North American HVAC Equipment Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2022 |
| Market Size (2023) | USD 27.13 Billion |
| Market Size (2028) | USD 38.23 Billion |
| CAGR (2023 - 2028) | 7.10 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North American HVAC Equipment Market Analysis
The North America HVAC Equipment Market size is estimated at USD 27.13 billion in 2023, and is expected to reach USD 38.23 billion by 2028, growing at a CAGR of 7.10% during the forecast period (2023-2028).
Heating, ventilation, and air conditioning (HVAC) systems are widely adopted across North America due to the multiple advantages of HVAC systems, most notably the power-saving techniques.
- Increasing disposable income, rapidly expanding construction activity in emerging economies, and changing weather patterns are driving the growth of the market studied. North America is witnessing a significant increase in the implementation of smart home and smart city programs, driving the market's growth. The government in the area is also trying to get people to move to "smart cities," which will help the market study grow.
- Growing government support, in the form of higher budget allocations designed to increase sustainable community development, may contribute to the continually growing commercial and industrial construction sectors. Besides, increased construction activities, rapid urbanization, and infrastructural reforms result in an upsurge in HVAC unit replacements, thus driving the HVAC equipment market.
- The growth of the North American HVAC equipment market is driven by an increase in demand for smart systems and the integration of the Internet of Things (IoT), industrial automation systems, smart manufacturing, and industry 4.0. A significant portion of the market's above-average growth is anticipated from the uptick in green building construction activities. The smart home market, which is expanding rapidly, is projected to boost the HVAC system market's growth.
- High energy consumption is expected to restrain the global HVAC equipment market's growth during the forecast period. Major entities in the commercial segment, such as retail complexes, hostels, entertainment centers, and others, typically rely on centralized HVAC systems for space conditioning.
- The demand for environmental control during the COVID-19 crisis significantly increased because air filtration, airflow, and humidity are all three critical components in minimizing the risk. Due to this, shutting down an HVAC system during a crisis such as this is not recommended. Filtration is essential in ensuring indoor air quality (IAQ) because if the virus can be captured in the filtration system, it cannot make someone sick inside the building. The HVAC system is poised to play a prominent role in bringing employees back to work by ensuring IAQ levels.
North American HVAC Equipment Market Trends
This section covers the major market trends shaping the North America HVAC Equipment Market according to our research experts:
Heat Pumps to Witness Significant Growth
- A heat pump is a device that uses a compressor to draw heat from the outside and pump it inside, as well as a circulating structure of a refrigerant in a liquid or gaseous state, to transfer heat from the source to the point of application. The system can efficiently cool and heat homes, businesses, and industrial buildings.
- The market share that heat pumps are predicted to command is significant. Due to various factors, including climatic conditions, the convenience provided by the equipment, government tax credit benefits, regulations, etc., the use of heat pumps has steadily increased in the North American region.
- Due to a paradigm shift toward adopting energy-efficient products and rising consumer spending, the residential heat pump market in the United States will continue to expand steadily. The business environment will be stimulated by the ongoing progress toward a decarbonized economy, which will be supported by legislative energy policies and incentives. As the number of old buildings that are being fixed up goes up, there will be more demand for flexibility and better comfort. This will make the industry more dynamic.
- The heat pumps are categorized based on types, such as air source, water source, and ground source. The air-source heat pump (ASHP) takes in electricity, extracts heat from the surrounding air, and produces hot water up to 90 degrees Celsius.Due to the extraction of heat from the ambient air, it gets cooler. Thus, the requirement for both hot water and cold air is driving the growth of air-source heat pumps.
- Furthermore, the major players in the HVAC market have been increasing their investments in R&D for fresh, cutting-edge technological solutions that are expected to advance the market further. The market for HVAC in North America is expected to grow as a result of the expanding use of HVAC in smart homes.
United States Holds Major Market Share
- The United States is one of the essential equipment markets, witnessing a steady growth rate. The growing construction activity, availability of high-efficiency systems, and extreme climatic conditions favour system installation across the facilities. Additionally, the presence of leading manufacturers, such as Carriers, Emerson Electric Co., and others, is complementing the growth of the North American market in the future.
- Additionally, with the Internet of Things (IoT) integration, several manufacturers have initiated smart heating, air conditioning, and ventilation system offers that, in turn, are propelling market growth across the United States.
- To ensure a sustainable future, the United States Department of Energy (DOE) is heavily investing in improving energy efficiency standards throughout the country. The DOE wants to make sure that America is safe and doing well by finding science and technology solutions to its environmental, energy, and nuclear problems.
- Moreover, the US Energy Information Administration's (EIA) Residential Energy Consumption Survey (RECS) estimates that 76 million primarily occupied US homes (64% of the total) use central air-conditioning equipment. About 13 million households (11%) use heat pumps for heating or cooling. By 2023, all new residential air-conditioning and air-source heat pump systems sold in the United States will require meeting the latest energy efficiency standards, fueling the growth of HVAC equipment.
- Furthermore, according to the US Census Bureau, new home construction in the United States in June 2022 was around 1.36 million. There were approximately 1.55 million new privately owned housing units in the United States in June 2022. This is further expected to create significant new demand for heat pumps in the country over the forecast period.
