- over 200 million smart homes projected in the region by 2027, boosts demand for IoT-integrated heat pumps.
- Technological advancements, such as inverter-driven compressors, eco-friendly refrigerants with low Asia-Pacific warming potential (GWP), and hybrid heat pump designs, are enhancing system efficiency, performance, and environmental sustainability, supporting applications in diverse climates and high-demand settings. Government initiatives, such as China’s carbon neutrality pledge, Japan’s Green Growth Strategy, and India’s National Cooling Action Plan, are fostering innovation and adoption through subsidies and regulatory frameworks.
- China dominates the market with a commanding 48.5% revenue share in 2024, valued at USD 13.90 billion, driven by its massive construction industry, government support for energy efficiency, and the presence of key players like Gree and Midea. Japan is expected to witness the fastest growth rate, with a projected CAGR of 11.3% from 2025 to 2032, propelled by advanced heat pump technologies and strong demand in residential and commercial sectors.
- Among product types, the air-to-air heat pumps segment held the largest market share of 47.8% in 2024, valued at USD 13.69 billion, attributed to their affordability, ease of installation, and widespread adoption in residential and small-scale commercial applications.
