U.S. HVAC Market - Industry Outlook and Forecast 2020-2025

INDUSTRY INSIGHTS

Like the global air conditioners market, the U.S. HVAC market is undergoing tremendous modifications due to the increasing integration of IoT technology with HVAC products, which is making them smarter and more accessible. The emphasis on connecting several sensors within building ecosystems, including HVAC, has grown for achieving energy efficiency. HVAC systems are loaded with sensors that essentially “talk” with each other across several systems and are thereby truly intelligent. Digital sensors are increasingly replacing analog ones as the former can bring wiring costs considerably down through wireless communication and offer automatic reconfiguration advantage, hot-swap capabilities, and plug-and-play installation. Several key air-conditioners and heating equipment manufacturers have introduced smart applications with voice assistance features. Therefore, the increasing collaboration between IoT and HVAV technology offers high visibility into energy usage trends and helps to further improve and simplify operational efficiency, which is expected to augur well for the market growth.

SNIPPETS

• The ventilation segment is expected to grow at the highest CAGR during the forecast period due to the increased importance of ventilation in the residential sector. 
• In the commercial sector, the revenue of the airport & public space segment is projected to reach over $4 billion by 2025 on account of airport extension projects proposed by the US government. 
• South US is likely to touch revenue figures of over $13 billion by 2025 because of the increased residential housing units in major states of Texas, Florida, Carolina, Arizona, and Oklahoma. 

U.S. HVAC MARKET SEGMENTATION

U.S. HVAC research report includes a detailed segmentation by

• Equipment
• Application
• Geography   

INSIGHTS BY EQUIPMENT

The air conditioning segment is expected to reach a revenue share of over $23 billion by 2025. The US air conditioner market is characterized by domestic and globally established vendors. Although a majority of regions in the US are witnessing harsh winter climates throughout the year, the demand for air-conditioners is seasonal. Among the subsegments, the room air conditioning (RAC) segment is likely to contribute maximum revenue to the market. Over 60% households in the US have central ducted air-conditioning systems for whole home cooling, with Southern homes having a high concentration of central AC and North Eastern tending to have wall or window air conditioners. The segment is projected to observe steady revenue contributions from commercial air conditioners (CAC), chillers, and heat exchangers.   

The increase in heating equipment installations in residential and commercial buildings across the country is expected to drive the market during the forecast period. The residential consumption of heat pumps holds a major share in the sale’s volume of heating equipment owing to the rapid increasing construction of dwelling units. Manufacturers are increasing their key focus to increase their operation in retail service units to provide post purchase services. In terms of revenue, furnace, heat pumps, and boiler units are expected to influence the segment growth. 

The increased health awareness has led to growth in spend on ventilation products, particularly on the residential space, which is driving the revenue share of ventilation products. Several manufacturers in the ventilation equipment market are incorporating state-of-art technology to gain an upper hand in the cross competition with air-conditioners and heating equipment that are manufactured with inbuilt ventilation fans. A majority of ventilation equipment manufacturers is expected to increase the focus on products that can help to reduce the prevalence of pathogens.

INSIGHTS BY APPLICATION

The application segment of the U.S. HVAC market has severely hit since the outbreak of the COVID-19 pandemic. In Q2 2020, majority of construction projects in Northeast and Southern regions were affected with a high risk of lag in operations. Most projects had been shut down due to the unavailability of employees and construction supplies. However, a lot of states have returned to some degree of normalcy, particularly in Massachusetts, New York, Pennsylvania, New Jersey, Texas, and California, with several large-scale constructions resuming construction works post lockdown, the segment is expected to grow.  The pandemic brought more demand for residential products causing a spike as a high number of people stayed at homes.

The commercial segment has been disrupted worse than the residential market owing to the crisis in hospitality, retail, business, universities due to the cancellation or delayed construction. While the first few months recorded a smaller decline in demand, the reminder of the year is anticipated to get worse. The renewal of service agreements between HVAC contractors and customers is expected to be delayed, thereby estimating to affect the sale revenue for the HVAC market exponentially. Currently, there is a movement toward replacement demand as opposed to new builds. However, where construction is new and renovations wider in scope, buildings are largely designed for high performance and more rentable space, which means tighter building envelopes and efficiency in HVAC.

INSIGHTS BY GEOGRAPHY

The southern US recorded the largest sale of HVAC services and revenues in 2019. This can be mainly attributed to the fact that the cities and towns in the region experience a varying weather condition. The construction industry in south had experienced a major growth in residential and commercial units with a growth rate of over 6% in 2019, creating a high demand for efficient heating and cooling solutions in residential, industrial, and commercial buildings, according to the National Association of Home Builders. Therefore, the need for HVAC remains consistently high in this part of the country and all new single-family households in the region are built with CACs. The number of residential housing units has been increasing at a rapid pace in major states such as Texas, Florida, Carolina, Arizona, and Oklahoma.  Cities such as Atlanta, Georgia; Austin, Texas; Phoenix, Arizona are high-growth metros in terms of employment, households, and multifamily demand with highly active construction, showing a lot of potential for the market.  

INSIGHTS BY VENDORS

The U.S. HVAC market is highly competitive and characterized by a number of small and medium-scale players along with several established manufacturers. Majority of players in the US market are focusing in expanding customer base and business operations across the country. These established companies are leveraging on strategic collaborations and innovative initiatives in order to increase their profitability and market share. Companies operating in the US market have increasingly in recent years acquired start-ups to strengthen their product capabilities. In recent years, the HVAC market in US has moved toward smart technology and high level IoT integrations.

The U.S. HVAC market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments: 

By Equipment 

• Air Conditioning 
• RAC
• CAC 
• Chillers
• Heat Exchangers 
• Others
• Ventilation
• Air Handling Units 
• Air Filters
• Humidifiers and  Dehumidifiers 
• Fan Coil Units
• Others
• Heating 
• Furnace 
• Heat Pump 
• Boiler Units 
• Others

By Application 

• Residential 
• Commercial 
• Office Space
• Airports & Public Spaces
• Hospitality
• Healthcare Facilities
• Industrial & Others 

By Geography

• US 
• South
• West 
• North-East 
• Mid-West