The residential heat pump market is expected to grow from $33.5 billion in 2021 to $77.5 billion by 2030, at a CAGR of 9.7%. The market is driven by the demand for energy-efficient and environmentally friendly heating and cooling solutions. Heat pumps use electricity to transfer heat, making them a highly efficient alternative to traditional HVAC systems. Government incentives, such as the US Inflation Reduction Act, and advancements in technology are driving adoption. However, high upfront costs and limited performance in extreme climates remain barriers to adoption. Regional trends vary, with Europe experiencing a decline in sales in 2024, while North America is shifting away from gas furnaces. The Asia-Pacific region is expected to dominate the market, driven by rapid urbanization and government initiatives promoting clean heating solutions. The market is segmented by type, application, and region, with air-source heat pumps expected to be the fastest-growing segment during the forecast period.
The global residential heat pump market is projected to expand to $77.5 billion by 2030, driven by a robust compound annual growth rate of 9.7%.
