Heat Pump Sales Curve Taking Off in US – Americans Preferring Heat Pumps More Than Furnaces?
Residential heating systems are in high demand with the dropping temperature in North America. Furnaces, heat pumps, and boilers are the most preferred heating systems in the U.S.
According to the latest market research report by Arizton Advisory & Intelligence, the residential heating systems market in the U.S is expected to grow at a high CAGR of more than 4.3% from 2022 to 2028. Owing to the weather conditions and widely varying climatic scenarios in the U.S., the market for heating is significant. Residential customers choose various heating scenarios when considering both main and secondary heating equipment and fuels. The growth in heating equipment installation in residential buildings across the country is expected to drive the industry during the forecast period. Of which, residential consumption of heat pumps holds a major share in the sales volume of heating equipment, owing to the rapidly increasing construction of dwelling units.
The heat pump market is mainly strong in single or two-family houses, with over 70% penetration rate. Apart from heat pumps, furnaces and boiler units also have major shares in the U.S. residential heating equipment market. The efficiency of heat pumps for heating is up to three times greater than gas furnaces since they operate on electricity rather than fossil gas. With stringent emission policy implementation for energy consumption, Americans tend to buy more heat pumps that run on electricity compared to furnaces that use fossil fuels.
Sales Channels
In 2022, the offline distribution channel dominated the U.S. residential heating systems market Factors such as the broad reach in areas that lack better connectivity and brand loyalty, along with the quality of products, are driving the growth of the offline channels.
Although the online channel holds a relatively lower share of the market, it is expected to grow at a higher CAGR between 2022-2028. The proliferation of e-commerce and raising awareness of the benefits of online purchases, such as heavy discounts, occasional offers, and rising demand for convenience, is driving the growth of the online segment.
More About the Residential Heating Systems Market in the U.S.:
Emergence Of Smart Heating Systems with IoT Technology
Many organization officials expect smart heating systems to take the most significant edge out of their electricity expenses. Smart IoT heating options provide a method to optimize energy consumption without any interruption in consumer service. IoT has the advantage of impacting heating systems through its smart technologies, which allow manufacturers to increase productivity and optimize assets. Innovations in heating technology are currently in the growing stage. IoT in heating comes under the parallels of infrastructure IoT and consumer, which helps for greater flexibility and smart controls for consumers. Hence, modern technology expects to propel the demand for smart heating systems in the U.S. residential heating system market during the forecast period.
Rising Demand for Geothermal Heating Systems
Geothermal heating systems that tap into the consistency of ground temperatures six feet below the surface are an extension of a domestic unearthing trend occurring across the United States. The energy-intensive heating industry is undergoing a transition as the supply of fossil fuels depletes rapidly. These traditional energy sources are increasingly falling out of favor due to climate change, pollution, energy security reasons, and high costs. Heating accounts for a lot of electricity consumption. The geothermal heating system offers economical water heating facilities. Usually, energy costs for heating water are high. The high water heating cost can be decreased by up to 65 % with geothermal heat pump systems. Therefore, the demand for geothermal heating systems is expected to grow in the U.S. residential heating system market in the upcoming years.
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