The global pool heat pump market size was valued at USD 4.9 billion in 2023 and is projected to reach from a value of USD 5 billion in 2024 to USD 6.9 billion by 2032, registering a CAGR of 3.88% during the forecast period (2024-2032).
The increase in pool heat pump market share during the forecast period is related to the demand for low-GWP refrigerants for heat pumps and growth in swimming pool construction.
A pool heat pump is a powerful heating system that generates heat and boosts the pool's water temperature. It comprises a single factory-built assembly that includes the compressor, air-to-refrigerant heat exchanger, water-to-refrigerant heat exchanger, and air-to-air heat exchanger. An above-ground, in-ground, or on-ground pool, spa, hot tub, or swim spa can all be heated with a pool heat pump. Pools are frequently heated using this method, which transmits heat from the outside to the water. Unlike conventional heating methods, pool heat pumps use electricity and extract heat from the surrounding air warmed by the sun instead of producing heat. They are suitable for adoption in pools in residences, hotels, spas, resorts, water parks, and other commercial buildings.
The global market is experiencing steady growth, driven by the increasing adoption of energy-efficient solutions and the rising awareness of sustainable technologies. Pool heat pumps have gained popularity due to their ability to utilize ambient air to heat pool water, offering a more environmentally friendly alternative to traditional gas heaters. The market is further fueled by the growing demand for luxury amenities in residential and commercial properties and a shift towards eco-friendly and cost-efficient heating systems. Innovations in inverter technology enable heat pumps to be more efficient, reducing energy consumption and operational costs. North America, particularly the United States, leads the market due to a high concentration of swimming pools and the emphasis on reducing carbon footprints. Meanwhile, regions such as Europe and Asia-Pacific are witnessing significant growth, driven by increasing disposable incomes and government regulations encouraging the adoption of energy-efficient appliances. With the rising focus on renewable energy solutions, the global market is projected to expand significantly during the forecast period.
Highlights
Low Global Warming Potential (GWP) refrigerants like hydrofluorocarbons or HFCs are organic compounds with a lesser environmental impact. They are used to reinstate the traditional CFCs that deplete the ozone layer. The demand for low-GWP refrigerants will drive the global market throughout the forecast period. Most modern heat pumps use HFCs such as R134a and R410a. These are ozone-friendly and have several commendable properties; these HFC-based refrigerants release healthy greenhouse gases.
One refrigerant with a low GWP is carbon dioxide, which has one GWP. A new category of refrigerants is entering the market known as hydrofluoroolefins (HFOs), which have a global warming potential similar to carbon dioxide. With the increasing environmental concerns and new technological advancements, the demand for low-GWP refrigerants is expected to grow during the forecast period. This will drive sales of heat pumps, thereby contributing to the global market growth during the forecast period.
The growing preference for a sophisticated lifestyle, rise in disposable income, and urbanization have driven the demand for swimming pool construction in recent years. Since it is one of the essential lifestyle amenities, the rising number of residential projects encourages the adoption of pools. Similarly, the boom in the tourism industry and the rise in tourist spending also enforce the construction of pools in hotels and resorts.
Furthermore, economic solid environment, dynamic lifestyle trends, positive consumer outlook, rising home values, and flourishing outdoor living reflect strong growth for swimming pools and their products and services. Although 15-20% of the overall expenditure in the pool business goes toward building new pools, over 25% goes toward replacement and refurbishment, indicating the potential for development in the market for equipment like heat pumps.
0Most people in growing economies must be aware of renewable energy-sourcing appliances like heat pumps. This lack of awareness and knowledge is a significant challenge for vendors where efforts can be taken to convey the advantages and benefits of using a heat pump before the price point adjustments.
Furthermore, the product's overall success in the market depends on the availability of technicians with operating knowledge and a workforce to support repair and maintenance work over time. Thus, vendors must train local technicians and laborers to achieve complete supply chain success. The need for trained engineers to oversee variable refrigerant volume water source systems can also increase the burden.
The spa industry has consistently expanded globally in the past decade in terms of revenue generation and penetration rates in the major economies of Asia-Pacific, Europe, and North America. The global spa industry is also expected to surpass revenues of USD 120 billion by 2022, which can influence the market for pool heat pumps in the coming years. Commercial centers, hotels, malls, and fitness centers increasingly adopt the spa culture to improve daily footfall.
Furthermore, the spa is also considered an epicenter of luxurious destinations that attract foreign travelers. It has also become a significant symbol of sophistication and stress relief, where premier health spas offer individualized wellness boot camps and treatments. Destination, medical, and mineral spring spas are significant types in the spa industry. Similarly, over 80% of the populace will reside in urban and nature-deficient regions by 2030. This trend indicates the notable expansion in the spa and wellness industry, consequently increasing the need for water heating solutions like heat pumps.
| Study Period | 2020-2032 | CAGR | 3.88% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 4.9 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 6.9 billion |
| Largest Market | North America | Fastest Growing Market | Europe |
North America is the most significant global market shareholder and is anticipated to exhibit a CAGR of 4.84% during the forecast period. The U.S. still has a lot of residential structures that mostly use fossil fuels; therefore, there is still room for growth in the pool heat pump sector. Similarly, the eminent players in the region are expected to participate in market expansion activities that influence higher adoption in niche markets of Canada between 2020 and 2025. The Association of Pool and Spa Professionals, a non-profit organization headquartered in Alexandria, develops and publishes standards for the spa, pools, and hot tub industries.
