Solar-assisted Heat Pump Market Research Report By Type (Air Source Heat Pumps, Ground Source Heat Pumps, Water Source Heat Pumps), By Application (Residential, Commercial and Industrial), By Capacity (Less than 10 kW, 10-20 kW, 20-30 kW, Above 30 kW), By Efficiency (Less than 30%, 30-40%, Above 40%), By Technology (Photovoltaic Solar-assisted Heat Pumps, Thermal Solar-assisted Heat Pumps) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Solar-assisted Heat Pump Market Overview

As per MRFR analysis, the Solar-assisted Heat Pump Market Size was estimated at 2.2 (USD Billion) in 2022.The Solar-assisted Heat Pump Market Industry is expected to grow from 2.46(USD Billion) in 2023 to 6.87 (USD Billion) by 2032. The Solar-assisted Heat Pump Market CAGR (growth rate) is expected to be around 12.08% during the forecast period (2024 - 2032).

Key Solar-assisted Heat Pump Market Trends Highlighted

The Solar-assisted Heat Pump Market is poised for significant growth, driven by rising energy costs, increasing environmental consciousness, and supportive government policies. Key drivers include the expanding adoption of renewable energy, particularly solar power, and the need for efficient and cost-effective heating and cooling solutions.Opportunities exist in emerging markets with a high demand for energy efficiency and a growing awareness of the benefits of solar-assisted heat pumps. Recent trends indicate a shift towards integrated renewable energy systems, combining solar panels with heat pumps to optimize energy utilization and reduce carbon footprints. Advancements in technology, such as improved refrigerant designs and variable-speed compressors, are enhancing the performance and affordability of solar-assisted heat pumps.These factors are expected to continue shaping the market dynamics, creating substantial opportunities for manufacturers and service providers in the coming years.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Solar-assisted Heat Pump Market Drivers

Growing Demand for Energy-Efficient Heating and Cooling Solutions

The increase in the cost of energy and the growing interest in the concept of environmental sustainability are the major factors that are driving the need to achieve more efficient solutions for heating and cooling. As a cost-effective and environment-friendly alternative to the HVAC system, which is heavily dependent on electricity, solar-assisted heat pumps are gaining more and more popularity. Therefore, the current trend toward the increased adoption of solar-assisted heat pumps will enhance the development of the Solar-assisted Heat Pump Market Industry in the next years.Being particularly useful in regions with a significant amount of solar radiation, including the Middle East, North America, Europe, etc., solar-assisted heat pumps have shown that they contribute to decreasing the amount of energy that is used, as well as facilitating the reduction of greenhouse gas emissions. The growing number of governmental incentives directed at reducing the costs of adoption of solar-assisted heat pump systems and making them more viable creates premises for an even further rise in their popularity.The tendency of people to demand more efficient solutions for heating and cooling is one of the most prominent drivers of the development of the Solar-assisted Heat Pump Market Industry. With the expanding number of people recognizing the importance of environmental sustainability and the need to reduce the use of energy and cut down the emission of greenhouse gases, the popularity and use of solar-assisted heat pumps are expected to increase.

Government Policies and Incentives

Government policies and incentives are driving the Solar-assisted Heat Pump Market. Many governments worldwide have implemented tax credits, rebates, and other financial incentives, as provided in the Energy Policy Act of 2005, to promote solar energy systems’ installation, including solar-assisted heat pump technologies. The incentives make solar-assisted heat pump systems more affordable, thereby accelerating their adoption. Moreover, besides incentives, governments are formulating policies and regulations that promote energy-efficient technologies’ use.According to research, in some countries, all newly constructed buildings and buildings going through major renovation should consider the use of solar products such as solar-assisted heat pumps. The policies and regulations have favored the solar-assisted heat pump market, hence promoting growth in the Solar-assisted Heat Pump Market Industry.

Technological Advancements and Cost Reductions

A couple of other factors are fuelling the growth of the Solar-assisted Heat Pump Market Industry. First of all, technology is becoming much better, with such devices becoming more efficient and capable than ever before. More to it, the reduction in the cost of solar panels and other components used by solar-assisted heat pumps is also playing its role, expanding the number of people who can afford to install one. Secondly, the development of new designs and types of solar-assisted heat pumps is also fuelling the expansion of this particular market.More and more manufacturers are using similar technology to create devices that can function in any weather conditions or successfully combine with other types of solar-powered systems, from solar thermal collectors to photovoltaic panels. As a result, thanks to these factors, it is possible to note that the increasing number of technological improvements and cost reductions contribute to the growth of the Solar-assisted Heat Pump Market Industry.

