Heat Pump Water Heater Market Size Worth USD 38.60 Billion by 2034 | CAGR: 11.9%

The global heat pump water heater market size is expected to reach USD 38.60 billion by 2034, according to a new study by Polaris Market Research. The report “Heat Pump Water Heater Market Size, Share, Trends, Industry Analysis Report: By Technology, Capacity, Operation Type (Electric and Hybrid), Application, Tank Capacity, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

A heat pump water heater is an energy-efficient system that extracts heat from the surrounding air and transfers it to water, reducing energy consumption compared to conventional water heaters. One of the top trends shaping the heat pump water heater market growth is the integration of smart and connected technologies, which improve system efficiency and user control. Advanced features such as Wi-Fi-enabled monitoring, adaptive heating schedules, and energy usage analytics are becoming standard, allowing consumers to optimize performance and reduce operational costs. These innovations are driving the adoption of HPWHs across residential and commercial applications, as they align with the growing demand for intelligent energy management solutions. The increasing focus on digitalization and automation is expected to further propel market growth, making smart-enabled HPWHs a preferred choice for modern consumers.

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Another key trend in the heat pump water heater market is the shift toward environmentally friendly refrigerants, driven by global sustainability initiatives and strict environmental regulations. Traditional refrigerants with high global warming potential (GWP) are being replaced with low-GWP alternatives such as R-744 (CO₂) and R-290 (propane), which offer improved efficiency and reduced environmental impact. This transition is encouraging manufacturers to invest in research and development to improve product performance while ensuring compliance with evolving regulatory standards. Additionally, the adoption of eco-friendly refrigerants supports the broader goal of reducing carbon emissions in the heating sector. Therefore, as sustainability continues to be a critical focus area, the demand for HPWHs utilizing next-generation refrigerants is expected to rise.

Top of FormHeat pump water heater Market Report Highlights

• In terms of operation type, the electric segment led the expansion of the heat pump water heater market in 2024, driven by its extensive adoption across both residential and commercial sectors.
• Based on tank capacity, the 300 to 500 L segment is projected to experience the most rapid growth in the heat pump water heater market during the forecast period, fueled by increasing demand from commercial facilities and multi-family residential buildings.
• Asia Pacific led the global market in 2024, largely attributed to rapid urbanization, stringent energy efficiency regulations, and robust government initiatives supporting sustainable heating solutions.
• The North America heat pump water heater market is expected to witness the fastest growth during the forecast period, propelled by rising regulatory support and a growing consumer shift toward energy-efficient appliances.
• A few global key market players include A. O. Smith India Water Products Pvt. Ltd.; Bosch Thermotechnology Corp.; Carrier; DAIKIN INDUSTRIES, Ltd.; FUJITSU GENERAL; Haier HVAC Solutions; INSPUR Co., Ltd.; Johnson Controls - Hitachi Air Conditioning Company; LG Electronics; Midea America Corp.; MITSUBISHI HEAVY INDUSTRIES, LTD.; Panasonic Holdings Corporation; Rheem Manufacturing Company; Trane; and Vaillant Group International GmbH.

Polaris Market Research has segmented the heat pump water heater market report on the basis of technology, capacity, operation type, application, tank capacity, and region:

By Technology Outlook (Volume Thousand Units; Revenue, USD Billion; 2020–2034)

• Air to Water
• Water Source
• Geothermal

By Capacity Outlook (Volume Thousand Units; Revenue, USD Billion; 2020–2034)

• Upto 20 kW
• 21 to 50 kW
• 51 to 100 kW
• Above 100 kW

By Operation Type Outlook (Volume Thousand Units; Revenue, USD Billion; 2020–2034)

• Electric
• Hybrid

By Application Outlook (Volume Thousand Units; Revenue, USD Billion; 2020–2034)

• Residential
• Industrial
• Commercial

By Tank Capacity Outlook (Volume Thousand Units; Revenue, USD Billion; 2020–2034)

• Upto 150 L
• 150 to 300 L
• 300 to 500 L
• Above 500 L

By Regional Outlook (Volume Thousand Units; Revenue, USD Billion; 2020–2034)

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
  • Malaysia
  • Vietnam
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Argentina
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Israel
  • South Africa
  • Rest of Middle East & Africa

Heat Pump Water Heater Market Report Scope