Table of Contents
Heat Pump Market Overview
Heat pump companies provide an energy-efficient system that transfers thermal energy from one place to another using a refrigeration cycle rather than generating heat directly.
It operates by absorbing heat from the outside air, ground, or water and releasing it indoors for heating or vice versa for cooling.
Heat pumps can be categorized into air source, ground source, and water source types, each suited to different environments.
They offer dual functionality, providing both heating and cooling, and are more environmentally friendly compared to fossil fuel-based systems. However, they may be less efficient in extreme cold and have higher initial installation costs.
Despite this, their long-term energy savings and reduced environmental impact make them a valuable option for residential, commercial, and industrial applications.
Market Drivers
The increasing demand for energy efficiency, environmental sustainability, and technological advancements primarily drives the global heat pump market.
Heat pumps offer significant energy savings and reduced emissions compared to traditional systems. Aligning with global climate goals and stricter regulations.
Technological innovations have improved their performance and integration with smart home systems while rising energy costs and government incentives further boost their appeal.
Additionally, urbanization and infrastructure development heighten the need for efficient heating and cooling solutions, and the desire for energy security and independence encourages the adoption of heat pumps.
Market Size
The global heat pump market is projected to reach approximately USD 151.3 billion by 2032. Up from USD 66.5 billion in 2022, with a compound annual growth rate (CAGR) of 8.80% from 2023 to 2032.
List of Major Companies
These are the top 10 companies operating in the Heat Pump Market:
Denso
Company Overview
| Establishment Year | 1949 |
| Headquarter | Kariya, Aichi, Japan |
| Key Management | Koji Arima (Chairman) |
| Revenue (US$ Bn) | $ 52.8 B (2023) |
| Headcount | ~ 162,029 (2023) |
| Website | https://www.denso.com/ |
About Denso
Denso Corporation has positioned itself as a significant player in the heat pump companies/sector. Particularly focusing on thermal management and air conditioning systems for electric and hybrid vehicles.
Their heat pump technology aims to enhance energy efficiency by using ambient air to generate heat, significantly improving vehicle range by minimizing electric power consumption. Denso has been actively involved in developing systems that maintain cabin comfort even in freezing conditions.
Recent developments include their investment in expanding electrification products, particularly heat pump systems for electric vehicles (EVs) and plug-in hybrids.
In 2023, Denso has also been focusing on strategic shifts, such as transferring some operations of its internal combustion engine business to align with global decarbonization efforts.
Geographical Presence
Denso Corporation, headquartered in Kariya, Japan, operates a vast network of facilities globally. North America has significant manufacturing and R&D centers in the U.S. and Mexico.
However, Europe’s presence includes major sites in Germany, France, and the UK, focusing on manufacturing and advanced automotive technologies. In Asia, Denso maintains key operations in China, India, and Thailand, supporting both manufacturing and R&D.
South America features a facility in Brazil, while Oceania includes operations in Australia. Additionally, Denso has distribution and support centers in the Middle East, reflecting its extensive global footprint and commitment to serving diverse automotive markets worldwide.
Recent Developments
- In August 2024, Denso Corporation and Ceres Power Holdings agreed to a license for producing Ceres’ solid oxide electrolyzer cells intended for hydrogen applications.
- In June 2024, Denso Corporation and NTT DATA Japan Corp signed an MOU to form a strategic partnership for software development.
Siemens
Company Overview
| Establishment Year | 1847 |
| Headquarter | Munich, Germany |
| Key Management | Roland Busch (CEO) |
| Revenue (US$ Bn) | $ 81.8 B (2023) |
| Headcount | ~ 320,000 (2023) |
| Website | https://www.siemens.com/ |
About Siemens
Siemens AG, through Siemens Energy, plays a significant role in the heat pump companies/sector, focusing on large-scale industrial and district heating applications.
Their heat pumps, developed in the 1980s, are designed to decarbonize heating systems by using renewable energy to generate heat more efficiently than conventional methods. Siemens Energy has delivered around 50 units with over 6 million cumulative operating hours.
