Residential Heat Pumps Industry, Global, 2025-2035

The global residential heat pump (HP) market is forecast to reach 21.2 million units by 2035, up from 11.4 million in 2025. Market definitions are important to the market forecast, and the publisher excludes the sale of HPs for air conditioning. Market revenues are forecast to reach $113.79 billion by 2035, up from $43.86 billion in 2025. In 2025, APAC was the largest region in terms of sales, and this is forecast to continue to be the case by 2025, although Europe and North America will have higher growth rates. HPs offer several advantages, including higher efficiency and the acceleration of heat decarbonization, as renewable electricity powers them. However, challenges include market- and site-dependent suitability and factors such as the age of households and insulation that require evaluation. Installation costs, especially for existing properties, are significant, and HPs have higher capital costs than gas boilers. Additionally, wider investment is necessary to ensure that HPs do not strain local electricity grids. Skilled installers and consultants are lacking in some markets, and the public is hesitant because of their familiarity with boiler technology.