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The North America HVAC equipment market size is estimated to increase by USD 8.62 billion, at a CAGR of 6.29% between 2023 and 2028. Market expansion hinges on climate pattern shifts, escalating demand for energy-efficient HVAC systems, and rising disposable incomes alongside migration trends. However, challenges like a shortage of skilled labor, fluctuating raw material prices, and a deficit of proficient HVAC technicians hinder growth. These factors underscore the necessity for strategic workforce development and supply chain management to capitalize on burgeoning opportunities. As the market navigates these complexities, leveraging technological advancements and fostering talent pipelines will be crucial for sustained expansion. Addressing these challenges proactively not only mitigates risks but also positions companies to meet evolving consumer demands and regulatory requirements, ensuring long-term viability in a competitive landscape.
Market Forecast 2024-2028
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The air conditioning equipment segment will account for a major share of the market's growth during the forecast period.?Air conditioning device is one that works on a refrigeration cycle and is typically estimated based on its Seasonal energy efficiency rating. The efficiency of air conditioning device, for instance, the compressor and air handlers, is known at the time of purchase and is required to meet a specific standard. How much it runs depends on the characteristics of the building or home where the equipment is located.
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The air conditioning equipment segment was valued at USD 11.95 billion in 2018. As building standards were introduced, new homes were built with more stringent standards, which resulted in a requirement for air conditioning in these buildings. Increasing urbanization has led to a rise in the number of residential, commercial, and industrial buildings, which has led to an increase in demand. Hence, these factors under the air conditioning equipment segment will drive the growth of the North American - heating, ventilation, and air conditioning (HVAC) equipment market during the forecast period.
Based on end-user, the market has been segmented into non-residential and residential. The non-residential segment will account for the largest share of this segment.? The non-residential end-users of the market include manufacturing facilities, commercial and industrial buildings, data centers, retail stores, healthcare facilities, and educational institutions. The non-residential segment is responsible for the majority of revenue in North America - heating, ventilation, and air conditioning (HVAC) equipment market. This is mainly owing to the rising demand for energy efficiency among businesses and organizations and other commercial organizations. Moreover, the commercial sector, which encompasses retail, office, and industrial structures, is experiencing a surge in demand for air conditioning equipment. Thus, such factors will drive the growth of the segment in the market during the forecast period.
The market is influenced by various factors, including the demand from commercial and industrial sectors, driven by the need for energy-efficient solutions and adherence to HVAC regulations. With the increasing global population and the emphasis on affordable housing, there's a growing requirement for HVAC systems in commercial infrastructure. Federal tax credits incentivize the adoption of energy-saving products, while advancements like IoT sensors and AI-based solutions enhance efficiency. Key players like Carrier Corporation lead innovation, offering solutions for indoor air quality and energy efficiency. Factors such as local climate, building design, and budget influence the choice of HVAC systems, with a focus on lifespan and energy consumption. Amid climatic changes, the market sees demand for ground-source heat pumps and solar-powered solutions to address energy bills and ensure air quality in various sectors like shopping malls, airports, hotels, and theaters. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
In response to the growing demand for manufactured goods across various industries, there's a heightened necessity for energy-efficient solutions in industrial operations. Sectors like oil and gas, food and beverage, and power, where electricity expenses can reach up to 40% of production costs, are actively seeking ways to mitigate these expenses. Regulatory bodies are advocating for the adoption of energy-efficient devices such as HVAC systems to address this issue. Additionally, industrial users are recognizing the significance of optimizing their heating, cooling, and ventilation expenses, which often constitute a substantial portion of their operational costs. As a result, many industries are transitioning from traditional HVAC systems to more energy-efficient alternatives, signaling promising growth prospects for the HVAC equipment market in North America.
Regulations on the refrigerants utilized in chillers and other HVAC devices have provided that manufacturers adopt low-GWP refrigerants in their products. Currently, most market players, such as Johnson Controls, utilize R-134A as the refrigerant as it has a lower environmental impact and is safe, reliable, efficient, and cost-effective.
As more governments are looking to combat climate change, hydrofluorocarbon (HFC) refrigerants have started facing scrutiny. Therefore, the increasing use of low-GWP refrigerants will positively impact the growth of the market during the forecast period.
Instability in the prices of raw materials significantly impacts the cost of production. Consequently, many key market players have long-term contracts with suppliers to lower the impact of the fluctuations in raw material prices on their businesses. However, small market players do not have such contracts. Therefore, fluctuations in raw material prices affect their businesses.
The scarcity of raw materials is a significant challenge for the North American - HVAC device market. In addition, stainless steel, iron, bronze, and copper are the major raw materials used in manufacturing. The prices of these raw materials are dependent on factors such as inflation, production, and supply. Fluctuations in the prices and availability of raw materials affect and lower the profitability of market players, which impedes the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including AAON Inc., Daikin Industries Ltd., Electrolux AB, Emerson Electric Co., Fujitsu Ltd., Zhuhai Gree Electric Appliances Co. Ltd., Haier Smart Home Co. Ltd., Hitachi Ltd., Ingersoll Rand Inc., Johnson Controls International Plc, Lennox International Inc., LG Corp., MIDEA Group Co. Ltd., Nortek, Rheem Manufacturing Co., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Seeley International Pty Ltd., and Whirlpool Corp.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data, with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is experiencing robust growth driven by factors such as affordable housing units and sustainability concerns. With the United Nations emphasizing environmental regulations, energy efficiency SEER2 ratings are crucial alongside the transition to R-410A and A2L refrigerants. Internet of Things (IoT) sensors and AI-based automated solutions enhance HVAC system efficiency and indoor air quality (IAQ). Solar-powered HVAC solutions meet demand in residential, commercial, and industrial buildings, addressing thermal comfort and reducing fossil fuel reliance. Air purifiers and programmable thermostats optimize airflow and lifespan, bolstering the heat pump market segment. Service sector companies focus on IAQ control systems amid rising concerns about pollutants like dust, bacteria, and carbon dioxide. As the market advances with innovations in HVAC technology and environmental sustainability, manufacturers adapt to fluctuating demand influenced by ambient temperature, humidity, and industrialization trends.
Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.29% |
Market Growth 2024-2028 |
USD 8.62 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.71 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A. O. Smith Corp., AAON Inc., Daikin Industries Ltd., Electrolux AB, Emerson Electric Co., Fujitsu Ltd., Zhuhai Gree Electric Appliances Co. Ltd., Haier Smart Home Co. Ltd., Hitachi Ltd., Ingersoll Rand Inc., Johnson Controls International Plc, Lennox International Inc., LG Corp., MIDEA Group Co. Ltd., Nortek, Rheem Manufacturing Co., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Seeley International Pty Ltd., and Whirlpool Corp. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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