India Heat Pump Water Heater Market Revenues is projected to grow at a CAGR of 7.8% during 2025-2031

Residential sector by End-User held the highest revenue share in India Heat Pump Water Heater Market -6Wresearch

In 2024, the residential sector held the highest revenue share in the India heat pump water heater market due to growing demand for energy-efficient solutions among homeowners. Rising electricity costs, along with increasing awareness of environmental sustainability, have driven residential consumers to adopt heat pump water heaters. Moreover, the sector benefits from improved affordability, easy installation, and long-term cost savings, making it more attractive than the commercial sector.

According to 6Wresearch, India Heat Pump Water Heater Market Revenues is projected to grow at a CAGR of 7.8% during 2025-2031. Heat pump water heater market in India has experienced growth in recent years, driven by increasing demand for energy-efficient solutions and a rapidly expanding real estate sector, with land transaction volumes surging by 65% during the first nine months of 2024, signals strong investor confidence. Additionally, the luxury housing market saw a boom during the same period, with sales of high-end residential units priced at INR 4 crore and above rising by 37.8% YoY. This surge has led to increased demand for sustainable water heating solutions, like heat pump water heaters, driven by the emphasis on energy-efficient systems to meet sustainability and cost-efficiency goals.

The heat pump water heater (HPWH) market in India is set to grow rapidly, driven by increasing demand for energy-efficient solutions amid rising electricity costs and environmental concerns. The expansion of the hospitality sector, projected to reach INR 2.7 thousand billion by 2029, is a major growth driver as hotels adopt sustainable systems to reduce operational expenses. Furthermore, large-scale real estate developments such as RMZ Nexus (2027), Signature Global Daxin Vistas (2028) and Godrej Riverine (2029) are expected to accelerate the demand for energy-efficient solutions, driving the expansion of the heat pump water heater market in the coming years.

According to Shubham Deep, Senior Research Analyst, 6Wresearch, the Below 200L segment commanded the highest volume share in the India heat pump water heater market due to its high adoption in residential and small-scale commercial use. Its lower upfront cost, compact size, and ease of installation made it the preferred choice for mass-market consumers, while rapid urbanization and the expansion of Tier 2 and Tier 3 cities further drove its widespread adoption.

India Heat Pump Water Heater Market (2025-2031) report provides an in-depth analysis with 17 figures and 8 tables, covered in 74 pages. The report thoroughly covers market by technology, storage capacity, end user and region. India Heat Pump Water Heater Market outlook report provides an unbiased and detailed analysis of the on-going India Heat Pump Water Heater Market trends, opportunities/high growth areas and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.