Asia Pacific Heat Pump Market Size, Share & Trends Analysis Report By Technology (Air Source, Water Source), By Capacity (Up To 10 kW, 10 To 20 kW), By Operation Type (Electric, Hybrid), By Application, By Country, And Segment Forecasts, 2024 - 2030

Asia Pacific Heat Pump Market Trends  

The Asia Pacific heat pump market was valued at USD 46.71 billion in 2023 and is projected to grow at a CAGR of 9.1% from 2024 to 2030. This growth can be attributed to several driving factors, including the increasing demand for energy-efficient heating solutions, the increasing demand for energy-efficient heating solutions, and the rising awareness about reducing carbon emissions. Additionally, government initiatives and policies promoting the use of heat pumps are also playing a crucial role. Furthermore, advancements in technology leading to the development of more efficient and reliable heat pumps are expected to fuel market growth in the coming years. Thus, these factors collectively contribute to the robust growth projection of the heat pump market in the Asia Pacific region.

Regulations and government policies have a significant impact on the Asia Pacific Heat Pump Market. For instance, the increasing emphasis on energy efficiency and CO₂ emissions reduction has led to the implementation of stringent regulations across the region. These regulations are driving the increased usage of heat pump technology.

Moreover, governments are also investing in geothermal development to meet their renewable energy goals, which is expected to further boost the market. Additionally, energy management systems and performance standards have been implemented across industries to promote energy efficiency, particularly in energy-intensive sectors. These regulatory measures are not only shaping the current market landscape but are also expected to influence its future growth trajectory.

Market Concentration & Characteristics

Innovation plays a crucial role in the Asia Pacific heat pump market. Technological advancements have led to the development of more efficient and reliable heat pumps. For instance, the integration of IoT into HVAC systems has revolutionized comfort and redefined energy efficiency and environmental sustainability. These innovative technologies are expected to fuel the market growth in the coming years.

The threat from substitutes in the Asia Pacific heat pump market is primarily from traditional heating systems such as furnaces and boilers. These systems, while widely used, are less energy-efficient and environmentally friendly compared to heat pumps. However, the high upfront cost of heat pumps can be a deterrent for some consumers, making these traditional systems a viable alternative.

Additionally, the lack of awareness about the benefits of heat pumps in some regions can also impede market growth and increase the threat from substitutes. Despite these challenges, the increasing adoption of renewable energy sources and the development of smart and connected heat pumps are expected to mitigate the threat from substitutes.

Technology Insights

The Air Source Heat Pumps (ASHPs) technology dominated the Asia Pacific market in 2023 with around 86.1% revenue share. Countries such as Japan, China, and South Korea are witnessing significant growth in the air source heat pump market. Factors such as rapid urbanization, rising disposable incomes, and concerns about air pollution are increasing the demand for energy-efficient heating and cooling solutions. Moreover, the integration of IoT into HVAC systems has revolutionized comfort and redefined energy efficiency and environmental sustainability. These innovative technologies are expected to fuel the market growth in the coming years.

Geothermal Heat Pumps (GHPs) represent the fastest-growing segment in the Asia Pacific heat pump market. The rising financial climate, fast industrialization, and globalization are expected to positively impact market growth over the forecast period. Additionally, the expected increase in demand for geothermal heat pump replacement in China is likely to drive Asia Pacific market growth, while the rising geothermal capacity and stable demand for retro-fitted geothermal heat pumps are expected to further strengthen market growth in the region.

Application Insights

The residential application segment dominated the Asia Pacific market in 2023. This segment’s growth is driven by the increasing disposable incomes, coupled with the growing investments across the real estate sector, which have increased the product demand. Moreover, the rapidly growing residential construction activities, coupled with the shifting trends toward urban locations, have attributed residential establishments to emerge as one of the prominent segments across the air source heat pump market.

Rapidly expanding industrial energy consumption, growing measures to reduce the overall carbon footprint, and a positive outlook toward the adoption of energy-efficient alternatives are some of the key imperatives propelling the industry landscape. In addition, encouraging regulatory frameworks to keep a check on the greenhouse gas emissions from manufacturing & industrial establishments while reducing energy consumption will unveil new opportunities for the regional industry landscape.

Capacity Insights

Heat pumps with a capacity of up to 20kW dominated the Asia Pacific heat pump market. This segment’s dominance can be attributed to its wide application in residential and small commercial establishments, where the demand for energy-efficient heating and cooling solutions is high. The increasing urbanization and population growth in the Asia Pacific region have led to a surge in residential construction activities, thereby driving the demand for heat pumps with a capacity of up to 20kW.

Heat pumps with a capacity of above 200 kW are projected to experience the fastest growth in the Asia Pacific heat pump market. This rapid growth can be attributed to the increasing demand from large commercial and industrial establishments. These sectors are witnessing a surge in the adoption of heat pumps as countries prioritize clean energy solutions to meet escalating energy demands. Additionally, the ongoing implementation of policies and regulations aimed at promoting energy efficiency and reducing greenhouse gas emissions is expected to further boost the market growth for heat pumps with a capacity of above 200 kW.

Operation Type Insights

Electric heat pumps hold the largest market share of the Asia Pacific market in 2023. This dominance is due to their widespread adoption in residential and commercial settings, where they are prized for their efficiency and reliability. The large market share of electric heat pumps is also a reflection of the mature infrastructure and consumer familiarity with electric HVAC systems. The segment’s sizeable share indicates a well-established market presence and a solid foundation for future growth.

The hybrid heat pumps segment is expected to grow at a significant CAGR. Hybrid heat pumps are becoming increasingly popular due to their ability to save energy by efficiently using heat pump technology and switching to a secondary heating source when required. This not only reduces utility bills but also aligns with the growing demand for eco-friendly heating and cooling solutions. Moreover, the market for hybrid heat pumps is expanding as a result of government incentives and rebates provided for energy-efficient systems, driving up their adoption and consumer demand.

Country Insights

China Heat Pump Market Trends

China is the largest market in the Asia Pacific heat pump industry, contributing 60.0% of the revenue share in 2023. The dominance of China in the market can be attributed to several factors. Rapid urbanization, rising disposable incomes, and concerns about air pollution have led to an increased demand for energy-efficient heating and cooling solutions. Moreover, the integration of IoT into HVAC systems has revolutionized comfort and

India Heat Pump Market Trends

India is the fastest-growing market in the Asia Pacific heat pump market. The rapid growth in India can be attributed to several factors. Moreover, the rising awareness about the benefits of heat pumps and the increasing disposable income are also contributing to the rapid growth of the heat pump market in India.

Key Asia Pacific Heat Pump Company Insights

The Asia Pacific heat pump market is characterized by a significant level of competition among key players, with the market concentration reflecting a mix of both established multinational corporations and emerging local companies. Some key players operating in this market include Lennox International Inc., Carrier Corporation, and Daikin Industries Ltd.:

• Mitsubishi Electric Corporation has established itself as a significant player in the Asia Pacific heat pump market. The company’s comprehensive range of heat pump systems cater to a variety of applications, including residential, commercial, and industrial needs. Mitsubishi Electric’s commitment to sustainability and energy efficiency aligns with the growing demand for eco-friendly heating and cooling solutions in the region.

• Daikin Industries, Ltd. is renowned for its innovation in the heat pump industry. With a strong presence in the Asia Pacific region, Daikin offers a diverse portfolio of heat pump solutions that are designed to meet the unique climatic challenges of the area.

Recent Developments

• In December 2023, Panasonic started operating its new R&D building in Malaysia. The multi-purpose laboratory is capable of the simultaneous measurement of the operating efficiency of air conditioners and heat pump systems. This will enable Panasonic to develop advanced products in these categories.

• In January 2023, Daikin Industries set a target of near tripling of Made in India products sent abroad by 2025. European efforts to reduce dependence on Russian energy and tougher environmental regulations have presented the biggest opportunity to expand sales of energy-efficient heating products such as heat pumps and have prompted the company to consider producing them in India.

• In March 2024, Johnson Controls opened its new office in Singapore. The office will serve as a living lab for collaboration, research, and development, further strengthening its operations across Southeast Asia.

Asia Pacific Heat Pump Market Report Scope

Asia Pacific Heat Pump Market Report Segmentation

This report forecasts revenue and volume growth and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Asia Pacific heat pump market report based on technology, capacity, application, operation, and country:

• Technology Outlook (Revenue, USD Billion, Volume Units, 2018 - 2030)

  • Air Source

    • Air to Air

    • Air to Water

  • Water Source

  • Geothermal

• Application Outlook (Revenue, USD Billion, Volume Units, 2018 - 2030)

  • Residential

  • Industrial

  • Commercial

• Capacity Outlook (Revenue, USD Billion, Volume Units, 2018 - 2030)

  • Up to 10 kW

  • 10-20 kW

  • 20-50 kW

  • 50-100 kW

  • 100-200 kW

  • Above 200 kW

• Operation Type Outlook (Revenue, USD Billion, Volume Units, 2018 - 2030)

  • Electric

  • Hybrid

• Country Outlook (Revenue, USD Billion, Volume Units, 2018 - 2030)

  • China

  • India

  • Japan

  • Australia

  • South Korea