The global Heat Pump Market is estimated to be valued at US$10674.44 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The global heat pump market consist of products such as air source heat pumps, geothermal heat pumps and water source heat pumps. Heat pumps uses electricity to gather heat from various sources including air, water bodies and geothermal systems and transfer it indoors. This collected heat can be used for heating, ventilation and air conditioning purposes. Heat pumps are highly efficient low carbon heating systems that provide heating and cooling with significantly less energy compared to traditional heating systems like gas or oil boilers. They are versatile, cost effective and environment friendly equipment used for both residential and commercial heating needs.
Market key trends:
Continuous urbanization in both developed and developing economies is driving the demand for centralized and district heating systems. Heat pumps are increasingly being used as a renewable and sustainable heating technology in urban district heating networks. Advancements in heat pump technology have improved their efficiency and reliability over the years. Growing demand for energy efficient and eco-friendly solutions is boosting the adoption of heat pumps across various end use industries like residential, commercial and industrial. Rising environmental awareness and governmental support through incentives and subsidies is also positively impacting the heat pump market growth.
Threat of new entrants: Low capital requirement and established distribution channels by incumbents make entry difficult for new players in the heat pump market.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and undifferentiated products.
Bargaining power of suppliers: Major components suppliers possess significant bargaining power over OEMs due to differentiated parts and expertise required.
Threat of new substitutes: Substitutes like electric heaters, gas heaters offer threat but do not provide same level of efficiency as heat pumps.
Competitive rivalry: Intense competition exists among existing players to gain higher market share through product innovation, partnerships and geographical expansion.
The Global Heat Pump Market Share is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing demand for energy-efficient heating solutions. The market size for 2023 is US$ 10674.44 Mn.
Regional analysis: The Asia Pacific region dominates the global heat pump market led by China, followed by Europe. Supportive government policies and subsidies for green technologies drive the demand. Japan and South Korea also offer significant opportunities.
Key players: Key players operating in the heat pump market are Daikin Industries Limited, Viessmann Group, NIBE Group, Danfoss Group Global, Stiebel Eltron Group, Mitsubishi Electric Corporation, United Technologies Corporation, Panasonic Corporation, Glen Dimplex Group, The Bosch Group. Players focus on product innovation and partnerships for geographical expansion.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it