North America Residential Heat Pump Market Size

North America Residential Heat Pump Market Size

North America Residential Heat Pump Market was valued at USD 8.1 billion in 2023 and is projected to grow at a rate of over 9.7% between 2024 and 2032. Ongoing initiatives to reduce carbon emissions have led to a growing demand for energy-efficient space heating and cooling solutions, which is set to drive the market expansion. The global market for residential heat pumps is expected to cross USD 121.5 billion by 2032.

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In addition, diverse climatic conditions, shifting trends towards more environmentally sustainable practices and significant R&D investments will create favorable opportunities for the enhancement of heat pump systems in domestic infrastructures. In addition, growing adoption of renewable energy systems, implementation of stringent regulations on emissions, and the introduction of new & enhanced technologies to reduce the severe environmental impact will positively sway the industry outlook.

The residential heat pump market in the region has witnessed a significant growth owing to the rapidly increasing population along with the continuous establishment of residential infrastructure. The introduction of government schemes including rebates, tax credits for both corporations and individuals, incentive plans, and programs for clean heating and will influence the industry dynamics.

For instance, the U.S. government has implemented new regulations starting in 2023, the Energy Efficient Home Improvement Credit Scheme. Under the scheme, the previous lifetime limit of USD 500 for tax credits has been replaced with an annual limit of USD 1,200. The tax credit will now be calculated as 30% of the costs incurred for eligible home improvements conducted within the year. Moreover, continuous technological advancements coupled with shifting consumer focus toward enhanced technological systems will further augment the industry growth.