Global Ducted Heat Pump Market 2024–2033

Reports Description

Global Ducted Heat Pump Market was valued at USD 9.3 Billion in 2024 and is expected to reach USD 20.3 Billion by 2033, at a CAGR of 7.4% during the forecast period 2024 – 2033.

A ducted heat pump, also known as a ducted mini-split system or central ducted heat pump, is a type of heating, ventilation, and air conditioning (HVAC) system that provides both heating and cooling to a building through a network of ducts.

Ducted Heat Pump Market: Growth Factors

Increased demand for energy efficient system

The increased demand for energy-efficient systems is a significant driver of growth within the ducted heat pump market.

As concerns about environmental sustainability and energy costs continue to rise, consumers and businesses are increasingly seeking HVAC solutions that offer improved efficiency and lower operational expenses.

Ducted heat pumps are well-positioned to meet this demand due to their inherent energy efficiency and ability to provide both heating and cooling functions with minimal energy consumption.

These systems leverage advanced technologies such as variable-speed compressors, inverter-driven motors, and zoning capabilities to optimize energy usage and reduce waste.

Moreover, ducted heat pumps offer the flexibility to zone different areas of a building, allowing for customized temperature control and further energy savings by avoiding the need to condition unoccupied spaces.

Additionally, government incentives, rebates, and regulations aimed at promoting energy efficiency further drive market demand for ducted heat pump systems. These incentives encourage consumers and businesses to invest in energy-efficient HVAC solutions, stimulating market growth and adoption.

Overall, the combination of consumer preferences for sustainable, cost-effective HVAC solutions and supportive government initiatives propels the demand for energy-efficient ducted heat pumps, driving market expansion and innovation within the industry.

Rising residential and commercial sector

The ducted heat pump market is experiencing significant growth driven by the rising demand in both the residential and commercial sectors. As populations grow and urbanization continues, there is a corresponding increase in the construction of residential and commercial buildings, driving the need for efficient heating and cooling solutions.

In the residential sector, ducted heat pumps offer homeowners a versatile and energy-efficient HVAC solution that provides year-round comfort. These systems are especially popular in newly constructed homes where centralized heating and cooling are desired for consistent temperature control throughout the living space.

Additionally, ducted heat pumps appeal to homeowners looking to upgrade their existing HVAC systems for improved energy efficiency and comfort.

In the commercial sector, ducted heat pumps are widely used in various applications, including office buildings, retail stores, hotels, and restaurants.

These systems offer businesses cost-effective and flexible HVAC solutions that can adapt to the diverse heating and cooling needs of commercial spaces.

Moreover, ducted heat pumps can be integrated with building automation systems for centralized control and energy management, further enhancing their appeal to commercial property owners and managers.

Ducted Heat Pump Market: Restraints

High Competition

High competition can indeed pose challenges for companies operating in the ducted heat pump market. With numerous manufacturers and suppliers vying for market share, competition can intensify, leading to pricing pressures, reduced profit margins, and increased marketing expenses.

Moreover, in highly competitive markets, companies may face challenges differentiating their products and services from those of competitors. This can result in a race to the bottom in terms of pricing, eroding profitability and potentially compromising product quality or customer service.

Furthermore, high competition can hinder innovation within the ducted heat pump market. Companies may prioritize cost-cutting measures over investments in research and development, limiting the introduction of new technologies or product improvements that could drive market differentiation and growth.

However, despite these challenges, competition can also drive companies to innovate, improve efficiency, and enhance customer value propositions. By focusing on differentiation, quality, and customer service, companies can effectively navigate high competition and thrive in the ducted heat pump market.

Ducted Heat Pump Market: Opportunities

Trend of smart home automation

The trend of smart home automation is significantly driving the growth of the ducted heat pump market. As smart home technologies become more prevalent and affordable, homeowners are increasingly seeking HVAC solutions that integrate seamlessly with their connected homes.

Ducted heat pumps are well-suited for smart home automation due to their compatibility with advanced control systems and zoning capabilities. Homeowners can remotely monitor and adjust their ducted heat pump settings using smartphone apps or voice assistants, allowing for personalized comfort and energy savings.

Moreover, ducted heat pumps can be integrated with other smart home devices, such as thermostats, sensors, and smart speakers, to create a holistic home automation ecosystem.

For example, the ducted heat pump can coordinate with occupancy sensors to adjust temperature settings based on room occupancy, or it can synchronize with weather forecasts to optimize energy usage.

Additionally, ducted heat pumps can leverage machine learning algorithms to analyse usage patterns and optimize performance over time, further enhancing energy efficiency and comfort in smart homes.

Ducted Heat Pump Market: Segmentation Analysis

The Global Ducted Heat Pump market is segmented by type, end user, and region.  Based on type, the market is classified into Air Source Heat Pump, Geothermal Heat Pumps and Water Source Heat Pumps. Air Source Heat Pump dominated the market in 2023 with a market share of 49.8% and is expected to keep its dominance during the forecast period 2024-2033.

Air source heat pumps (ASHPs) are significant drivers of growth in the ducted heat pump market. These systems extract heat from the ambient air and transfer it indoors for heating purposes, or vice versa for cooling. ASHPs offer several advantages, including energy efficiency, versatility, and environmental sustainability.

