North America Air to Water Heat Pump Market Size

North America Air to Water Heat Pump Market Size

North America Air to Water Heat Pump Market Size was valued at over USD 1.5 billion in 2022 and is anticipated to witness significant growth at a rate of over 18% by 2032. An air to water heat pump is a type of heating and cooling system that transfers heat from the outdoor air to water, which can be used for space heating, domestic hot water, and sometimes for cooling purposes.

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It operates on the same principle as an air-source heat pump, but instead of delivering heat to the indoor air, it transfers the heat to a water-based distribution system. The increasing focus on reducing greenhouse gas (GHG) emissions and the growing preference for sustainable technologies.

The ongoing efforts to reduce carbon emissions have spurred a rising demand for energy-efficient heating, cooling, and hot water solutions, driving the expansion of the air to water heat pump market. Diverse climatic conditions, increasing adoption of environmentally sustainable practices, accelerating research and development investments, and advancements in residential heat pump technologies are some of the prominent factors creating favorable opportunities for industry expansion.

The North America air to water heat pump market has experienced significant development owing to the increasing population and continuous development of residential and commercial infrastructure. The presence of favorable government initiatives, such as tax credits and rebates for corporations and individuals, along with incentive plans and clean heating programs. For instance, the U.S. government's Energy Efficient Home Improvement Credit Scheme, starting in 2023, has replaced the previous lifetime limit of USD 500 for tax credits with an annual limit of USD 1,200. The tax credit is calculated as the 30% of expense incurred for eligible house improvements conducted within the year.

The ongoing advancements in heat pump technologies, along with a growing consumer preference for reliable heating and cooling systems. Increasing demand for energy-efficient and environmentally friendly domestic hot water (DHW), heating and cooling solutions, aligning with the goals of reducing carbon emissions and promoting sustainable practices.