U.S. Air Source Heat Pump Market Size - By Product, By Application, Analysis, Share, Growth Forecast, 2025 - 2034

U.S. Air Source Heat Pump Market Size

The U.S. air source heat pump market size in 2024 was estimated at USD 8.3 billion and is projected to grow at a goth rate of 9.8% from 2025 to 2034. The increasing adoption of energy-efficient heating, cooling and hot water systems coupled with rising consumer spending and varying climatic conditions is complementing the industry landscape. Ongoing expansion of commercial and residential establishments along with shifting focus toward enhancing the energy efficiency of building infrastructure will positively influence the business dynamics.
 

Air source heat pumps (ASHPs) are emerging as a low-carbon alternative to traditional heating and cooling systems, utilizing electricity rather than burning fossil fuels to transfer heat. Regulatory authorities are implementing strategic reforms to reduce GHG emissions and transitioning to cleaner energy sources is shaping the U.S. heat pump industry dynamics. For instance, in September 2024, California's Energy Commission has approved new building standards for 2025, focusing on energy efficiency and clean energy, targeting new construction and renovations. Key changes include promoting electric heat pumps, upgrading HVAC systems in existing buildings, preparing for electric appliances in commercial and multifamily settings.
 

U.S. Air Source Heat Pump Market Trends

The U.S. air source heat pump industry is set to grow owing to significant efforts to reduce greenhouse gas emissions, increased awareness toward enhancing energy efficiency, and adoption of carbon reduction mandates. Many states and municipalities offering incentives and rebates for installing energy-efficient HVAC systems, along with favorable initiatives toward enhancing building energy efficiency will impact the industry outlook. For instance, in September 2024, the U.S. Department of Energy introduced a significant initiative, allocating USD 90 million to 25 nationwide projects. This funding, part of a larger USD 225 million program, aims to implement new energy codes in buildings, to improve energy efficiency in homes and commercial structures, potentially lowering consumer energy costs and reducing greenhouse gas emissions.
 

U.S. Air Source Heat Pump Market Analysis

Air to air segment is anticipated to grow over USD 12.8 billion by 2034. Increasing demand for energy-efficient and sustainable heating and cooling solutions and rising demand low emission systems with varying climatic conditions. The rising need for maintaining comfortable temperatures in residential buildings across various geographical regions, coupled with the introduction of improved technological systems, will accelerate the product deployment. Government incentives including tax benefits, subsidies together with regulations promoting energy-efficient systems and reducing carbon emissions stimulating air to air heat pump deployment.
 

Air-to-water heat pumps are gaining significant momentum owing to ongoing technological innovations that develop advanced units with improved installation flexibility and operational capabilities. The technology offers several benefits, including reduced installation costs, lower noise pollution, and shorter heating times. Additionally, policymakers are actively investing in sustainable technologies for residential and commercial space heating and hot water applications to reduce carbon emissions and energy bills, further complementing the industry landscape.
 

U.S. air source heat pump market from residential segment is anticipated to witness a CAGR of over 9.5% by 2034. Rising need for comfortable temperatures in homes and multi-story buildings, energy efficiency requirements and the desire to reduce utility costs are driving the industry growth. Consumers with higher incomes are investing in advanced systems that lower electricity bills and decrease carbon emissions, augmenting the U.S. residential heat pump industry. Rising population, allocation of funds to develop and upgrade energy-efficient structures, will propel the industry outlook.
 

Commercial air source heat pump market is anticipated to witness significant growth, owing to the implementation of stringent building energy codes by regulatory authorities. The rapid expansion of the commercial sector, coupled with an increasing focus on developing sustainable building structures, are driving the product adoption across commercial establishments. The flourishing economic environment and government initiatives to boost investments in the service sector are positively influencing the complementing the commercial heat pump industry growth.
 

U.S. Air Source Heat Pump Market Share

Key players operating across the market are forming partnerships and pursuing acquisitions to boost their market presence. Companies including Carrier, Bosch Thermotechnology, Daikin, Mitsubishi Electric, SAMSUNG and Panasonic are investing heavily in manufacturing expansion and R&D to maintain their competitive edge. These strategies aim to broaden product offerings and extend geographical reach across the country.
 

U.S. Air Source Heat Pump Market Companies

Major players operating across the industry include:

• American Standard
• Bosch
• Bard HVAC
• Carrier
• Colmac
• Daikin
• Fujitsu General
• Gree
• Hitachi
• LG
• Lennox
• Mitsubishi Electric
• Rheem
• Samsung
• Trane
   

U.S. Air Source Heat Pump Industry News

• In October 2024, Bosch Home Comfort unveiled its IDS Ultra cold-climate heat pump. This new product, designed for year-round use even in sub-zero temperatures, was first presented at the AHR Expo 2024. The heat pump's development focused on maintaining high performance in extreme cold, making it a pioneering solution for energy-efficient heating and cooling across various U.S. climate zones.
   
• In March 2024, U.S. Boiler, a manufacturer of residential and commercial heating products has introduced a monobloc air-to-water heat pump designed for residential applications. The heat pump boasts a 5-ton capacity, rated at 60 thousand British thermal units per hour. This unit achieves a coefficient of performance (COP) of up to 3.95 and can produce supply temperatures reaching 60°C and utilizes difluoromethane (R32) as its refrigerant, which has a global warming potential (GWP) of 675.
   

The U.S. air source heat pump market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” and “USD Million” from 2021 to 2034, for the following segments:

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Market, By Product

• Air to air
• Air to water

Market, By Application

• Residential
  • Single family
  • Multi family
  • By Product
    • Domestic hot water heat pump
    • Room heat pump
• Commercial
  • Educational institutes
  • Healthcare
  • Retail
  • Logistics & transportation
  • Offices
  • Hospitality
  • Others