Air to Air Heat Pump Market Size - By Product (Ducted, Ductless), By Application (Residential {Single Family, Multi Family}, Commercial) & Global Forecast, 2023 - 2032

Air to Air Heat Pump Market Size

Air to Air Heat Pump Market size was valued at USD 17.5 billion in 2022 and is set to grow at a rate of 9.2% between 2023 and 2032. Air to air heat pump industry is anticipated to grow owing to the rising integration of energy efficient systems along with accelerating demand for efficient heating and cooling. The ability of these systems to offer various operational benefits including high efficiency, reliable operations, compact size and cost-effectiveness will positively influence the product demand.
 

Moreover, ongoing replacement of conventional heating & cooling systems to limit carbon emissions together with growing adoption of reliable energy efficient systems across residential & commercial establishments will further accelerate the air to air heat pump market growth.
 

An air-to-air heat pump and air to water heat pump systems are types of air-source heat pump units is a type of heating and cooling system that transfers heat between the indoor and outdoor air to provide heating or cooling for a building. It operates on the principle of thermodynamics and uses a refrigeration cycle to achieve its functionality and can offer both energy savings and reduced greenhouse gas emissions compared to conventional heating and cooling systems. The growing adoption of these units across residential and commercial applications for efficient and environmentally friendly solution for providing heating and cooling in residential and commercial establishments will increase air to air heat pump market revenue.
 

Air to Air Heat Pump Market Trends

Significant variation in the climatic conditions across several geographies attributed by the rising carbon footprint along with increasing global warming levels have shifted the focus of regulators and respective authorities to limit emission levels. The respective governments worldwide have introduced various policies to encourage the shift towards renewable energy sources and mitigate the impact of climate change.
 

For instance, in February 2023, the French government introduced a plan to provide a rebate of EUR 5,000 to individuals, irrespective of their income status, who opt for the installation of a new energy-efficient heat pump to replace their outdated heating system. This scheme is effective from March 1^st, to encourage the adoption of energy-efficient heating systems including heat pump systems. In addition, the growing emphasis on energy-efficient HVAC systems together with adoption of enhanced technological systems will further play a pivotal role in shaping the industry dynamics.
 

COVID- 19 Impact

The COVID-19 pandemic has had a significant impact on the air-to-air heat pump market size. The outburst has resulted in a decline in manufacturing processes, facility shutdowns, labor shortages, limited product deployment, and disruptions in the supply chain network. However, companies in the industry have implemented new measures to mitigate these restrictions and maintain production outputs, which are expected to contribute to the industry's growth.
 

Additionally, governments have implemented favorable regulations and increased investments in the development of advanced technological systems, which will aid in the recovery of the industry landscape. Furthermore, various administrations have introduced initiatives aimed at achieving a cleaner environment in response to the pandemic, including programs that support and benefit renewable technologies further balancing the air to air heat pump market outlook.
 

Air to Air Heat Pump Market Analysis

The ducted heat pump systems across air to air heat pump market was reached USD 8.9 billion in 2022 and is set to observe wide integration in both residential and commercial applications for heating and cooling purposes. These systems are known for their efficiency, especially in mild to moderate climates as their ability to offer the advantage of providing both heating and cooling from a single system, making them versatile and cost-effective.
 

Ducted heat pumps are typically installed in a central location, such as the attic or basement, resulting in efficient utilization of space within a building which allows for a clean and aesthetically pleasing living or working environment. This aspect contributes to the widespread adoption of ducted heat pumps in residential establishments. These systems can often operate for 15 to 20 years or even longer with proper maintenance and professional servicing along with regularly maintaining and servicing, its operational life can be extended, ensuring reliable and consistent comfort for an extended period.
 

Growing investments by the respective authorities, manufacturers, and regulatory bodies to introduce efficient heating and cooling systems also contribute to the air to air heat pump market growth. For instance, starting in 2023, homeowners in the United States will have the opportunity to benefit from a federal tax credit for heat pumps. Under the High-Efficiency Electric Home Rebate Act, which is a part of the Inflation Reduction Act, all homeowners will be eligible to receive a 30% federal tax credit on the total cost of purchasing and installing their new heat pump.
 

The maximum credit amount that can be claimed is set at USD 2,000. This tax credit incentive aims to promote the adoption of high-efficiency heat pumps and support the transition towards more sustainable and energy-efficient heating solutions in residential properties. The wide adoption of these systems across a variety of temperatures and applications, allowing for ambient cooling and heating, which will further boost the deployment of heat pump systems. This versatility makes them suitable for various applications positively accelerating their air to air heat pump market demand.
 

Ductless heat pumps industry is expected to witness a significant momentum through 2032, on account of accelerating demand for energy-efficient systems along with rising demand for reliable cooling & heating. The growing variations in electricity costs is driving the households to upgrade their HVAC systems to a ductless approach from a forced-air system.
 

