U.S. HVAC Equipment Market - Forecast(2025 - 2031)

U.S. HVAC Equipment Market Overview:

U.S. HVAC Equipment Market size is estimated to reach $69,945.8 Million by 2030, growing at a CAGR of 5.9% during the forecast period 2024-2030. The U.S. HVAC (Heating, Ventilation, and Air Conditioning) equipment market has experienced steady growth, driven by technological advancements, energy efficiency regulations, and increasing demand for smart systems. The market is projected to grow further, fueled by rising construction activities, especially in the residential and commercial sectors, and a growing emphasis on sustainable building solutions. Key trends include the adoption of smart and connected HVAC systems, allowing for remote monitoring and enhanced energy management. The integration of IoT (Internet of Things) and AI (Artificial Intelligence) is transforming HVAC systems into intelligent solutions, optimizing performance and reducing energy consumption.

Additionally, the shift toward environmentally friendly refrigerants, driven by government regulations like the phasedown of hydrofluorocarbons (HFCs), is reshaping product development. The rise in demand for energy-efficient systems, such as heat pumps and variable refrigerant flow (VRF) systems, reflects increasing consumer awareness about energy savings and reduced carbon footprints. Market players are focusing on product innovation, offering compact and flexible systems suitable for diverse applications. Furthermore, the HVAC aftermarket is growing, driven by the need for regular maintenance, repair services, and retrofitting of older systems to meet modern energy standards. This dynamic market is poised for continued innovation and expansion.

Market Snapshot: 

U.S. HVAC Equipment Market - Report Coverage:

The “U.S. HVAC Equipment Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the U.S. HVAC Equipment Market.

COVID-19 / Ukraine Crisis - Impact Analysis:

•    The COVID-19 pandemic disrupted the U.S. HVAC Equipment Market, causing supply chain interruptions, delayed construction projects, and reduced consumer spending. However, increased demand for air quality solutions and energy-efficient systems in residential and healthcare sectors spurred recovery, driving innovation and adoption of advanced HVAC technologies for improved indoor air quality.
•    The Ukraine crisis impacted the U.S. HVAC Equipment Market by exacerbating supply chain challenges and driving up raw material costs, particularly for metals and energy. Rising geopolitical tensions increased manufacturing expenses, but growing demand for energy-efficient systems and government incentives helped offset the challenges, stabilizing market growth in the long term.

Key Takeaways:

•    Cooling Segment is Leading the Market

In the segmentation of the U.S. HVAC Equipment Market by Equipment type, the Cooling segment stands out prominently, holding the majority market share of 53.2% in 2023. This significant share highlights the increasing demand for cooling solutions, driven by rising temperatures and consumer preferences for enhanced comfort. The segment includes air conditioners, chillers, and cooling towers, catering to both residential and commercial sectors. Growth is further propelled by technological advancements, such as energy-efficient models and smart cooling systems that align with sustainability goals and regulatory standards. The residential sector remains a key contributor, with homeowners investing in upgrades and replacements to improve energy efficiency and reduce utility costs. Meanwhile, commercial establishments, particularly in retail, healthcare, and data centers, rely heavily on advanced cooling systems to ensure operational efficiency and occupant comfort. As climate change intensifies and urbanization accelerates, the Cooling segment is expected to maintain its leadership position, driving innovation and shaping the future of the U.S. HVAC market.

•    Sensors Segment to Register Highest Growth

In the U.S. HVAC Equipment Market, the Sensors segment is experiencing the fastest growth of 7.8% in the forecast period of 2024-2030. This growth is fueled by the rising adoption of smart HVAC systems that leverage sensor technologies to optimize energy efficiency, enhance performance, and improve indoor air quality. Sensors play a critical role in monitoring temperature, humidity, air pressure, and occupancy levels, enabling precise system adjustments to meet dynamic environmental conditions. The demand for energy-efficient buildings, coupled with government regulations promoting sustainability and reduced carbon emissions, is driving the adoption of advanced HVAC sensors across residential, commercial, and industrial applications. Furthermore, the increasing integration of Internet of Things (IoT) and building automation systems enhances the utility of sensors, enabling real-time data analysis and predictive maintenance. As a result, the Sensors segment is poised to significantly influence the evolution of the U.S. HVAC market.

•    Rising Demand for Smart and Connected HVAC Systems a Major Driver

The rising adoption of smart and connected HVAC systems is revolutionizing the U.S. HVAC equipment market, driving substantial growth. Leveraging advancements in IoT and AI, these systems offer enhanced energy efficiency, improved comfort, and reduced operational costs, appealing to residential, commercial, and industrial users. Smart HVAC solutions allow users to monitor and control heating, ventilation, and air conditioning remotely via smartphones, tablets, or voice-activated devices, aligning with the growing demand for smart home technologies. Mitsubishi Electric Trane HVAC’s “kumo connect” initiative exemplifies this trend, enhancing their kumo cloud® mobile app to facilitate seamless contractor-homeowner interaction. Similarly, Daikin Industries’ June 2023 launch of its Daikin Sustainability & Innovation Center in Washington, D.C., demonstrates a commitment to energy-efficient technologies like inverters, heat pumps, and low-global-warming-potential refrigerants. These innovations enable proactive management and predictive maintenance, with ABI Research predicting that over 55% of HVAC systems will adopt wireless smart technology by 2030.

•    Regulatory Complexity and Compliance Costs is a Major Challenge

Regulatory complexity and rising compliance costs hinder the growth of the U.S. HVAC equipment market. Federal agencies, including the DOE and EPA, enforce strict energy efficiency and environmental standards, driving up costs. The refrigerant transition, mandated by the AIM Act of 2020, phases out HFCs, requiring lower-GWP refrigerants like R-454B and R-32 by January 2025. These changes aim to reduce HFCs by 85% by 2036 but significantly raise production costs. Additionally, the introduction of A2L systems, replacing R-410A units by the end of 2024, highlights the shift toward environmentally friendly yet costlier equipment. Meanwhile, industry dynamics are influenced by political and regulatory developments, from federal mandates to local natural gas restrictions. Compounding challenges include rising raw material costs, labor shortages, and supply chain disruptions. As stricter regulations necessitate advanced, energy-efficient technologies, manufacturers and consumers face increased financial pressures, potentially constraining market growth despite environmental benefits.

Key Market Players: 

Product launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the U.S. HVAC Equipment Market. The top 10 companies in this industry are listed below:
1.    Carrier Corporation
2.    Trane Technologies
3.    Lennox International Inc.
4.    Rheem Manufacturing Company
5.    Johnson Controls
6.    Daikin Industries, Ltd.
7.    Whirlpool Corporation
8.    Haier Group
9.    AAON Heating and Cooling Products
10.    SPX TECHNOLOGIES.

Scope of the Report: 

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