Recent projects include a partnership with BEW in Berlin, where Siemens is installing large heat pumps to provide CO2-free heat for 45,000 households. These systems are part of a broader initiative to replace fossil-fueled power plants and support climate-neutral district heating.
Geographical Presence
Headquartered in Munich, Germany, Siemens AG maintains a broad global footprint across Europe, North America, South America, Asia, the Middle East, Africa, and Oceania. In Europe, it operates key facilities in Germany, the UK, France, Italy, and Spain, specializing in automation, energy, and digital industries.
In North America, Siemens is active in the U.S. and Canada, focusing on healthcare and infrastructure. In South America, its major operations are in Brazil, Argentina, Chile, and Colombia. Siemens is well-established in Asia, with a significant presence in China, India, Japan, and South Korea.
The company also has a strong foothold in the Middle East, notably in the UAE and Saudi Arabia, and in Africa, with operations in South Africa and Nigeria. In Oceania, Siemens’ activities are concentrated in Australia, particularly in automation and energy.
Recent Developments
- In August 2024, Siemens partnered with the Orient Express Racing Team to provide DT technology for the America’s Cup.
- In July 2024, Siemens teamed up with Stadtwerke Stuttgart to enhance urban energy transition with advanced building and energy management solutions, supporting climate neutrality goals.
Hitachi
Company Overview
| Establishment Year | 1910 |
| Headquarter | Tokyo, Japan |
| Key Management | Keiji Kojima (CEO) |
| Revenue (US$ Bn) | $ 71.9 B (2023) |
| Headcount | ~ 268,655 (2024) |
| Website | https://www.hitachi.com/ |
About Hitachi
Hitachi has established itself in the heat pump companies/sector through its joint venture with Johnson Controls, focusing on residential and commercial heating solutions.
A key product in this collaboration is the Hitachi air365 Hybrid system, which integrates a mini variable refrigerant flow (VRF) heat pump with a dual-fuel module.
This innovative system automatically switches between electric and gas heating to optimize efficiency and reduce emissions, particularly for year-round home comfort.
Recently, Hitachi has emphasized sustainable solutions in its heat pump offerings, aligning with global decarbonization goals. Additionally, the company has expanded its presence in the energy sector with further investments in advanced heating technologies.
Geographical Presence
Headquartered in Tokyo, Hitachi, Ltd. has a broad international presence. In Asia-Pacific, it operates in Japan, China, India, and Southeast Asia, focusing on IT services and infrastructure.
North America’s key markets are the U.S. and Canada. In Europe, it is active in the U.K., Germany, and other major nations, with an emphasis on industrial machinery.
In Latin America, operations are centered in Brazil and Mexico, while in the Middle East and Africa, it operates in the UAE and South Africa. This extensive global footprint supports Hitachi’s diverse business activities and strengthens its international market position.
Recent Development
- In July 2024, Hitachi Elevator Asia Pte. Ltd. was awarded a contract by Singapore’s Housing and Development Board to supply and install 450 elevators.
- In June 2024, Hitachi Digital and Singtel partnered to integrate Hitachi’s AI expertise with Singtel’s Paragon platform.
Bosch
Company Overview
| Establishment Year | 1886 |
| Headquarter | Stuttgart, Germany |
| Key Management | Stefan Hartung (CEO) |
| Revenue (US$ Bn) | $ 99.1 B (2023) |
| Headcount | ~ 429,416 (2023) |
| Website | https://www.bosch.com/ |
About Bosch
Robert Bosch GmbH is expanding its presence in the heat pump companies/sector, focusing on energy-efficient and eco-friendly solutions.
The company is investing over €100 million to upgrade its heat pump production in Aveiro, Portugal, as part of a larger €1 billion investment plan for production and research across Europe by the decade’s end.
Bosch has also strengthened its global HVAC position by acquiring the Johnson Controls-Hitachi joint venture for €7.4 billion, aiming to increase its HVAC revenue from €5 billion to €9 billion by 2030.
This move positions Bosch to lead in sustainable HVAC solutions amid rising demand driven by decarbonization efforts.
