Canada Outdoor Air Source Heat Pump Market Insights Forecasts to 2033

• The Canada Outdoor Air Source Heat Pump Market Size was valued at USD 1570.5 Million in 2023.
• The Market is growing at a CAGR of 6.81% from 2023 to 2033
• The Canada Outdoor Air Source Heat Pump Market Size is Expected to Reach USD 3035.6 Million by 2033

The Canada Outdoor Air Source Heat Pump Market is anticipated to exceed USD 3035.6 Million by 2033, growing at a CAGR of 6.81% from 2023 to 2033. The increasing environmental concerns, demand for energy-efficient space cooling and heating applications, advantages of heat pumps, technological advancements, and government support are driving the growth of the outdoor air source heat pump market in the Canada.     

Market Overview

Outdoor air source heat pump is the most common type of heat pump and works well in the coldest Canadian climates. It transfers the heat between the outdoor air and the indoor unit. The oversized outdoor feature is designed to enhance the heating capacity as well as to provide ultra-efficient cooling. Air source heat pump is an energy-efficient technology having normal heating efficiency three to four times higher than that of direct electric heating. Heat pumps are quite popular because of their many advantages, which include long lifespans, low maintenance costs, economical operation, and a smaller carbon footprint. Further, their ability to provide water-heating solutions in addition to space heating and cooling is driving the market growth. The ongoing development of more efficient and cost-effective heat pump rooftop units (RTUs) for cold climates by the manufacturers is offering market opportunities.

Report Coverage

This research report categorizes the market for the Canada outdoor air source heat pump market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada outdoor air source heat pump market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada outdoor air source heat pump market.

Driving Factors

The reduced energy consumption by these heat pumps compared to conventional heating systems and less environmental impact due to their potential for decarbonization are responsible for driving the market. Further, the demand for energy-efficient space cooling and heating applications is responsible for driving the market demand as this air source heat pump reduces greenhouse gas emissions. In addition, the integration of technologies such as variable frequency compressor, cascade ASHP, two-stage compression, and quasi-two-stage compression are driving the market growth. The rising government support to encourage for installation and use of heat pumps, especially for low and medium-income households is enhancing the market growth.

Restraining Factors

The high installment costs and the need for skilled professionals for installation and maintenance are challenging the Canada outdoor air source heat pump market.

Market Segmentation

The Canada Outdoor Air Source Heat Pump Market share is classified into product type, size, and application.

• The air-to-air segment dominated the market with the largest market share during the forecast period.

The Canada outdoor air source heat pump market is segmented by product type into air-to-air and air-to-water. Among these, the air-to-air segment dominated the market with the largest market share during the forecast period. This heat pump exchanges energy from outdoor air and moves inside through a refrigerant system. Further, this system is environmentally friendly, reducing carbon emissions, low energy consumption, and cost-effective solution. The increased popularity and adoption of air-to-air heat pumps are driving market demand in the air-to-air segment.  

• The 15,000 BTU segment dominated the market with a significant market share during the forecast period.

The Canada outdoor air source heat pump market is segmented by size into 6,000 BTU, 9,000 BTU, 12,000 BTU, 15,000 BTU, 15,001 to 24, 000 BTU, 24,000 to 48, 000 BTU, and above 48,000 BTU. Among these, the 15,000 BTU segment dominated the market with a significant market share during the forecast period. For property owners in the Halifax Regional Municipality (HRM), 15,000 BTU is the most popular size. The increasing product launches and the increasing need owing to their effectiveness and environment friendly are contributing to driving the market.

• The residential segment dominated the Canada outdoor air source heat pump market with the largest market share in 2023.       

Based on the application, the Canada outdoor air source heat pump market is divided into residential and light commercial. Among these, the residential segment dominated the Canada outdoor air source heat pump market with the largest market share in 2023. The rising government investment in providing heat pumps at affordable prices to low-income families is driving the market growth in the residential segment. For instance, in July 2024, the Canadian government’s OPHA program offered up to CAD 15,000 ($10,914) per eligible low- to medium-income household for installing heat pumps with the aim to incentivize homeowners to switch from heating their homes with oil to a heat pump.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Canada outdoor air source heat pump market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Carrier
• Daikin Industries Ltd.
• Danfoss
• Mitsubishi Electric Corporation
• Robert Bosch GmbH
• LG Electronics, Inc.
• Fujitsu
• Samsung
• Panasonic Holdings Corporation
• Gree Comfort
• Rheem Manufacturing Company
• Lennox International
• Hitachi, Ltd.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In April 2024, Johnson Controls, the global leader for smart, healthy and sustainable buildings, today announced the launch of the YORK YMAE 575 V Air-to-Water Inverter Scroll Modular Heat Pump for use in Canada. YORK YMAE has been redesigned with 575-volt compatibility to provide high-efficiency, decarbonized heating and cooling for Canadian market.

Market Segment

This study forecasts revenue at Canada, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Canada Outdoor Air Source Heat Pump Market based on the below-mentioned segments:

Canada Outdoor Air Source Heat Pump Market, By Product Type

• Air-to-Air
• Air-to-Water

Canada Outdoor Air Source Heat Pump Market, By Size

• 6,000 BTU
• 9,000 BTU
• 12,000 BTU
• 15,000 BTU
• 15,001 to 24, 000 BTU
• 24,000 to 48, 000 BTU
• Above 48,000 BTU

Canada Outdoor Air Source Heat Pump Market, By Application

• Residential
• Light Commercial