United Kingdom (UK) Heat Pump Market Overview, 2029

United Kingdom (UK) Heat Pump Market Overview, 2029

The quiet hum of heat pumps, lately revolutionizing how we warm our homes and cool our offices, has become a sound no different from the historic architectural marvels that characterize the city centers of UK. The picturesque landscapes of Provence—with its historic stone cottages—now have sleek, modern air-to-water heat pumps that blend seamlessly with the rustic charm of the centuries. They provide efficient heating during the chilly winters and switch to cooling modes in the hot Mediterranean summers, reducing the need for traditional heating oil and electric air conditioning. In Paris, though, historic Haussmannian buildings are being retrofitted with these advanced air-to-air heat pumps. The system preserves the aesthetic integrity of the iconic facades while providing a sustainable solution to urban temperature regulation. In this largest business district of UK, the businesses based at the major business hub of the capital are beginning to install high-capacity heat pumps in place of the conventional HVAC systems, hence cutting down on their energy costs and carbon footprints. This is not just taking place in a bubble, but rather against the backdrop of a forward-thinking government that has put clean energy and the climate crisis front and center of its agenda. Available to homeowners and business owners across the country, the program ""MaPrimeRénov'"" heavily subsidizes investments in heat pump technology. Similarly, tax credits and subsidies available to commercial entities strive to promote the adoption of green practices with regard to building construction. The government's drive for energy efficiency is actually part of a larger effort to meet the strict climate goal of the European Union, which mandates a reduction of at least 55% in greenhouse gas emissions by 2030, compared to 1990. The integration of heat pumps into public infrastructure has taken place—schools in Bordeaux and hospitals in Nice, with geothermal heat pumps, tap into the stable underground temperatures of the earth to assure an ideal indoor climate year-round. The limiting of the use of energy intensively comfort does not come at the expense of increasing energy bills. Such projects are often highlighted in local media, showcasing successful examples of energy transition and encouraging wider adoption.

According to the research report ""UK Heat Pump Market Overview, 2029,"" published by Bonafide Research, the UK heat pump market is anticipated to grow at more than 12% CAGR from 2024 to 2029. The advancements in technology are a major shaping factor for the heat pump market in the UK. Improved heat pump technologies, along with better efficiency scores and the performance of heat pumps under low ambient temperatures, have continuously improved the suitability of these systems for the UK market and fueled market growth. Manufacturers are consistently working on lowering the sound levels produced by heat pumps to address concerns related to noise for potential customers, therefore making these systems more attractive to homeowners and businesses. The commitment the UK has upheld in building energy-efficient homes and retrofitting existing buildings into smart buildings accelerates significant potential for heat pump installations. This is demonstrated through current construction and old building retrofitting activities in the country, driving up the demand for heat pumps in this multifaceted application. The above benefits associated with installing heat pumps tend to be more pronounced with the proper functioning of electricity grids that are becoming cleaner and greener by improving the share of renewables. The heat pumps integrated with energy storage, such as thermal and battery storage, is also critical from a technological advancement perspective. This means that, through such an energy-refinery concept, it makes it possible to overall system efficiency better management of electricity demand attending to the intermittency concern and making a significant push in terms of the heat pump's attractiveness as a whole energy solution.

The heat pump sector is one of the rapidly progressive sectors in the United Kingdom, owing to the increasing demand for energy-efficient and greener heating systems. Air-to-Air Heat Pump is responsible for providing heating and cooling functionalities in residential and commercial buildings. The mode of operation for this type of heat pump is the acquisition of heat from outside air to the inside of the building or office for the purposes of warming. During summer, this mode of operation is reversed, whereby the pump absorbs heat from the building's interior, discharging it outside to offer the cooling effect. The systems tend to be comparatively easy to install, and they prove to be flexible and efficient in energy when compared to the standard heating and cooling systems. Air-to-Water Heat Pump are designed with the primary objective of heating and cooling residential and commercial buildings. The heat pump sources heat from outside air and supplies it to a domestic water-based heating system like radiators or underfloor methods of heating. Systems of this nature provide effective energy savings over a conventional boiler. They are very appropriate in buildings with a high demand for hot water and can be integrated with renewable sources of energy, such as solar heating. Water Source Heat Pump derives its primary function from the constant temperature exhibited by the various water sources, such as lakes, rivers, or even ground. These systems are very efficient in the extraction of heat from these sources, as water stores a lot of energy and has a higher density than that of air.

