mm x 1,100 mm x 540 mm and a weight of 143 kg.
List of Key Companies Profiled
- Panasonic Holdings Corporation
- LG Electronics, Inc. (LG Corporation)
- Mitsubishi Electric Corporation
- Haier Smart Home Co., Ltd. (Haier Group Corporation)
- Carrier Global Corporation (Carrier)
- The Glen Dimplex Group
- Robert Bosch GmbH (Bosch Thermotechnology Corporation)
- A.O. Smith Corporation
- Trane Technologies PLC
- Daikin Industries Ltd.
Market Report Segmentation
By Storage Tank- Up to 500 L
- 500-1,000 L
- Above 1,000 L
- R410A
- R407C
- R744
- Others
- Air-to-Air
- Air-to-Water
- Water Source
- Geothermal & Hybrid
- Residential
- Commercial
- Industrial
- Upto 10 KW
- 10 - 20 KW
- 20 - 30 KW
- 30 - 100 KW
- Others
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Heat Pump Water Heater Market by Storage Tank
Chapter 6. Global Heat Pump Water Heater Market by Refrigerant Type
Chapter 7. Global Heat Pump Water Heater Market by Type
Chapter 8. Global Heat Pump Water Heater Market by End-User
Chapter 9. Global Heat Pump Water Heater Market by Rated Capacity
Chapter 10. Global Heat Pump Water Heater Market by Region
Chapter 11. Company Profiles
Companies Mentioned
- Panasonic Holdings Corporation
- LG Electronics, Inc. (LG Corporation)
- Mitsubishi Electric Corporation
- Haier Smart Home Co., Ltd. (Haier Group Corporation)
- Carrier Global Corporation (Carrier)
- The Glen Dimplex Group
- Robert Bosch GmbH (Bosch Thermotechnology Corporation)
- A. O. Smith Corporation
- Trane Technologies PLC
- Daikin Industries Ltd.
Methodology
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