North America Residential Cold Climate Heat Pump Market - By Type (Ducted, Ductless), By Application (Single Family, Multi Family) & Forecast, 2024 - 2032

North America Residential Cold Climate Heat Pump Market - By Type (Ducted, Ductless), By Application (Single Family, Multi Family) & Forecast, 2024 - 2032

North America Residential Cold Climate Heat Pump Market Size

North America Residential Cold Climate Heat Pump Market size was valued at over USD 2.7 billion in 2023 and is set to grow at a rate of over 10.1% between 2024 and 2032. Increasing demand for energy efficient heating technologies primarily across the colder climates coupled with growing emphasis on reducing greenhouse gas (GHG) emissions will propel the industry outlook. Moreover, introduction of favorable regulatory framework by respective regional authorities along with the introduction of new research & development initiatives by the key market players will unveil new opportunities for industry expansion.

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A cold climate heat pump is a type of air source heat pump unit that is predominantly designed to optimally function at sub-zero temperatures. These systems are equipped with advanced components along with effective refrigerant chemicals with a lower boiling point designed to draw more heat from low ambient temperatures. It uses the outside air as a heat source during the heating season and as a heat sink during the cooling season. Growing requirement of effective space heating technologies with low carbon footprint and reduced energy consumption coupled with shifting consumer preferences towards clean energy alternatives will favor the North America residential cold climate heat pump market size.

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COVID-19 Impact

The sudden eruption of the COVID-19 pandemic has significantly impacted the manufacturing and delivery of heating & cooling systems hindering the cold climate heat pump market growth potential. Lockdown measures and restrictions on movement imposed in various countries have disrupted manufacturing operations. In addition, stringent restrictions on international and domestic travel, border closures, and reduced transportation capacity have led to delays in shipping, increased freight costs, and difficulties in obtaining raw materials and components limiting the production capabilities of the heat pump manufacturers. However, growing need to maintain indoor air quality and effective ventilation units to provide healthy indoor environment to reduce the risk of viral transmission will uptake the cold climate heat pumps across domestic applications.

North America Residential Cold Climate Heat Pump Market Trends

Growing energy consumption across the residential & commercial building structures coupled with increasing inclination towards energy efficient alternatives is set to positively cater to the North America residential cold climate heat pump industry dynamics. For instance, as per the data updated by the U.S. Energy Information Administration in March 2023, the total energy intake from residential sector totaled over 21.8 quadrillion Btu accounting for above 21.7% of the total consumption in 2022. In addition, several states & territories have observed substantial integration of advanced space & water heating technologies in cold temperature areas which will further boost the product demand.

North America Residential Cold Climate Heat Pump Market Analysis

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North America ducted heat pump for cold climatic conditions is set to observe a significant expansion on account of lower operating costs, reduced maintenance needs, decreased emissions, and extended lifespan, among other features. In addition, the rapid growth of residential construction coupled with the ongoing trend of urbanization, residential establishments and beneficial regulatory programs have observed significant transformation over the years.

For instance, the U.S. government introduced Energy Efficient Home Improvement Tax Credit scheme applicable from January 1, 2023, which provide tax credit and rebates for households. Under the scheme, households can claim credit in 2024 on 2023 taxes including a 10-year expansion and extension of existing 10% tax credit to 30%. However, tax credit may increase up to maximum of USD 2,000 when adding a qualified heat pump installation. Moreover, favorable government regulations and introduction of beneficial schemes for the installation of energy efficient heat pump units across domestic establishments will accelerate the product deployment across the region.

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Based on application, North America residential cold climate heat pump market from single-family is set to witness a growth rate of over 10% through 2032 on account of the rising demand for reliable heating and cooling across residential establishments along with shifting inclination toward adoption of energy efficient systems. These units offer easy installation, optimized performance, and the ability to deliver space heating across clod climatic conditions are some of the key factors which are set to propel the product demand. In addition, respective government authorities offer a range of incentives, subsidies, beneficial tax credits, and other forms of financial support to accelerate the deployment of energy efficient systems positively influencing the industry growth.

The growing expenditure and investments on new and renovation infrastructure projects across residential establishments along with beneficial financial support from the administrative authorities will further propel the multi-family residential cold climate heat pump market growth. Moreover, ongoing adoption of sustainable energy systems to limit the energy consumption across residential applications will further boost the product deployment. Positive outlook by the manufacturers to support clean energy transition with eco-friendly HVAC systems transition will unveil lucrative growth opportunities across multi family establishments.

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U.S. cold climate residential heat pump market was estimated at over USD 2.3 billion in 2022 and is set to witness a sheer turnaround owing to the rapidly increasing population along with increasing penetration of residential building structures. Rapid urbanization, diverse climatic conditions, rising disposable incomes, and a growing preference for clean energy technologies are some of the key parameters shaping to the nation’s industry landscape.

For instance, in June 2022, U.S. Department of Energy introduce cold climate heat pump challenge program. It targets residential, centrally ducted, electric-only heat pumps and comprises two segments including the 5°F challenge" for optimizing CCHP systems at 5°F (-15°C), and the -15°F challenge for optimizing CCHP systems at -15°F (-26°C). The Challenge's performance specifications were derived from data analysis and discussions with manufacturers. Moreover, stringent building energy efficiency norms, availability of financial benefit policies, encouraging emission reduction targets, and substantial presence of various scale heat pump manufacturing players will complement the industry outlook.

North America Residential Clod Climate Heat Pump Market Share

Various small- and large-scale manufacturers operating across the North America residential cold climate heat pump market are focusing on introducing advance technologies to cater to the consumer’s demand. The continuous introduction of new strategic initiatives including expansion of manufacturing facilities, partnerships, and collaborations, along with & acquisitions by the players will play a vital role in shaping the industry dynamics over the forecast period. Major players operating across the industry consist of

• Carrier
• Daikin SAMSUNG HVAC
• LG Electronics U.S.A., Inc.
• Panasonic Corporation of North America
• Bosch Thermotechnology Corp.
• Fujitsu General
• Blue Star Limited
• Nordic Heat Pumps
• GREE Comfort
• Rheem Manufacturing Company
• Trane
• Bard HVAC
• MRCOOL
• Klimaire Products Inc.

North America Residential Cold Climate Heat Pump Industry News

• In June 2023, Daikin inaugurated its new sustainability and innovation centre (DSIC) in the U.S., which serves as a showcase for its cutting-edge HVAC&R technologies. The centre features innovative inverter heat pumps, refrigerants with lower global warming potential, and indoor environment quality (IEQ) solutions. These advancements play a vital role in addressing climate change challenges, supporting decarbonization goals, and enhancing indoor comfort for consumers across the nation.
• In April 2023, LG Electronics announced to commence its heat pump manufacturing facility in U.S. for residential heat pump units. The premises will produce 100% electrical indoor units, with plans to manufacture outdoor heat pump units in future at some point. In addition, the U.S. government is also driving the demand by offering rebates and tax incentives such as the introduction of IRA (Inflation Reduction Act). This expansion will strengthen the company’s market presence across the industry and further increase its customer base.

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

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By Type

• Ducted
• Ductless

By Application

• Single Family
• Multi Family

The above information has been provided for the following countries

• U.S.
• Canada