Cold Climate Air Source Heat Pump Market To Reach $1,264.3 Million By 2030

Cold Climate Air Source Heat Pump Market Growth & Trends

The global cold climate air source heat pump market size is expected to reach USD 1,264.3 million by 2030, expanding at 11.55% CAGR from 2023 to 2030, according to a new report by Grand View Research, Inc. The market is anticipated to witness a surge in demand owing to the increasing awareness of the advantages such as energy-efficient cooling & advanced heating solutions. In addition, secondary factors which are expected to fuel the market demand include government regulations, rising energy costs, and favorable incentives for energy-efficient appliances.

Cold climate air source heat pumps are more efficient and can function in colder temperatures. At lower temperatures, conventional heat pumps often lose a significant amount of their heating capacity. While cold climate air source heat pumps can still produce heat up to 25°C or 30°C. Owing to this advantage of cold climate air source heat pump, the adoption of ccASHP is expected to boost the market demand over the forecast period. For instance, Mitsubishi provides its Zuba range of cold climate air source heat pumps. These are available in ductless and unitary systems and can heat spaces down to –30°C while using less energy from the backup unit.

Manufacturers have created specialized cold-climate heat pumps recently that use cutting-edge designs to function more effectively and with greater capacity at low outside temperatures below 32°F. For instance, in June 2022, The U.S. Department of Energy (DOE) collaborated with Lennox International and developed an innovative electric heat pump that can more effectively heat homes in northern climates relative to current CCHP models.

According to Air-Conditioning, Heating, and Refrigeration Institute, across the world, in 2021, 117 million units were fitted in Norway whose average January temperature was 21 degrees F and this country also had an over 60% adoption rate of ccASHP. The trend is also reflected in the U.S. where cold-climate states like New York, Massachusetts, and Maine are offering incentives to install ccASHP. Therefore, the growing adoption of cold climate air source heat pumps in the cold region owing to benefits such as cost saving, energy efficiency, and environmental friendliness, among others. For instance, in 2022, Fujitsu’s launched seven models with 2.0kW to 7.1kW cooling capacity and 2.5kW to 8.0kW heating capacity. This range provides optimal performance in colder climates in regions like New Zealand.

Cold climate air source heat pump manufacturers are seeking collaborations, mergers, and acquisitions to develop advanced and innovative solutions. In addition, manufacturers are also adopting several strategies like new product development, and geographical expansion, to enhance their market penetration and cater to end-use industries. For instance, in January 2023, Daikin Comfort Technologies North America, Inc. acquired Williams Distributing, Co., which is a dominant distributor of HVAC products and home-building supplies in the Great Lakes region. Williams' business area spans a sizable chunk of the Midwest; thus, this tactical acquisition helps Daikin realize its goal of utilizing inverter heat pump technology in cold climates. Williams' northern location gives Daikin's cutting-edge cold climate technology more chances for cold climate product testing and development, as well as access to resources and people with extensive field skills for ongoing research and development.

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Cold Climate Air Source Heat Pump Market Report Highlights

• The split system product segment dominated the cold climate air source heat pump industry in 2022 by accounting for a share of over 86.0% of the market in terms of revenue in the same year. The growth of this segment can be attributed to its benefits like small size and flexibility for zoning, heating, and cooling individual rooms. In addition, this product is easier to install and has no ducts so that they can prevent the energy costs associated with the ductwork of central forced air systems

• The demand for the residential application segment accounted for 86.7% share of the global revenue in 2022. Rapid urbanization coupled with increasing demand for energy-efficient products is expected to drive the demand for cold climate air source heat pumps in the residential sector

• The electric operation type segment accounted for a 91.7% share of the global revenue in 2022. The growth of this segment can be attributed to higher efficiency, affordable, quiet operation, among others

• North America accounted for 48.8% of the global revenue share in 2022. The rising residential and commercial construction in cities like Texas, Virginia, New Jersey, and New York, among others are expected to aid product demand

• In April 2023, Rheem introduced a cold environment air-source heat pump that offers heating at temperatures as low as -30.5 C. Additionally, it provides 5% more COP when heating at -15 C ambient temperatures. The company's device has also succeeded in the Cold Climate Heat Pump Challenge set forth by the US Department of Energy

Cold Climate Air Source Heat Pump Market Segmentation

Grand View Research has segmented the global cold climate air source heat pump market based on product, application, operation type, and region:

Cold Climate Air Source Heat Pump Product Outlook (Revenue, USD Million, 2018 - 2030)

• Split Systems

• Single Package Equipment

Cold Climate Air Source Heat Pump Application Outlook (Revenue, USD Million, 2018 - 2030)

• Residential

• Commercial

Cold Climate Air Source Heat Pump Operation Type Outlook (Revenue, USD Million, 2018 - 2030)

• Electric

• Hybrid

Cold Climate Air Source Heat Pump Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

• The U.S.

• Canada

• Europe

• Germany

• France

• Poland

• Finland

• Norway

• Sweden

• Spain

• Italy

• Denmark

• UK

• Netherlands

• Asia Pacific

• China

• Japan

• South Korea

List of Key Players in the Cold Climate Air Source Heat Pump Market

• Carrier

• Daikin Industries, Ltd

• Robert Bosch GmbH

• Lennox International

• Johnson Controls, Inc.

• Midea Group

• Hitachi, Ltd.

• Ingersoll Rand Plc.

• Rheem Manufacturing Company

• Panasonic Holdings Corporation

• Fujitsu

• LG Electronics, Inc.

• Mitsubishi