Hybrid Heat Pump Market Size, Share, Trends and Forecast Analysis (2025-2032)

Global Hybrid Heat Pump Market size was valued at USD 71.48 Bn in 2024 and the total Hybrid Heat Pump Market revenue is expected to grow at 9.6% through 2025 to 2032, reaching nearly USD 148.82 Bn.
Hybrid Heat Pump Market Overview:
Hybrid heat pumps are advanced HVAC system that combine electric heat pump technology with a secondary heating source (typically gas, biofuels, or hydrogen) to optimize energy efficiency, reliability and adaptability across varying climate. Global hybrid heat pump market has been witnessing strong growth driven by the push for decarbonization, rising adoption of renewable energy integration and government incentive such as the EU’s REPowerEU Plan and U.S. Inflation Reduction Act subsidies.

Asia Pacific dominated global hybrid heat pump market, driven by urbanization, extreme climate demands and aggressive government initiative promoting clean heating solution in China, Japan and South Korea. Hybrid heat pump offers key advantages including lower emissions, reduced energy cost and seamless operation in subzero temperature, making them ideal for diverse environment. Leading players like Midea Group, Panasonic and Daikin are accelerating innovation with AI driven smart controls, hydrogen ready systems and hybrid geothermal integrations to meet stringent efficiency standards. With expanding smart city projects, industrial electrification and phase out of fossil fuel boilers, hybrid heat pumps are becoming essential for sustainable HVAC solutions positioning market for long term growth. Key demand stems from residential retrofits, commercial buildings and district heating systems, particularly in Asia Pacific’s high growth economies.

The objective of the report is to present a comprehensive analysis of the global Hybrid Heat Pump Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.To know about the Research Methodology :- Request Free Sample Report
Hybrid Heat Pump Market Dynamics
An Environment-Friendly System that Reduces Energy and Bills to Drive Hybrid Heat Pump Market

A heat pump is a device that transfers the energy from one place to the other targeted place. The heat pump absorbs the heat from the cold space and releases it in the warmer one. There are four basic components of the heat pump i.e. a condenser, an expansion valve, an evaporator, an expansion valve, and a compressor. A hybrid heat pump is a system that uses a heat pump associated with a heat source. In hybrid systems, two components work alternatively to keep the system running all over the year. The hybrid heat pump is designed in such a way that it meets your heating demands by lowering the consumption of energy and also reducing the electricity bills.

The system works within the two alternatives renewables and fossil fuels. It selects the appropriate technology at a time. If the temperature outside drops below freezing then the system starts working on a standard fossil fuel boiler. It will generate heat that is enough to keep the house warm and when the temperature outside is normal the heat will kick on for keeping the worm while conserving the energy. The hybrid heat pump is environment-friendly and is easy to use for the end-users. On basis of different circumstances, the sources of energy can be modified according to requirements. The hybrid heat pump works at enhancing efficiency and reducing energy consumption costs.

Attractive Options Leading to Boost Hybrid Heat Pumps Market Growth

There are numerous benefits of using these Hybrid heat pumps. It has the feature of changing the source of energy depending upon circumstances. It can be converted into low emission levels when there is enough electricity available. The efficiency of the hybrid heat pumps makes them attractive an option when compared with the traditional healing techniques. As hybrid Heat pumps use both gas and electricity as a source of energy. The hybrid heat pump appliances are working with renewable as they are available with a solid backup. Hence during blackouts or the grid breakdown, the hybrid heat pump provides a real-time heat requirement.

Higher Installation, Maintenance, and Up-Gradation Costs to Restrain Hybrid Heat Pump Market

Hybrid heat pumps are having many benefits but some factors are limiting the growth of the sales of the hybrid heat pumps such as significant upfront costs that are associated with the hybrid heat pumps being higher. There is an extremely high installation cost. According to the Committee on Climate Change says it costs an average of 26000 pounds for switching each UK home to a low-carbon heating system. The running cost can be very high especially if the home is not thermally efficient. Also, the cost of electricity is higher than that of gas i.e. 3-16p per KWh than gas with 3-4 per kWh. Hence it has an extremely high running economy. Moreover, it also requires other upgrades such as new, larger radiators and home insulation with the heat pump compatible hot water storage tank. All these factors can restrain the Hybrid Heat Pump Market by hampering its sales during the forecast period.
Hybrid Heat Pump Market Segment Analysis:
Based on Type, the Hybrid Heat Pump Market is segmented into Compression Heat pumps and Absorption Heat Pumps. The Compression Heat Pump segment dominates the market growth by holding the maximum share of the Hybrid heat pump market. As it is very necessary in utilizing a compressor to circulate a fluid that is typically in the form of water vapor from low pressure to a higher pressure and temperature. Hence, The Compression Heat Pump segment dominates the market growth during the forecast period.

Based on Application, the Hybrid Heat Pump Market is segmented into Residential, Commercial, and Industrial. The residential segment dominates the market by holding the maximum market share of the market. Nowadays, variation in climate has taken place. The winter is chiller than the past few years and the summers are hotter than the past few years. This change in climates has raised the demand for heating in residential buildings. Heat pumps are generally used in the industrial and home sectors for pre-heating domestic hot water, space heating and cooling, heat recovery, and dehumidification. Hence, the residential segment dominates the market by holding the maximum market share.
Hybrid Heat Pump Market Regional Insights
The Asia Pacific region held the largest market share in 2024 and is projected to continue its dominance during the forecast period. As Asia Pacific is a developing region and the change in lifestyle of the people has led to the rapid adoption of the Hybrid Heat Pumps. The government is also promoting the adoption of hybrid heat pumps as it minimizes the air pollution by lowering the carbon emissions that were produced by the traditional sources of energy that are used for heating residential, commercial, and industrial sectors which would drive the market growth during the forecast period. The modernization and the awareness of protecting the environment, people are rapidly adopting the hybrid heat pumps that do not produce emissions.