Solar-assisted Heat Pump Market Segment Insights:

Solar-assisted Heat Pump Market Type Insights

Description of type segment and overview The Solar-assisted Heat Pump Market segment by type includes Air source heat pump, Ground source heat pump, and Water source heat pump. Air source heat pumps are the most common type of solar-assisted heat pump, accounting for more than 60% of the global market in 2023. The product is relatively cheap to install and operate and can be utilized in various climatic conditions. Ground-source heat pumps are more effective in heating or cooling homes than air-source heat pumps; however, they are more expensive to install.They are commonly utilized in cold regions, which have a more constant temperature beneath. Water source heat pumps are the most efficient kind of solar-assisted heat pump, but they are also the most expensive to install. This growth is a result of developing requirements for energy-efficient welfare for cooling and heating purposes and increasing implementation of solar energy. In addition, government incentives and regulations that appoint the practice of renewable energy sources are anticipated to motivate the market segment. The interest in air-source heat pumps is likely to proceed through the forecast period, even though the demand for ground-source heat pumps will add rapidly.In comparison, the water source heat pump piece will continuously grow at functioning per unit cost. Generally, the entire Solar-assisted Heat Pump Market is expected to grow considerably throughout the forecast period.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Solar-assisted Heat Pump Market Application Insights

The Solar-assisted Heat Pump Market is segmented by Application into Residential, Commercial and Industrial. The Residential segment is expected to garner the largest market share in 2023, with results peaking at around 60% of the total Solar-assisted Heat Pump Market revenue. This trend is generally powered by the increasing implementation of solar-assisted heat pumps in residential buildings for space heating and cooling applications. By 2032, however, the Commercial and Industrial segment will be the crucial driver of the market: the results suggest that it will make up over 40 % of the Solar-assisted Heat Pump Market revenue.This conclusion is driven by the growing demand for energy-efficient heating and cooling solutions in commercial and industrial buildings.

Solar-assisted Heat Pump Market Capacity Insights

The Capacity segment of the Solar-assisted Heat Pump Market exhibited dominance of the 'Less than 10 kW' category in 2023, contributing around 42.5% of the global revenue. This segment encompasses compact and cost-effective solutions ideal for residential and small commercial applications. The '10-20 kW' category is projected to witness significant growth, expanding at a CAGR of 14.2% during 2024-2032. This growth is attributed to increasing adoption in mid-sized commercial and industrial facilities. Catering to larger establishments, the 'Above 30 kW' category is estimated to exhibit a steady growth rate, driven by the need for efficient heating and cooling systems in heavy industries and large-scale commercial buildings.

Solar-assisted Heat Pump Market Efficiency Insights

The efficiency of solar-assisted heat pumps is a key factor in determining their overall performance and cost-effectiveness. The market is segmented into three main efficiency categories: less than 30%, 30-40%, and above 40%. In 2023, the segment with efficiency of less than 30% accounted for the largest share of the Solar-assisted Heat Pump Market revenue, at around 45%. This segment is expected to continue to dominate the market in the coming years due to the lower cost of these heat pumps. However, the segment with efficiency above 40% is expected to grow at the fastest CAGR during the forecast period as consumers become more aware of the benefits of high-efficiency heat pumps.By 2032, the segment with efficiency above 40% is expected to account for over 25% of the Solar-assisted Heat Pump Market revenue. The market for solar-assisted heat pumps is expected to grow significantly in the coming years, driven by the increasing demand for energy-efficient heating and cooling solutions.

Solar-Assisted Heat Pump Market Technology Insights

The Solar-assisted Heat Pump Market is segmented based on Technology into Photovoltaic Solar-Assisted Heat Pumps and Thermal Solar-Assisted Heat Pumps. Photovoltaic Solar-assisted Heat Pumps use photovoltaic (PV) panels to convert sunlight directly into electricity, which is then used to power the heat pump. Thermal Solar-assisted Heat Pumps use solar thermal collectors to absorb sunlight and transfer the heat to a fluid, which is then used to power the heat pump. In 2023, the Solar-assisted Heat Pump Market for Photovoltaic Solar-assisted Heat Pumps was valued at USD 1.23 billion and is expected to reach USD 3.45 billion by 2032, growing at a CAGR of 12.8%.The market growth is attributed to the increasing demand for renewable energy sources and the rising popularity of solar photovoltaic (PV) systems. Additionally, government incentives and supportive policies for the adoption of renewable energy technologies are driving the growth of the market. The market for Thermal Solar-assisted Heat Pumps is expected to witness significant growth in the coming years, owing to the increasing adoption of solar thermal systems for heating and cooling applications. Thermal Solar-assisted Heat Pumps offer higher efficiency and lower operating costs compared to conventional heating and cooling systems, making them an attractive option for both residential and commercial applications.Overall, the increasing demand for energy-efficient and sustainable heating and cooling solutions is expected to drive the growth of both Photovoltaic Solar-assisted Heat Pumps and Thermal Solar-assisted Heat Pumps in the coming years.

Solar-assisted Heat Pump Market Regional Insights

The regional segmentation of the Solar-assisted Heat Pump Market offers valuable insights into the market dynamics across different geographic regions. North America held a significant market share in 2023, driven by the increasing adoption of solar energy and government initiatives promoting energy efficiency. Europe is another prominent market, with a growing demand for sustainable heating solutions and supportive regulatory frameworks. The APAC region is projected to witness substantial growth in the coming years, owing to rising urbanization, increasing energy consumption, and favorable government policies.South America and MEA also present potential growth opportunities, as these regions seek to address energy challenges and transition towards renewable energy sources. The Solar-assisted Heat Pump Market revenue is expected to grow steadily over the forecast period, with increasing demand for energy-efficient and environmentally friendly heating solutions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Solar-assisted Heat Pump Market Key Players And Competitive Insights:

Major players in the Solar-assisted Heat Pump Market industry are continuously developing and implementing innovative technologies to gain a competitive edge. Leading Solar-assisted Heat Pump Market players are focusing on expanding their product portfolio, geographical presence, and strategic collaborations to cater to the growing demand for energy-efficient heating solutions. The Solar-assisted Heat Pump Market industry landscape is expected to witness further consolidation through mergers and acquisitions as companies seek to increase their market share and strengthen their position in the competitive market. Key players are also investing heavily in research and development to enhance the efficiency, performance, and cost-effectiveness of their Solar-assisted Heat Pump Market offerings.Daikin Industries, Ltd., a leading player in the Solar-assisted Heat Pump Market, offers a wide range of heat pump solutions for residential, commercial, and industrial applications. The company's focus on innovation and customer-centric approach has enabled it to maintain a strong market position. Daikin's extensive distribution network and global presence allow it to reach customers across different regions. The company's commitment to sustainability and energy efficiency aligns well with the growing demand for renewable energy solutions.Another major player in the Solar-assisted Heat Pump Market is Mitsubishi Electric Corporation. The company provides advanced heat pump systems that leverage solar energy to reduce energy consumption and carbon emissions. Mitsubishi Electric's focus on research and development has resulted in the development of innovative technologies, such as its Zubadan Inverter technology, which enhances the efficiency and performance of its heat pumps. The company's global presence and strong brand recognition contribute to its competitive position in the Solar-assisted Heat Pump Market.

Key Companies in the Solar-assisted Heat Pump Market Include:

• Daikin


• Stiebel Eltron


• Hitachi


• Panasonic


• Nibe


• Haier


• Carrier


• Mitsubishi Heavy Industries


• Trane Technologies


• Bosch Thermotechnology


• Midea


• Samsung


• Vaillant


• LG Electronics


• Gree Electric Appliances

Solar-assisted Heat Pump Market Industry Developments

The Solar-assisted Heat Pump Market is anticipated to grow from USD 2.63 billion in 2023 to USD 6.87 billion by 2032 at a CAGR of 12.08%. Increasing government initiatives to promote the adoption of renewable energy sources, rising concerns over environmental sustainability, and growing awareness of energy efficiency are driving the market growth. The market is expected to witness significant growth in the residential sector, driven by the increasing adoption of solar-powered systems in homes. Additionally, the growing popularity of off-grid solar solutions in remote areas is expected to contribute to the market's expansion. Key recent developments include the launch of advanced solar-assisted heat pump systems with improved efficiency and reduced costs, as well as strategic partnerships between market players to expand their global reach and product offerings.

Solar-assisted Heat Pump Market Segmentation Insights

• Solar-assisted Heat Pump Market Type Outlook
  
  
  
  • Air Source Heat Pumps
  
  
  • Ground Source Heat Pumps
  
  
  • Water Source Heat Pumps
  
  
  
  

• Solar-assisted Heat Pump Market Application Outlook
  
  
  
  • Residential
  
  
  • Commercial and Industrial
  
  
  
  

• Solar-assisted Heat Pump Market Capacity Outlook
  
  
  
  • Less than 10 kW
  
  
  • 10-20 kW
  
  
  • 20-30 kW
  
  
  • Above 30 kW
  
  
  
  

• Solar-assisted Heat Pump Market Efficiency Outlook
  
  
  
  • Less than 30%
  
  
  • 30-40%
  
  
  • Above 40%
  
  
  
  

• Solar-assisted Heat Pump Market Technology Outlook
  
  
  
  • Photovoltaic Solar-assisted Heat Pumps
  
  
  • Thermal Solar-assisted Heat Pumps
  
  
  
  

• Solar-assisted Heat Pump Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa