Residential Ducted Heat Pump Market Size - By Application (Single Family, Multi Family), Research Report, Country Outlook, Growth Prospects & Global Forecast, 2024 - 2032

Residential Ducted Heat Pump Market Size

Residential Ducted Heat Pump Market size was valued at USD 5.3 billion in 2023 and is projected to expand at 8.4% CAGR from 2024 to 2032. The increasing preference for energy-efficient heating and cooling systems, coupled with a rise in consumer purchasing power regarding efficient HVAC systems, will positively contribute to the industry growth. The integration of residential ducted heat pumps with smart technology, coupled with an increased focus on zoning and individual control, is anticipated to positively impact the business dynamics. The integration of ducted heat pumps with smart home automation and thermostats, facilitates enhanced energy management and personalized comfort further contributing a favorable business landscape.
 

The introduction of favorable government schemes and support for the incorporation of reliable systems across residential establishments, along with growing investments in the construction of new residential buildings featuring advanced HVAC technologies, will further augment the business landscape. For instance, In January 2023, the U.S. Federal government introduced the High-Efficiency Electric Homes and Rebates Act, allocating USD 4.5 billion for state-level point-of-sale rebates.

The focus is on supporting home electrification projects for low- and moderate-income households. Eligible households can receive immediate discounts on purchases, with potential rebates of up to USD 8,000 for energy-efficient improvements in heat pump space heating and cooling. In addition, shifting consumers inclination toward smart technological systems which allows them to remotely control their heating and cooling systems using smartphones or voice-activated assistants will further accelerate the product demand.
 

A residential ducted heat pump is a type of air to air heat pump designed to complement the requirements of domestic HVAC system. It consists of a central heat pump unit, typically installed outdoors, and a network of ductwork that distributes conditioned air to various rooms or zones within the house.
 

Residential ducted heat pumps offer the advantage of providing both heating and cooling from a single system, making them versatile and efficient. They are often favored for their ability to maintain consistent temperatures throughout the entire home and for their discreet installation. Additionally, the integration of energy-efficient technologies and government incentives has contributed to the growing popularity of these systems in residential establishments.
 

COVID- 19 Impact

The residential ducted heat pump market has witnessed substantial disruptions in its supply chains, impacting the accessibility of components and materials. These challenges are a consequence of the unforeseen global COVID-19 pandemic. The outbreak has resulted in a decrease in manufacturing activities, facility closures, labor shortages, limited product deployments, and disruptions in the supply chain. Despite facing these challenges, companies in the industry have implemented proactive measures and introduced new strategies to mitigate these constraints. As a result, they are maintaining production levels, which contributes to a positive outlook for the growth of the industry.
 

Residential Ducted Heat Pump Market Trends

The residential ducted heat pump industry is set to observe substantial growth on account of the shifting consumer inclination towards clean energy technologies, coupled with ongoing advancements in heating and cooling systems to offer more efficient and effective solutions. The surge in demand particularly in metropolitan areas, where the need for improved energy efficiency aligns with the rise of clean energy building projects is set to accelerate the product deployment.
 

The implementation of advantageous rebates and incentive programs by relevant authorities and various governments is expected to further enhance the adoption of ducted heat pump across residential establishments. For instance, after 2023, The UK government is providing grants surpassing USD 5,800 for air-source heat pumps in both new constructions and retrofit projects, thereby bolstering the European ducted heat pumps market.
 

In addition, Austria has introduced a subsidy program offering grants for heat pumps in new constructions, covering up to 20% of their cost, and up to 35% for retrofits, with a maximum limit of USD 5,000. This subsidy initiative is valid from January 3, 2023, to December 31, 2024. Moreover, Collaborative efforts between governments and private entities, aimed at delivering efficient heating systems in cold climatic geographies, will further boost the product adoption. The expansion of residential projects, including both single-family houses and multi-story buildings, along with the ongoing urbanization in developing nations, is anticipated to have a positive impact on industry dynamics.
 

Residential Ducted Heat Pump Market Analysis

Based on the application, the residential ducted heat pump market from single-family application segment is expected to grow at 8.8% CAGR through 2032. The acceptance of ducted heat pumps across single-family or single-owner houses is influenced by zoning, temperature control features, and the growing emphasis on product aesthetics. Introduction of schemes by respective authorities and firms to accelerate the adoption of these units will influence the product deployment.
 

For instance, In May 2023, Vermont Gas initiated a new program aimed at installing heat pumps in the customer houses, thereby extending low-carbon residential heating & cooling alternatives across the nation. The program is centered around the concept of centrally ducted heat pumps, utilizing existing ductwork within homes and taking advantage of a favorable market scenario in the country. Moreover, rising income levels of consumer along with shifting preference toward elevated comfort levels is set to augment the residential ducted heat pump market size.
 

The market for multi-family application segment is anticipated to witness significant momentum in 2032, and this growth is attributed to the rising demand for energy-efficient and environmentally friendly solutions, coupled with the expansion of the real estate sector. The increasing acknowledgment of the benefits provided by these systems, especially in addressing the heating and cooling requirements of individual units within multi-family houses and apartments, will positively influence the business dynamics. The escalating demand for zonal heating and cooling control, combined with increasing awareness regarding the environmental concerns is set to drive the installation of ducted heat pumps in multifamily establishments.
 

• The North America residential ducted heat pump market size dominated around USD 2.7 billion in 2023. The robust expansion of residential establishments, accelerating investments and expenditure across the real estate sector and growing demand for efficient and reliable heating & cooling solutions is positively influencing the business outlook. Introduction of beneficial government schemes, tax benefits and subsidy programmes by the respective authorities for accelerating the deployment of heat pumps will further augment the product deployment.
   

For instance, commenced in 2023 and extending until the close of 2032, the Heat Pump Federal Tax Credit was introduced, allowing all homeowners to qualify for a 30% federal tax credit covering the entire expenditure associated with the purchase and installation of their new heat pump. This incentive, capped at a maximum credit of USD 2,000, is a key provision under the High-Efficiency Electric Home Rebate Act, a component of the Inflation Reduction Act applicable throughout the U.S.
 

• Shifting emphasis on the digitalization and introduction of advance heat pump technologies is set to influence the business outlook. These systems are recognized for their environmental friendliness as they employ electricity for heat transfer instead of directly burning fossil fuels. This approach leads to a reduction in greenhouse gas emissions, making a significant contribution to the fight against climate change. With a growing emphasis on environmental sustainability across the region, heat pumps are gaining popularity as more eco-friendly alternate for conventional heating and cooling systems.
   

Residential Ducted Heat Pump Market Share

The residential ducted heat pump industry is characterized by increasing competition among several regional and global players. Various large-scale competitors including Trane, Daikin, Samsung, Carrier, Mitsubishi and Bard HVAC among others, are actively competing in the market, offering wide range of ducted heat pumps and introducing new technologies to expand their geographical presence.
 

For instance, in February 2022, Lennox has introduced the Dave Lennox Signature Collection model SL25XPV heat pump, recognized as the most precise and efficient heat pump. With the addition of TruHeat Performance, this model is capable to deliver optimal air quality and whole-home comfort. Furthermore, residential ducted heat pump systems offering several benefits including energy efficiency, consistent temperature control, and the ability to both heat and cool a space using a single system will further accelerate the residential ducted heat pump market demand.
 

Manufacturers are incorporating advanced controls and monitoring features into their residential ducted heat pump units, including enhanced automation, remote management, and improved energy optimization. These advancements have the potential to enhance the product installation experience. Governments worldwide have implemented rigorous energy efficiency standards and regulations aimed at curbing energy consumption and greenhouse gas emissions from residential buildings. This has, in turn, accelerated the adoption of these units to achieve energy savings in compliance with the established norms which will further complement the business dynamics.
 

Residential Ducted Heat Pump Market Companies

The key companies operating across the industry include:

• American Standard Heating and Air Conditioning
• Bard HVAC
• Bosch Thermotechnology Corp.
• Carrier
• Colmac Industries
• DAIKIN INDUSTRIES Ltd
• Glen Dimplex Group
• Lennox International Inc.
• Lochinvar
• Mitsubishi Electric Corporation
• OCHSNER
• Rheem Manufacturing Company
• SAMSUNG
• STIEBEL ELTRON GmbH & Co. KG
• Trane
   

Residential Ducted Heat Pump Industry News

• In October 2023, Panasonic introduced the Interios Central Heat Pump, designed for residential heating and cooling needs. This innovative product is available with the capacity of 1.5 Ton and in two variations: the Interios Electric Central Heat Pump Unit, a completely electric system that comprises an outdoor heat pump system along with an entirely electric air handler and the Interios Hybrid Heating Low-Carbon unit, that incorporates an outdoor heat pump system along with an indoor cased A-Coil. This launch has expanded the company’s market presence across the residential ducted heat pump market.
   
• In March 2023, Rheem introduced the groundbreaking Endeavor Series, representing a significant advancement in both Split and Packaged Heat Pumps. This reimagined series serves as Rheem's enhanced product line, offering heightened energy efficiency, reliability, capability, and sustainability. Notably, these new heat pumps comply with the latest Department of Energy regulations implemented in 2023. The Endeavor line incorporates Rheem's advanced EcoNet technology, providing homeowners with the ability to control multiple products using a smart thermostat or connected device. The integration of Bluetooth connectivity streamlines installation and service procedures for contractors. Designed to provide a versatile solution, the Endeavor heat pump ensures consistent comfort throughout varying seasons.
   

The residential ducted heat pump market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” and “USD Million” from 2019 to 2032, for the following segments:

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Market, By Application

• Single family
• Multi family

The above information has been provided for the following regions 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
  • Turkey
  • South Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina