Heat Pump Retrofit Design Market Report 2026

Heat Pump Retrofit Design Market Overview

• Heat Pump Retrofit Design market size has reached to $9.12 billion in 2025 • Expected to grow to $16.58 billion in 2030 at a compound annual growth rate (CAGR) of 12.7% • Growth Driver: The Rise In Energy Prices And Cost Volatility Driving The Growth Of The Market Due To Improving Energy Efficiency And Reducing Reliance On Fossil Fuels • Market Trend: Dual-Circuit Loop Innovations Simplify Low-Disruption Heating Upgrades • Europe was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Heat Pump Retrofit Design Market?

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

What Is The Heat Pump Retrofit Design Market Growth Forecast?

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.

Global Heat Pump Retrofit Design Market Segmentation

1) By Product Type: Air Source Heat Pumps; Ground Source Heat Pumps; Water Source Heat Pumps 2) By Service Type: Building Energy Assessment And Audit; System Feasibility And Sizing Study; Detailed Engineering And Design Development; Integration Planning And Specification Writing; Commissioning Support And Performance Verification; Post Installation Monitoring And Optimization 3) By Installation Type: New Installation; Retrofit 4) By Application: Residential; Commercial; Industrial 5) By End User: Single-Family Homes; Multi-Family Buildings; Offices; Retail; Hospitality; Industrial Facilities; Other End Users Subsegments: 1) By Air Source Heat Pumps: Residential Air Source Heat Pumps; Commercial Air Source Heat Pumps; Industrial Air Source Heat Pumps; Ducted Air Source Heat Pumps; Ductless Air Source Heat Pumps 2) By Ground Source Heat Pumps: Horizontal Loop Ground Source Heat Pumps; Vertical Loop Ground Source Heat Pumps; Pond Loop Ground Source Heat Pumps; Residential Ground Source Heat Pumps; Commercial Ground Source Heat Pumps 3) By Water Source Heat Pumps: Open Loop Water Source Heat Pumps; Closed Loop Water Source Heat Pumps; Lake And River Source Heat Pumps; Residential Water Source Heat Pumps; Commercial Water Source Heat Pumps

What Is The Driver Of The Heat Pump Retrofit Design Market?

The rising energy prices and cost volatility are expected to propel the growth of the heat pump retrofit design market going forward. The rise in energy prices and cost volatility is driven by supply-demand imbalances, as fluctuations in fuel availability and consumption levels lead to frequent and unpredictable changes in energy costs. Heat pump retrofit design helps address energy prices and cost volatility by improving energy efficiency and reducing reliance on fluctuating fossil fuel prices, leading to more stable and predictable energy costs. For instance, in April 2024, according to the Australian Energy Regulator, an Australia-based government agency, in 2023, quarterly electricity prices in Queensland and Victoria rose by 20% and 9%, respectively, compared to the same quarter of the previous year. Therefore, the rising energy prices and cost volatility are driving the growth of the heat pump retrofit design industry.

Key Players In The Global Heat Pump Retrofit Design Market

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.

Global Heat Pump Retrofit Design Market Trends and Insights

Major 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 instance, 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.

What Are Latest Mergers And Acquisitions In The Heat Pump Retrofit Design Market?

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 delivery of low‑carbon energy solutions. Elite Renewables Limited is a UK‑based renewable energy technology and installation company that specializes in the design and installation of high‑efficiency heat pumps, solar PV systems, battery storage, EV chargers, and other advanced renewable energy systems.

Regional Insights

Europe was the largest region in the heat pump retrofit design market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Heat Pump Retrofit Design Market?

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.

How is Market Value Defined and Measured?

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.

What Key Data and Analysis Are Included in the Heat Pump Retrofit Design Market Report 2026?

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