UK Heat Pump Water Heater Market (2023-2028)
The UK Heat Pump Water Heater Market was valued at $112.4 Million in 2023 and projected to reach to $257 Million by 2028, representing a compound annual growth rate of 18.0%. The UK heat pump water heater market is positioned for sustained expansion through 2028, supported by stringent environmental regulations and consumer demand for sustainable heating solutions.
| Market Size in | USD 26.32 MN |
| Market Forecast in | |
| CAGR | |
| Forecast Period | |
| Units Considered | Value (USD MN) |
UK Heat Pump Water Heater Market Trends and Insights
- The UK market is expanding at an 18.0% compound annual growth rate, substantially outpacing global trends, driven by government decarbonization policies and rising energy costs.
- By 2028, the UK market is forecast to reach $257.0 million, reflecting accelerating adoption of renewable heating technologies across residential and commercial sectors. The UK's robust market expansion reflects the nation's commitment to net-zero targets and the phase-out of fossil fuel heating systems.
- UK consumers and businesses are increasingly investing in heat pump water heaters as a sustainable alternative to traditional boilers, supported by government incentives and improved product availability.
- The UK market's 18.0% CAGR between 2023 and 2028 underscores the country's leadership in heat pump adoption within Europe, positioning the UK as a critical growth engine for manufacturers and installers in the renewable heating sector..
Key Market Statistics
- CAGR (2023-2028) 18.0% CAGR
- Market Size, 2023 ~USD 112.4 Million
- Forecast, 2028 ~USD 257 Million
- Country UK
UK Heat Pump Water Heater Market Overview
Rapid UK Market Expansion :
The UK heat pump water heater market is experiencing exceptional growth at 18% CAGR, significantly outpacing the global rate of 14.4%, driven by aggressive decarbonization targets and the government's commitment to net-zero emissions by 2050.
Strong Valuation Growth :
Market value is projected to more than double from $112.4 million in 2023 to $257.0 million by 2028, representing a 128% increase over five years and reflecting sustained demand for energy-efficient heating solutions.
Policy-Driven Adoption :
UK government incentives, including the Boiler Upgrade Scheme and building regulations favoring low-carbon heating, are accelerating heat pump water heater installations across residential and commercial sectors.
Energy Cost Pressures :
Rising energy bills and volatile utility costs are compelling UK consumers and businesses to invest in heat pump water heaters as a cost-effective, long-term alternative to traditional gas and electric systems.
UK Heat Pump Water Heater Market Dynamics
- Government backing through financial incentives and building code updates continues to create favorable conditions for market penetration.
- The transition away from fossil fuel-based heating systems is accelerating, with heat pump technology becoming increasingly competitive on both cost and performance metrics. Key growth drivers include rising awareness of carbon footprint reduction, improving product efficiency, and expanding installer networks across the UK.
- As supply chains mature and manufacturing scales up, prices are expected to decline, further boosting adoption rates.
- The market will likely see increased competition among manufacturers and service providers, driving innovation and customer choice in the heat pump water heater segment..
Related Ecosystem
Decarbonization
- Battery Electric Vehicle (BEV)
- Energy Management Systems
- Fuel Cell
- Fuel Cell Electric Vehicle (FCEV)
- Geographical Information System (GIS)
- TotalEnergies SE
- Siemens ag
- Mitsui & Co., Ltd.
- General Electric Company
- Thyssenkrupp ag
Industrial Equipment
- HVAC System
- Fiberglass
- Actuators
- Cartridge Filters
- Electrostatic Precipitators
- Siemens ag
- GRUNDFOS GROUP
- ABB India Limited
- SCHNEIDER ELECTRIC SE
- Eaton Corporation plc
Key Takeaways
- The UK heat pump water heater market reached $112.4 million in 2023 and is projected to grow to $257.0 million by 2028, representing a 18.0% CAGR.
- The UK market is growing significantly faster than the global average of 14.4%, driven by aggressive net-zero policies and fossil fuel heating phase-out mandates.
- Government incentives, including the Boiler Upgrade Scheme, are accelerating UK adoption of heat pump water heaters among residential and commercial property owners.
- The UK's renewable heating transition positions the country as Europe's fastest-growing heat pump water heater market, attracting major manufacturers and installers.
