PUBLISHER: The Business Research Company | PRODUCT CODE: 1923194
PUBLISHER: The Business Research Company | PRODUCT CODE: 1923194
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.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs on compressors, refrigerants, electronic sensors, and imported heat pump components have increased production and installation costs for heat pump water heaters, particularly affecting residential and commercial segments in regions reliant on Asian or European supply chains. These tariffs have slowed project timelines and raised unit pricing, yet they also stimulate domestic manufacturing and encourage investment in local component production, supporting long term market resilience and innovation in high efficiency HPWH technologies.
The heat pump water heaters market research report is one of a series of new reports from The Business Research Company 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 size has grown strongly in recent years. It will grow from $2.62 billion in 2025 to $2.8 billion in 2026 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to early adoption of energy efficient heating systems, rising electricity prices encouraging heat pump use, government incentives for renewable heating, technological improvements in compressor efficiency, growing awareness of carbon reduction.
The heat pump water heater market size is expected to see strong growth in the next few years. It will grow to $3.72 billion in 2030 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to increasing penetration of smart home ecosystems, rising adoption of hybrid hpwhs, advancements in heat pump refrigerant technologies, expansion of commercial heat pump projects, growing shift toward electrified heating systems. Major trends in the forecast period include rising adoption of smart heat pump water heaters, growing shift toward low emission heating solutions, increasing integration of connected monitoring and control systems, expansion of hybrid and dual fuel heat pump technologies, rising use of advanced refrigerants for higher efficiency.
The increased use of renewable energy sources is expected to drive the heat pump water heater market going forward. Renewable energy sources are forms of energy derived from natural processes that are continuously replenished. Growing public concern about climate change has led to rising demand for renewable energy and environmental protection. Heat pumps are highly energy-efficient and support clean energy technologies by promoting sustainability and energy conservation in residential and commercial settings. For example, in December 2024, according to Eurostat, a Luxembourg-based statistical agency of the European Union, 24.5% of the EU's gross final energy consumption in 2023 came from renewable sources, an increase of 1.4 percentage points compared with 2022. This share remains 18 percentage points below the 2030 target of 42.5%, requiring an average annual increase of 2.6 percentage points from 2024 to 2030. Therefore, the increasing use of renewable energy sources is driving the growth of the heat pump water heater market.
Major companies operating in the heat pump water heater market are emphasizing technological advancements, such as smart hybrid heat pump systems, which combine heat pump technology with electric-resistance backup and digital connectivity to optimize hot water delivery, energy consumption, and system intelligence. For example, in October 2024, A. O. Smith Corporation, a U.S.-based manufacturer of water heating and treatment solutions, launched its Signature(TM) 900 Smart Hybrid Heat Pump Water Heater with Hot Water Plus, offering up to 40% more hot water output, built-in leak detection with automatic shut-off functionality, and smart home connectivity for remote monitoring and control. This trend drives greater energy savings, supports regulatory requirements for decarbonization, and improves user experience; however, it also increases product complexity, raises upfront investment needs, and requires installer training to handle advanced features.
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 2025. The regions covered in the heat pump water heater market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
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.
Heat Pump Water Heater Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses heat pump water heater market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for heat pump water heater ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The heat pump water heater market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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