Water source heat pumps are commonly installed in bigger commercial and industrial applications since they require the provision of an appropriate water source, either within or adjacent to the building. Ground source heat pumps, often referred to as geothermal heat pumps, use the earth's constant temperature to deliver heating as well as cooling. They do this by circulating a fluid through pipes or boreholes underground, where heat absorption or heat dissipation to and from the ground takes place. These systems are very efficient and contribute largely to energy savings over the more conventional ways of providing heating and cooling. Ground source heat pumps do have a high capital cost outlay due mostly to the installation of the ground source loop. The increased long-term benefits through savings can be realized for the end user, with long-term cost-effective and environmental benefits. Hybrid heat pumps combine a heat pump system with a traditional boiler or furnace. The setup allows the system to switch between the two sources of heat depending on the outside temperature and energy efficiency requirements. During milder weather, the heat pump provides heating and cooling, while the boiler or furnace takes over during extreme temperatures when the heat pump becomes less efficient.

The heat pump market in the United Kingdom is prospering in line with the country's ambitious climate change targets and the need to cut down greenhouse gas emissions. By capacity, heat pump applications differ for every category in terms of application and need. The low capacity up to 10kW is mostly found in residential applications, such as individual family houses, small apartment buildings, etc. The smaller-capacity heat pumps, equal to 10 kW, are the best suitable for residential and domestic hot water and domestic space heating and also play the part of a replacement for the gas boiler. The UK government has further stimulated demand by homeowners, facilitated by strong policies supporting low-carbon heating technologies, such as the Renewable Heat Incentive, and more recently, the Green Homes Grant. The capacity range of between 10 and 20 kW, especially between 20 and 30 kW, is more adapted to serve larger homes, commercial buildings, and small district heating schemes. The heat pumps provide reliable and efficient heating and hot water, helping customers cut down on energy bills by improving energy efficiency and reducing carbon emissions in their homes. The commitment of the United Kingdom to realizing a net-zero emission target by 2050 and the phase-out from fossil fuel heating systems will further boost the demand for heat pumps in the above capacity ranges. Heat pumps over 30 kW capacity are applicable on the larger commercial and industrial application and very extensive district heating projects. These help large businesses and communities scale down their carbon footprints while also maintaining an authentic supply to provide heat and hot water. The development of low-carbon infrastructure and further sustainable energy solutions will continue to spur the growth of the heat pump market, further on to scale up service for all heat pump capacities.

With increasing awareness of reducing the carbon footprint in the country and adopting energy-efficient solutions for heating and cooling, heat pumps have gained immense popularity in the residential sector. The residential sector is one of the significant contributors to the heat pump market in the UK. Air-to-air and air-to-water space heating and hot-water production heat pumps are commonly installed in detached houses and apartments. Financial incentives in the form of the government's Renewable Heat Incentive (RHI) are offered to homeowners for using renewable-based heating systems, including heat pumps, to further push the adoption of heat pumps in the residential sector. The commercial sector, which includes office spaces, retail spaces, and hospitality, offers a significant opportunity for heat pump sales in the UK. Air-to-water and water source heat pumps are commonly used for space heating, cooling, and hot-water production for commercial applications. Heat pumps provide the twin advantages of maximum energy efficiency and minimal environmental impact, lending themselves to the green imperative of most commercial entities in the UK for new constructions and renovation jobs. The industrial sector of the UK is also opening up to the technology of heat pumps mostly for heat and cool applications. The sector has thus far emphasized energy efficiency, lowering costs, and environmental responsibility, and such requirements have facilitated the increased penetration of heat pumps in manufacturing processes and other industrial units. The heat pump industry is significant in the UK, primarily because the country has committed to reducing greenhouse gas emissions and embracing renewable sources of energy. This has made the policy landscape conducive for the heat pump technology application in several sectors, with vigorous government targets to achieve net-zero emissions by 2050. The awareness campaigns regarding growing concerns over climate change and the subsequent need for energy-efficient solutions have forced the demand for the heat pump in the UK market.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Heat Pump market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Air-to-Air Heat Pump
• Air-to-Water Heat Pump
• Water Source Heat Pump
• Ground Source Heat Pump
• Hybrid Heat Pump

By Capacity
• Up to 10 kW
• 10–20 kW
• 20–30 kW
• Above 30 kW

By End User
• Residential
• Commercial
• Industrial

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Heat Pump industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.