U.S. HVAC Market - Industry Outlook & Forecast 2023-2028

MARKET INSIGHTS

The U.S. HVAC market size was valued at USD 27.85 billion in 2022 and is projected to reach USD 33.81 billion by 2028, growing at a CAGR of 3.28% during the forecast period. The market is anticipated to grow rapidly over the next ten years due to the increased demand for energy-efficient products and the boom in construction activities. Furthermore, according to the U.S. Energy Information Administration (EIA), all new residential central air conditioning and air-source heat pump systems sold in the U.S. are required to meet new energy efficiency standards by 2023, driving the growth of HVAC services. Furthermore, the U.S. HVAC market has observed several developments in the last few years. Companies are focusing on sustainable production processes and facilities. Most vendors in the market are developing new innovative products to gain attention. With the rise in SMART home technology and sustainability, the HVAC industry is on the path of innovation.

WHY THIS REPORT?

This report provides

• A thorough insight into the structure and size of each market segment.
• This paper analyzes several micro-market indicators, considering growth factors, industry prospects, and strategic contributions to the U.S. HVAC market.
• Overviews of the top manufacturers/marketed products, pipeline analysis, clinical trial analysis,  competitive landscape, vendor profiles, mergers & acquisitions.
• Provide strategic planning, such as comprehensively understanding consumer behavior, competitors, new product development, geographic market expansion, and merger & acquisition ​pipelines.
• Insights to formulate effective sales and marketing strategies by understanding the competitive landscape and analyzing various competitors' performance.
• Identifies emerging players with potentially strong product portfolios and creates effective counter strategies to gain a competitive advantage.

MARKET TRENDS & DRIVERS

Increasing Demand for Smart HVAC
Reducing energy costs significantly and lowering the dependence on the maintenance staff will further generate demand for smart HVAC controls in the U.S. HVAC market. Globally, North America is expected to dominate the adoption of smart HVAC equipment, owing to harsh weather conditions prevailing in most of the U.S. and Canada.

Increase in End-user Applications
Increasing applications among sectors with a high expectancy of standards and manufacturing in the U.S. HVAC market must meet regulatory standards and provide robust solutions. In recent years, growth in technologies and innovations in several industry sectors has significantly increased the industrial and commercial applications of HVAC units.

Increasing Popularity of Energy-Efficient and Environment-friendly Solutions
The growing popularity of environment-friendly solutions in the U.S. population has significantly increased the demand for alternative and energy-saving sources in the U.S. HVAC market. In addition, the government of the U.S. and Environmental associations are implementing regulations and standards for indoor air maintenance equipment maintenance and production.

SEGMENTATION INSIGHTS

INSIGHTS BY EQUIPMENT
The U.S. HVAC market by equipment is segmented into heating, air conditioning, and ventilation. The heating segment held the most prominent market share in 2022. The heating equipment market is characterized by intense competition as heating equipment has witnessed high traction in cold climatic conditions of the U.S. The heating equipment segment can be further classified as heat pumps, boiler units, furnaces, and others. Heat pumps offer an energy-efficient alternative solution to conventional furnaces and air-conditioning systems. Hence, the role of heat pumps remains inevitable for pumping heat from warmer to cooler spaces and vice versa, especially in residential units. Also, most HVAC contractors and building owners prefer to install high-efficiency and low-power-consuming equipment. This increasing demand for energy-efficient heat pumps can be majorly attributed to the usage pattern of HVAC systems in residential and commercial spaces in the United States.

Domestic and global vendors characterize the U.S. HVAC air conditioner market. Although most parts of the country are witnessing harsh winter climates, the demand for air-conditioners fluctuates on a seasonal basis. Air conditioning is segmented as RACs, CACs, chillers, heat exchangers, and others. The RACs hold a prominent share of the air conditioning segment market. Stringent regulation updates for decreasing energy consumption are expected to propel growth and innovation in the RAC segment in the U.S. HVAC market. The RAC market is majorly segmented into three types - window air-conditioners, single-split ACs, and multi-split ACs. The application and demand for RACs in the residential sector are expected to hold a major share during the forecast period. Also, portable AC units are gaining popularity nationwide owing to the growing concern over efficient air conditioners.

