Air to Air Heat Pump Market Analysis

Air to Air Heat Pump Market Analysis

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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.