Heat Pump Industry on the Rise: Global Market to Expand Significantly by 2030

Boston, July 21, 2025 (GLOBE NEWSWIRE) — According to the latest study from BCC Research, “Heat Pumps: Global Markets to 2030,” the market is expected to increase from $93.2 billion in 2025 to $134.8 billion by the end of 2030, at a compound annual growth rate (CAGR) of 7.7% from 2025 through 2030.

This report offers a detailed analysis of the global heat pump market, segmented by type, capacity, end user, and region, with data in both value and volume. It examines the leading companies, their market shares, and the impact of emerging technologies and trends. The report also explores economic drivers, regulatory policies, and ESG factors influencing the market. It includes SWOT and Porter’s Five Forces analyses and discusses the technical and commercial aspects of heat pump installations across residential, commercial, and industrial sectors.

This report is particularly relevant now because heat pumps offer a cleaner, more energy-efficient alternative to traditional heating and cooling systems, helping reduce emissions in industries that are hard to decarbonize. While advanced technologies like natural refrigerants, dual-fuel, and industrial heat pumps show promise, more research is needed to overcome challenges to their large-scale use. These technologies alone won’t solve climate change, but they are key tools in efforts to limit global warming to 2°C or less by the end of the century.

The factors driving the market’s growth include:

Electrifying Industry: Industries are switching from fossil fuels to electricity to cut emissions. Heat pumps are key to this shift because they are energy-efficient and work well with clean electricity.

Using Renewable Energy: Heat pumps pair well with solar and wind power. They help store and use renewable energy efficiently, reducing dependence on fossil fuels.

Smart Buildings: Modern buildings use smart systems to manage energy. Heat pumps fit right in, working with sensors and automation to save energy and improve comfort.

More Affordable Green Power: As the cost of solar and wind energy comes down, running heat pumps becomes more affordable. This makes them a smart choice for both homes and businesses.

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Report Synopsis

Report Metric	Details
Base year considered	2024
Forecast period considered	2025-2030
Base year market size	$88.4 billion
Market size forecast	$134.8 billion
Growth rate	CAGR of 7.7% for the forecast period of 2025-2030
Segments covered	Type, Rating Capacity, End User
Regions covered	North America, Europe, Asia-Pacific, South America, Middle East and Africa
Countries covered	U.S., Canada, Mexico, France, Germany, Spain, Italy, Sweden, Norway, Netherlands, Finland, Poland, China, India, Japan, South Korea, Australia, Thailand, Singapore, Vietnam, Brazil, Chile, Argentina, Colombia, Paraguay, Peru, UAE, Saudi Arabia, South Africa, Iraq, Iran, Oman
Market drivers	Electrification of End Use Industries Integration with Renewable Energy Sources Connected Buildings Cost Reduction in Renewable Energy Generation

Interesting facts:

• China led global heat pump production in 2024, contributing nearly 40% of the total output. The U.S. and EU followed, while China also emerged as the primary exporter of heat pumps to Europe.

• In 2023, Europe received 60% of China’s air-source heat pump exports, highlighting the region’s growing reliance on China-based manufacturing for clean heating solutions.

• The U.K. stood out in Europe in 2023, recording an increase of 38,000 heat pump units sold. Despite this growth, overall adoption remains modest due to the high upfront costs of heat pumps.

• China’s residential heat pump market is slowing, largely due to a downturn in the real estate sector, which has dampened demand for new installations.

• Australia took a bold step in 2024, banning new gas connections in residential and other sectors to accelerate its decarbonization efforts and promote the adoption of heat pumps.

• Europe has doubled its building renovation targets, aiming to retrofit 2% of older buildings and 3% of central government buildings annually—an ambitious move to boost energy efficiency.

• Heat pumps could significantly cut carbon emissions, with projections estimating reductions of 58 million tons of CO₂ by 2030, 147 million tons by 2040, and 251 million tons by 2050.

Emerging startups

• Aira Group
• Quilt
• DREM

The report addresses the following questions:

1. What is the projected size and growth rate of the market?

• The global market for heat pumps was valued at $88.4 billion in 2024 and is expected to reach $134.8 billion by the end of 2030, a 7.7% CAGR for the forecast period.

2. Which factors are driving the growth of the market?

• Market drivers include the electrification of end-use industries; the rise of smart automation, such as connected buildings; integration with renewable energy sources; and cost reduction in renewable energy generation.

3. Which market segments are covered in the report?

• The market is segmented by type, end user, and rating capacity. Types include air-to-air, air-to-water, ground/geothermal source, water source, and others. End users include industrial, residential, and commercial sectors. Rated capacities include up to 10 kW, 10-20 kW, 20-30 kW, and above 30 kW.

4. Which type will be dominant through 2030?

• The air-to-air segment will dominate the market through 2030.

5. Which rating capacity segment will be dominant through 2030?

• The up to 10 kW segment will dominate the market through 2030.

6. Which end-user segment will be dominant through 2030?

• The residential segment will dominate the market through 2030.

7. Which region will be dominant through 2030?

• The market is segmented into five regions: Asia-Pacific (APAC), North America, Europe, Middle East and Africa (MEA), and South America. APAC holds the largest market share due to its significant heat pump production and consumption potential, especially in China. The region also has an abundance of raw materials, such as steel, which supports the region’s heat pump production capabilities.

Market leaders include:

• BOSCH THERMOTECHNIK GMBH
• CARRIER
• DAIKIN INDUSTRIES LTD.
• DENSO CORP.
• FUJITSU GENERAL
• JOHNSON CONTROLS
• LENNOX INTERNATIONAL INC.
• LG ELECTRONICS
• MIDEA GROUP
• MITSUBISHI HEAVY INDUSTRIES LTD.
• PANASONIC HOLDINGS CORP.
• SAMSUNG
• THERMAX LTD.
• TRANE TECHNOLOGIES PLC.
• VIESSMANN GROUP

Related reports:

Heating, Ventilation and Air Conditioning: Global Markets: This report offers a detailed review of the global HVAC market, segmented by product type (heating, ventilation, and cooling equipment), installation type, application, and region (North America, Europe, Asia-Pacific, and Rest of the World). It covers key players, their products, revenues, and patent activity, along with insights into ESG factors, emerging technologies, and the competitive landscape. The study also assesses the impact of the Russia-Ukraine war on global and regional markets, with market values and growth rates provided in millions of dollars.

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