U.S. Heat Pump Market Analysis

U.S. Heat Pump Market Analysis

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The U.S. geothermal heat pump market is projected to observe a significant growth through 2032, owing to the rising demand for efficient heating cooling across residential, commercial, and industrial applications along with shifting focus toward adoption of energy efficient systems. Moreover, the ambient temperature requirement across residential & commercial establishments, along with shifting trends toward the use of enhanced technology solutions, will drive the air source heat pump deployment across the country. For instance, in April 2023, Rheem Manufacturing Company’s air source heat pump has passed the climate challenge across the U.S. The Endeavor Prestige series, which was launched in March 2023, delivered a 5% higher coefficient of performance (1.5 and 2.0 at -8 C) during heating under -15° C ambient temperatures than the challenged specification. Furthermore, ongoing technological innovations to develop advanced units coupled with improved installation flexibility & operational capabilities are some of the prominent factors augmenting the product demand.
 

Water source heat pumps are anticipated to gain prominence owing to its capacity to extract energy from various clean water bodies comprising small streams, rivers, or ponds and use it to provide cost-effective heating and cooling solutions. In addition, increasing initiatives by the key players to accelerate the development of innovative and cost-effective products with digital and smart features will boost the U.S. heat pump market deployment. For instance, in December 2021, Mitsubishi Electric launched Emodin Hydrodan, a new series of water source heat pumps for multi-residential applications. The product includes a plug-&-play feature that offers heating & hot water in residential apartments using an integrated storage tank.
 

Ongoing enforcement of regulations by the respective authorities in the U.S. for development of green building infrastructure along with shifting focus to limit the utilization of fossil fuels is set to augment the U.S. residential heat pump market size. For instance, the California Energy Commission, passed a new building energy code in August 2022 that promotes the use of heat pumps for space heating in newly constructed buildings. The code is primarily intended to provide an alternative for complying with the stringent building energy efficiency standards which will further complement the business dynamics.
 

Moreover, the ongoing advancement of low emission alternatives to attain a decarbonized economy strengthened by incentives and legislative energy policies constitutes are the key factors positively influencing market size. The global market for residential heat pump is expected to cross USD billion by 2032.
 

U.S. heat pump market from commercial application is projected to observe a growth rate of over 8% till 2032, on account of the ongoing implementation of rigorous green building requirements along with government initiatives to increase foreign investment across the service sector. In addition, introduction of innovative units coupled with the establishment of advanced infrastructures across various verticals including educational institutes, offices, hospitals, and hotels, among others, will attribute to the industry growth.
 

Continuous investments in industrial infrastructure development, combined with the implementation of severe emission and energy optimization standards, have increased demand for industrial heat pumps. For instance, in April 2023, U.S. based company Vicinity Energy collaborated with MAN Energy Solutions to build industry scale heat pump facility in U.S. with an aim to lower emissions and contribute towards clean energy. Therefore, rising concerns about GHG emissions from heating and industrial facilities will increase the demand for clean technology, propelling product deployment potential.