Geographical Presence
Robert Bosch GmbH, based in Stuttgart, Germany, operates worldwide with a strong presence across key regions. In Europe, it is well-established in Germany, France, Italy, Spain, and the UK. In North America, it has significant operations in the U.S., Canada, and Mexico, focusing on automotive and consumer goods.
South America’s key markets include Brazil, Argentina, and Chile. The Asia-Pacific region, with major operations in China, India, Japan, South Korea, and Australia, is vital for its product diversity.
Bosch also has a notable presence in the Middle East and Africa, including South Africa, Saudi Arabia, and the UAE. Its extensive network of manufacturing, R&D, and service facilities supports its global and local market strategies.
Recent Development
- In July 2024, Robert Bosch Smart Home introduced the new Eyes Outdoor Camera II.
- In July 2024, Bosch acquired the Johnson Controls-Hitachi Air Conditioning joint venture for €7.4 billion ($8 billion).
Carrier
Company Overview
| Establishment Year | 1988 |
| Headquarter | Zürich, Switzerland |
| Key Management | Morten Wierod (CEO) |
| Revenue (US$ Bn) | $ 32.2 B (2023) |
| Headcount | ~ 105,000 (2023) |
| Website | http://corporate.carrier.com/ |
About Carrier
Carrier Global Corporation has strengthened its leadership in the heat pump companies/sector through several strategic acquisitions and innovations. In January 2024, Carrier completed a €12 billion acquisition of Viessmann Climate Solutions, a key player in Europe’s energy transition.
This acquisition expands Carrier’s portfolio with advanced, energy-efficient heat pump technologies, positioning it in a rapidly growing market driven by decarbonization efforts.
Additionally, Carrier has been developing next-generation heat pump rooftop units in partnership with the U.S. Department of Energy, aimed at improving energy efficiency for commercial buildings.
This aligns with Carrier’s strategy to offer cutting-edge, sustainable solutions for both residential and commercial sectors.
Geographical Presence
Carrier Global Corporation has a significant global footprint, with operations spanning North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa.
Its headquarters are in Palm Beach Gardens, Florida, and it maintains a strong presence in key markets such as the United States, Canada, Brazil, Mexico, Germany, China, India, Australia, and Saudi Arabia.
Carrier’s extensive network includes manufacturing facilities, R&D centers, and service operations, enabling it to deliver tailored HVAC, refrigeration, and building automation solutions to diverse regional markets.
The company’s strategic focus on local operations and market-specific needs supports its growth and innovation across the global industry.
Recent Developments
- In June 2024, Carrier partnered with the Department of Energy to advance next-generation heat pump technologies, enhancing efficiency in light commercial rooftop units and lowering life cycle costs for end users, including schools, retail spaces, and offices.
- In January 2024, Carrier Global Corporation completed the acquisition of Viessmann Climate Solutions, enhancing its portfolio and reinforcing its global leadership in climate and energy solutions.
Panasonic
Company Overview
| Establishment Year | 1918 |
| Headquarter | Osaka, Japan |
| Key Management | Kazuhiro Tsuga (Chairman) |
| Revenue (US$ Bn) | $ 62.8 Billion (2023) |
| Headcount | ~ 233,391 (2023) |
| Website | http://holdings.panasonic/ |
About Panasonic
Panasonic Corporation is advancing in the heat pump companies/sector, particularly in Europe, where the demand for eco-friendly heating solutions is rising.
The company is investing 20 billion yen (approximately €145 million) to expand air-to-water (A2W) heat pump production at its Czech plant by 2026, aligning with its decarbonization goals.
The new Aquarea L Series heat pump, produced in Europe and using the low-GWP refrigerant R290, underscores Panasonic’s commitment to reducing its carbon footprint.
Additionally, Panasonic’s acquisition of Systemair’s air-conditioning business for €100 million in 2023 bolsters its commercial and residential HVAC offerings, enhancing its market position in Europe.
Geographical Presence
Panasonic Corporation, headquartered in Osaka, Japan, boasts a broad geographical presence. The company operates extensively across Asia-Pacific, including Japan, China, India, and Southeast Asia. In North America, Panasonic maintains facilities in the United States and Canada.
