The global heat pump water heater market is anticipated to progress at a substantial rate through 2030 due to surging consumer demand for cost-efficient heating systems across the globe.

Recently, major players in the heat pump water heater industry have been working towards introducing novel technologies to reduce the carbon footprint of the sector, which has fostered product outlook. For instance, in May 2022, Daikin, a major manufacturer of air conditioning, ventilation, heating, and refrigerant solutions, showcased its unique heating solutions of chillers as well as heat pumps at The Hotel Show Dubai 2022. These solutions have been designed to help businesses achieve their sustainability targets by assuring energy efficiency and optimization in the hospitality industry.

To cite another instance, in October 2021, METUS (Mitsubishi Electric Trane HVAC US), the company jointly owned by the Japanese electric company Mitsubishi Electric and the Ireland-headquartered industrial manufacturing firm Trane Technologies, launched the Heat2O, a CO2 heat pump water heater for industrial and commercial applications, in select areas in the United States as a decarbonization solution for fossil fuel heating systems.

The Heat2O has been built as a self-contained outdoor unit with inverter technology and scroll compressors. The gas cooler in each unit has six spiral heat exchangers supported by a patented technology to optimize heat transfer. Mitsubishi has six CO2 heat pump trial projects in the United States, such as the one for the Bayview Towers belonging to the Seattle Housing Authority, where an old electric boiler was replaced by the Heat2O heat pump unit to produce hot water for three storage tanks totaling about 1,000 gallons (4,546L).

The heat pump water heater market has been bifurcated in terms of capacity, application, and region. Based on capacity, the industry has been classified into ? 50 gallons, 50 - ? 100 gallons, 100 - ? 200 gallons, and >200 gallons. The >200 gallons segment is anticipated to grow at a CAGR of around 6% through the forecast period.

From the regional perspective, the Middle East & Africa heat pump water heater market is set to witness a robust growth rate over the analysis timespan. Increasing foreign investments toward commercialization, combined with strong macroeconomic indicators, have boosted the deployment of heat pump water heater systems throughout MEA, which is foreseen to stimulate market development in the forthcoming years.

Meanwhile, the Latin America heat pump water heater market is projected to grow at a steady pace up to 2030. Expanding population, coupled with rising consumer spending on water and space heating applications in the LATAM region, is foreseen to drive business growth.