CO2 Heat Pump Water Heater Market size was valued at USD 1.2 Billion in 2024 and is projected to reach USD 3.5 Billion by 2033, exhibiting a CAGR of 12.5% from 2026 to 2033.
The CO2 Heat Pump Water Heater Market in South Korea is witnessing significant growth, driven by the nation's commitment to carbon neutrality by 2050. The market is projected to reach USD 168.4 million by 2030, growing at a CAGR of 10.9% from 2025 to 2030. This surge is attributed to the increasing demand for energy-efficient and environmentally friendly heating solutions.
CO2 heat pump water heaters are categorized primarily into:
Air Source CO2 Heat Pumps: Dominating the market with a 70% share, these systems are favored for their cost-effectiveness and high efficiency, especially in residential and light commercial applications.
Water Source CO2 Heat Pumps: Holding 20% of the market, these are preferred in large commercial and industrial buildings due to their consistent heating performance and higher efficiency in cold climates.
Other CO2 Heat Pumps: Including geothermal and hybrid systems, they account for 10% of the market, serving specialized applications such as remote communities and off-grid locations.
Industrially, sectors like food processing, pharmaceuticals, and manufacturing are increasingly adopting CO2 heat pump water heaters. These systems operate at temperatures exceeding 90°C, making them viable for high-temperature applications. Over 50% of industrial installations are in Europe and North America, where companies aim to reduce emissions from fossil-fuel-based water heating systems.
South Korea's industrial demand is further influenced by government policies promoting energy efficiency and sustainability. Regulations and building codes encourage the adoption of heat pump water heaters in residential and commercial buildings. The government provides subsidies and tax incentives for consumers and businesses investing in energy-efficient water heating solutions.
However, challenges persist. The high initial cost of CO2 heat pump water heaters remains a significant barrier, with installation costs averaging 25% higher than conventional systems. Additionally, the lack of skilled technicians for installation and maintenance further slows adoption, with over 30% of potential buyers delaying purchases due to installation concerns.
Despite these challenges, the integration of CO2 heat pump water heaters with renewable energy systems presents significant market opportunities. Solar-assisted heat pumps can improve efficiency by 35%, making them ideal for off-grid and remote areas. Governments are launching renewable energy incentive programs, with 25% of green building projects now including CO2 heat pump technology.
In conclusion, the CO2 Heat Pump Water Heater Market in South Korea is poised for substantial growth, driven by technological advancements, government incentives, and a strong industrial demand for sustainable heating solutions.
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DENSO
Sanden
Mitsubishi
Nihon Itomic
Daikin
AAON
DunAn Group
Sujing Group
enEX
By the year 2030, the scale for growth in the market research industry is reported to be above 120 billion which further indicates its projected compound annual growth rate (CAGR), of more than 5.8% from 2023 to 2030. There have also been disruptions in the industry due to advancements in machine learning, artificial intelligence and data analytics There is predictive analysis and real time information about consumers which such technologies provide to the companies enabling them to make better and precise decisions. The Asia-Pacific region is expected to be a key driver of growth, accounting for more than 35% of total revenue growth. In addition, new innovative techniques such as mobile surveys, social listening, and online panels, which emphasize speed, precision, and customization, are also transforming this particular sector.
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Growing demand for below applications around the world has had a direct impact on the growth of the South Korea CO2 Heat Pump Water Heater Market
Air-source CO2 Heat Pumps
Water-source CO2 Heat Pumps
Ground-source CO2 Heat Pumps
Hybrid CO2 Heat Pumps
Residential
Commercial
Industrial
Agricultural
Below 50 Liters
50 to 100 Liters
100 to 200 Liters
Above 200 Liters
Hospitality
Healthcare
Education
Retail
Direct Sales
Online Sales
Retail Outlets
Distributor/Wholesaler
Asia-Pacific (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
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1. Introduction of the South Korea CO2 Heat Pump Water Heater Market
Overview of the Market
Scope of Report
Assumptions
2. Executive Summary
3. Research Methodology of Verified Market Reports
Data Mining
Validation
Primary Interviews
List of Data Sources
4. South Korea CO2 Heat Pump Water Heater Market Outlook
Overview
Market Dynamics
Drivers
Restraints
Opportunities
Porters Five Force Model
Value Chain Analysis
5. South Korea CO2 Heat Pump Water Heater Market, By Type
6. South Korea CO2 Heat Pump Water Heater Market, By Application
7. South Korea CO2 Heat Pump Water Heater Market, By Geography
Asia-Pacific
China
Japan
Korea
India
Australia
Indonesia
Thailand
Philippines
Malaysia and Vietnam
8. South Korea CO2 Heat Pump Water Heater Market Competitive Landscape
Overview
Company Market Ranking
Key Development Strategies
9. Company Profiles
10. Appendix
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