The increasing demand for underfloor heating, space heating as well as water heating systems due to the cold climate in various parts of North America such as the U.S. and Canada is stimulating the adoption of air to water heating systems in the region. The growing inclination towards energy-efficient water and air heating systems across residential and commercial spaces is offering massive momentum to North America air to water heat pump market. As per the latest report by Global Market Insights, Inc., the industry is projected to record an annual installation of over 270 thousand units by 2027.

The ongoing retrofitting of the traditional room heating systems with energy-efficient units in the region in line with the energy efficiency standards is also impelling the product demand. Besides, their dual output of heated water, one-time installation cost, and effective room heating characteristics are driving their deployment, subsequently enhancing the market statistics. The regional air to water heat pump industry landscape is being further fortified with the integration of renewable energy solutions to attain carbon-neutral targets.

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The industry is projected to witness commendable growth over the foreseeable future in light of the following pivotal trends:

New product launches by major market players

Various eminent players operating in North America air to water heat pump market such as Trane, Daikin, Danfoss, NIBE Industrier AB, Johnson Controls, Inc., Systemair AB, etc. are introducing new and innovative offerings to gain a competitive advantage in the industry. For instance, in 2020, Daikin Applied launched its Daikin SmartSource® Dedicated Outdoor Air System. According to the company, the product is the next generation heat pump heating technology that facilitates cost-effective and efficient heating and cooling using 100% fresh and outside air.

Replacement of conventional systems

The industry landscape is being further enhanced by the ongoing replacement of the conventional models with more advanced systems. The increasing flow rates and higher thermal efficiency have increased the installation of air to water heat pump systems than the other alternatives. In addition, the increasing demand to reduce electricity bill charges and enable significant savings as compared to the conventional systems is expected to provide lucrative growth prospects to the industry.   

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Infrastructure developments in the U.S.

The ongoing infrastructure development activities, coupled with increasing governmental investments in energy-efficient buildings in the U.S., is stimulating the demand for air to water heat pumps in the country. The rapidly increasing population and urbanization in the country are also driving the product adoption. Another vital factor driving the demand for these heat pumps is the integration of renewable technologies which is further complementing the market growth.

Burgeoning demand across the commercial sector

The significant expansion of the commercial sector, especially with regards to the hospitality vertical is creating a favorable business scenario in the region. The restoration of tourism industry in the U.S. coupled with the increasing seasonal multi room/apartment heating requirements is impelling the industry progression. The growing tourism in Florida, Hawaii, Washington D.C, Maryland, California, and colder regions like Alaska, is creating a strong demand for heating solutions.

To summarize, the growth of North America air to water heat pump market is being largely influenced by the increasing space heating requirements across residential and commercial establishments coupled with the advent of innovative products.

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