Heat Pump Water Heater Global Market Report 2024

The heat pump water heater market size has grown rapidly in recent years. It will grow from $2.22 billion in 2023 to $2.45 billion in 2024 at a compound annual growth rate (CAGR) of 10.6%. The expansion observed in the historical period can be attributed to factors such as incentives for energy efficiency, savings on utility costs, increased environmental awareness, market penetration efforts, adherence to building codes and standards, and evolving consumer preferences.

The heat pump water heater market size is expected to see rapid growth in the next few years. It will grow to $3.34 billion in 2028 at a compound annual growth rate (CAGR) of 8%. The projected growth in the forecast period is driven by several key factors, including the rising integration with electricity grids, the upward trajectory of net-zero building trends, intensified market competition and innovation, growing emphasis on energy performance labeling, expanding residential and commercial retrofit programs, and an increased focus on climate resilience and adaptation. Notable trends anticipated in this period include a shift towards energy-efficient solutions, widespread adoption of heat pump water heaters, integration with smart home systems, boosted demand due to government incentives, an expanded range of offerings with enhanced efficiency, heightened utilization in conjunction with renewable energy sources, the development of hybrid heat pump water heaters, integration into sustainable building designs, and ongoing innovation in heat pump technology.

The anticipated increase in the use of renewable energy sources is poised to drive the growth of the heat pump water heater market. Renewable energy sources, constantly replenished natural processes, are gaining prominence due to growing public concerns about climate change and a heightened demand for sustainable energy and environmental protection. Heat pump water heaters, known for their high energy efficiency, align with clean energy technologies, promoting sustainability and energy conservation in both residential and commercial settings. As of January 2024, the European Union (EU) achieved a 23% share of its gross final energy consumption from renewable sources in 2022, representing a 1.1% increase from the previous year. The upward trend in the use of renewable energy sources is a key driver propelling the growth of the heat pump water heater market.

Prominent companies in the heat pump water heater market are intensifying their focus on developing hybrid electric heat pump water heaters to gain a competitive edge. Hybrid electric heat pump water heaters combine heat pump technology with traditional electric resistance heating elements, allowing them to operate in multiple modes based on surrounding conditions and hot water demand. In September 2022, A. O. Smith Corporation, a US-based manufacturer of water heaters and boilers, launched the Voltex AL (anti-leak) smart hybrid electric heat pump water heater line. This innovative model boasts the highest overall uniform energy factor (UEF) of 4.02 with the 66-gallon unit and features iCOMM smart connectivity for homeowner control and alerts through the A.O. Smith app. The Voltex AL model also incorporates integrated leak detection, smart connectivity, and updated water connections, catering to various new and retrofit applications.

In January 2023, Johnson Controls, an Ireland-based conglomerate company, completed the acquisition of Hybrid Energy AS for an undisclosed amount. This strategic move aims to enhance Johnson Controls' industrial heat pump portfolio and address high-temperature heating needs with a hybrid heat pump solution. The acquisition positions Johnson Controls to set new global standards for clean energy and significantly reduce greenhouse gas emissions. Hybrid Energy, based in Norway, specializes in providing high-temperature energy management solutions with a focus on heat pumps for district heating and industrial processes.

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.

Asia-Pacific was the largest region in the heat pump water heater market in 2023. 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. The countries covered in the heat pump water heater market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A heat pump water heater (HPWH) is a water heating system that employs a heat pump to transfer heat from the surrounding air or ground to warm water for domestic use. By utilizing this technology, these water heaters contribute to a reduction in electricity consumption and greenhouse gas emissions compared to conventional water heating methods.

The primary categories of heat pump water heaters encompass air-to-air, air-to-water, water source, ground source (geothermal), and hybrid models. Air-to-air heat pump water heaters utilize surrounding air as a heat source for water heating, relying on electricity or dual-fuel (electric and gas) options. They are available in capacities suitable for both traditional and advanced heat pump water heaters. Price options range from economy to mid-range and premium, catering to residential, commercial, and industrial applications.

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

The heat pump water heater market consists of sales of evaporator coils, refrigerants, compressors, condenser coils, and heat exchangers. 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.

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.


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