Hybrid Heat Pump Market Competitive Landscape

Trane Technologies competes in hybrid heat pump market against key players like Carrier Global, Lennox International and Daikin leveraging its strong brand reputation, energy efficient technologies (e.g., Thermaflex™ Hybrid Heat Pump) and focus on sustainable HVAC solution. While Carrier and Lennox dominate residential segments, Trane differentiate itself with commercial and industrial application, advanced control and integration with renewable energy system. European rivals like Vaillant and Bosch challenge in ecoconscious market but Trane’s North American distribution network and regulatory compliance (e.g., DOE, ENERGY STAR) strengthen its position. Emerging startup (Dandelion, Gradient) disrupts with low cost geothermal and smart heat pump pushing Trane to innovate in AI driven optimization and decarbonization solutions.

Hybrid Heat Pump Market Key Trends

• Decarbonization & Electrification Push: Governments worldwide (EU, U.S., China) are incentivizing hybrid heat pumps to replace fossil fuel-based heating, driven by net-zero targets (e.g., EU’s REPowerEU Plan, U.S. Inflation Reduction Act subsidies).
• Smart & AI-Driven Systems: AI-powered optimization (e.g., learning algorithms for weather adaptation) and IoT connectivity enable real-time energy management.
• Hybridization with Gas/Biofuels: To address cold-climate limitations, manufacturers (e.g., Bosch, Vaillant) are combining heat pumps with gas boilers or hydrogen-ready systems for reliability.

Hybrid Heat Pump Market Key Developments

• Panasonic Corporation (Japan) March 2024: Launched Aquarea J-Series Hybrid with magnetic bearing compressors for near-silent operation (55dB).
• Midea Group (China): 2024 (January): Introduced M-Therma V3 Hybrid, the world’s first air-to-water heat pump with built-in PV inverter (up to 30% solar self-consumption).
• Thermax Limited (India): 2024 (April): Commissioned India’s first biomass-assisted hybrid heat pump for Tata Steel’s plant in Jamshedpur.
• Lennox International (US): 2024 (February): Released EL296V Hybrid with dual-fuel auto-switching (heat pump + furnace) and NVIDIA AI chips for load prediction.
• Glen Dimplex Group (UK): 2024 (May): Unveiled "NetZero Hybrid" – UK’s first heat pump certified for 100% hydrogen backup (compatible with 2027 H2 grid trials).
Hybrid Heat Pump Market Scope: Inquiry Before Buying



Hybrid Heat Pump Market


Report Coverage
Details


Base Year:
2024
Forecast Period:
2025-2032


Historical Data:
2019 to 2024
Market Size in 2024:
USD 71.48 Bn.


Forecast Period 2025 to 2032 CAGR:
9.6%
Market Size in 2032:
USD 148.82 Bn.


 Segments Covered:
by Product Type
Compression Heat Pump
Absorption Heat Pump


by Application
Residential
Commercial
Industrial



Hybrid Heat Pump Market, by region
North America (United States, Canada and Mexico)
Europe (United Kingdom, France, Germany, Italy, Spain, Sweden, Russia, Rest of Europe)
Asia Pacific (China, Japan, South Korea, India, Australia, Malaysia, Thailand, Vietnam, Indonesia, Philippines, Rest of APAC)
Middle East and Africa (South Africa, GCC, Nigeria, Egypt, Turkey, Rest of MEA)
South America (Brazil, Argentina, Colombia, Chile, Peru, Rest of South America)
Hybrid Heat Pump Market, Key Players:
North America

1. Lennox International (US)
2. Carrier Global (US)
3. Johnson Controls (US)
4. Trane Technologies (US)
5. Rheem (US)
6. Emerson Electric Co. (US)

Europe

7. Glen Dimplex Group (UK)
8. GEA Group Aktiengesellschaft (Germany)
9. Viessmann (Germany)
10. Valliant (Germany)
11. Roche (Germany)
12. Danfoss A/S (Denmark)
13. Nibe (Sweden)

Asia Pacific

14. Midea Group (China)
15. Guangzhou Sprsun (China)
16. Panasonic Corporation (Japan)
17. Mitsubishi Electric Corporation (Japan)
18. DENSO Corporation (Japan)
19. Fujitsu General (Japan)
20. Daikin Industries, Ltd. (Japan)
21. LG Electronics (South Korea)
22. Thermax Limited (India)
Frequently Asked Questions:
1) What segments are covered in the Hybrid Heat Pump Market report?
Ans. The segments covered in the Hybrid Heat Pump Market report are based on Product Type and Application.

2) Which region holds the highest share in the Hybrid Heat Pump Market?
Ans. Asia Pacific region is expected to hold the highest share in the Hybrid Heat Pump Market.

3) What is the market size of the Hybrid Heat Pump Market by 2032?
Ans. The market size of the Hybrid Heat Pump Market by 2032 is USD 148.82 Bn.

4) What is the forecast period for the Hybrid Heat Pump Market?
Ans. The Forecast period for the Hybrid Heat Pump Market is 2025-2032.

5) What was the market size of the Hybrid Heat Pump Market in 2024?
Ans. The market size of the Hybrid Heat Pump Market in 2024 was USD 71.48 Bn.