Commercial Heat Pump Market Analysis

Application (Residential, Commercial, Industrial)

Residential segment is set to dominate commercial heat pump market share of over 90% by 2036. Heat pumps are popular as people are prioritizing sustainability and energy efficiency and seeking alternate heating and cooling choices. These systems use the ground's temperature or the ambient air to heat and cool, which uses less energy. Technological advances have made home heat pumps more affordable, reliable, and efficient.

Improved designs, variable-speed compressors, and smart controls improve efficiency and energy savings, appealing to customers seeking cost-effective and sustainable solutions. LG announced an air-to-water propane heat pump for households in November 2023. The new product employs propane refrigerant, which has a lower global warming potential, and has a seasonal coefficient of efficiency (SCOP) of over five. The manufacturer claims it can reach 75 C flow temperatures and 100% heating output at -15 C.

Product Type (Air Source, Water Source, Ground Source)

In commercial heat pump market, air source segment is estimated to account for revenue share of around 85% by 2036. This segment has grown due to its sustainability and efficiency. Heat pumps that use water rely on the steady temperature of lakes, rivers, and aquifers. This method utilizes water's higher thermal conductivity property to improve heat exchange. Hence, the desire for renewable energy and eco-friendly alternatives are considered to drive the commercial heat pump market growth.

Navien UK, a Guildford boiler manufacturer, released a monobloc heat pump in July 2023. Navien's first monobloc air source heat pump and latest H2 100% hydrogen boiler are available. It is the latest in a series of innovative heating options for locals ahead of the government's 2050 net zero emissions goal.

Rated Capacity (Up to 10 kW, 10-20 kW, 20-30 kW, above 30 kW)

By 2036, 10 – 20 kW segment is expected to dominate commercial heat pump market share of over 25%. This segment aligns with the increased demand for small-scale commercial and residential applications that balance efficiency and capacity. As energy efficiency gains popularity, people pick heat pumps in this power range because they save energy while heating and cooling. Technological advancement, improved compressors, heat exchange systems, and componentry boost 10–20kW efficiency.

Intelligent, networked products allow customers to optimize energy use remotely. Awareness, technology advances, and government support boost the 10–20kW heat pump category in this positive feedback cycle. The UK energy provider Octopus introduced the high-temperature heat pump in September 2023 as one of several heating transition goods and services.

Our in-depth analysis of the global commercial heat pump market includes the following segments: