Heat Pump Retrofit Design Market Report 2026

The heat pump retrofit design market size has grown rapidly in recent years. It will grow from $9.12 billion in 2025 to $10.26 billion in 2026 at a compound annual growth rate (CAGR) of 12.5%. The growth in the historic period can be attributed to increasing replacement of fossil fuel heating systems, rising demand for professional energy audits, expansion of retrofit feasibility studies, availability of standardized retrofit design tools, early adoption of building energy modeling.

The heat pump retrofit design market size is expected to see rapid growth in the next few years. It will grow to $16.58 billion in 2030 at a compound annual growth rate (CAGR) of 12.7%. The growth in the forecast period can be attributed to increasing investments in heat pump retrofit programs, rising adoption of AI-assisted system sizing, expansion of large-scale residential retrofits, growing demand for performance-verified designs, increasing regulatory support for low-carbon heating transitions. Major trends in the forecast period include increasing adoption of detailed heat pump retrofit assessments, rising use of digital building energy modeling, growing integration of customized retrofit design packages, expansion of electrification planning services, enhanced focus on system compatibility and performance.

The rise in energy prices and cost volatility is expected to propel the development of the heat pump retrofit design market going forward. Fluctuating energy prices and cost volatility are driven by supply-demand imbalances, as variations in fuel availability and consumption result in unpredictable energy cost changes. Heat pump retrofit design helps mitigate energy price fluctuations by improving energy efficiency and reducing dependence on variable fossil fuel costs, contributing to more stable and predictable energy expenses. For example, in April 2024, the Australian Energy Regulator, a government agency, reported that in 2023, quarterly electricity prices in Queensland and Victoria increased by 20% and 9%, respectively, compared to the same period in the previous year. Therefore, the rise in energy prices and cost volatility is supporting the growth of the heat pump retrofit design market.

Key companies operating in the heat pump retrofit design market are focusing on developing innovative solutions such as dual-circuit loop design to simplify installations, reduce costs and disruption, improve system compatibility with existing heating infrastructure, and enhance maintenance efficiency and overall energy performance. Dual-circuit loop design allows a heat pump to run independently of an existing central heating system, enabling easier retrofits, reduced disruption, and simpler maintenance. For example, in June 2025, Hewer Facilities Management Limited, a UK-based heating solutions provider company, launched Heat Saviour, a ready-to-install retrofit unit for residential heat pumps that reduces installation time, lowers costs, and minimizes disruption. Featuring a dual-circuit loop design, the system operates independently of existing central heating, ensuring compatibility with a wide range of homes. It is aimed at enabling efficient, reliable, and easy-to-maintain heat pump retrofits, including deployment in social housing projects.

In April 2025, Shinobi Capital Group, a UK-based investment and sustainable infrastructure company, acquired Elite Renewables for an undisclosed amount. With this acquisition, Shinobi aims to expand its renewables and retrofit services portfolio to strengthen its position in the UK’s sustainable housing market and scale the delivery of low‑carbon energy solutions. Elite Renewables Limited is a UK-based renewable energy technology and installation company specializing in the design and installation of high-efficiency heat pumps, solar PV systems, battery storage, EV chargers, and other advanced renewable energy systems.

Major companies operating in the heat pump retrofit design market are Daikin Industries Ltd., Mitsubishi Electric Corporation, Trane Technologies plc, Carrier Global Corporation, Johnson Controls International plc, Bosch Thermotechnology, Viessmann Group, NIBE Industrier AB, LG Electronics Inc., Panasonic Corporation, Stiebel Eltron GmbH & Co. KG, Vaillant Group, Danfoss A/S, Fujitsu General Limited, Rheem Manufacturing Company, Glen Dimplex Group, Swegon Group AB, Hitachi Ltd., Aermec S.p.A., Baxi Heating UK Limited, Stiebel Eltron GmbH & Co. KG, Samsung Electronics Co., Ltd., and Ariston Thermo Group.

Tariffs are influencing the heat pump retrofit design market by increasing costs of imported simulation software tools, advanced measurement equipment, digital sensors, and specialized engineering hardware used in system assessment and modeling. Retrofit projects in Europe and North America are most affected due to reliance on imported technical tools and software licenses, while Asia-Pacific faces cost pressure on consulting technology adoption. These tariffs are raising service delivery costs and extending project timelines. However, they are also encouraging domestic software development, localized engineering services, and greater adoption of standardized retrofit design frameworks.

The heat pump retrofit design market research report is one of a series of new reports that provides heat pump retrofit design market statistics, including heat pump retrofit design industry global market size, regional shares, competitors with a heat pump retrofit design market share, detailed heat pump retrofit design market segments, market trends and opportunities, and any further data you may need to thrive in the heat pump retrofit design industry. This heat pump retrofit design market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Heat pump retrofit design refers to the engineering and planning process of integrating a heat pump into an existing building heating system. It involves assessing building heat demand, insulation levels, existing emitters, and electrical capacity to ensure compatibility. It helps to enable a smooth transition from conventional heating to low-carbon heat pumps while maintaining comfort and energy efficiency.

The main product types of heat pump retrofit design include air source heat pumps, ground source heat pumps, and water source heat pumps. Air source heat pumps refer to systems that extract heat from ambient air and transfer it to buildings, providing energy-efficient heating and cooling. These solutions are supported by services such as building energy assessment and audit, system feasibility and sizing study, detailed engineering and design, integration planning and specification writing, commissioning support and performance verification, and post-installation monitoring and optimization. They can be applied through different installation types, including new installations and retrofits, and are used across applications including residential, commercial, and industrial sectors. The solutions serve multiple end-users, such as single-family homes, multi-family buildings, offices, retail, hospitality, industrial facilities, and others.

The heat pump retrofit design market consists of revenues earned by entities by providing services such as site assessment and energy audits, existing heating system evaluation, retrofit feasibility analysis, system sizing and load calculations, customized heat pump system design, and electrical and hydronic system design. The market value includes the value of related goods sold by the service provider or included within the service offering. The heat pump retrofit design market also includes sales of standardized and customized retrofit design packages, system configuration and sizing models, building energy modeling reports, and technical drawings and blueprints. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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