Australia's Air Source Heat Pump Market Set To Reach $1.40 Billion By 2030, Driven By Government Incentives And Rising Demand For Energy-Efficient Systems

(MENAFN- GlobeNewsWire - Nasdaq) Featuring In-Depth Profiles of Leading Players Stiebel Eltron (Aust), Daikin Australia, Rheem Australia, Aquamax Australia, Robert Bosch (Australia) and More

Dublin, May 09, 2025 (GLOBE NEWSWIRE) -- The "Australia Air Source Heat Pump Market, By Region, Competition Forecast & Opportunities, 2020-2030F" report has been added to ResearchAndMarkets.com's offering.
The Australia Air Source Heat Pump Market was valued at USD 2024 in 0.87 Billion, and is expected to reach USD 1.40 Billion by 2030, rising at a CAGR of 8.43%. The demand for air source heat pumps (ASHPs) in Australia is increasing steadily, driven by their application in residential and commercial heating, cooling, and hot water systems.

Given Australia's diverse climate, ASHPs are well-suited for efficient space conditioning and water heating across regions. While small generation solar units and solar hot water systems currently dominate installations, ASHPs have experienced a noticeable uptick in adoption, particularly since 2020. According to 2024 data from the Clean Energy Regulator, 501,085 ASHPs have been cumulatively installed, reflecting their growing appeal as energy-efficient alternatives amid Australia's transition to cleaner, sustainable home energy solutions.
Key Market Driver: Government Incentives and Policy Support
A primary driver of growth in the Australia air source heat pump market is the proactive support provided through government incentives and environmental policy initiatives. Programs like the Victorian Energy Upgrades (VEU) and rebates from Clean Energy Regulator schemes are encouraging both residential and commercial users to transition from outdated, high-emission systems to cleaner alternatives such as ASHPs. These financial incentives reduce upfront costs, making the systems more accessible and accelerating adoption, especially in areas with high electricity prices. Additionally, regulatory moves phasing out gas-based systems in favor of electric heating options are further stimulating demand. By supporting energy savings and emission reductions, government-backed programs have created a favorable environment for ASHPs to become an increasingly preferred choice among consumers.
Key Market Challenge: High Upfront Costs and Installation Barriers
Despite offering long-term cost savings and energy efficiency, air source heat pumps face a significant barrier in their high initial purchase and installation costs. Even with rebates, the investment required for ASHP units, installation, and potential electrical upgrades remains substantial, deterring many potential users - particularly in low-income segments. Installation complexities based on property type, size, and retrofitting needs can further escalate expenses. Compounding the issue is a lack of pricing transparency and inconsistent installation practices, making it difficult for consumers to evaluate their options. Without broader financial solutions such as low-interest financing or expanded subsidies, these costs remain a key challenge to wider market adoption.
Key Market Trend: Integration with Renewable Energy Systems
An emerging trend in the Australia air source heat pump market is the integration of ASHPs with solar photovoltaic (PV) systems. This combination enables homeowners to use solar energy to power their heat pumps, enhancing energy independence while reducing grid reliance and operational costs. It also aligns with national efforts to cut carbon emissions and improve residential energy efficiency. Incentive programs further support this integration, appealing to environmentally conscious consumers seeking sustainable home solutions. As investment in renewable energy infrastructure continues across Australia, the synergy between solar PV and ASHPs is expected to play a pivotal role in shaping the future of energy-efficient heating and cooling in the country.

Key Attributes

Report Attribute	Details
No. of Pages	70
Forecast Period	2024-2030
Estimated Market Value (USD) in 2024	$0.87 Billion
Forecasted Market Value (USD) by 2030	$1.4 Billion
Compound Annual Growth Rate	8.4%
Regions Covered	Australia

Key Topics Covered
1. Introduction
2. Research Methodology
3. Executive Summary
3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions
3.5. Overview of Market Drivers, Challenges, and Trends
4. Voice of Customer
4.1. Brand Awareness
4.2. Factor Influencing Availing Decision
5. Australia Air Source Heat Pump Market Outlook
5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Technology (Air to Air (Ducts, Ductless), Air to Water (Split, Integrated))
5.2.2. By End Use (Residential, Hotels & Resorts, Gym & Spas, Education, Food Service, Others)
5.2.3. By Distribution Channel (Online, Offline)
5.2.4. By Region
5.2.5. By Company (2024)
5.3. Market Map
6. Australia Air to Air Heat Pump Market Outlook
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By End Use
6.2.2. By Distribution Channel
7. Australia Air to Water Heat Pump Market Outlook
7.1. Market Size & Forecast
7.1.1. By Value
7.2. Market Share & Forecast
7.2.1. By End Use
7.2.2. By Distribution Channel
8. Market Dynamics
8.1. Drivers
8.2. Challenges
9. Market Trends & Developments
9.1. Merger & Acquisition (If Any)
9.2. Product Launches (If Any)
9.3. Recent Developments
10. Porters Five Forces Analysis
10.1. Competition in the Industry
10.2. Potential of New Entrants
10.3. Power of Suppliers
10.4. Power of Customers
10.5. Threat of Substitute Products
11. Australia Economic Profile
12. Policy & Regulatory Landscape
13. Competitive Landscape
13.1. Company Profiles
13.1.1. Stiebel Eltron (Aust) Pty. Ltd.
13.1.1.1. Business Overview
13.1.1.2. Company Snapshot
13.1.1.3. Products & Services
13.1.1.4. Financials (As Per Availability)
13.1.1.5. Key Market Focus & Geographical Presence
13.1.1.6. Recent Developments
13.1.1.7. Key Management Personnel
13.1.2. Daikin Australia Pty. Ltd.
13.1.3. Rheem Australia Pty. Ltd.
13.1.4. Aquamax Australia Pty. Limited
13.1.5. Robert Bosch (Australia) Pty. Ltd.
13.1.6. Evo Industries Australia Pty. Ltd.
13.1.7. Smart Lifestyle Australia Pty. Ltd.
13.1.8. Rinnai Australia Pty. Ltd.
13.1.9. Solargain Pty. Ltd. (iStore)
13.1.10. Mitsubishi Electric Australia Pty. Ltd.
14. Strategic Recommendations

For more information about this report visit

About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

CONTACT: CONTACT: Laura Wood,Senior Press Manager ... For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900

MENAFN09052025004107003653ID1109527690