Heat Pumps Global Market Report 2026

Heat pumps refer to energy-efficient systems that transfer heat from one location to another using a refrigeration cycle. They are used for heating and cooling buildings, as well as for supplying hot water, by extracting heat from air, ground, or water sources.

Primary heat pump types include air source, air-to-air, air-to-water, water source, and ground source. Ground-source heat pumps are notably efficient, drawing heat from the ground for space heating and cooling purposes. These pumps are rated with capacities ranging up to 10 kW, 10-20 kW, 20-30 kW, and exceeding 30 kW. The end-users encompass residential, commercial, and industrial sectors.

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 are impacting the heat pumps market by increasing the cost of imported compressors, heat exchangers, electronic controllers, and refrigerants. Europe and North America are particularly affected due to dependence on imported components from Asia-Pacific suppliers. These tariffs are raising system installation costs and slowing adoption in price-sensitive segments. However, they are also encouraging regional manufacturing, supply chain localization, and innovation in cost-efficient and high-performance heat pump technologies.

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

The heat pumps market size has grown steadily in recent years. It will grow from $126.83 billion in 2025 to $130.46 billion in 2026 at a compound annual growth rate (CAGR) of 2.9%. The growth in the historic period can be attributed to government incentives for energy efficiency, rising energy costs, demand for sustainable heating, growth of residential construction, environmental regulations.

The heat pumps market size is expected to see strong growth in the next few years. It will grow to $166 billion in 2030 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to expansion of net-zero buildings, electrification of heating systems, innovation in heat pump efficiency, smart energy management adoption, urbanization growth. Major trends in the forecast period include rising adoption of energy-efficient heating systems, growing demand for low-carbon buildings, expansion of residential heat pump installations, technological advancements in refrigerants, integration with smart home systems.

Favorable initiatives aimed at reducing carbon footprints are anticipated to boost the growth of the heat pumps market in the future. A carbon footprint is defined as the total quantity of greenhouse gases, mainly carbon dioxide (CO2), along with other greenhouse gas equivalents, emitted directly or indirectly by an individual, organization, event, product, or activity over a certain timeframe. Heat pumps are energy-efficient and generate lower carbon emissions compared to traditional heating and cooling systems. Furthermore, government incentives, green building standards, and increased consumer awareness contribute to the rising adoption of heat pumps as a sustainable option. As individuals, organizations, and governments work to combat climate change and diminish carbon emissions, heat pumps present an appealing solution for reducing environmental impact while also yielding cost savings and ensuring regulatory compliance. For example, in December 2023, the UK government, through its Department for Energy Security and Net Zero, announced its goal to reduce direct emissions from public sector buildings by 50% by 2032 and by 75% by 2037. Thus, favorable measures to cut carbon footprints are propelling the growth of the heat pumps market.

Major companies in the heat pumps market are developing renewable solutions, such as hybrid heating systems, to strengthen their market position. Hybrid heating systems combine two or more heating technologies to maximize energy efficiency and reduce environmental impact. For instance, in January 2023, Alpha Heating Innovation, a UK-based electrical and electronics manufacturer, launched the E-Tec Hybrid, a hybrid heating system designed to help homeowners transition to renewable heating while maintaining the reliability of a gas boiler. The system integrates the Alpha E-Tec 33 boiler with an external heat pump unit (Alpha E-Tec EHP) and Smartech controls to deliver efficient heating and hot water. It intelligently selects the most cost-effective energy source based on current energy tariffs and outdoor temperatures, provides instantaneous hot water, eliminates the need to upgrade existing heating systems, and can be installed in a single day.

In January 2023, Johnson Controls International PLC, an Ireland-based industrial machinery manufacturing company, acquired Hybrid Energy AS for an undisclosed sum. This strategic acquisition strengthened Johnson Controls' industrial heat pump portfolio, enabling the provision of high-temperature heat pumps with energy-efficient and sustainable solutions. The focus is on serving the rapidly growing district heating and industrial markets, especially in Europe, while aligning with decarbonization and sustainability objectives. Hybrid Energy AS, the acquired company, is based in Norway and specializes in energy management solutions, with a particular emphasis on high-temperature solutions, including heat pumps for district heating and industrial processes.

Major companies operating in the heat pumps market are Robert Bosch GmbH, Hitachi Ltd., LG Electronics Inc., Panasonic Corporation, Midea Group Corporation, Mitsubishi Electric Corporation, Fujitsu General Limited, Daikin Industries Ltd., Johnson Controls International PLC, Carrier Corporation, Trane Inc., Danfoss A/S, Ingersoll Rand Inc., Viessmann Werke GmbH & Co. KG, Lennox International Inc., Vaillant Group, NIBE Industrier AB, Glen Dimplex Group, BDR Thermea Group S.p.A., Stiebel Eltron GmbH & Co. KG, Wolf GmbH, Enertech Global Corp., Bryant Heating & Cooling LLC, Airwell Group Limited, Samsung Electronics Co. Ltd.

Asia-Pacific was the largest region in the heat pumps market in 2025. North America was the second largest region in the global heat pumps market share. The regions covered in the heat pumps 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 pumps market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The heat pumps market consists of sales of closed loop, open loop and direct expansion ground-source heat pump. 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 Pumps 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 pumps 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.

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Where is the largest and fastest growing market for heat pumps ? 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 pumps 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.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Product Type: Air-to-Air; Air-to-Water; Water Source; Ground Source
• 2) By Rated Capacity: Up to 10 kW; 10-20 kW; 20-30 kW; Above 30 kW
• 3) By End User: Residential; Commercial
• Subsegments:
• 1) By Air-To-Air: Ductless Mini-Split Systems; Ducted Systems
• 3) By Air-To-Water: Monoblock Air-to-Water Heat Pumps; Split Air-to-Water Heat Pumps; High-Temperature Air-to-Water Heat Pumps; Low-Temperature Air-to-Water Heat Pumps
• 4) By Water Source: Open Loop Systems; Closed Loop Systems
• 5) By Ground Source: Geothermal Heat Pumps; Horizontal Loop Systems; Vertical Loop Systems
• Companies Mentioned: Robert Bosch GmbH; Hitachi Ltd.; LG Electronics Inc.; Panasonic Corporation; Midea Group Corporation; Mitsubishi Electric Corporation; Fujitsu General Limited; Daikin Industries Ltd.; Johnson Controls International PLC; Carrier Corporation; Trane Inc.; Danfoss A/S; Ingersoll Rand Inc.; Viessmann Werke GmbH & Co. KG; Lennox International Inc.; Vaillant Group; NIBE Industrier AB; Glen Dimplex Group; BDR Thermea Group S.p.A.; Stiebel Eltron GmbH & Co. KG; Wolf GmbH; Enertech Global Corp.; Bryant Heating & Cooling LLC; Airwell Group Limited; Samsung Electronics Co. Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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