You’re hearing a lot about heat pumps because they are a foundational technology in the plan to meet decarbonization targets. The market for heat pumps will double in the next five years. You should consider how this trend will impact your career or your business.
Learning how they work is a great start. “Heat Pumps 101” is a new free course from John Siegenthaler. It takes less than an hour to complete. You’ll learn the very basics of heat pump technology, including heat transfer, refrigeration, and what applications are commonly used. At the end you’ll be able to speak intelligently about heat pumps and what they do.
How Fast Will Heat Pump Sales Grow?
Norway has the highest market penetration of heat pumps in Europe: 30,000 heat pumps per 100,000 people. There are only ~5,300 heat pumps per 100,000 people in the United States. There’s a lot of money to be made as the U.S. catches up.
According to a report by ResearchAndMarkets, the global heat pump market is expected to grow at a compound annual growth rate (CAGR) of 6.83% between 2020-2025. The report cites factors such as the increasing demand for energy-efficient and low-carbon heating and cooling systems, government incentives and regulations, and advancements in heat pump technology as drivers of growth.
A report by Navigant Research predicts that the global heat pump market will grow from $47.5 billion in 2020 to $94.7 billion in 2029. The report cites factors such as increasing demand for renewable energy, government policies promoting the adoption of heat pumps, and the cost competitiveness of heat pumps compared to traditional HVAC systems as drivers of growth.
In the United States, the adoption of heat pumps is also expected to grow due to the recently extended federal tax credits for energy-efficient home upgrades, which includes heat pumps. Several states have implemented their own incentive programs to promote the adoption of heat pumps.
The U.S. Department of Energy’s Building Technologies Office has set a goal of reducing heating and cooling energy consumption in buildings by 50% by 2030. Heat pumps are expected to play a significant role in achieving this goal, and as a result, the adoption of heat pumps in the United States is expected to continue growing in the coming years.
The recently extended federal tax credits for energy-efficient home upgrades, which includes heat pumps, are also expected to drive growth in the U.S. heat pump market. The tax credit provides a 10% credit for the cost of a qualified energy-efficient upgrade, up to $500 for the installation of a high-efficiency heat pump.
Overall, the U.S. heat pump market is expected to continue growing in the years ahead, driven by increasing demand for energy-efficient and environmentally friendly heating and cooling solutions, government incentives and regulations, and advancements in heat pump technology.