The Residential Heat Pump Market Projected to Grow at a CAGR of 9.7% and Generate a Revenue of $77,459.80 million by 2030Download Sample Reports Overview
The global residential heat pump market is predicted to be valued at $77,459.80 million by 2030, surging from $33,533.40 million in 2021, at a noteworthy CAGR of 9.7%.
Covid-19 Impact on Residential Heat Pump Market
The coronavirus outbreak has created a negative impact on the demand and supply of heat pumps owing to complete lockdown across various countries. The lockdown restrictions have greatly affected the manufacturing of heat pumps due to shutdown of manufacturing units. Further, substantial part of workforce employed in the residential heat pump manufacturing sector was ordered to stay in quarantine and various manufacturing companies were not able to resume their work. Residential heat pump system is widely deployed in new building construction projects that minimizes the carbon emission and meets the energy demand. However, the construction projects across various countries were at standstill owing to social distancing norms. Many construction projects were postponed, and some were cancelled due to drastic economic downturn led by COVID-19 pandemic resulting in huge economic losses. Also, some construction projects that were ongoing during pandemic faced significant delays in the availability of air conditioners, solar, and heat pump systems for residential buildings as non-essential activities were at standstill.
However, various government initiatives towards green industrial revolutions and net zero carbon emissions across various countries are estimated to drive residential heat pump market growth. For instance, as stated on November 19, 2020, by the GeoScience Ltd, the UK-based geothermal research company, the UK government has released 10-point plan for green industrial revolution that covers clean energy, innovative technologies, nature, and transport. In this initiative, the government will invest Euro 12 million to generate 250,000 highly-skilled jobs and to drive private sector investment by 2030. In this 10-point plan, the point 7 focuses on installation of heat pump systems across various homes, schools, and hospitals for energy efficiency and green economy.
Global Residential Heat Pump Market Analysis
Growing importance of heat pump system owing to significant reduction in carbon emission and emission of greenhouse gases is estimated to drive the residential heat pump market size. Heat pumps help in reducing carbon emissions as they do not generate heat but are used to transfer heat. As heat transfer is efficient compared to heat generation, heat pumps consume much less energy than the conventional furnace. Also, heat pump for residential home is highly efficient as it delivers more heat compared to the electricity that it consumes. Hence, the heat pump system such as residential geothermal can help in cutting down your energy bills. For instance, the U.S. Department of Energy, the U.S.-based government organization, stated that the heat pumps can cut down your energy bills by 65% compared to traditional systems.
However, the high installation cost of entire heat pump system that varies for different heat pumps for residential home is estimated to restrain the market growth. The typical price range for complete residential heat pump installation is between Euro 8,000 and Euro 45,000. Also, some heat pumps such as residential geothermal heat pumps are fairly difficult to install as we need to consider the geology, local conditions, movement of heat, and other factors.
Increase in the demand for renewable energy across the globe owing to population growth, rapid urbanization, and industrialization is estimated to drive the residential heat pump market size. For instance, as stated on February 9, 2021, in the Business Standard, leading news platform, India’s energy demand is estimated to be more than any other country over next two decades. International Energy Agency (IEA), a Paris-based autonomous intergovernmental organization, estimated that India will be overtaking European Union (EU) in terms of energy consumption by 2030. In addition, IEA stated that the construction of building sector recorded highest residential heat pump purchases in 2019. For instance, in the U.S., the heat pump sales in the newly constructed buildings exceeded 40% in 2019 for single-family dwellings and it was around 50% for new multi-family buildings.
Global Residential Heat Pump Market, Segmentation
The global residential heat pump market is segmented based on type, power source, and region.
The type segment is further classified into air source, water source, and geothermal. Among these, the air source sub-segment is anticipated to have a dominant residential heat pump market size and shall surpass $54,022.10 million by 2030, with an increase from $22,641.50 million in 2021. Air source residential heat pumps are highly efficient for heating and cooling your homes. This heat pump can deliver three times more energy to your home compared to the electricity that it consumes. Air source heat pumps are cheaper and help in saving money than oil boilers or gas boilers as they do not need fossil fuel for combustion. As heat pumps are fully automated, they require less work compared to biomass boilers. There is no requirement for fuel storage hence they save space. Also, they have longer life than combustion boilers.
The power source segment is further classified into electric powered and gas powered. Among these, the electric powered sub-segment is anticipated to have a dominant residential heat pump market share and shall surpass $57,093.90 million by 2030, with an increase from $23,925.60 million in 2021. Electric heat pump is powered by electricity due to which it is cheaper to run. There is no risk of emission due to toxic or combustible gases which is usually seen in gas boilers or furnaces. Hence electric residential heat pump system keeps the indoor air clean and free of toxic gases. One of the biggest advantages of this heat pump is humidity control. For instance, traditional heaters or air conditioners require humidifier to combat the dry air in winter and dehumidifier to remove excess moisture from your home during summer.
The residential heat pump market in the North America region is projected to witness substantial growth. The North America residential heat pump market share was $9,848.80 million in 2021 and is anticipated to reach up to $21,704.20 million by 2030. The residential heat pump market in North America is expected to rise as construction activities in residential establishments in the United States and Canada have increased. During the projection period, the market trends would be aided by increased disposable income, affordability, and living standards. For example, according to a survey conducted by United States Census Bureau, an average of 1,200 privately owned dwellings were built on a monthly basis in 2020, creating a good economic scenario for single family heat pumps. The U.S. residential heat pump market share is poised to accelerate in the coming years. Constantly growing demand for renewable energy with latest technologies will further foster the industry spectrum. The US government has offered a variety of incentives to people to encourage the installation of these pumps which is expected to boost product demand in the near future.
Key Players in the Global Residential Heat Pump Market
Some of the leading residential heat pump market players are
- Midea Group
- Johnson Controls
- Carrier Corporation
- Glen Dimplex
- Stiebel Eltron
- Mitsubishi Electric Corporation