Italy Heat Pump Market Size, Share, and COVID-19 Impact Analysis, By Pump Type (Air-Source, Water-Source, and Other), By Rated Capacity (<10 KW, 10 - 20 KW, and Other), By Application (Space Heating, Space Cooling, and More), By End-User Vertical (Residential, Commercial, and More), and Italy Heat Pump Market Insights, Industry Trend, Forecasts to 2035

Italy Heat Pump Market Insights Forecasts to 2035

• The Italy Heat Pump Market Size Was Estimated at USD 0.95 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of Around 5.3% from 2025 to 2035
• The Italy Heat Pump Market Size is Expected to Reach USD 1.677 Billion by 2035

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According to a research report published by Spherical Insights & Consulting, The Italy Heat Pump Market Size is Anticipated to Reach USD 1.677 Billion by 2035, Growing at a CAGR of 5.3% from 2025 to 2035. The Italy heat pump market is driven by increasing demand for energy-efficient heating and cooling solutions, government incentives for renewable energy adoption, rising environmental awareness, high electricity costs, and technological advancements in sustainable HVAC systems, boosting market growth.

 

Market Overview

A heat pump is an energy-efficient device that transfers heat between indoor and outdoor environments to provide heating or cooling. It extracts heat from the air, ground, or water and moves it to the desired space, reducing energy consumption compared to conventional systems. Heat pumps support sustainable temperature control and lower greenhouse gas emissions. Furthermore, the market is growing due to government subsidies for renewable energy, rising focus on energy efficiency, increasing installation in residential and commercial buildings, technological innovations, and growing environmental awareness, driving demand for sustainable heating and cooling solutions.

 

The Italian government has implemented several policies to promote the adoption of heat pumps in order to reduce carbon emissions and increase energy efficiency. These policies include financial incentives such as tax credits, grants, and subsidies for the purchase and installation of heat pump systems. Additionally, there are regulations in place that require new buildings to use renewable energy sources like heat pumps for heating and cooling. The government also supports research and development initiatives to improve the technology and affordability of heat pumps. Overall, these policies aim to accelerate the growth of the heat pump market in Italy and contribute to the country`s climate goals.

 

Technological advancements such as smart heat pump systems, hybrid solutions, and improved energy efficiency are expanding market potential. The residential sector offers strong opportunities as homeowners seek cost-effective, sustainable solutions. Commercial and industrial adoption is also increasing to meet sustainability targets and reduce operational costs.

 

Overall, the Italy heat pump market is set for continued growth, supported by government initiatives, rising environmental awareness, and innovative technologies, presenting attractive opportunities for manufacturers, installers, and service providers.

 

Report Coverage

This research report categorizes the market for the Italy heat pump market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Italy heat pump market. Recent market developments and competitive strategies, such as expansion, product launch, 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 Italy heat pump market.

 

Driving Factors

The Italy Heat Pump Market Size is driven by growing demand for energy-efficient and eco-friendly heating and cooling solutions. Government incentives, including tax credits, grants, and subsidies, encourage adoption, while regulations for new buildings promote renewable energy use. Rising environmental awareness and high energy costs push residential, commercial, and industrial sectors toward sustainable alternatives. Technological advancements, such as smart and hybrid heat pump systems, improve efficiency and affordability, further stimulating market growth and creating opportunities for manufacturers, installers, and service providers.

 

Restraining Factors

The growth of the Italy Heat Pump Market Size is restrained by high upfront costs of installation, limited awareness among some consumers, and the need for specialized installation and maintenance. Additionally, existing reliance on conventional heating systems and occasional performance limitations in extremely cold climates slow adoption, posing challenges for widespread market penetration despite government incentives.

 

Market Segmentation

The Italy Heat Pump Market share is classified into pump type, rated capacity, application, and end user vertical.

 

• The air-source segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Italy Heat Pump Market Size is segmented by pump type into air-source, water-source, and other. Among these, the air-source segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The air-source heat pump segment dominates due to its cost-effectiveness, ease of installation, and adaptability to various building types. Unlike water-source systems, air-source pumps do not require complex ground or water connections, reducing setup time and expenses. They perform efficiently in Italy’s moderate climate, providing reliable heating and cooling for residential and commercial applications. Growing awareness of energy-efficient solutions, combined with government incentives, further drives adoption, making air-source heat pumps the most preferred choice in the market.

 

• The <10 KW segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Italy Heat Pump Market Size is segmented by rated capacity into <10 KW, 10 - 20 KW, and other. Among these, the <10 KW segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. The <10 kW segment dominates because it perfectly suits residential and small commercial applications, which make up a large portion of demand. These lower-capacity units are cost-effective, easier to install, and consume less energy, making them attractive for homeowners and small businesses. Additionally, government incentives and growing awareness of energy-efficient solutions encourage adoption of compact, efficient systems. Their reliability and suitability for Italy’s moderate climate further reinforce their preference over higher-capacity models.

 

• The space heating segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Italy Heat Pump Market Size is segmented by application into space heating, space cooling, and more. Among these, the space heating segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. The space heating segment dominates due to the country’s cooler winter climate, which drives high demand for efficient heating solutions in homes, offices, and commercial buildings. Heat pumps offer a cost-effective and energy-efficient alternative to traditional heating systems, reducing electricity consumption and carbon emissions. Government incentives and growing awareness of sustainable energy further encourage adoption. While cooling is also needed, heating remains the primary requirement, making space heating the leading application in the market.

 

• The residential segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Italy Heat Pump Market Size  is segmented by end user vertical into residential, commercial, and more. Among these, the residential segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. The residential segment dominates because most demand comes from homeowners aiming to reduce energy costs and carbon emissions. Government incentives, such as tax credits and subsidies for installing heat pumps, make them more affordable for households. Residential buildings also benefit from the ease of installing compact, efficient systems like air-source and <10 kW units. Growing environmental awareness and the desire for sustainable, reliable heating and cooling solutions further reinforce the preference for heat pumps in the residential sector.

 

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within theItaly Heat Pump Market Size , 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 elaborate 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

• Daikin Industries Ltd.
• Carrier Global Corporation
• Viessmann Climate Solutions SE
• Trane Technologies plc
• Panasonic Holdings Corporation
• Mitsubishi Electric Corporation
• Bosch Thermotechnology
• Stiebel Eltron GmbH & Co. KG
• Johnson Controls International PLC
• Others

 

Key Target Audience

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

 

Recent Developments:

In March 2025, Thermocold launched the iMEX HP R454B air-to-water heat pumps for residential, commercial, and industrial use, offering efficient heating up to 45°C in -15°C conditions and summer water heating up to 60°C with low-GWP R454B refrigerant.

 

In April 2025, Ariston launched 15 kW+ Nuos commercial water-heater heat pumps, expanding into mid-scale hospitality retrofits. Businesses, particularly commercial spaces, are set to benefit from this expansion, as it focuses on delivering energy-efficient hot water solutions, catering to those eager to upgrade their systems.

 

Market Segment

This study forecasts revenue at the Italy, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Italy heat pump market based on the below-mentioned segments:

 

Italy Heat Pump Market, By Pump Type

• Air-Source
• Water-Source
• Other

 

Italy Heat Pump Market, By Rated Capacity

• <10 KW
• 10 - 20 KW
• Other

 

Italy Heat Pump Market, By Application

• Space Heating
• Space Cooling
• More

 

Italy Heat Pump Market, By End-User Vertical

• Residential
• Commercial
• More