Residential Air to Air Heat Pump Market Size – By Application, By Product, Analysis, Share, Growth Forecast, 2024 - 2032

Residential Air to Air Heat Pump Market Size

The global residential air to air heat pump market was valued at USD 14 billion in 2023 and is set to grow at a CAGR of 9.6% from 2024 to 2032. The increasing demand for cost-effective and efficient heating and cooling solutions along with focus on replacement of traditional systems is driving the industry growth. Government incentives and support for integrating reliable systems in residential spaces further enhance the business dynamics.
 

Strict regulations to reduce carbon emissions and initiatives to improve energy efficiency in building infrastructure are expected to positively impact industry dynamics. For instance, in September 2024, the California Energy Commission updated the state's Building Energy Efficiency Standards, the Energy Code 2025. These updates are anticipated to provide significant benefits, including USD 4.8 billion in energy cost savings, a reduction of about 4 million metric tons in GHG emissions, and better climate resilience and comfort for residential and commercial buildings.
 

Residential Air to Air Heat Pump Market Trends

The residential air to air heat pump industry is anticipated to observe substantial expansion on account of the continuous advancements in heating and cooling systems coupled with shifting consumer preference towards clean energy technologies. Ongoing urbanization in developing countries and the expansion of residential projects, including multi-story buildings and single-family homes, will positively influence business dynamics.
 

Government and authority-led incentive schemes and rebates will further boost product deployment. For instance, since January 2023, the UK government has been offering grants exceeding USD 5,800 for air-source heat pumps across prevailing and new constructions retrofits, stimulating the market for various HP systems across Europe. Similarly, the government of Austria introduced financial support for ASHP units across new building infrastructures covering up to 20% of the cost. In addition, the program available from January 2023 to December 31^st, 2024, also offers aid for retrofitting activities for up to 35%, with a maximum of USD 5,000.
 

Residential Air to Air Heat Pump Market Analysis

Single family segment is likely to cross to over USD 19.5 billion by 2032. The increasing demand for energy-efficient and eco-friendly solutions, along with the growth of the real estate sector, complementing the business landscape. Favorable utilization of these systems for heating and cooling individual units in single-family homes and apartments has augmented the business dynamics. Additionally, rising need for zonal heating and cooling control, along with greater awareness and availability of these units, will accelerate the product deployment.
 

Ductless segment is set to witness a CAGR of over 9.5% through 2032. Rising demand for energy-efficient heating & cooling systems along with increasing growing volatility of electricity costs is shifting homeowners’ inclination to upgrade their conventional systems to ductless units. Shifting inclination toward adoption of clean energy systems coupled with emphasis on enhancing building energy efficiency owing to introduction of stringent regulatory landscape will complement the business landscape. Favorable policies by the respective authorities coupled with stringent mandates toward reducing carbon footprint will positively influence ductless heat pump business dynamics.
 

U.S. residential air to air heat pump market is anticipated to reach USD 7.8 billion by 2032, owing to the increasing residential construction coupled with the rising need for efficient space heating & cooling. Government incentives including low-interest loans, investment grants, and tax benefits, are encouraging a shift from conventional to sustainable sources, boosting the demand for air-to-air heat pumps. For instance, in April 2024, the federal government is providing USD 8.8 billion for Home Energy Rebates programs, available to states, territories, that apply. These federal rebates, potentially worth up to USD 14,000 or more per household, offer discounts for homeowners and landlords making specific efficiency upgrades.
 

Residential Air to Air Heat Pump Market Share

Leading manufacturers in the residential air-to-air heat pump market are prioritizing strategic alliances, partnerships, and collaborations, alongside mergers and acquisitions, to bolster their market presence. The major players aim to unveil advanced and innovative technologies, propelling the industry's growth. Key players including Panasonic, Carrier, LG, Bosch, DAIKIN, and Trane, amongst others, collectively accounted for a significant portion of the market share.
 

Residential Air to Air Heat Pump Market Companies

Key industry players operating across industry include:

• American Standard
• Bard
• Blue Star
• Bosch
• Carrier
• Daikin
• Fujitsu
• Gree
• Klimaire
• LG
• Lennox
• MrCool
• Napoleon
• Panasonic
• Rheem
• Samsung
• Stiebel Eltron
• Trane
   

Residential Air to Air Heat Pump Industry News

• In October 2024, Bosch Home Comfort has introduced its new IDS Ultra Cold Climate Heat Pump, first presented at the Consumer Electronics Show (CES) and AHR Expo held this year in January. This HVAC innovation works efficiently year-round, even in sub-zero temperatures and aims to provide energy-efficient heating and cooling across various U.S. climate zones. The product targets homeowners in colder regions looking to reduce their carbon footprint while maintaining comfort during winter months.
   
• In March 2024, Daikin Europe NV introduced an upgraded wall-mounted residential air-to-air heat pump series called All Seasons Perfera. This new line offers improved flexibility with six capacity options, increased cooling and heating capacities for certain classes, and enhanced airflow with reduced noise levels. The product features high energy efficiency ratings and includes a night mode for temperature adjustments. The product boasts high energy efficiency, with a seasonal ratio reaching 9.47 and performance coefficient up to 5.20.
   

This residential air to air 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 2032 for the following segments:

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Market, By Application

• Single family
• Multi family

Market, By Product

• Ducted
• Ductless

The above information has been provided for the following region and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Austria
  • Norway
  • Denmark
  • Finland
  • France
  • Germany
  • Italy
  • Switzerland
  • Spain
  • Sweden
  • UK
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • Türkiye
  • South Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina