| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| CAGR | 9.40 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Heat Pump Market Analysis
The United States Heat Pump Market is expected to register a CAGR of 9.4% during the forecast period.
- The introduction of new government regulations, in the United States, is expected to result in increased energy efficiency of HVAC equipment. Starting from 2023, all new residential central air-source heat pump systems sold in the United States are expected to meet new minimum energy efficiency regulations and standards. The latest minimum energy efficiency standards for these equipment types went into effect in 2015. The new regulations require an increase in the heating efficiency of all air-source heat pumps.
- Moreover, the US Environmental Protection Agency (EPA) reported that homeowners could save up to 70% on heating costs and 50% on cooling costs with geothermal. Such instances are likely to boost the market growth.
- According to the International Energy Agency (IEA), these pumps are less common worldwide, as they have an annual sales of around 400,000, in which more than half of the installations are in the United States, where shipments and installations have more than doubled since 2010, partly owing to a 30% federal tax credit available during 2018-21.
- Furthermore, the heat pumps have been regulated by the governments in the region for their energy efficiency. For instance, the Department of Energy (DOE) announced Fan Energy Rating (FER) that sets a minimum airflow efficiency standard for residential furnace fans.
- With the new FER standards, the US DOE predicts that the new standard for furnace fans might save about 3.99 quads of energy, reduce carbon pollution by 34 million metric tons, and save the American citizens more than USD 9 billion electric bills through 2030. According to new state law, the city of Maine seeks installers to help meet the goal of 100,000 heat pumps over the next five years.
US Heat Pump Market Trends
Air Source Heat Pumps are Expected to Hold a Major Market Share
- The air source heat pump (ASHP) takes the electricity input, extracts the heat from ambient air, and gives hot water up to 90 degrees Celsius. Due to the extraction of heat from the ambient air, the ambient gets cooler. Thus, the requirement for both hot water and cold air is driving the growth of air-source heat pumps.
- There are two main types of ASHP, which are air-to-water and air-to-air. An air-to-air heat pump absorbs heat from the outside air and then transfers it directly into houses via a fan system to heat a room. At the same time, air-to-water heat pumps absorb heat from the outside air and then transfer it via the central heating system to provide hot water heating, radiator, or underfloor heating in an indoor space (or all three). Thus, choosing the type of ASHP determines the type of heat distribution system one needs.
- These pumps have been used for many years in nearly all parts of the United States. Until recently, they have not been used in areas that experienced extended periods of subfreezing temperatures. However, in recent years, air-source heat pump technology has advanced to offer a legitimate space heating alternative in colder regions.
- For instance, according to the US Department of Energy, when entire units were replaced in the Northeast and Mid-Atlantic regions, the Northeast Energy Efficiency Partnerships found that the annual savings when using an air-source heat pump were around 3,000 kWh (or USD 459) when compared to electric resistance heaters and 6,200 kWh (or USD 948) when compared to oil systems. When displacing oil (i.e., the oil system remains but operates less frequently), the average annual savings are near 3,000 kWh (or about USD 300). Such instances are likely to augment the market growth further.
- Further, the demand for air conditioners are reducing that is increasing opportuinties for the heat pump vendors. for instance according to Air-conditioning,heating and refrigeration institute the US shipments of air conditioners decreased 1.6% in April 2022 and accounted for 592,889 units, down from 602,723 units shipped in April 2021.
Understand The Key Trends Shaping This Market
Download PDF
Residential sector is expected to have significant share
- For homes without ducts, air-source heat pumps are also available in a ductless version called a mini-split heat pump. Also, a particular type of air-source heat pump called a reverse cycle chiller generates hot and cold water rather than air, allowing it to be used with radiant floor heating systems in heating mode.
- Geothermal heat pumps achieve higher efficiencies by transferring heat between the house and the ground or a nearby water source. The geothermal heat pump cost more to install, but geothermal heat pumps have low operating costs because they take advantage of relatively constant ground or water temperatures. Moreover, it offers benefits such as it can reduce energy use by 30%-60%, control humidity, are sturdy and reliable, and fit in a wide variety of homes.
- Furthermore, a new heat pump for residential systems is witnessing gradual growth in the country, which is an absorption heat pump, also called a gas-fired heat pump. It uses heat as its energy source and can be driven by a large variety of heat sources. In addition, residential absorption heat pumps use an ammonia-water absorption cycle to provide heating.
- Further, The US Census Bureau and the U.S. Department of Housing and Urban Development jointly announced that the residential building construction is increasing, for instance, in May 2022, privatelyowned housing completions were at the annual rate of 1,465,000 which was 9.1 percent (±22.6 percent) above the revised April estimate of 1,343,000. Thus driving opportunites for the vendors in the market.
Get Analysis on Important Geographic Markets
Download PDF
US Heat Pump Industry Overview
The competitive rivalry in the heat pump market is moderately high owing to the presence of some major players such as Lennox, Daikin, Carrier amongst others. Their ability to continually innovate their offerings has enabled them to gain a competitive advantage over other players in the market. Through research & development activities, mergers & acquisitions these players have been able to expand their market footprint.
- August 2021 - Gradient announced to devlop home window heat pump that will be designed toprovide heating and coolin throught the year by making use of climate-friendly refrigerant that can possibly propane (R290) and help reduce greenhouse gas emissions by 75% compared to conventional systems.
- October 2021 - Mitsubishi Electric Trane HVAC US launched CO2 (R744) heat pump water heater, the Heat2O, for commercial and industrial applications as emphasis on decarbonization increased in the country and continious efforts to replace fossil fuel heaters prevails in the country.
US Heat Pump Market Leaders
-
Lennox International Inc.
-
Nortek Air Management
-
Carrier Corporation
-
Rheem Manufacturing Company
-
Johnson Controls International PLC
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competiters?
Download PDF
US Heat Pump Market News
- June 2022 - U.S. Department of Energy (DOE) and Secretary of Energy recognised Lennox International Inc. for being the first HVAC manufacturer to achieve the objectives outlined in the DOE's Cold Climate Heat Pump Technology Challenge.
- February 2022 - U.S. Environmental Protection Agency announces the launch of the ENERGY STAR Home Upgrade that can save average family about USD 500 a year on utility bills. The upgrade includes An ENERGY STAR certified air source heat pump for clean and efficient heating and cooling and An ENERGY STAR certified heat pump water heater for super-efficient hot water.
US Heat Pump Industry Segmentation
Heat Pumps are equipments that are alternatives to air conditioners and furnaces in all climates. The equipment uses electricity to transfer the heat from a cool space to warm space. Scope of the report covers a detailed analysis on diffrent types of heat pumps use across various end users in the cpountry.
The study includes various heat pumps, such as air source, water source, and geothermal sources, across various end-user industries, such as industrial, commercial, and residential, among others. The competitive landscape has been taken to calculate the heat pump penetration and how players involve themselves in organic and inorganic growth strategies. Additionally, these companies continuously innovate their products to increase their market share and profitability. Furthermore, the market study has also focused on the impact of the COVID-19 pandemic on the market ecosystem. Also, the recent changes in the trade scenario are analyzed in the study.
| By Type | Air-source |
| Water-source | |
| Geothermal (ground) Source | |
| By End User | Residential |
| Commercial | |
| Industrial |
Need A Different Region or Segment?
Customize Now
US Heat Pump Market Research FAQs
What is the current United States Heat Pump Market size?
The United States Heat Pump Market is projected to register a CAGR of 9.4% during the forecast period (2025-2030)
Who are the key players in United States Heat Pump Market?
Lennox International Inc., Nortek Air Management, Carrier Corporation, Rheem Manufacturing Company and Johnson Controls International PLC are the major companies operating in the United States Heat Pump Market.
What years does this United States Heat Pump Market cover?
The report covers the United States Heat Pump Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the United States Heat Pump Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Our Best Selling Reports
US Heat Pump Industry Report
The U.S. heat pump market is witnessing substantial growth, fueled by the rising demand for energy-efficient systems and a focus on reducing carbon emissions. Heat pumps are increasingly favored for heating and cooling in various sectors due to their ability to transfer heat efficiently using components like condensers, compressors, and evaporators. Supported by favorable government policies promoting sustainable energy, the market sees innovations from heat pump manufacturers who are expanding their product ranges to include air source, ground source, and water source heat pumps. These products cater to diverse efficiency needs and applications in residential, commercial, and industrial settings. The shift towards eco-friendly and cost-effective solutions is driving the adoption of heat pumps, aligning with market trends towards sustainability. For detailed insights, including the heat pump market share, size, revenue growth rate, and a forecast outlook, access a free report PDF download from Mordor Intelligence™ Industry Reports, which provides a comprehensive historical overview and analysis of heat pump market trends and strategies by leading heat pump manufacturers.