Its European footprint spans Western and Eastern Europe, while in Latin America, it is active in Brazil, Argentina, Chile, and Mexico.
Additionally, Panasonic has a growing presence in the Middle East and Africa, with operations in the UAE, Saudi Arabia, South Africa, and Nigeria. This extensive network supports its diverse product range and global market needs.
Recent Developments
- In July 2023, Panasonic reached a significant milestone by fully producing its new Aquarea L Series heat pump, which uses the R290 natural refrigerant, entirely in Europe.
- In September 2022, Panasonic announced it would invest approximately 20 billion yen (about 145 million euros) in its Czech plant to boost air-to-water heat pump production, responding to increasing European demand.
LG
Company Overview
| Establishment Year | 1958 |
| Headquarter | Seoul, South Korea |
| Key Management | Kwang-Mo Koo (Chairman) |
| Revenue (US$ Bn) | $ 64.5 Billion (2022) |
| Headcount | ~ 75,000 (2022) |
| Website | https://www.lg.com/ |
About LG
LG Electronics is a prominent player in the heat pump companies/sector, focusing on high-efficiency solutions, particularly for cold climates. In 2024, the company expanded its global research and development efforts by establishing an R&D triangle connecting North America, Europe, and Asia.
This initiative is designed to develop next-generation heat pumps tailored for extreme cold environments, collaborating with European universities through the European Consortium for Advanced Heat Pump Research.
LG’s innovations include heat pumps optimized for low temperatures, addressing the growing demand for energy-efficient systems, particularly in Northern Europe.
Additionally, LG has introduced new products like the Multi Variable Refrigerant Flow system for commercial buildings, which enhances energy efficiency through AI-driven performance optimization.
Geographical Presence
LG Electronics boasts a substantial global presence, with operations strategically positioned across key regions.
In North America, the company has major facilities in the United States and Canada, focusing on consumer electronics and home appliances.
Latin America features significant operations in Brazil and Mexico. In Europe, LG has notable R&D centers and regional offices in Germany and the UK.
The Asia-Pacific region includes major facilities in China, India, and Japan. In the Middle East and Africa, LG operates regional hubs in the UAE and South Africa.
This extensive geographical footprint enables LG to effectively address regional market demands, drive innovation, and streamline distribution and service.
Recent Developments
- In June 2024, LG Electronics created a global R&D triangle across North America, Europe, and Asia to spearhead the development of advanced heat pumps tailored for cold climates.
- In January 2024, LG Electronics introduced its new HVAC solutions in Chicago, Illinois.
Daikin
Company Overview
| Establishment Year | 1924 |
| Headquarter | Osaka, Japan |
| Key Management | Masanori Togawa (CEO) |
| Revenue (US$ Bn) | $ 32.5 Billion (2023) |
| Headcount | ~ 98,162 (2023) |
| Website | https://www.daikin.com/ |
About Daikin
Daikin is a global leader in the heat pump companies/sector, particularly focused on developing energy-efficient heating and cooling solutions.
The company has made significant strides in expanding its production capacity and innovating heat pump technology. In 2024, Daikin pledged to produce one million heat pumps in California by 2030 as part of the state’s decarbonization goals.
Additionally, Daikin continues to invest in European operations, with a major investment in its German factory to increase the production of wall-mounted heat pumps, such as the Daikin Altherma series.
The company also launched the SmartSource® Dedicated Outdoor Air System in 2020, which enhances heating efficiency in extreme weather conditions using 100% fresh outdoor air.
Geographical Presence
Daikin Industries, Ltd., a leading global HVAC provider, boasts a broad geographical presence. It operates extensively across Asia-Pacific, including Japan, China, India, and Southeast Asia, capitalizing on regional economic growth.
In North America, Daikin invests heavily in the U.S., Canada, and Mexico, serving both residential and commercial sectors. In Europe, it has a strong presence in the UK, Germany, France, and Italy and is expanding into Eastern Europe.
In Latin America, the company is growing in Brazil, Argentina, and Chile. At the same time, in the Middle East and Africa, it is active in the UAE and South Africa, with plans for further expansion. This global reach highlights Daikin’s strategic focus on meeting diverse HVAC needs.
