U.S. Heat Pump Market Size - By Product (Air Source, Ground Source, Water Source), By Application (Residential, Commercial, Industrial) COVID-19 Impact Analysis & Forecasts, 2024 – 2032

U.S. Heat Pump Market Size

U.S. Heat Pump Market size was valued at USD 13.6 Billion in 2023 and is set to grow at over 8.9% CAGR from 2024 to 2032. Rising greenhouse gases emissions along with increasing customer inclination toward adoption of technologically advanced alternatives with low carbon footprint will positively propel the industry landscape. Moreover, the introduction of energy efficient systems to cater to the rising heating and cooling demand along with favorable regulatory framework will complement the industry outlook.
 

The global market size of heat pump is projected to reach USD 165 bn by 2032. A heat pump is a device that transfers heat from a particular source to an end-user application point by utilizing a circulating refrigerant structure in the liquid or gaseous state, as well as a compressor that absorbs heat from the outside and pumps it inside. The system is intended to provide effective cooling and heating across residential, commercial, and industrial applications while maintaining low carbon emission levels. In addition, continuous research & development initiatives by the government and industry participants to limit carbon emissions will continue to augment the U.S. heat pump market revenue.
 

Regulators are actively working on many strategic changes to safeguard fossil fuel independence. Various initiatives and measures have been implemented to encourage the use of energy-efficient systems. For instance, In November 2022, in November 2022, the U.S. Department of Energy (DoE) announced funding of around USD 9 billion to support the households in lowering their energy bills with the deployment of energy efficient heat pump systems across the nation. Similar reforms and measures are set to encourage the deployment of heat pump market.
 

COVID - 19 Impact

The COVID - 19 outbreak has slightly impacted the market size owing to a decline in the process of manufacturing and shutdown of facilities along with a delay in several announced projects and limited product deployment. However, introduction of vaccinations drives, with the reducing number of infected cases and continuation of industry operations has recovered the business potential. Moreover, favorable government norms along with accelerating investments for the development of advance technological systems will further accelerate the industry growth.
 

U.S. Heat Pump Market Trends

Over the last decade, rapid urbanization along with the surge in population levels has driven the energy consumption figures of the U.S. exponentially. Energy consumption rises as societies become more developed and the standard of living increases. According to the data published by the U.S. Energy Information Administration (EIA), in July 2022, the commercial and residential sectors accounted for 7.5% and 10.8% of the total national primary energy consumption, respectively, in 2021. As a result, managing the energy-efficiency has become the prime objective for policymakers at the federal and state levels. The consumption across the building sector can be reduced by incorporating numerous energy-efficient systems, including heat pumps, into newly constructed buildings and undertaking retrofits. Global commercial heat pump industry is likely to cross USD 43.3 billion by 2032.
 

U.S. Heat Pump Market Analysis

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.
 

U.S. Heat Pump Market Share

Leading companies across the U.S. heat pump market include including

• Bosch Thermotechnology Corp.
• Vaillant Group
• FUJITSU GENERAL
• Panasonic Corporation of North America
• DAIKIN INDUSTRIES Ltd.
• Carrier
• SAMSUNG
• Trane
• Danfoss
• Bard HVAC
• Rheem Manufacturing Company
• LG Electronics U.S.A., Inc.
• Johnson Controls
• Lennox International Inc.
• American Standard Heating and Air Conditioning

Major players in the heat pump business are focused on forming strategic alliances and partnerships to strengthen their market presence and increase their competitive edge over the others. Moreover, the expansion of manufacturing facilities coupled with the introduction of new & advanced product portfolios will further support in augmenting the product penetration across the country.
 

U.S. Heat Pump Industry News

• In April 2023, Viessmann Group announced to sell its heat pump business to the Carrier Corporation. The company’s climate solutions business segment has been sold for USD 13.2 Billion (12 billion Euro) under the part of this deal in which Carrier will pay 80% cash to Viessmann and rest as shares. This transaction is set to strengthen the company’s market position as Carrier will become a premium brand across the energy and heat pump industry.
   
• In February 2023, Mitsubishi Electric-Trane HVAC LLC U.S. introduced MUZ-FS H2i plus cold-climate heat pump for residential applications. The unit provides 100% heating capacity at -5° F along with energy-efficient cooling in summer and featured with dual barrier coating, which prevents oils, dust, and tiny particles from building up, further resulting in low maintenance, enhanced efficiency and clean airflow. This launch strengthened the company’s product portfolio across the market.
   

This U.S. heat pump market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘000 Units’ & ‘USD’ from 2019 to 2032, for the following segments:

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Market, By Product

• Air source
• Ground source
• Water source

Market, By Application

• Residential
• Single family
• Multi family  
• Commercial
• Educational institutes
• Healthcare
• Retail
• Logistics & transportation
• Offices
• Hospitality
• Others
• Industrial