Global Heat Pump Water Heater Market is Segmented By Type (Tankless Water Heater, Demand Type Water Heater), By Capacity (Up to 10 KW, 10 to 50 KW, More than 50 KW), By Storage (Up to 500 L, 500 to 1000 L, More than 1000 L), By Refrigerant (R407C, R410A, R744), By End-User (Residential, Commercial, Industrial), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Heat Pump Water Heater Market Size
The "global heat pump water heater" market reached US$ XX million in 2022 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2024-2031).
Heat Pump Water Heater Market Scope
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Metrics |
Details |
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Market CAGR |
High |
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Segments Covered |
By Type, By Capacity, By Storage, By Refrigerant, By End-User, and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
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Instead of developing heat directly, heat pump water heaters (HPWHs) utilize energy to transport heat. As a result, they can save 2-3 times as much energy as traditional electric resistance water heaters. Heat pumps act as a refrigerator in reverse to transport heat. An air-source heat pump water heater draws heat from the surrounding air and transfers it, at a higher temperature, to heat water in a storage tank. Heat pump water heaters must be installed at temperatures ranging from 40°F to 90°F and must have at least 1,000 cubic feet (28.3 cubic meters) of air space around them.
An air-source heat pump system that combines cooling, heating, and water heating can also be installed. The combination systems draw heat indoors from the inside air in the summer and from the outside air in the winter. Because they draw heat from the air, any air-source heat pump system works more efficiently in a warm climate. Heat pump water heaters typically have higher initial costs than storage water heaters. However, they have low operating costs, compensating for higher purchase and installation costs.
Source: DataM Intelligence Analysis (2022)
Heat Pump Water Heater Market Trends
The global heat pump water heater market is expected to boost with demand to curb GHGs by installing advanced systems.
Demand to curb GHGs by installing advanced systems
Heat pump water heaters (HPWHs) provide a solution to move away from natural gas for water heating while utilizing half to one-third of the energy used by electric resistance water heaters (EWHs). As a result, when compared to electric and natural gas water heaters, HPWHs can dramatically cut GHG emissions. Heat pump water heaters, which currently account for a small percentage of the heating market, have been recognized by several regulatory authorities. Almost every home has a water heater, but most people don't think about it seriously. On the other hand, regulators are growing concerned about the ubiquitous household device's role in cutting greenhouse gas emissions and weaning the electricity system off fossil fuels. For example, California wants to substitute millions of gas water heaters with high-tech electric heaters to serve as "thermal batteries" for accumulating solar and wind energy.
Heat pump water heaters, which transmit heat from the atmosphere to a tank, have been lately emphasized in California. It can be up to four times more efficient than standard gas or electric water heaters. Natural gas powers nearly half of all water heaters in the U.S. Water heating is one of California's largest consumers of fossil fuels, with gas water heaters accounting for 90% of the market. According to research published by the New Buildings Institute, replacing them with heat pump versions may reduce greenhouse gas emissions from water heating in the state by as much as 77%.
Lack of awareness in developing nations
Unfortunately, heat pump water heaters for household use are not generally accessible (most are designed for small commercial applications). The market has only a few units available compared to other types. Due to a lack of consumer and contractor awareness, some manufacturers have discontinued their heat pump water heater lines. Heat pump water heaters can be twice as expensive as electric resistance water heaters. However, interest has recently resurfaced because of tax credits and other incentives, and availability is projected to rise soon.
Heat pump water heaters can take a prolonged time to produce larger volumes of hot water. It may not be a significant problem during the summer when the unit can readily draw from warm air, but it can be a problem during the cold winter months. It is found that, during peak times, this type of water heater can fall short of water availability.
COVID-19 Impact on Heat Pump Water Heater Market Growth
The heat pump water heaters market was negatively impacted in commercial and industrial sectors during COVID-19. However, the market has witnessed great potential in the residential sector. The pandemic has significantly affected people's behavioral patterns because of stay-at-home orders and reduced social interactions. Therefore, the electrical loads associated with residential buildings have also changed.
HVAC and water heating remain the biggest electricity consumers in residential homes and the findings indicate an even further increase in energy use by these systems. Working from home has led to substantial energy consumption patterns within residential and commercial sectors. The rising electricity bills and GHG concerns during the pandemic have driven homeowners to install efficient appliances, including heating systems. The EU market has expanded quickly, with almost 1.8 million households purchasing a heat pump in 2020 (7.5% growth relative to 2019, despite the pandemic).
Heat Pump Water Heater Market Segment and Shares Analysis
The global heat pump water heater market is segmented based on type, storage, capacity, refrigerant, end-user, and region.
Incentives by Local, State, and Federal governments to upgrade their heating systems will boost the demand in the residential sector
The global heat pump water heater market is segmented into residential, commercial, and industrial based on end-user.
Homeowners primarily install geothermal heat pumps, which draw heat from the ground during the winter and from the indoor air during the summer for heating and cooling their homes. A desuperheater can be a geothermal heat pump system for water heating. Gas-powered water heaters burn fossil fuels releasing Carbon Monoxide and Nitrogen Dioxide into the home. Without proper ventilation, this diminishes indoor air quality and increases the chances of asthma and other respiratory illnesses. HPWHs are all-electric and combustion-free, leaving your indoor air clean and healthy year-round. Local, State and Federal HPWH incentives can save customers thousands on their HPWH upgrades.
In 2022, To reduce local emissions, Silicon Valley Clean Energy announced rebates to customers who replace gas water heaters with efficient, Electric Heat Pump Water Heaters. The FutureFit HPWH program has now helped fund the installation of over 200 HPWHs. Additional rebate funding is available for customers who need a panel upgrade to sustain the switch to electric water heating and prepare them for further home electrification.
The majority of existing homes in the Bay Area have natural gas water heaters, which account for around half of a home's carbon emissions. Heat pump water heaters use clean energy instead of gas to heat water, making them a healthier and safer option. HPWHs are three times more efficient than standard electric resistance water heaters because they transfer heat from the outside air to the water. The Decarbonization Strategy & Programs Roadmap for Silicon Valley Clean Energy emphasizes the necessity of advancing high-efficiency, all-electric new construction, and retrofits to reduce emissions in the built environment.
Source: DataM Intelligence Analysis (2022)
Heat Pump Water Heater Market Geographical Analysis
Implementation of new regulations to promote the use of heat pump water heaters will boost the demand in North America
Space and water heating contribute 62% and 21% of the residential GHGs in Canada, respectively, corresponding to 11% of the GHGs within the country. Because both space and water heating are monopolized by natural gas, the carbon footprint of Canada could be greatly reduced with a shift towards the clean room and water heating, such as heat pump water heaters. Solar-assisted HPWHs may allow the GHG reductions of HPWHs to be realized without increased space heating loads. Although not widely used for domestic heating water, heat pump water heaters are an excellent option for heating swimming pools. Most electric pool and spa heaters are heat pumps. The heaters are installed outdoors, next to the pool or spa, and pull their heat from the surrounding air.
Water heating is the second-highest energy use in a U.S. home, accounting for nearly 17% of residential energy consumption. Although natural gas-fed water heaters account for 48% of the market, fuel oil, wood, and solar account for another 7%, electric water heaters make up about 45% of the market and present the opportunity for energy savings in water heating.
In 2020, The California Energy Commission voted to adopt a new appendix to the state’s building energy code, named “Joint Appendix 13” (JA13), that will allow the code to reward smart electric heat pump water heaters for their grid benefits. Its development was facilitated by NRDC in collaboration with a group of water heater manufacturers, other industry stakeholders, and non-profit organizations.
Source: DataM Intelligence Analysis (2022)
Heat Pump Water Heater Companies and Competitive Landscape
The global heat pump water heater market is still evolving and has a limited number of players. Major players in the market include Midea Group, PHNIX, RHEEM Manufacturing Company, Bosch Industries, Daikin, A.O. Smith Corporation, Ingersoll Rand, NIBE Energy Systems, Valliant Group, Mitsubishi Electric, among others.
The major players in the market are known to incorporate numerous market strategies to achieve growth in the global heat pump water heater market; these include product launches, mergers, acquisitions, and collaborations.
PHNIX
Overview: As China's major heat pump manufacturer, PHNIX specializes in heat pumps and energy-saving solutions. More than 50% of PHNIX products are exported to North America, Europe, and other overseas markets. As one of the primary heat pump manufacturers in China, the company's daily production capability can achieve 1600 units. Its products involve House Heating & Cooling Heat Pump, Swimming Pool Heat Pump, Heat Pump Dehumidifier, Commercial & Industrial High-Temperature Water Heating Solution, Domestic Hot Water Heat Pump, Agricultural Heat Pump Dryer, etc.
Product Portfolio: All-in-one series heat pump water heater is specifically designed for residential hot water use. It can be invited wherever in the room and fused with furniture because of its elegant appearance.
Key Development: In 2022, PHNIX introduced a new Expert inverter R290 all-in-one heat pump water heater, to deliver comfortable hot water in homes while minimizing carbon footprint.
Why Purchase the Report?
- To visualize the global heat pump water heater market segmentation by type, storage, capacity, refrigerant, end-user, and region and understand key commercial assets and players.
- Identify commercial opportunities in the global heat pump water heater market by analyzing trends and co-development.
- Excel data sheet with numerous data points of heat pump water heater market-level with four segments.
- PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
- Type mapping available in excel consists of key products of all the major market players
The global heat pump water heater market report would provide approximately 77 tables, 71 figures, and almost 207 pages.
Target Audience 2022
- Service Providers/ Buyers
- Industry Investors/Investment Bankers
- Hotel & Hospitals
- Regulatory Bodies
- Education & Research Institutes
- Research Professionals
- Emerging Companies
- Manufacturers
- Logistics companies
- Distributors