The ventilation equipment industry involves several small- and medium-scale vendors operating regionally and globally. Due to regulation updates by the Government of the U.S. and the Environmental Protection Agency (EPA), ventilation-related products require regular maintenance, service, and replacement. Also, most manufacturers in the ventilation equipment industry are increasing their R&D activities to upgrade their units with state-of-the-art technologies. This is mainly to compete against cross-competition with air conditioners and heating equipment manufactured with built-in ventilation fans. The ventilation equipment segment can be further classified into air handling units, air filters, humidifiers & dehumidifiers, fan coil units, and other ventilation equipment. Air handling units are the major components in HVAC units that circulate air across the system; they are mostly employed in medium- to large-scale commercial and industrial spaces. In recent years, the demand for air handling units has been growing across the residential sector owing to the growing demand for a healthy and clean environment to prevent the spread of air-borne diseases.

INSIGHTS BY END-USER
The U.S. HVAC market by end-user is segmented into residential and commercial. The residential segment holds the most significant segmental market share. The demand is characterized by different climatic conditions, necessitating several types of HVAC equipment. In 2022, the demand from the residential sector grew as the construction industry skyrocketed in the region. Furthermore, commercial HVAC equipment includes several moving parts, making the industry complex. Unlike compact HVAC equipment in the residential sector, HVAC in commercial sectors involves larger spaces. The commercial end-user segment is furthermore segregated into office space, airport & public utilities, hospitality, hospitals, and industrial & others. The office space HVAC industry has been growing rapidly in the commercial segment. The U.S. is a rapidly growing country that attracts several global ventures to extend their establishments. This is major because several manufacturing and IT companies in several urban cities act as growth drivers. The demand for HVAC systems in major growing states such as California, Washington, Texas, New York, and Nevada has increased exponentially in recent years. This is mainly due to the presence of several IT companies and corporate offices that have surged the growth potential of the HVAC market in these states.

REGIONAL ANALYSIS

The Southern region accounted for the largest U.S. HVAC market share, accounting for over 33% in 2022. Southern U.S. is expected to account for a significant share during the forecast period, owing to the increasing number of commercial units, especially healthcare, educational institutions, and other industrial units. The industry growth in the region can be attributed to the increasing number of housing units in major states such as Texas, Florida, Carolina, Arizona, and Oklahoma. Moreover, commercial and residential buildings are growing significantly in the region. As the region is the most populated in the U.S., construction and infrastructure development projects are growing rapidly, which increases the demand for HVAC systems.

VENDOR LANDSCAPE

The competitive scenario in the U.S. HVAC market is currently intensifying, with global and domestic players offering a diverse range of products. Major players focus on strategic agreements, acquisitions, and collaboration with emerging players to enter the U.S. HVAC market and access commercially launched products. Regarding industry share, a few major players are currently dominating the industry. Some companies that are currently dominating the U.S. HVAC market are Carrier, Daikin, Lennox International, and Ingersoll Rand. Carrier provides heating, ventilating, air-conditioning, building automation products, fire, refrigeration, security, and safety solutions and offers services to commercial, government, infrastructure, and residential properties, refrigeration, and transportation applications. Its product portfolio comprises ACs, boilers, ductless systems, evaporator coils, fan coils, gas furnaces, geothermal heat pumps, heat pumps, and oil furnaces. It also provides air handlers, air terminals, beams, chillers, components, dedicated outdoor systems, self-contained indoor systems, induction units, split systems, VRF units, and water source heat pump units.

In 2023, Carrier, one of the key vendors, introduced IdroFan 36XH, a next-generation high-efficiency hybrid hydronic terminal unit specially designed for hotels and hospitality locations with intermittent occupancy. This hybrid hydronic unit can function as a stand-alone unit, providing stability and comfort while ensuring energy-efficient operation, minimizing running costs, and offering flexibility for building owners.