Canada Outdoor Air Source Heat Pump Market To Reach $2,526.1 Million By 2030

Canada Outdoor Air Source Heat Pump Market Growth & Trends

The Canada outdoor air source heat pump market size is expected to reach USD 2,526.1 million by 2030, expanding at 7.5% CAGR from 2025 to 2030, according to a new report by Grand View Research, Inc. The Canadian government is becoming increasingly concerned with the problems associated with fossil fuels and is adopting various environmental-friendly alternatives. Construction is one such industry that is undergoing substantial changes as new laws to reduce carbon footprint continue to be adopted. With the federal government establishing an annual carbon price and announcing that all new construction must be net-zero-ready by 2030, the industry must find new ways to reduce emissions and expenses. Using air-source heat pumps for year-round heating and cooling is a prominent approach to cutting energy usage and carbon emissions.

The benefits of adopting an air source heat pump are energy savings, increased automation, environmental sustainability, cost savings, and efficiency. A remote monitoring system of air source heat pump drying system based on IoT is designed and developed to enhance the automation capability of the drying system present in ASHP.

This will enable the real-time monitoring of the ASHP drying system online during operation processes. It can also manage the drying process flow and determine the two-level energy efficiency indices. Furthermore, the remote monitoring system based on IoT protects and ensures electricity savings. These technological advancements mentioned above are projected to fuel market growth in the coming years.

The cost of installing an air source heat pump (ASHP) varies depending on the type of equipment and capacity. A heat pump with a high Heating Seasonal Performance Factor (HSPF) and SEER rating is generally priced higher. The energy-efficient models help save on energy bills and operational costs but require higher initial investments. Heat pumps have a significant installation cost. The ultimate cost is determined by the size and area required for installation. The cost of installation is accompanied by high labor, drilling, and excavation costs.

The major players in the market are partnering with different companies to enhance their product portfolio and advanced product offering. For instance, in December 2022, Daikin Comfort Technologies North America Inc. acquired Venstar Inc., an energy & controls management systems provider whose indoor comfort products and technology are used in light commercial & residential applications across Canada, Mexico, and the U.S.

The market is highly competitive and dependent on technological advancements and product developments. Market players strive to achieve application development to gain a competitive advantage. The presence of local players in the region poses a significant threat to large multinational companies in terms of product quality and prices offered to customers.

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Canada Outdoor Air Source Heat Pump Market Report Highlights

• The air-to-air led segment of the market and accounted for 84.5% of the Canada outdoor air source heat pump industry revenue share in 2024. The market is anticipated to grow at a CAGR of 6.8% from 2025 to 2030, in terms of revenue. An air-to-air heat pump is made up of an exterior unit, inside pipes, and individual 'blowers' that are installed in different rooms around the house

• Canada's construction sector is anticipated to rise due to the country's growing population, urbanization, immigration rates, and increasing government investments in light commercial construction. An increasing number of service-providing firms in the country is expected to fuel the demand for office spaces, thus, driving light commercial construction. Thus, rising light commercial construction in Canada is expected to augment the growth of the air-to-air heat pump market in the country

• Using an air-to-water heat pump for year-round heating and cooling is a robust approach to minimizing energy consumption and carbon emissions. Air-to-water heat pumps are extremely efficient and reduce the need for natural gas. They work by transferring thermal energy through the use of electricity rather than fossil fuels and are suitable for a wide range of settings, from single-family houses to huge multi-unit complexes

• Canada outdoor air source heat pump manufacturers focus on collaborations, mergers, acquisitions, partnerships, and product launches to expand their product portfolios and increase their production capacities as well as a consumer base. For instance, in February 2023, Hitachi introduced the Yutaki M R32 monobloc air-to-water heat pump. Even in sub-zero temperatures, the 4-ton and 3-ton systems have 140°F heating capacity

Canada Outdoor Air Source Heat Pump Market Segmentation

Grand View Research has segmented the Canada outdoor air source heat pump market report based on type, product, size, application, and region:

Canada Outdoor Air Source Heat Pump Type Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)

• Air to Air

  • Unitary system

  • Ductless system

• Air to Water

Canada Outdoor Air Source Heat Pump Product Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)

• Air Source Heat Pump (ASHP)

  • Hybrid

  • Electric

• Cold Climate ASHP (CC-ASHP)

  • Hybrid

  • Electric

Canada Outdoor Air Source Heat Pump Application Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)

• Residential

• Light Commercial

Canada Outdoor Air Source Heat Pump Size Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)

• 6,000 BTU

• 9,000 BTU

• 12,000 BTU

• 15,000 BTU

• 15,001 to 24,000 BTU

• 24,000 to 48,000 BTU

• Above 48,000 BTU

Canada Outdoor Air Source Heat Pump Regional Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)

• Ontario

• Quebec

• Maritimes (NB, PEI, NFL, NS)

• British Columbia

• Alberta

• Manitoba

• Saskatchewan

Canada Outdoor Air to Water Heat Pump Application Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)

• Residential

• Light Commercial

Canada Outdoor Air to Water Heat Pump Size Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)

• 6,000 BTU

• 9,000 BTU

• 12,000 BTU

• 15,000 BTU

• 15,001 to 24,000 BTU

• 24,000 to 48,000 BTU

• Above 48,000 BTU

Canada Outdoor Air to Water Heat Pump Regional Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)

• Ontario

• Quebec

• Maritimes (NB, PEI, NFL, NS)

• British Columbia

• Alberta

• Manitoba

• Saskatchewan

List of Key Players in the Canada Outdoor Air Source Heat Pump Market

• Carrier

• Daikin Industries Ltd.

• Ingersoll-Rand Plc (Trane)

• Robert Bosch GmbH

• Danfoss

• Mitsubishi Electric Corporation

• Panasonic Holdings Corporation

• Fujitsu

• LG Electronics, Inc.

• Rheem Manufacturing Company

• Gree Comfort

• Samsung

• Lennox International

• Hitachi, Ltd.

• Johnson Controls, Inc.