In addition, shifting focus toward adoption of clean energy solutions along with the growing emphasis on renewable energy technologies for commercial and residential heating & cooling requirements will boost the ductless heat pump demand. Moreover, favorable administrative programmes, policies and stringent standards & norms pertaining to limit carbon footprint coupled with the deployment of clean alternatives will offer beneficial prospects for the ductless heat pumps industry expansion.
 

Air to air heat pump market across residential applications is predicted to show tremendous growth till 2032, owing to the replacement of sustainable heating & cooling units across the residential infrastructure along with growing adoption of energy efficient units to reduce energy consumption. The integration of these units with building automation systems has become a priority for building owners, as it allows for better control of HVAC systems and enhances energy efficiency. Several manufacturers across the industry are focusing on research and development together with technological advancements including inverter technology and smart controls, which further enhances the performance of these systems and will proliferate the business dynamics.
 

The rising demand for energy-efficient and eco-friendly solutions, coupled with the growth of the real estate sector, is expected to drive the adoption of heat pump systems in multi-family homes by 2032. Growing recognition of the benefits offered by these systems, particularly in meeting the heating and cooling requirements of individual units within multi-family houses and apartments will segment the air to air heat pump market dynamics. The increasing need for zoning heating and cooling control further enhances the installation of heat pumps in these establishments. Manufacturers and HVAC professionals are actively offering and promoting these systems, making them more readily available and accessible to homeowners along with increased awareness and availability of these units will contribute to the overall industry growth.
 

The North America air to air heat pump market size was evaluated at over USD 8.1 billion in 2022, attributed to the growing demand for efficient & reliable space heating & cooling solutions along with positive regulatory framework. Moreover, respective governments and authorities announced several beneficial policies to address the installation of energy efficiency units coupled with increasing disposable incomes will complement the industry outlook. The market for heat pump in U.S. will surpass USD 29.6 billion by 2032.
 

For instance, in December 2022, ENERGY STAR, an agency administered under the U.S. Environmental Protection Agency (EPA), updated its Air Source Heat Pumps Tax Credit for the products procured and deployed between January 1^st, 2023, and December 31^st, 2032. The government body further confirmed that the users are eligible to claim up to 30% of project cost with maximum amount credited of USD 2,000 for all the eligible ASHP systems. Moreover, the growing expenditure towards construction of new residential & commercial building structures with advanced HVAC technologies will further add to the regional industry dynamics. The European market for heat pump size is expected to record over 8% CAGR during the forecast period.
 

Air to Air Heat Pump Market Share

Major companies operating across the air to air heat pump market are making strategic alliances and partnerships to strengthen their market presence and are focusing on mergers and acquisitions to hold a competitive edge over the others. Key manufacturers in the industry include:

• Rheem Manufacturing Company
• Daiki
• SAMSUNG
• Mitsubishi Electric Trane HVAC US LLC
• Panasonic Marketing Europe GmbH
• Bosch Thermotechnology Corp.
• Trane
• Carrier
• FUJITSU GENERAL
• Bard HVAC
• STIEBEL ELTRON GmbH & Co. KG
• Bryant Heating & Cooling
• MRCOOL
• NAPOLEON
• GREE Comfort.
   

Air to Air Heat Pump Industry News

• In May 2023, Vermont Gas, a U.S. based company, introduced a new program in that focuses on installing heat pumps in households. This initiative aims to expand the availability of low-carbon residential heating & cooling options throughout the nation. The program focuses on utilizing the existing ductwork in homes, employing a centrally ducted heat pump concept. This strategy takes advantage of the favorable market conditions for heat pump adoption in the United States. By leveraging existing infrastructure, this program aims to provide homeowners with an efficient and sustainable solution for their heating and cooling needs.
   
• In April 2023, Rheem’s Endeavor Prestige series passed the cold climatic heat pump challenge set by the U.S. DOE (Department of Energy. In March 2023, the company launched a new range of air source heat pump systems called the Endeavor Prestige series. These clod climatic heat pump systems are designed to offer 77% of the nominal heating at an ambient temperature of -26°C along with delivers uninterrupted heating at an ambient temperature of -30°C. The industry size for air source heat pump in the U.S. is likely to cross USD 25 billion by 2032.
   

This air to air heat pump market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” & “USD Million” from 2019 to 2032 for the following segments:

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Market, By Product

• Ducted
• Ductless

Market, By Application

• Residential
  • Single family
  • Multi family
• Commercial

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Austria
  • Norway
  • Denmark
  • Finland
  • France
  • Germany
  • Italy
  • Switzerland
  • Spain
  • Sweden
  • UK
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • Turkey
  • South Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina