North America Residential Heat Pump Market Analysis

North America Residential Heat Pump Product Market Analysis

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The North America residential heat pump market from air source heat pump products will observe a growth rate of over 10% through 2032, on account of various positive factors consisting of low carbon footprint, minimal maintenance requirements, cost-effective operations, longer lifespan and introduction of beneficial installation schemes driving the adoption of these units.

For instance, from January 2023, the U.S. government unveiled that users integrating a new air-source heat pump for domestic establishments and meet specific efficiency criteria are qualified to attain a federal tax credit. This tax credit can amount to a maximum of USD 2,000 or 30% of the installation cost, whichever is lower, reducing the overall initial cost for ASHP units. Moreover, the ability to these systems provide water heating solutions in addition to space heating and cooling will boost the product demand.

The demand for ground source or geothermal heat pumps in North America will be driven by their high efficiency, environmentally friendly operations, and minimal maintenance requirements. Ongoing technological advancements aimed at enhancing efficiency and operational performance will further complement the business dynamics. Moreover, several operational benefits including incorporation of integrated controls, ultra-high energy efficiency, and enhanced maintenance to provide efficient heating solutions for residential establishments is set to augment the product demand.

Single-family application accounted for over 65% of the North America residential heat pump market share in 2022, driven by the expanding construction activities in the U.S. and Canada. Government initiatives and financial incentives supporting the installation of renewable systems have also played a significant role in boosting the demand for heat pumps in single-family households. Moreover, cost-effectiveness, ongoing retrofitting operations, rising disposable incomes among customers, and easy installation process are some of the key parameters fostering the business landscape.

The multi-family residential heat pump market is poised for growth owing to increased investments in infrastructure along with the growing need for efficient space and water heating solutions. The ability of these units to offer reliability and flexibility and benefit from the high sustainability index of these units which is set to have a positive impact on the overall industry growth. In addition, the variations in climatic conditions caused by global warming along with the government targets to reduce emissions will drive significant demand for effective and sustainable heating and cooling solutions across the region.

The U.S. residential heat pump market size across residential establishments was reached USD 7 billion in 2022, attributed to promising regulatory frameworks and the rising demand for renewable energy technologies. In addition, supportive policies for energy-efficient systems and the implementation of standards, incentives, and beneficial schemes will favor the industry outlook. The market size for heat pump in the U.S. is set to cross USD 29.5 billion by 2032.

For instance, the U.S. Department of Energy has enforced new energy conservation standards that will be effective from January 1, 2023, for newly manufactured residential & commercial air conditioners, heat pumps, and gas furnaces. These standards have been implemented to promote energy efficiency and reduce energy consumption in these HVAC systems. Moreover, the rising demand for efficient and reliable heating and cooling solutions along with the shifting inclination toward reliable heating & cooling systems will further complement the industry landscape. The market size for heat pump in the Europe is poised to exceed USD 78 billion by 2032.