Heat Pump Water Heater Market Report Scope
| Report Metric | Details |
|---|---|
| Base Year | 2023 |
| Fastest Growing Segment | RESIDENTIAL (End User) |
| Forecast Period | 2023-2028 |
| Growth Rate | CAGR of 14.4% from 2023 to 2028 |
| Largest Segment | UP TO 500 LITERS (Storage Tank Capacity) |
| Market Size Base Year (Billions) | ~USD 5.21 (2023) |
| Revenue Forecast (Billions) | ~USD 10.2 (2028) |
| Segments Covered | Storage Tank Capacity, End User, Rated Capacity, Type, Refrigerant Type |
UK Heat Pump Water Heater Market Report Segmentation
5 segment dimensions are covered across the global market.
By Storage Tank Capacity
- 500-1,000 Liters
- Above 1,000 Liters
- Up To 500 Liters
By End User
- Commercial
- Industrial
- Residential
By Rated Capacity
- 100-150 Kw
- 10-20 Kw
- 20-30 Kw
- 30-100 Kw
- Above 150 Kw
- Up To 10 Kw
By Type
- Air-To-Air Heat Pump Water Heaters
- Air-To-Water Heat Pump Water Heaters
- Ground-Source (Geothermal) Heat Pump Water Heaters
- Hybrid Heat Pump Water Heaters
- Water-Source Heat Pump Water Heaters
By Refrigerant Type
- R407C
- R410A
- R744
UK: HEAT PUMP WATER HEATER MARKET, BY END USER, 2023–2028
| Segment | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | CAGR (%) |
|---|---|---|---|---|---|---|---|
| COMMERCIAL | 18.1 | 20.6 | 23.5 | 26.9 | 30.7 | 35.1 | 14.2 |
| INDUSTRIAL | 25.4 | 28.9 | 32.9 | 37.5 | 42.6 | 48.5 | 13.8 |
| RESIDENTIAL | 69 | 82.8 | 99.4 | 119.5 | 143.9 | 173.4 | 20.2 |
| TOTAL | 112.4 | 132.3 | 155.8 | 183.8 | 217.2 | 257 | 18 |
Target Audience
- Heat Pump Manufacturers & OEMs : Need UK market data to assess market entry opportunities, production capacity planning, and competitive positioning in a high-growth market expanding at 18% CAGR with strong government support.
- HVAC & Plumbing Installers : Require market insights to identify growth opportunities, plan service expansion, and understand demand trends to capitalize on the shift from traditional boilers to heat pump water heaters across UK regions.
- Energy & Utilities Companies : Need UK-specific forecasts to develop customer programs, optimize grid planning, and align business strategies with the accelerating adoption of heat pump technology in residential and commercial properties.
- Government & Policy Bodies : Utilize market data to evaluate effectiveness of decarbonization policies, Boiler Upgrade Scheme impact, and heat pump adoption rates to inform future regulatory frameworks and incentive programs.
- Investment & Private Equity Firms : Require validated UK market sizing and growth projections to evaluate investment opportunities in heat pump manufacturers, installers, and service providers operating in this high-growth, policy-supported sector.
Reasons to Buy this Report
- Market Size & Growth Validation : Obtain precise UK market valuation ($112.4M in 2023) and verified 5-year forecast ($257M by 2028) to support investment decisions, business planning, and competitive positioning in the rapidly expanding heat pump sector.
- Policy & Regulatory Intelligence : Understand UK-specific government incentives, building regulations, and decarbonization mandates shaping market dynamics, enabling compliant product development and targeted go-to-market strategies aligned with policy timelines.
- Competitive Landscape Analysis : Identify market opportunities, competitive gaps, and growth segments specific to the UK market to inform product launches, partnerships, and resource allocation decisions in this high-growth region.
- Consumer & Business Demand Insights : Access data on UK consumer preferences, adoption drivers, and purchasing behaviors to refine marketing messaging, sales strategies, and customer acquisition approaches for residential and commercial segments.
- Strategic Planning & ROI Forecasting : Leverage UK-specific market projections and growth trends to develop accurate financial models, forecast revenue potential, and justify investment in manufacturing, distribution, and service infrastructure expansion.
Frequently asked questions
What is the current size of the UK heat pump water heater market?
The UK heat pump water heater market was valued at $112.4 million in 2023 and is expected to reach $257.0 million by 2028.
What is the growth rate of the UK heat pump water heater market?
The UK market is growing at an 18.0% compound annual growth rate (CAGR) from 2023 to 2028, significantly outpacing the global average of 14.4%.
What factors are driving growth in the UK heat pump water heater market?
Key drivers include UK government net-zero commitments, the phase-out of fossil fuel heating systems, the Boiler Upgrade Scheme, rising energy costs, and increased consumer awareness of renewable heating solutions.
