What Has Been the Progress and Growth of the Heat Pump Water Heater Market in Recent Years?
The heat pump water heater market has seen considerable growth due to a variety of factors.
• In recent times, the market size for heat pump water heaters has witnessed a significant surge. The market is expected to expand from $2.45 billion in 2024 to $2.66 billion in 2025, reflecting a compound annual growth rate (CAGR) of 8.6%.
Various factors have contributed to this growth in the historical period, including incentives for energy efficiency, savings in utility costs, increased environmental awareness, market penetration, building codes and standards, as well as consumer preferences.
What Is The Expected Growth In The Heat Pump Water Heater Market Size Evolve over the Forecast Period?
The heat pump water heater market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipated to witness robust growth in the coming years, the market size for heat pump water heaters is set to expand to $3.6 billion by 2029, with a compound annual growth rate (CAGR) of 7.8%.
This predicted growth during the forecast period can be ascribed to a myriad of factors such as the rise in electricity grid integration, burgeoning net-zero building trends, heightened market competition and innovation, increased energy performance labeling, growing residential and commercial retrofit programs, as well as enhanced climate resilience and adaptation. Trends expected to dominate the forecast period range from the shift towards energy-efficient solutions, the adoption of heat pump water heaters, integration with intelligent home systems, demand surge driven by government incentives, extension of offerings with improved efficiency, rising conjunction use with renewable energy, to the manufacture of hybrid heat pump water heaters, their integration into sustainable building designs and innovation in the heat pump technology arena.
What Main Forces Are Fueling Expansion In The Heat Pump Water Heater Market?
The proliferation of renewable energy utilization is predicted to catalyze the expansion of the heat pump water heater market. Derived from continually replenishing natural processes, renewable energy forms are gaining popularity due to escalating public worry over climate change, which has spurred immense demand for renewable energy and environmental conservation. As they embody energy efficiency, heat pumps are harmonious with clean energy technologies and instrumental in fostering sustainability and energy-saving practices in residential and commercial areas. For example, information from the European Commission reveals that, in January 2024, the European Union (EU), governed by a UK-based body, achieved a 23.0% contribution to its gross final energy consumption from renewable sources in 2022, marking an approximate increase of 1.1 percentage points. Consequently, the escalating adoption of renewable energy sources is steering the rise of the heat pump water heater market.
What Are The Primary Segments In The Global Heat Pump Water Heater Market?
The heat pump water heater market covered in this report is segmented –
1) By Type: Air-To-Air Heat Pump Water Heater, Air-To-Water Heat Pump Water Heater, Water Source Heat Pump Water Heater, Ground Source (Geothermal) Heat Pump Water Heater, Hybrid Heat Pump Water Heater
2) By Energy Source Compatibility: Electricity, Dual-Fuel (Electric And Gas)
3) By Capacity: Traditional Heat Pump Water Heaters, Advanced Heat Pump Water Heaters
4) By Price Range: Economy Heat Pump Water Heaters, Mid-Range Heat Pump Water Heaters, Premium Heat Pump Water Heaters
5) By End-User: Residential, Commercial, Industrial
Subsegments:
1) By Air-To-Air Heat Pump Water Heater: Single-Stage Air-To-Air Heat Pump Water Heater, Two-Stage Air-To-Air Heat Pump Water Heater
2) By Air-To-Water Heat Pump Water Heater: Residential Air-To-Water Heat Pump Water Heater, Commercial Air-To-Water Heat Pump Water Heater
3) By Water Source Heat Pump Water Heater: Closed-Loop Water Source Heat Pump Water Heater, Open-Loop Water Source Heat Pump Water Heater
4) By Ground Source (Geothermal) Heat Pump Water Heater: Horizontal Ground Source Heat Pump Water Heater, Vertical Ground Source Heat Pump Water Heater
5) By Hybrid Heat Pump Water Heater: Plug-And-Play Hybrid Heat Pump Water Heater, Integrated Hybrid Heat Pump Water Heater
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Which Emerging Market Trends Are Altering The Heat Pump Water Heater Industry?
Major firms in the heat pump water heater market are shifting their focus towards the development of hybrid electric heat pump water heaters to stay ahead of the competition. This new type of water heater blends the functionality of a heat pump with conventional electric resistance heating elements. This hybrid version can operate in several modes, choosing the most energy-saving option based on current conditions and the need for hot water. A case in point is the launch of the Voltex AL smart hybrid electric heat pump water heater line by A. O. Smith Corporation, a US manufacturer specializing in water heaters and boilers, in September 2022. The Voltex AL model is the most energy-efficient in the water heater market, boasting an impressive overall uniform energy factor (UEF) of 4.02 for the 66-gallon unit. Equipped with iCOMM smart connectivity, it allows users to manage their water heaters and receive alerts via the A.O. Smith app. Moreover, it has built-in leak detection, smart connectivity, and advanced water connections, making it ideal for a range of new and existing installations.
Who Are the Key Players In The Heat Pump Water Heater Market?
Major companies operating in the heat pump water heater market are:
• Samsung Electronics Co. Ltd.
• Robert Bosch GmbH
• Panasonic Holdings Corporation
• LG Electronics Inc.
• Midea Group
• Haier Group Corporation
• Mitsubishi Heavy Industries Ltd.
• Daikin Industries Ltd.
• Johnson Controls International plc
• Carrier Global Corporation
• Whirlpool Corporation
• Trane Technologies Company LLC
• Danfoss
• A. O. Smith Corporation
• Rinnai Corporation
• Havells India Ltd.
• Ariston Thermo S.p.A
• Rheem Manufacturing Company
• Stiebel Eltron Inc.
• Vaillant Group International GmbH
• V-Guard Industries Ltd.
• Bradford White Corporation
• NORITZ Corporation
• Glen Dimplex Deutschland GmbH
• Bryant Heating & Cooling Systems
What Is The Most Dominant Region In The Heat Pump Water Heater Market?
Asia-Pacific was the largest region in the heat pump water heater market in 2024. The regions covered in the heat pump water heater market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
