Heat Pump Water Heaters Market By Type (Air Source Heat Pump, Water Source Heat Pump,Ground Source Heat Pump); By Rated Capacity (Up to 10 kW, 10‒20 kW, 20‒30 kW, 30‒100 kW, 10–150 kW, Above 150 kW); By Storage Tank Capacity (Up to 500 LT, 500‒1,000 LT, Above 1,000 LT); By End Use Vertical (Residential Use, Commercial and Industrial Use); By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Market Analysis, Trends, Opportunity and Forecast, 2022-2032

Heat Pump Water Heaters Market Overview and Definition

The global heat pump water heaters market size was valued at around USD 1.8 billion in 2022 and is projected to grow at a compound annual rate of growth (CAGR) of around 8% from 2022 to 2032.The market size is projected to succeed in USD 3.9 billion by 2032.

The heat pump water heaters market is a segment of the heating, ventilation, and air conditioning (HVAC) industry that deals with the production, distribution, and sale of heat pump systems designed to heat water. A heat pump water heater is an energy-efficient alternative to traditional water heaters that use electricity, natural gas, or oil to heat water.

Heat pump water heaters work by using electricity to move heat from the air or ground into a water storage tank, rather than generating heat directly. This process is more energy-efficient and cost-effective than traditional water heaters, as it requires less energy to produce the same amount of hot water.

The heat pump water heaters market is driven by several factors, including increasing concerns about energy efficiency and sustainability, rising demand for cost-effective heating solutions, and government incentives and regulations that promote the use of energy-efficient appliances.

The heat pump water heaters market includes a range of products, including residential and commercial heat pump water heaters, as well as hybrid systems that combine a heat pump with a traditional water heater. These products are designed to meet a variety of heating needs, from small residential units to large commercial applications.

The heat pump water heaters market is highly competitive, with several major players, as well as many smaller companies and startups. The market is also subject to various regulations and quality standards related to energy efficiency and performance. As the demand for heat pump water heaters continues to grow, the market is expected to expand significantly in the coming years, with new players entering the market and existing players expanding their product lines and distribution networks.

The heat pump water heaters market is also influenced by various factors such as the growth of construction and infrastructure development, changes in energy regulations, and advancements in heat pump technology. As the market evolves, the focus is shifting towards developing more efficient and cost-effective heat pump water heaters that are suitable for a wider range of applications, and that can help reduce carbon emissions and combat climate change.

Heat pump water heaters also referred to as ‘air-source heat pumps’ use electricity to transfer heat from one place to another instead of generating heat directly. This is achieved by drawing heat from surrounding air and draining it into a tank to heat water at a higher temperature. It works like a refrigerator in reverse and the concept is called vapor compression cycle. This leads to consumption of 60-70% lesser energy than conventional electric resistance water heaters which make heat pump heaters more efficient by saving energy, saving money and reducing greenhouse gas emissions.

Also, in wringing the heat from air, HPWHs are known to both cool and dehumidify the air that passes through them which helps in meeting space-conditioning needs during cooling seasons.

The global heat pump water heater market is expected to grow at an exponential CAGR in the years to come.

Heat Pump Water Heaters Market Drivers

The growth of this market is attributed towards major relying factors including; the rising global energy consumption coupled with the recovery in housing sector, the increasing supportive regulations and grants for using renewable sources of energy in different applications, the shifting focus towards usage of renewable energy in order to minimize climatic changes and environmental degradation etc.

Moreover, heat pump water heaters can be used as part of demand response programs as they provide similar load control options as resistance water heaters, but offer permanent reductions in energy consumption and far better recovery after a peak power reducing event. This makes them highly desirable among different types of users worldwide and thereby contributes in enhancing the market growth.

Additionally, the rising environmental awareness since last few years has led to the spread of highly energy-efficient space and hot water heaters. Consequently, an ongoing shift from traditional combustion-heat source equipment to heat-pump heating that emits less CO2 can be witnessed globally, which in turn promotes the growth of the HPWHs on a larger scale.