North American HVAC Equipment Industry Overview
The competitive rivalry in the North American HVAC equipment market is high, as the market studied is home to prominent vendors like Daikin, Carrier, and Lennox that command a major market share in different segments and have access to well-established distribution networks. Owing to the HVAC equipment industry being one of the largest markets, the existence of such a high number of major vendors without compromising on their market shares is sustainable. However, each vendor, especially in the heating and cooling segments, is fiercely competing to gain a larger share of the market studied.
In October 2022, Carrier Corporation declared that it had increased the capacity range of its AquaEdge 19DV water-cooled centrifugal chiller in North America. The AquaEdge19DV can now fulfil customer demands for bigger capacity applications, such as commercial high-rise and mixed-use buildings, huge manufacturing enterprises, and healthcare institutions, with a capacity of up to 1150 tons.
In September 2022, Johnson Controls, a provider of smart, healthy, and sustainable buildings, will increase the value of housing through strong financing options and rebates designed to maximize newly announced savings through the Inflation Reduction Act. They are making energy efficiency more affordable and accessible to homeowners. High-efficiency HVAC units from Johnson Controls allow homeowners to reduce heating and cooling costs by up to 50% compared to less efficient systems.
North American HVAC Equipment Market Leaders
Johnson Controls International PLC
Daikin Industries Ltd
Lennox International Inc.
Electrolux AB
Emerson Electric Co.
*Disclaimer: Major Players sorted in no particular order
North American HVAC Equipment Market News
- January 2023: Johnson Controls PLC has acquired Hybrid Energy AS, a growing provider of high-temperature energy management solutions with a focus on heat pumps for district heating and industrial processes. The company's unique hybrid energy technology provides customers with new, cost-effective solutions while meeting decarbonization and sustainability initiatives in Europe and beyond. Based in Lysaker, Norway, Hybrid Energy will expand its ability to meet Johnson Controls' high-temperature heating requirements with its core hybrid heat pump.
- January 2023: Carrier introduced the all-new AquaSnap 30RC air-cooled scroll chiller featuring Greenspeed intelligence and R-32 refrigerant, which complies with January 1, 2024, low global warming potential (GWP) requirements with best-in-class energy efficiency while delivering quieter operation within a tiered design for a broader operating range and design flexibility.
North American HVAC Equipment Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Defnition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Market Studied
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rise in Residential and Non-residential Users
5.2 Market Restraints
5.2.1 High Energy Consumption of HVAC Equipment
6. MARKET SEGMENTATION
6.1 By Equipment
6.1.1 Air Conditioning Equipment
6.1.2 Heating Equipment
6.1.3 Heat Pumps
6.1.4 Dehumidifiers and Humidifiers
6.2 By End User
6.2.1 Residential
6.2.2 Industrial
6.2.3 Commercial
6.3 By Country
6.3.1 United States
6.3.2 Canada
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Johnson Controls International PLC
7.1.2 Daikin Industries Ltd
7.1.3 Lennox International Inc.
7.1.4 Electrolux AB
7.1.5 Emerson Electric Co.
7.1.6 Carrier Corporation
7.1.7 Rheem Manufacturing Company Inc.
7.1.8 Uponor Corp.
7.1.9 Ingersoll Rand Inc. (Trane Inc.)
7.1.10 Nortek Global HVAC, LLC
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
North American HVAC Equipment Industry Segmentation
HVAC equipment is a technology that provides thermal comfort and acceptable indoor air quality in both the indoor and vehicular environments.It is an important part of residential structures, such as single-family homes, apartment buildings, hotels, and senior living facilities, as well as medium-to-large industrial and office buildings, such as hospitals, where safe and healthy building conditions are regulated with respect to temperature and humidity using fresh air from outdoors.
The study tracks the revenues accrued from sales of various types of equipment, including air conditioning equipment, heating equipment, heat pumps, dehumidifiers, and humidifiers. The report's scope covers the segment that calculates revenue based on sales of HVAC equipment across end users, such as residential, industrial, and commercial, in the United States and Canada. These estimates and conclusions are based on factors such as continuing macroeconomic improvements and rising demand post-pandemic across various end users. The report covers the impact of COVID-19 on the market studied. The market sizes and forecasts are provided in terms of value (USD million) for all the segments.
| By Equipment | |
| Air Conditioning Equipment | |
| Heating Equipment | |
| Heat Pumps | |
| Dehumidifiers and Humidifiers |
| By End User | |
| Residential | |
| Industrial | |
| Commercial |
| By Country | |
| United States | |
| Canada |
North American HVAC Equipment Market Research FAQs
How big is the North America HVAC Equipment Market?
The North America HVAC Equipment Market size is expected to reach USD 27.13 billion in 2023 and grow at a CAGR of 7.10% to reach USD 38.23 billion by 2028.
What is the current North America HVAC Equipment Market size?
In 2023, the North America HVAC Equipment Market size is expected to reach USD 27.13 billion.
Who are the key players in North America HVAC Equipment Market?
Johnson Controls International PLC, Daikin Industries Ltd, Lennox International Inc., Electrolux AB and Emerson Electric Co. are the major companies operating in the North America HVAC Equipment Market.
North American HVAC Equipment Industry Report
Statistics for the 2023 North American HVAC Equipment market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North American HVAC Equipment analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