Recent Development
- In May 2024, Daikin announced five key commitments to boost the availability of heat pumps in California.
- In July 2024, Daikin introduced the SmartSource® DOAS, a new heat pump system that provides efficient heating and cooling with 100% fresh outdoor air.
Midea
Company Overview
| Establishment Year | 1968 |
| Headquarter | Guangdong, China |
| Key Management | Paul Fang (Chairman) |
| Revenue (US$ Bn) | $ 52.8 Billion (2022) |
| Headcount | ~ 198,613 (2022) |
| Website | http://midea-group.com/ |
About Midea
Midea Group has made significant advances in the heat pump companies/sector, focusing on sustainability and energy efficiency.
The company recently expanded its presence in Europe with a new air-to-water (ATW) heat pump production facility in Italy, which is expected to produce 300,000 units annually by 2024.
This investment strengthens Midea’s foothold in the European market, leveraging its high-end Clivet brand. Midea also introduced the EVOX G3 Heat Pump, designed for cold climates, offering up to 100% heating output at -13°F (-25°C) and energy savings of up to 72.7% compared to traditional systems.
Additionally, Midea continues to acquire HVAC businesses, such as the €760 million purchase of Arbonia’s Climate Division in 2024, enhancing its product portfolio and expanding its reach in sustainable climate solutions.
Geographical Presence
Midea Group, a prominent global appliance manufacturer based in China, has a substantial geographical footprint across various regions.
Domestically, it maintains a strong presence with numerous facilities throughout China. Internationally, Midea is established in Southeast Asia, South Asia, and Europe, bolstered by strategic acquisitions such as KUKA.
In North America, Midea has expanded through partnerships and acquisitions, particularly in the U.S. and Canada. Its reach extends into Latin America and the Middle East, with growing operations in Brazil, Argentina, Chile, Saudi Arabia, and Egypt.
In Africa, Midea is focusing on emerging markets like South Africa and Nigeria. Local manufacturing, strategic acquisitions, and a comprehensive distribution network support the company’s global presence.
Recent Developments
- In May 2024, Midea announced the launch of its EVOX G3 heat pump system.
- In April 2024, Midea acquired Arbonia’s Climate Division for €760 million, which includes the HVAC brands Sabiana, Termovent, and Tecna.
Honeywell
Company Overview
| Establishment Year | 1906 |
| Headquarter | Charlotte, North Carolina, U.S. |
| Key Management | Vimal Kapur (CEO) |
| Revenue (US$ Bn) | $ 36.6 Billion (2023) |
| Headcount | ~ 95,000 (2023) |
| Website | http://honeywell.com/ |
About Honeywell
Honeywell International has been actively advancing its role in the heat pump companies/sector, primarily by focusing on environmentally friendly refrigerants and partnerships to reduce global emissions.
In 2024, Honeywell collaborated with Bosch to integrate its Solstice® low-global warming potential (GWP) refrigerant into Bosch’s new line of heat pumps, aiming to cut greenhouse gas emissions by 78% compared to traditional systems.
Additionally, Honeywell received a $15 million grant from the U.S. Department of Energy to expand the production of low-GWP refrigerants, which are essential for the growing domestic heat pump market.
This expansion will support the manufacture of over 1.4 million residential heat pumps annually, contributing to cleaner energy solutions.
Geographical Presence
Honeywell International Inc. operates globally and has a major presence in North America, Latin America, EMEA, and Asia-Pacific. Its headquarters is in Charlotte, North Carolina, and it coordinates extensive activities in aerospace, building technologies, and more.
Key operations are also based in Canada, Mexico, Brazil, the UK, Germany, France, the UAE, South Africa, China, India, Japan, and Australia. This extensive geographical footprint highlights Honeywell’s broad market influence and diverse operations.
Recent Developments
- In August 2024, Honeywell International secured a $25.799 million contract from the Naval Surface Warfare Center for sustaining strategic radiation-hardened microelectronics.
- In April 2024, Honeywell announced that Bosch’s latest heat pumps will use Honeywell’s energy-efficient Solstice refrigerant with low global warming potential.
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