Furthermore, factors such as energy efficient technology along with the usage of non conventional sources of energy to heat the water, the widespread adoption and acceptance of geothermal heat pumps owing to their environmental and cost saving benefits coupled with the increasing initiatives from the governments of various countries leading to the growing demand for geothermal heat pumps, the introduction of new and advanced products and services and the increasing integration of Iot with heat pump water heaters are all projected to further fuel the growth of this market.

However, high costs and lack of awareness regarding benefits offered by HPWHs in the developing and underdeveloped economies is projected to restrain the growth of the worldwide heat pump water heater market. These restraints are however expected to be overcome sooner or later by the market players existing in the market with the advent of new advanced technologies and modified versions of the product.

Heat Pump Water Heaters Market Segmentation

By Type

• Air Source Heat Pump
• Water Source Heat Pump
• Ground Source Heat Pump

By Rated Capacity

• Up to 10 kW
• 10‒20 kW
• 20‒30 kW
• 30‒100 kW
• 10–150 kW
• Above 150 kW

By Storage Tank Capacity

• Up to 500 LT
• 500‒1,000 LT
• Above 1,000 LT

 By End Use Vertical

• Residential Use
• Commercial and Industrial Use

By Region 

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

REGIONAL INSIGHT:

The Asia Pacific region is the fastest and the largest regional market for HPWHs and is anticipated to witness massive growth in the forthcoming years. The growth in this region can be attributed to factors such as the increasing use of renewable energy and energy efficient products, the presence of key market players along with their huge bases in the major economies of the region, the growing number of initiatives to enhance the installation of HPWH in order to increase energy efficiency and reduce environmental pollution etc. The major contributors in the region are India and China with Thailand and Malaysia also contributing significantly along with other countries.

FEW KEY PLAYERS IN HEAT PUMP WATER HEATER MARKET:

• Bosch Industries
• Panasonic
• Hitachi
• Gree
• Ge Appliances
• Wotech
• Midea Group
• Ingersoll Rand
• Viessmann Group
• Mitsubishi Electric Corporation
• Lennox International Inc.
• Fujitsu General Limited
• Haier Group Corporation
• Rheem Manufacturing Company
• O. Smith Corporation
• Darkin
• Jandy
• Hayward
• Nibe Energy Systems
• Valliant Group
• Glen Dimplex
• Stiebel Eltron
• Daikin Industries
• Danfoss
• Pentair
• Tongyi
• Toshiba
• Other Players

RECENT DEVELOPMENTS:

• In December 2020, PHNIX reportedly unveiled new Heat Pump for House Heating, Cooling and Hot water - HeroPremium series mainly for the European Market.

• In December 2020, LG Electronics Inc., a major home appliance maker in South Korea, unveiled a new energy-efficient water heater to target consumers in Europe and North America. The launch of this dual inverter heat pump water heater in European and North American markets is said to be sometime around the first quarter of 2021. The new product will be available in 200-liter and 270-liter models and according to the company, this technology uses condensation heat to boost energy efficiency. The 270-liter model can save a maximum 74 percent of energy compared with other products that directly heat up water tanks with electricity.

Timeline Considered for Analysis:

- 2019: Base Year

- 2020 to 2025: Forecast Period

Research Scope and Deliverables

Overview & Executive Summary

Market Drivers, Trends, Challenges and Opportunities

Market Size and Forecast Projections

Macroeconomic Indicators of Various Countries Impacting the Growth of the Market

Extensive Coverage of Industry Players including Recent Product Launches and Market Activities

Porter’s Five Force Analysis

Market Segmentation Analysis:

Industry report analyzes the global heat pump water heater market by the following segments:

• Type
• Rated Capacity
• Storage Tank Capacity
• End Use Vertical

Customization: We also offers customization’s in the industry report as per the company’s specific needs.

Key Questions Answered in the Global Heat Pump Water Heater Industry Report

• What is the overall market size in 2019? What will be the market growth during the forecast period i.e. 2020-2025?
• Which region would have high demand for product in the upcoming years?
• What are the factors driving the growth of the market?
• Which sub-market will make the most significant contribution to the market?
• What are the market opportunities for existing and entry-level players?
• What are various long-term and short-term strategies adopted by the market players?