15 September 2011

THE EVOLUTION OF THE U.S. HEAT PUMP MARKET


The heating and cooling equipment market in the United States (U.S.) evolved in the last two decades affected by the housing market and external market conditions. The average home size increased by 25% since 1999, contributing to increased average equipment size of heat pumps (HPs) and air conditioners (ACs). The home size increase did not correlate with
higher residential energy used. The last decade is recognized for improved home insulation and equipment efficiency in addition to the U.S. population shift toward warmer climates, which has made up for the larger home size and still yielded relatively lower residential energy use. The lower energy use coincides with more homes using HPs. HP growth was supported by the price stability and affordability of electricity. The heating and cooling equipment market also seems to be rebounding faster than the housing market after the economic crises. In 2009 only 22% of HPs were sold to new homes, reflecting increased heat pump sales for add-on and replacement applications. HPsare growing in popularity and becoming an established economic technology.