Heat Pumps Gaining Market Share

According to a study performed by the Freedonia Group, a market research firm, ground-source and air-source heat pumps are gaining market share relative to warm-air furnaces. In terms of value, heat pumps accounted for the largest share of heating equipment shipments in 2006, representing 43% of shipments; when measured by volume, however, the less expensive warm-air furnaces represented 47% of shipments, taking the largest share. Freedonia predicts that sales of heat pumps will grow 7% per year to $3 billion in 2011, while sales of warm-air furnaces will grow only 1.5% per year to $2 billion in 2011. The firm also predicts that the lower cost of warm-air furnaces will continue to drive sales growth, while improved technology and energy savings will drive sales in heat pumps.