Heat Pump Market Size

Heat Pump Market size was valued at USD 95.45 Billion in 2024 and is expected to exceed USD 293.54 Billion by the end of 2037, expanding at over 9.2% CAGR during the forecast period i.e., between 2025-2037. In the year 2024, the industry size of heat pump is evaluated at USD 94.5 Billion.

The growth of the market can be attributed to the growing use as well as the expanding sales of energy-efficient heating products such as heat pumps worldwide for cost-effective space heating and cooling applications in residential and commercial spaces. According to the International Energy Agency (IEA), in 2021, there were around 190 million heat pump units in operation in buildings worldwide. These factors are predicted to boost the market growth in the forecast period.

Discussing further, factors that are believed to fuel the heat pump market growth of the demand for heat pumps across the globe include the soaring prices of oil & gas as well as the depleting stock of fossil fuels along with the rising need to curb dependence on fossil fuels and look for an energy-efficient alternative to furnaces and air conditioners. As per recent data, fossil fuels such as oil, & natural gas is anticipated to last just up to 50 more years. Additionally, speeding up the replacement of gas boilers by doubling heat pump installations in the industrial sector is predicted to present the potential for market expansion over the projected period.