Market Size of United States Heat Pump Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.40 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Heat Pump Market Analysis
United States Heat Pump Market is expected to be USD 9.87 billion in 2021 registering a CAGR of 9.4% over the forecast period (2022 - 2027). The COVID-19 pandemic outbreak has created an economic turmoil for small, medium, and large-scale industries alike, in the United States. While it is realistic to expect a slow growth in sales of heat pumps sales, government policies and consumer demand are expected to drive the sales of heat pumps. End users are now increasingly concerned of disruptions and dangers threatened by climate change and carbon emissions (informally known as 'the Blue Planet Effect') and are making environmentally-responsible heating choices.
- 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.
