OEMs See Growth in Single-Zone Ductless Market as Homeowners Expand, Remodel

Manufacturers are seeing opportunities in the market for single-zone residential ductless systems.

Macroeconomic forces such the work-from-home trend, rising home prices, above-average mortgage rates, and a shortage of new housing have prompted some people to expand their homes and remodel existing unconditioned spaces, such as attics and garages, into habitable rooms without completely redoing their existing HVAC systems. Single-zone ductless systems, which combine an outdoor heat-pump condensing unit with one indoor air handler, are often the equipment of choice when it comes to heating and cooling those smaller spaces.

“We’re seeing an insufficient supply of new construction, which is causing the remodeling market to take off as homeowners stay in their current houses. Remodelers are putting additions on their homes or adding heating and cooling to spaces that were previously not connected to an HVAC system,” said Matt Bynum, senior manager of product marketing at Mitsubishi Electric Trane HVAC US (METUS). “Given these insights, we are confident that the ductless add-on market will experience robust growth in the coming years.”

Market ‘Resurgence’

People who, post-pandemic, now work from home and because of that are motivated to upgrade their home offices, and the desire to improve HVAC in “problem” areas without having a whole new system installed, are also cited as reasons for the interest in single-zone ductless.

“Some smaller homes can convert to mini-split heat pumps without an issue. But overall, the highest demand for a heat pump mini-split is add-on replacements, and trouble rooms that are too hot,” said Chris Magee, product manager for ductless mini-splits, universal heat pumps, and packaged terminal air conditioners (PTACs) at Friedrich Air Conditioning Co.

“Recent market events and customer feedback indicate a rising trend toward home improvement projects that involve converting unconditioned spaces into comfortable, livable areas,” said Bynum. “Consider how the COVID-19 pandemic upended the workforce when people were asked to work remotely. Pew Research found that 35% of people with jobs that can be done remotely are working from home all the time today, so it makes sense that homeowners are renovating spaces and even adding onto to their homes.”

“The add-on repair market has seen a resurgence recently as new-construction demand has seen a slower rate of change. Consumers are now redefining the space they live in due to remote work post-pandemic,” said Brad Niehaus, Friedrich’s national sales manager for ductless mini-splits and universal heat pumps. “Additionally, interest rates have driven some consumers to make improvements to their current residences versus buying a new home. This often includes ductless products.”

A Look at Products

Friedrich, which is part of Rheem Manufacturing Co., specializes in HVAC products made for smaller spaces.

The Friedrich Floating Air Pro heat pump system, for example, with a capacity of 12,000 Btuh, is an ideal system for an attic conversion, Magee said. The model is Energy Star-certified, has a SEER2 of up to 23, an HSPF2 of up to 9.2, and can work at 100% of its heating capacity at an ambient temperature as low as 5°F, provide partial heat in temperatures down to -13°F, and can cool indoor spaces at an outdoor temperature as high as 118°F, the company said.

MATCHED PAIR: A Friedrich Floating Air Pro heat pump outdoor condensing unit and indoor air handler. (Courtesy Of Friedrich Air Conditioning Co.)

ENERGY STAR: The GE Appliances Endure 12,000 Btuh heat pump has a SEER2 rating of up to 27 and an HSPF2 rating of up to 13 and can provide partial heat when the outdoor temperature is as low as -31°F. (Courtesy of GE Appliances)

GE Appliances, a Haier Group Corp. company, offers a 12,000-Btuh heat pump system in the Endure series, with a SEER2 rating of up to 27 and an HSPF2 rating of up to 13, for similar applications. The Endure can also provide 100% heating at an outside temperature of 5°F, operate in heating mode when it’s as low as -31°F outdoors, and can cool at outdoor temperatures of up to 115°F, the company said.

Both the GE Appliances’ Endure and the Friedrich Floating Air Pro have inverter compressors and are Energy Star certified.

HYPER-HEATING: The outdoor unit of a Mitsubishi Electric SUZ H2i (hyper-heating inverter) heat pump system. The system has an inverter compressor and can provide 100% of its heating capacity in ambient temperatures as low as 5°F. (Courtesy Of Mitsubishi Electric Trane HVAC US)

Mitsubishi Electric offers a similar series, the SUZ Universal heat pumps, which are available with standard compressors or, in the H2i line, inverter compressors (H2i stands for hyper-heating inverter.)

The Energy Star-certified H2i SUZ system, like the Endure and Floating Air, can provide 100% of heating capacity in ambient temperatures as low as 5°F, operate in heating mode at an outdoor temperature as low as -13°F, and has a SEER2 of up to 24 and an of HSPF2 up to 11.9, Bynum said.

The Overall Ductless Market

The increased interest in single-zone ductless is part of the overall growth of the ductless market in the U.S., experts at the manufacturers say.

“Ductless demand in the US has been continuously growing in the past several years, and G.E. Appliances is continuing to grow its business in this segment, too,” said Yi Hu, director of product management at GE Appliances.

“The ductless market has grown consistently over the past 20 years, with only a small decrease due to a correction for demand being pushed forward during an inflationary period,” Niehaus said. “Friedrich believes that growth will absolutely continue for the near future.”

North America was late in adopting ductless heat pump systems, which are the “most prevalent form of residential HVAC technology for the rest of the world,” Niehaus said.

The push for HVAC electrification has contributed to that growth, Niehaus said.

“Ductless technology is at the center of that, with some of the most efficient equipment as well as inherent room zoning that sheds load,” he said.

METUS, Bynum said, has seen part of the growth in its heat pump segment come from repeat customers who started out with single-zone ductless systems.

“They are impressed with the efficiency and precise temperature control of our products, and they are excited to expand their systems,” he said. “When it’s time to upgrade their unitary systems, they explore our versatile solutions that combine both ductless and ducted heat pumps.”