The HVAC industry faces challenges in 2024 from inflation, higher interest rates, and HFC production cuts. However, regulatory support for eco-friendly systems could provide growth opportunities, leading manufacturers to be optimistic about the year ahead.
Nine states have set a shared goal to have heat pumps make up at least 65% of the shipments of residential heating, air-conditioning, and water-heating products by 2030.
California, New Mexico, New York, and Hawaii are the first states to apply for federal rebate money for high-efficiency equipment. Twenty-three states have received funding to set up and manage rebate programs.
As the federal government plans millions in grant funding to boost heat-pump manufacturing in the U.S., a big player in the market as well as a newcomer are thrilled with the opportunity.
Traditional air-source heat pumps can provide reliable heating when outdoor temperatures are moderately cold. However, once the weather reaches subzero temperatures, heat pumps suffer a drastic loss of performance due to frost accumulation on their outdoor units.
LG plans to increase U.S. manufacturing capability and training opportunities and invest $8 billion in research and design and other programs that will boost its competitiveness in an HVAC market that’s moving toward electric equipment.
Slideshow: Executives highlight geothermal tax incentives as a demand driver, spurring the company to invest in more manufacturing capacity and research