Additionally, the pool and other related outdoor living product industries in the US also have expansion opportunities of over USD 11 billion, which reflects the scope for the growth of the heat pump industry. During the summer, people in the United States engage in pool and swimming activities to escape the heat. With the average size of the swimming pool being 15*30 feet with approximately 113 gallons of water, the country provides viable opportunities for the heating and cooling of pools. Arizona, Florida, Nevada, Connecticut, and New Hampshire are ideal targets for heat pump vendors.
Europe is expected to exhibit a CAGR of 5.22% over the forecast period. With climate-friendly policies and stringent frameworks, major forerunners such as France, Italy, Spain, Norway, and Sweden have significantly impacted the market. However, significant economies such as the UK are yet to make an impact that can elevate the industry's position. The European Heat Pump Association also acknowledges that major vendors can tap potential opportunities in the developing markets of Europe, such as the Scandinavian and Nordic countries as of 2019. Europe's market expansion is anticipated to be aided by the Energy Performance of Buildings Directive (EPBD) and the Energy Efficiency Directive. Countries such as Norway, Sweden, Finland, Estonia, and Denmark accounted for the top sales, with over 25 heat pumps sold per 1,000 households in 2019.
In Asia-Pacific, condominiums are increasingly becoming popular and usually consist of residential complexes with individual apartments that are well-equipped with large swimming pools. Likewise, the Asia-Pacific region is also a central tourism hub. With around 10 million visitors in Indonesia every year, efforts are being made to construct new hotels, spas, and resorts for accommodation. Accordingly, more than 45% of the hotels in the Philippines have a pool, whereas more than 25,000 hotels in Bali also have a pool facility to attract tourists. Attaining a more pleasant lifestyle by equipping gardens with a swimming pool in Thailand has become more common, also powered by a rise in disposable income. Consequently, all these factors are expected to drive regional market growth.
The Middle East and Africa accounted for the most minor global market revenue share, whereas South Africa, Saudi Arabia, and the UAE were the significant contributors. Alongside these potential markets, Qatar, Oman, Kuwait, Nigeria, Turkey, and Morocco are other hotspots for growth during the forecast period. While African countries need suitable infrastructure projects to ensure efficient energy usage, pool heat pumps are increasingly preferred as the ideal solution to witness traction in the next five years.
In addition, the rising population and growth in disposable income can further result in the adopting of heat pumps in underdeveloped markets. The innovative solutions and efforts taken by African institutions and projects that promote green building designs, sustainable procurement, and renewable energy sources can accelerate the momentum for heat pumps in the region.
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The market is further segmented by type into air sources and water/geothermal sources. The air source heat pump segment is the highest contributor to the pool heat pump market share and is expected to exhibit a CAGR of 5.24% over the forecast period. Compared to ground-source heat pumps, air-source heat pumps are more energy-efficient and, on average, produce 5.25 units of heat for every electricity unit utilized. They also tend to be the primary choice for pools where the surrounding land is not ideal for ground source systems, with a highly insulated newly built property, or where there is a need for a large outdoor pool.
In addition, the lower complexity of installation and comparatively lower cost compared to other alternatives drive the demand for these heat pumps. They are also economical for outdoor pool owners, especially in countries such as the UK, where the air temperature is generally higher than the ground temperature. The primary factor driving the installation of air-source heat pumps is their excellent energy efficiency, which saves at least 3,000 kWh per year compared to other conventional methods.
Water/geothermal or ground source heat pumps (GSHP) are the market's most sustainable method for heating and cooling pools. They are also considered effective solutions for hotels, resorts, spas, and schools where the potential energy savings from heat reclaim are more substantial. However, the high initial costs for laying down holes and installing them on a large scale, which costs up to USD 9,000, is a significant challenge, where the operating costs also depend on the climate, cost of electricity, desired temperature, and outdoor environment. However, technological advances help reduce the cost and complexity involved in the process.
The market is further segmented by capacity into less than 10kW, 10kW-20kW, and greater than 20kW. The less than 10kW segment owns the highest market share and is anticipated to exhibit a CAGR of 5.57% over the forecast period. The heat pumps with less than 10 kW capacity are suitable for small indoor and outdoor pool residential applications. The upcoming offerings in the market fall under this category as residential buildings are becoming potential end-users for pool heat pumps. These heat pumps are also effective for intermediate seasons such as spring or autumn. They are also preferred for summer and winter in regions that do not have extreme climatic conditions. There are also various ranges of offerings under each of the air, water, and ground source types.
Heat pumps with a 10−20 kW capacity are generally used in homes with higher workloads and commercial spaces like schools, colleges, and spas. In geographical areas with extreme weather conditions, higher capacity is usually required to compensate for the essential requirement, as heating and cooling are recommended for optimum functioning. Hence, in regions such as North America, especially in the central and northern parts, heat pumps are customized as the heating load is higher than the cooling load.
The market is further segmented by end-users into residential and commercial. The residential segment monopolizes the global market and is expected to exhibit a CAGR of 5.42% over the forecast period. The rising construction of pools in high-rise buildings, enhancing the resale value prospect, disposable income, growing awareness of geothermal energy, use of HVAC systems using renewable resources, and the rising concern for sustainability and eco-friendliness are expected to fuel the market over the next five years in the residential sector. Due mainly to the small size of these pools, the residential category holds a larger market share than the 0–10 kW heat pump market, with established markets in North America, Europe, and a few significant nations in Asia-Pacific.
The development of affordable and flexible heat pumps that match the complex and dynamic pool infrastructure and help lower utility bills contribute to the growth of the commercial segment. Institutions such as schools, colleges, sports complexes, and water parks also use renewable technologies to signify or differentiate themselves from society by showcasing their environmental commitment by reducing their carbon footprint. Restaurants, hotels, spas, and recreation centers are this segment's major end-users, posing a solid growth prospect over the next five years.
