United Kingdom Air Source Heat Pump Market

United Kingdom Air Source Heat Pump Market, By Process (Air to Air (Ducts, Ductless), Air to Water (Split, Integrated)) By End Use (Residential, Hotels & Resorts, Gym & Spas, Education, Food Service, and Others (Healthcare, Offices, etc.)), By Sales Channel (Plumbers, Dealers & Contractors, Retail, Direct Sales, Online, and Others (Distributors, Builders, etc.)), By Region, By Company, Forecast & Opportunities, 2018-2028F

The United Kingdom Air Source Heat Pump Market is driven by rising awareness about the adverse effects of greenhouse gas, growth in infrastructure development to cater to the increasing population, along with various government schemes.

An air source heat pump is a device that uses outside air to convert into hot water or air systems in the house. To generate heat water for the home's heating and hot water systems, an air source heat pump first takes heat from the outside and transforms it into a fluid. Even when the temperature drops to -15°C or even -25°C, the pump, which is located outside the house, continues to take heat from the air. It needs electricity to operate, but as it generates more heat than it uses electricity, it is more energy-efficient than typical heating systems.

United Kingdom Air Source Heat Pump market has been fueled by the rising need for heat pumps brought on by the expansion of the residential and commercial building sectors as well as government subsidies for improving energy efficiency and lowering carbon emissions. Additionally, because residential facilities have more affordable heat pumps, the demand has increased.

Due to their great energy efficiency and low carbon emissions, several governments are attempting to enact energy conservation legislation. To organize, monitor, and create energy conservation policies as part of its energy efficiency policy, the U.K. government established energy efficiency offices.

The COVID-19 pandemic restrictions were accompanied by new product launches and technological advancements that will propel the market's expansion. For instance, Daikin Europe recently introduced the Daikin Altherma 3 R, a high-capacity R-32 refrigerant split air to the water heat pump that provides household hot water setup in addition to cooling and heating.

A central heating and hot water system can use heat pumps, a relatively recent technology, to move heat from the earth or outside air around it. Compared to gas, they are far cleaner and more energy efficient.

Currently, gas boilers provide more than 85% of household heating in the United Kingdom. On the other hand, air-source heat pumps, which are much more prevalent than ground-source heat pumps, make up roughly 1% of the UK's heating systems and account for 2% of renewable heating. The UK government’s goal of net zero by 2050 is incompatible with this. An intergovernmental energy organization known as the International Energy Agency has urged for global action to outlaw gas boilers starting in 2025 and encourage the use of heat pumps in their place.

Government Schemes are Driving the Market Growth

To lower carbon emissions in houses, the government revealed a USD 4.7 billion funding package as part of the Heat and Buildings Strategy. This funding package includes the boiler upgrade program. Heat pumps, which are more environmentally friendly than natural gas boilers, can be purchased for UK houses with government funding. For air source heat pumps, homeowners are eligible for government grants worth up to USD 6,050.

The Scottish government's “Home Energy Scotland” is a project to end fuel poverty in Scotland. The program provides interest-free loans to cover the upfront expenditures of renewable energy sources, including ground and air-source heat pumps. Through this program, one can receive up to USD 21,100 interest the consumers when they install devices with renewable energy. Depending on the type of renewable system chosen, one can also gain from a payback of up to 75%. These schemes from the government are encouraging consumers to buy more heat pumps which are fueling the market growth in the forecast period.

An initiative from Companies is Fueling the Market Growth

To support the government, many companies are stepping forward and taking initiatives to install more heat pumps in the country; along with that, they are offering heat pump installations at a cheaper rate. For instance, British Gas offers both energy and residential services in the UK. To assist more of their clients in reducing their emissions, they have announced that they will be offering heat pump installations for USD 6,050. As a result, British Gas completed its first installation of an air source heat pump in 2022 as part of its British Gas rollout plan. Under the PH Jones brand, the parent firm of British Gas, Centrica, is currently putting in air source heat pumps in social housing, and they have already installed more than 1,500 units annually and are planning to install 20,000 units by 2025.

Energy Efficiency of Heat Pump Water Heaters Fuels Market Growth

One of the most efficient home heating systems available today is air-source heat pumps. Traditional boilers are 92% efficient. This means only 92% of the energy is utilized by the boiler to convert into heat generation for the house. Therefore, by using fossil fuels to generate heat, the consumer loses at least 8% of the energy. Older boilers may even lose 30% of their energy and have an efficiency of around 70%. On the other hand, heat pumps have an efficiency rating of over 300%, producing 3kW of heat energy for every kW of power used. Heat pumps are a preferable option when compared to fossil fuel options when it comes to the environment. Due to energy-efficient properties, consumers are shifting towards air-source heat pumps in order to save their electricity bill, due to which the market is expected to grow during the forecast period.

Market Segmentation

United Kingdom Air Source Heat Pump market is segmented based on process, end use, sales channel, region, and by company. Based on the process, the market is segmented into air-to-air (ducts, ductless) and air-to-water (split, integrated). Based on end use, the market is divided into residential, hotels & resorts, gyms & spas, education, food service, and others. Based on sales channel, the market is fragmented into plumbers, dealers & contractors, retail, direct sales, online, and others(Distributors, Builders, etc.).

Market Players

Viessmann Climate Solutions SE., Vaillant Group UK Limited, Daikin Airconditioning UK Ltd., Hitachi Europe Ltd., Robert Bosch UK Holdings Limited, NIBE Energy Systems Limited, Samsung Electronics (UK) Limited, Trane UK Limited, Aermec UK Ltd, Mitsubishi Electric Europe B.V., are the major market players in the United Kingdom Air Source Heat Pump market.

Report Scope:

In this report, United Kingdom Air Source Heat Pump market has been segmented into the following categories, in addition to the industry trends, which have also been detailed below:

• United Kingdom Air Source Heat Pump Market, By Process:
• Air to Air
• Air to Water
• United Kingdom Air Source Heat Pump Market, By End Use:
• Residential
• Hotels & Resorts
• Gym & Spas
• Education
• Food Service
• Others
• United Kingdom Air Source Heat Pump Market, By Sales Channel:
• Plumbers
• Dealers & Contractors
• Retail
• Direct Sales
• Online
• Others
• United Kingdom Air Source Heat Pump Market, By Region:
• England
• Scotland
• Wales
• Northern Ireland

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in United Kingdom Air Source Heat Pump market.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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