North America Residential Cold Climate Heat Pump Market Analysis

North America Residential Cold Climate Heat Pump Market Analysis

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North America ducted heat pump for cold climatic conditions is set to observe a significant expansion on account of lower operating costs, reduced maintenance needs, decreased emissions, and extended lifespan, among other features. In addition, the rapid growth of residential construction coupled with the ongoing trend of urbanization, residential establishments and beneficial regulatory programs have observed significant transformation over the years.
 

For instance, the U.S. government introduced Energy Efficient Home Improvement Tax Credit scheme applicable from January 1, 2023, which provide tax credit and rebates for households. Under the scheme, households can claim credit in 2024 on 2023 taxes including a 10-year expansion and extension of existing 10% tax credit to 30%. However, tax credit may increase up to maximum of USD 2,000 when adding a qualified heat pump installation. Moreover, favorable government regulations and introduction of beneficial schemes for the installation of energy efficient heat pump units across domestic establishments will accelerate the product deployment across the region.
 

Based on application, North America residential cold climate heat pump market from single-family is set to witness a growth rate of over 10% through 2032 on account of the rising demand for reliable heating and cooling across residential establishments along with shifting inclination toward adoption of energy efficient systems. These units offer easy installation, optimized performance, and the ability to deliver space heating across clod climatic conditions are some of the key factors which are set to propel the product demand. In addition, respective government authorities offer a range of incentives, subsidies, beneficial tax credits, and other forms of financial support to accelerate the deployment of energy efficient systems positively influencing the industry growth.
 

The growing expenditure and investments on new and renovation infrastructure projects across residential establishments along with beneficial financial support from the administrative authorities will further propel the multi-family residential cold climate heat pump market growth. Moreover, ongoing adoption of sustainable energy systems to limit the energy consumption across residential applications will further boost the product deployment. Positive outlook by the manufacturers to support clean energy transition with eco-friendly HVAC systems transition will unveil lucrative growth opportunities across multi family establishments.
 

U.S. cold climate residential heat pump market was estimated at over USD 2.3 billion in 2022 and is set to witness a sheer turnaround owing to the rapidly increasing population along with increasing penetration of residential building structures. Rapid urbanization, diverse climatic conditions, rising disposable incomes, and a growing preference for clean energy technologies are some of the key parameters shaping to the nation’s industry landscape.
 

For instance, in June 2022, U.S. Department of Energy introduce cold climate heat pump challenge program. It targets residential, centrally ducted, electric-only heat pumps and comprises two segments including the 5°F challenge" for optimizing CCHP systems at 5°F (-15°C), and the -15°F challenge for optimizing CCHP systems at -15°F (-26°C). The Challenge's performance specifications were derived from data analysis and discussions with manufacturers. Moreover, stringent building energy efficiency norms, availability of financial benefit policies, encouraging emission reduction targets, and substantial presence of various scale heat pump manufacturing players will complement the industry outlook.