The heat pump market is estimated to be valued at USD 84.6 billion in 2021 and is poised to grow at a significant CAGR of 5.8% over 2022-2028. A heat pump is a refrigeration device that uses a mechanical-compression cycle to heat or cool a room and it is widely utilized for space heating and cooling. It is made up of two primary parts: an interior air handler and an outside device that is like a central air conditioner but is called a heat pump. Based on the product type the air source segment is accounted for a significant revenue share and is projected to grow at a considerable CAGR over 2022 – 2028. owing to an increase in the installation of ASHPs in smaller properties, such as park homes or flats, demand for the heat pumps market is gradually increasing year over year and the same trend is expected over the forecast years. The factors behind the growth of the market are the government initiatives to reduce greenhouse gas emissions coupled with providing incentives for the installation of heat pumps in residential, commercial, and industrial sectors. Increase in the adoption of heat pumps for new constructions, wide range of applications with heat pumps, replacement of conventional fuel-based heating method by heat pump technology, and significant adoption of heat pump technology in residential applications as a cost-effective heating method are anticipated to propel the growth of market over the forecast years.
Recent Market Developments:
In January 2022, Johnson Controls has acquired FogHorn, a leading developer of Edge AI software for industrial and commercial Internet of Things (IoT) solutions. This development will help Johnson Controls to boost its building solutions business.