The U.S. residential heat pump market is set to register notable growth by 2030 owing to surging demand for energy efficient and sustainable HVAC technologies in the region.

Heat pump is an HVAC equipment that provides both cooling and heating solutions. These pumps operate on the principle of heat transference and as a result, do not require fossil fuels to generate heat. Technological advancements focused on the functioning of heat pumps have improved their heating and cooling capacities in extreme weather conditions, which has propelled industry expansion in recent years.

Moreover, major industry players are implementing lucrative strategies to capitalize on prevalent market trends and strengthen their market presence, thereby positively impacting business outlook. For instance, in March 2020, Emerson, a leading technology company, announced the acquisition of Verdant, a major energy management solutions provider for the hospitality industry. The acquisition broadened Emerson's energy management capabilities across commercial and residential applications.

In another instance, in June 2019, Rheem Manufacturing Company, a leading American water heating firm, announced the acquisition of Intergas, the Netherlands-based company producing residential water heaters and gas boilers. The takeover allowed Rheem to expand its product offerings and consumer base across Europe.

The U.S. residential heat pump market has been segmented on the basis of installation, technology, and region. In terms of technology, the market has further been classified into ground source, water source, air source (air to air and air to water), and hybrid & others.

Under air source, the air to water segment is expected to witness substantial growth by 2030. Implementation of green building codes & standards to enhance the deployment of sustainable technologies across residential establishments is likely to foster segmental expansion through the forecast period.

In terms of installation, the U.S. residential heat pump market has been bifurcated into new build and retrofit. The new build segment is slated to gain notable traction over the stipulated timeframe owing to the introduction of mini split or ductless heat pumps across single family houses and apartments.

From the regional point of view, the U.S. residential heat pump market spans the geographies of East North Central, East South Central, South Atlantic, West South Central, North East, West North Central, Mountain States, and Pacific States. The East North Central residential heat pump market is projected to expand at a steady pace through the assessment period driven by stringent government regulations to limit carbon emissions.

Meanwhile, the West North Central residential heat pump market is estimated to attain a significant share in the overall industry revenue by the end of 2030. Increasing adoption of residential heat pumps across extreme cold climate areas is speculated to bolster regional market growth in the coming years.

The Mountain States residential heat pump market is anticipated to showcase considerable growth over the review period. Flourishing real estate sector, along with soaring urbanization rate in the region, is likely to drive market expansion through the study timeline.