In the residential sector, ASHPs are increasingly favoured as heating and cooling solutions due to their ability to provide year-round comfort with reduced energy consumption compared to traditional heating and cooling systems. Ducted ASHPs, in particular, offer homeowners centralized heating and cooling capabilities, distributing conditioned air evenly throughout the home via ductwork.

In the commercial sector, ducted ASHPs are widely used in various applications, including office buildings, retail stores, and hotels, where centralized HVAC systems are preferred for consistent temperature control and comfort.

These systems offer businesses cost-effective and flexible heating and cooling solutions that can adapt to the diverse needs of commercial spaces.

The increasing adoption of air source heat pumps, particularly ducted systems, is driving market growth, innovation, and adoption within the ducted heat pump market, positioning ASHPs as a key player in the HVAC industry’s transition towards energy-efficient and sustainable heating and cooling solutions.

Based on end user, the market is classified into Residential, Commercial and Others. Commercial dominated the market in 2023 with a market share of 46.5% and is expected to keep its dominance during the forecast period 2024-2033.

The commercial sector is a significant driver of growth within the ducted heat pump market. Commercial buildings, including office spaces, retail stores, hotels, restaurants, and healthcare facilities, have diverse and demanding heating and cooling requirements, making ducted heat pumps a popular choice for HVAC solutions. Ducted heat pumps offer several advantages for commercial applications.

They provide centralized heating and cooling capabilities, allowing for consistent temperature control throughout large spaces. Additionally, ducted systems can be customized to meet the specific needs of commercial buildings, with zoning capabilities that enable tailored comfort settings for different areas.

Moreover, ducted heat pumps offer energy efficiency and cost savings for commercial property owners and operators. These systems leverage advanced technologies such as variable-speed compressors and intelligent controls to optimize energy usage and reduce operational expenses.

Furthermore, the growing emphasis on sustainability and environmental responsibility drives demand for energy-efficient HVAC solutions in the commercial sector. Ducted heat pumps help businesses reduce their carbon footprint and comply with regulatory requirements while providing comfortable indoor environments for employees, customers, and occupants.

The commercial sector’s diverse heating and cooling needs, coupled with the benefits of ducted heat pumps, position commercial applications as a key driver of growth within the ducted heat pump market.

Report Scope

Ducted Heat Pump Market: Regional Analysis

By region, Ducted Heat Pump market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle East & Africa. The Asia-Pacific dominated the global Ducted Heat Pump market in 2023 with a market share of 43.6% and is expected to keep its dominance during the forecast period 2024-2033.

The Asia-Pacific region serves as a significant driving force behind the growth of the ducted heat pump market.  In the residential sector, the increasing demand for modern, energy-efficient HVAC solutions is driving the adoption of ducted heat pumps in newly constructed homes and residential buildings.

Rising disposable incomes and changing lifestyle preferences contribute to the growing demand for comfortable indoor environments, further propelling market growth.

Moreover, the commercial sector in Asia-Pacific presents substantial opportunities for ducted heat pump manufacturers and suppliers. With the expansion of commercial spaces such as office buildings, shopping malls, hotels, and restaurants, there is a corresponding need for efficient heating and cooling solutions to ensure occupant comfort and operational efficiency.

Additionally, supportive government policies and incentives aimed at promoting energy efficiency and sustainability further stimulate market growth in the Asia-Pacific region. These initiatives encourage the adoption of ducted heat pumps and other environmentally friendly HVAC technologies, driving market expansion and innovation.

Asia-Pacific region’s robust construction activity, increasing demand for energy-efficient solutions, and supportive regulatory environment position it as a key driver of growth within the global ducted heat pump market.

Ducted Heat Pump Market: Recent Developments

• In August 2021, Gradient developed a heat pump to provide heating and cooling throughout the year by making use of climate-friendly refrigerant that can propane (R290) and help reduce greenhouse gas emissions by 75% compared to conventional systems.

• In October 2021 – Mitsubishi Electric Trane HVAC US launched a CO2 (R744) heat pump water heater for commercial and industrial applications as an emphasis on decarbonization increased in the country and continuous efforts to replace fossil fuel heaters prevail in the country.

List of the prominent players in the Ducted Heat Pump Market:

• Carrier Global Corporation
• Daikin Industries Ltd.
• Johnson Controls International Plc
• United Technologies Corporation
• Lennox International Inc.
• Rheem Manufacturing Company
• Goodman Global Inc.
• Amana Corporation
• Bosch Thermotechnology GmbH
• LG Electronics Inc.
• Changhong Group
• Skyworth Group Co. Ltd.
• TCL Corporation
• Haier Smart Home Co. Ltd.
• Panasonic Corporation
• Fujitsu General Limited
• Hitachi Global Life Solutions Inc.
• Samsung Electronics Co. Ltd.
• Mitsubishi Electric Corporation
• Gree Electric Appliances Inc.
• Others

These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The Ducted Heat Pump Market is segmented as follows:

By Type

• Air Source Heat Pumps
• Ground Source Heat Pumps
• Water Source Heat Pumps

By End User

• Residential
• Commercial
• Others

By Application              

• Heating
• Cooling
• Both heating and cooling

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America