North America Air to Water Heat Pump Market Analysis

North America Air to Water Heat Pump Market Analysis

The residential air to water heat pump industry in North America accounted for the leading share in 2022 and is anticipated to grow owing to the increasing demand for hot water and reliable heating and cooling technologies across domestic establishments, households, and multi-story structures. The growing income levels of consumers and increasing emphasis on adoption of enhanced technological units to reduce electricity bills and limit carbon emissions, is set to drive the product adoption. In addition, the rapidly growing population along with along with the rising need for energy-efficient systems has led to increased investments in expanding and developing energy-efficient building structures.

The North America air to water heat pump market across single-family households is expected to experience substantial expansion, owing to the increasing construction activities in the U.S. and Canada. Favorable government initiatives, programs, and financial incentives focusing at promoting clean energy systems have also played a vital role in fueling the demand for heat pumps in residential establishments. In addition, cost-effectiveness, ongoing retrofitting projects, growing disposable incomes of consumers, and the ease of installation are some of the key factors contributing to the positive business landscape for heat pumps in single-family households.

The U.S. air to water heat pump market was valued at over USD 1.5 billion in 2022 attributed to favorable regulatory frameworks and an increasing demand for clean energy technologies. Supportive policies for energy-efficient systems and the implementation of standards, beneficial incentives and schemes. For instance, the U.S. Department of Energy enacted updated energy conservation standards with effective from January 1, 2023, for newly manufactured residential and commercial air conditioners, heat pumps, and gas furnaces. Moreover, the growing demand for hot water along with efficient and reliable heating and cooling solutions, coupled with a paradigm shift toward more enhanced heating and cooling systems will further enhance the U.S. heat pump industry landscape.