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Air Water Heat Pump Market

Published Date : Jun 2024 | Forecast Year : 2019

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Air Water Heat Pump Market Size, Share, Industry Trends Segmentation Analysis, By Type (Air-to-Air, Air-to-Water), By Application (Residential, Commercial, Industrial) Growth, Demand, Regional Outlook, and Forecast 2024- 2032

Report ID: AG952

Published : Jun 2024

Pages : 159

Format : Air Water Heat Pump Market

MARKET SIZE (2032)USD 27 Billion
MARKET SIZE (2023)USD 12 Billion
CAGR (2023-2029)9%
BY TYPEAir-to-Air
GEOGRAPHIC ANALYSISNorth America, Europe, Asia Pacific, Latin America, and Middle East & Africa
KEY PLAYERSDaikin Industries, Ltd., Mitsubishi Electric Corporation, Panasonic Corporation, LG Electronics Inc., Bosch Thermotechnology GmbH, Carrier Corporation, Viessmann Group, NIBE Energy Systems, Swegon Group AB, Danfoss A/S, Midea Group Co., Ltd., A. O. Smith Corporation, Stiebel Eltron GmbH & Co. KG, Glen Dimplex Group, Vaillant Group, Ariston Thermo Group, Samsung Electronics Co., Ltd., Rheem Manufacturing Company, Hitachi, Ltd., Johnson Controls International plc.


The market for Air Water Heat Pumps (AWHPs) is witnessing substantial growth due to the rising demand for energy-efficient and environmentally friendly heating options. These systems utilize the surrounding air to heat water, providing a sustainable and effective alternative to conventional heating methods. Governments across the globe are encouraging the adoption of AWHPs through subsidies and regulations aimed at reducing carbon emissions, driving further expansion of the market. With consumers increasingly focused on environmental issues and the escalating costs of energy, the popularity of AWHPs is on the rise. This technology not only helps in saving energy but also contributes to global initiatives to address climate change, positioning it as a crucial player in the realm of sustainable heating solutions.

Market Overview

The global market for Air Water Heat Pumps is set to experience strong growth in the upcoming years. By 2023, the market is estimated to be worth around USD 12 billion and is forecasted to reach USD 27 billion by 2032, with a CAGR of 9%. This growth is primarily fueled by the increasing awareness about environmental issues, strict government regulations on carbon emissions, and the rise in energy prices. Europe leads the market, contributing to more than 40% of global sales, followed by North America and Asia-Pacific. The residential sector is the largest consumer, although there is also significant adoption in commercial and industrial sectors. Advancements in technology, such as smart controls integration and the development of high-efficiency models, are further propelling market expansion. Despite challenges like high initial expenses and the requirement for professional installation and maintenance, continuous innovations are expected to address these concerns.

Air Water Heat Pump Market

Size, by Product, - (USD Billion)



Other Products

18 16 14 12 10 8 6 4 2 0

The Market will Grow

At the CAGR of:


The Forecast Market

Size for in USD:

$27 BillionB


Key Players

  • Daikin Industries, Ltd.
  • Mitsubishi Electric Corporation
  • Panasonic Corporation
  • LG Electronics Inc.
  • Bosch Thermotechnology GmbH
  • Carrier Corporation
  • Viessmann Group
  • NIBE Energy Systems
  • Swegon Group AB
  • Danfoss A/S
  • Midea Group Co., Ltd.
  • O. Smith Corporation
  • Stiebel Eltron GmbH & Co. KG
  • Glen Dimplex Group
  • Vaillant Group
  • Ariston Thermo Group
  • Samsung Electronics Co., Ltd.
  • Rheem Manufacturing Company
  • Hitachi, Ltd.
  • Johnson Controls International plc

Technological Advancements in Air Water Heat Pumps

 Discuss recent innovations, such as smart controls, IoT integration, and the development of high-efficiency models. Highlight how these advancements improve performance, reduce costs, and enhance user experience.

Air Water Heat Pump Market

Share, by end user, (USD Billion)

Analytica Global 12 Billion%




Other End-Users


27 Billion

Total Market Size

USD (Billion),




Market Dynamics

Current Trends

Transition to Renewable Energy: The global emphasis on sustainability and reducing carbon emissions is driving a shift towards renewable energy sources. Air Water Heat Pumps (AWHPs) are in line with this trend, utilizing ambient air for heating and offering an eco-friendly alternative.

Integration of Smart Technologies: The incorporation of smart technologies like IoT and AI is becoming more prevalent. These innovations enable better energy management, remote monitoring, and enhanced efficiency of AWHP systems.


High Initial Costs: The significant upfront investment required for purchasing and installing AWHP systems is a major obstacle to market expansion. This cost can deter both residential and commercial consumers from adopting the technology.

Specialized Installation and Maintenance: AWHP systems necessitate specialized installation and regular upkeep by trained professionals, adding complexity and expenses for end users.


Government Incentives and Subsidies: Many governments are providing financial incentives and subsidies to promote the adoption of AWHPs. These incentives help mitigate initial expenses and broaden access to the technology.

Technological Innovations: Ongoing research and development efforts are leading to more efficient and cost-effective AWHP systems. Innovations like hybrid systems and advancements in heat exchanger technology are creating new avenues for growth.

Rise in Green Building Construction: The growing emphasis on sustainable construction practices is fueling demand for energy-efficient heating solutions such as AWHPs in new buildings.

Market Segmentation

By Type: Air-to-Air, Air-to-Water

By Application: Residential, Commercial, Industrial

By End User: Homeowners, Building Managers, Industrial Facilities

Porter's Five Forces Analysis

Threat of New Entrants: Moderate, due to high initial investment.

Bargaining Power of Suppliers: Low to moderate, many suppliers available.

Bargaining Power of Buyers: High, due to a variety of choices.

Threat of Substitutes: Moderate, with other heating solutions available.

Industry Rivalry: High, with numerous established players competing.

Air Water Heat Pump Market

Size, by Product, - (USD Billion)


The Market will Grow

At the CAGR of:


The Forecast Market

Size for in USD:

$27 BillionB


Value Chain Analysis

Suppliers of Raw Materials: They provide the necessary components like compressors, heat exchangers, and refrigerants.

Manufacturers of Components: They put together the components to create sub-systems.

Assemblers of Systems: They combine the sub-systems to form complete AWHP units.

Distributors: They help in the distribution of AWHPs to different markets and end users.

End Users: These include residential, commercial, and industrial users who install and utilize the AWHP systems.

Supply Chain Analysis

The supply chain for AWHPs requires efficient logistics to guarantee the timely delivery of components and systems. Key aspects include:

Procurement: Sourcing top-quality raw materials and components.

Manufacturing: Streamlined production processes to assemble the components into AWHP systems.

Distribution: Dependable distribution networks to transport the products to end users.

After-Sales Service: Offering installation, maintenance, and repair services to ensure customer satisfaction and system durability.

Recent Developments

Models with High Efficiency: Introduction of models that provide increased energy efficiency and reduced environmental impact, cutting down operational costs for users.

Strategic Partnerships and Acquisitions: Companies are establishing partnerships and acquiring other businesses to broaden their market presence and technological capabilities.

Smart Heat Pumps: Development of heat pumps integrated with IoT technology, enabling remote monitoring, control, and optimization of energy usage.

Expansion into New Markets: Manufacturers are venturing into emerging markets in Asia-Pacific and Latin America, fueled by growing urbanization and the demand for sustainable heating solutions.


The Air Water Heat Pump market is set for impressive growth as it aligns with global trends towards energy efficiency and environmental sustainability. The market's expansion is driven by technological innovations, government incentives, and increasing consumer awareness. While challenges such as high upfront costs and the need for professional installation persist, ongoing advancements are expected to address these issues. Key players are focusing on strategic partnerships, product innovations, and market expansion to stay competitive. As the world continues to prioritize reducing carbon footprints and adopting renewable energy solutions, the AWHP market is poised to play a crucial role in the future of sustainable heating. With its potential for significant energy savings and environmental benefits, the AWHP market represents a key opportunity for both businesses and consumers committed to a greener future.

Frequently Asked Questions (FAQs)

1. What is an Air Water Heat Pump (AWHP)?

Ans: An Air Water Heat Pump (AWHP) is a system that extracts heat from the ambient air and transfers it to water for heating purposes. It is an energy-efficient and eco-friendly alternative to traditional heating systems.

2. How does an Air Water Heat Pump work?

Ans: An AWHP operates by using a refrigerant cycle to absorb heat from the outside air. This heat is then compressed to a higher temperature and transferred to water, which can be used for space heating or domestic hot water.

3. What are the benefits of using an Air Water Heat Pump?

Ans: The benefits include reduced energy consumption, lower carbon emissions, cost savings on heating bills, and eligibility for government incentives. AWHPs also provide consistent and reliable heating performance.

4. What types of Air Water Heat Pumps are available?

Ans: There are mainly two types of AWHPs: air-to-air and air-to-water. Air-to-air heat pumps transfer heat directly to the air inside a building, while air-to-water heat pumps transfer heat to water for use in radiators, underfloor heating, or hot water systems.

5. Where can Air Water Heat Pumps be used?

Ans: AWHPs can be used in residential, commercial, and industrial settings. They are suitable for new constructions and retrofits in existing buildings.

6. Are Air Water Heat Pumps suitable for all climates?

Ans: AWHPs are most efficient in moderate climates but can be designed to operate in a wide range of temperatures. Some models are specifically engineered to perform well in colder climates.

7. What are the initial costs associated with Air Water Heat Pumps?

Ans: The initial costs include the purchase price of the heat pump, installation fees, and any necessary modifications to the existing heating system. While the upfront investment can be high, the long-term energy savings often justify the cost.

8. What maintenance is required for an Air Water Heat Pump?

Ans: Regular maintenance is required to ensure optimal performance and longevity. This includes checking refrigerant levels, cleaning filters, inspecting electrical connections, and ensuring the outdoor unit is free of debris.

Air Water Heat Pump Market TO (USD BN)

Air Water Heat Pump Market



Air Water Heat Pump Market

Analytica Global 27 Billion%

Air Water Heat Pump Market - Global Outlook & Forecast 2024-2029

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