How does the UK market compare to global trends?
The UK market is growing 3.6 percentage points faster than the global average, reflecting the country's leadership in renewable heating adoption and supportive policy environment.
Which sectors are driving UK heat pump water heater adoption?
Both residential and commercial sectors are driving adoption, with homeowners and businesses seeking to replace traditional boilers with sustainable alternatives to meet decarbonization targets.
RESEARCH METHODOLOGY
The study involved major activities in estimating the current size of the heat pump water heater market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the heat pump water heater market involved the use of extensive secondary sources, directories, and databases, such as Hoover’s, Bloomberg, Factiva, IRENA, International Energy Agency, and Statista Industry Journal, to collect and identify information useful for a technical, market-oriented, and commercial study of the heat pump water heater market. The other secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The heat pump water heater market comprises several stakeholders, such as heat pump water heater manufacturers, technology providers, and technical support providers in the supply chain. The demand side of this market is characterized by the rising demand for heat pump water heaters in various applications such as energy, mobility, industrial, and grid injection. The supply side is characterized by rising demand for contracts from the industrial sector and mergers & acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the heat pump water heater market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share has been determined through primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through both primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Heat pump water heater market Size: Top-Down Approach
To know about the assumptions considered for the study, Request for Free Sample Report
Heat pump water heater market Size: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the above estimation process, the total market has been split into several segments and subsegments. Data triangulation and market breakdown processes have been employed to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Definition
A heat pump water heater (HPWH) is a type of water heater that uses a heat pump to efficiently heat water. Unlike traditional water heaters that generate heat directly, such as electric or gas water heaters, a heat pump water heater moves heat from the surrounding air or ground to heat the water.
The market for heat pump water heaters is defined as the sum of revenues generated by global companies from the sale of heat pump water heaters. Two different types of heat pump water heaters are available—geothermal heat pump water heaters and air source heat pump water heaters. These heaters are available with different rated capacities, including up to 10 kW, 10–20 kW, 20–30 kW, 30–100 kW, 100–150 kW, and above 150 kW. These devices come with different storage tank capacities, namely, up to 500 liters, 500–1,000 liters, and above 1,000 liters. Heat pump water heaters are used by residential, commercial, and industrial end users. The regions considered for this market study include North America, Europe, Asia Pacific, and South America.
Key Stakeholders
- Companies manufacturing heat pump water heaters
- T&D utilities
- Industrial end users
- Commercial end users
- Power and energy associations
- Government and research organizations
- Manufacturers of heat pump water heater components
- Distributors and suppliers of heat pump water heaters
- Heating, ventilation, and air conditioning (HVAC) industry and environmental associations
- National and local government organizations
- Technology standard organizations, forums, alliances, and associations
- Heat pump water heater associations
- Heat pump water heater survey companies
Objectives of the Study
- To define, describe, segment, and forecast the heat pump water heater market on the basis of type, rated capacity, refrigerant type, storage tank capacity, end user, and region in terms of value.
- To forecast the global heat pump water heater market in terms of volume.
- To describe and forecast the market for five key regions: North America, Europe, Asia Pacific, South America, and Middle East & Africa, along with their country-level market sizes in terms of value.
- To provide detailed information regarding key drivers, restraints, opportunities, and challenges influencing the growth of the market.
- To strategically analyze the micromarkets1 with respect to individual growth trends, prospects, and contributions to the overall market size
- To provide the supply chain analysis, trends/disruptions impacting the customer’s business, market map, pricing analysis, and regulatory analysis of the heat pump water heater.
- To analyze opportunities for stakeholders in the heat pump water heater and draw a competitive landscape of the market.
- To strategically analyze the ecosystem, tariffs and regulations, patent landscape, trade landscape, Porter’s five forces, and case studies pertaining to the market under study.
- To benchmark market players using the company evaluation quadrant, which analyzes market players on broad categories of business and product strategies adopted by them.
- To compare key market players with respect to the product specifications and applications.
- To strategically profile key players and comprehensively analyze their market rankings and core competencies.
- To analyze competitive developments, such as contracts & agreements, investments & expansions, mergers & acquisitions, new product launches, partnerships, joint ventures & collaborations, in the heat pump water heater.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
- Detailed analyses and profiling of additional market players
Get the Full Heat Pump Water Heater Market Report
Full forecast, segment splits, and company analysis for all Heat Pump Water Heater Market.
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