North America - HVAC Equipment Market by Product, and End-user Forecast - 2024-2028

North America HVAC Equipment Market Forecast 2024-2028

The North America HVAC equipment market size is estimated to increase by USD 8.62 billion and grow at a CAGR of 6.29% between 2023 and 2028. Market expansion relies on various factors, including shifts in climate patterns, rising demand for energy-efficient HVAC systems, and growing disposable incomes coupled with migration trends. However, challenges such as scarcity of skilled labor, fluctuating raw material prices, and a shortage of proficient HVAC technicians impede market growth. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.

What will be the Size of the North America HVAC Equipment Market During the Forecast Period?

Market Forecast 2024-2028

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Market Segmentation by Product, and End-user

Product Segment Analysis

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.

End-user Segment Analysis

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.

Market Dynamics and Customer Landscape

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.    

Driver- Increasing demand for energy-efficient HVAC systems

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.

Trends- Use of low-GWP refrigerants

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.

Challenge- Fluctuating prices of raw materials

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.

Who are the Major North America HVAC Equipment Market Companies?

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.

• A. O. Smith Corp.: The company offers HVAC equipment such as residential and commercial water heaters and boilers.

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. 

Segment Overview

The market report forecasts market growth by revenue and analyzes the latest trends and growth opportunities from 2018 to 2028. 

• Product Outlook
  • Air conditioning equipment
  • Heating equipment
  • Ventilation equipment

• End-user Outlook 
  • Non-residential
  • Residential

Market Analyst Overview

The market in North America is influenced by various factors, including the demand from both commercial and industrial sectors, regulatory standards such as the Seasonal Coefficient of Performance (SCOP), and the region's growing population. Affordable housing initiatives and developments in commercial infrastructure further stimulate market growth. Government incentives like federal tax credits drive the adoption of energy-saving products and compliance with HVAC regulations. Key trends include the integration of IoT sensors and AI-based automated solutions by industry leaders like Carrier Corporation and Rheem Manufacturing Company. Sustainability concerns, indoor air quality (IAQ), and energy efficiency remain paramount, leading to innovations such as solar-powered HVAC solutions and ground-source heat pumps. However, challenges like high maintenance costs and regulatory requirements persist amidst the market's evolution towards smarter HVAC control systems.

The market also is witnessing significant growth driven by various factors such as the increasing global population, demand for affordable housing units, and stringent environmental regulations set by organizations like the United Nations and LEED. Energy efficiency is a key focus, with the adoption of SEER2-rated systems and environmentally friendly refrigerants like R-410A and A2L. The integration of IoT sensors enables smart HVAC control systems, optimizing energy consumption and enhancing indoor air quality. However, challenges persist, including high maintenance costs, fluctuating energy bills, and the impact of climatic changes. Nevertheless, advancements in heat pump technology and air purification systems are catering to the diverse needs of residential and commercial buildings, including shopping malls, airports, hotels, and theaters, thus shaping the evolving landscape of the HVAC system market in North America.

The energy efficiency of air conditioning systems is a growing concern, with SEER2 ratings becoming increasingly important. The transition from R-410 to A2L refrigerants reflects a broader industry shift towards more environmentally friendly options. Integrating Internet of Things (IoT) sensors into HVAC systems enables enhanced monitoring and control, promoting efficiency and reducing energy consumption. LEED standards play a pivotal role in incentivizing sustainable practices within the heat pump equipment segment. Air purifiers are gaining popularity as consumers prioritize indoor air quality, driving demand for service sector companies specializing in installation and maintenance.

Despite advancements, the lifespan of systems remains a consideration, impacting long-term costs. Programmable thermostats help optimize energy usage, mitigating high maintenance expenses. Proper airflow and air filtration are crucial for thermal comfort and controlling pollutants like smoke, bacteria, and carbon dioxide.In the residential sector, indoor air quality control systems are essential for maintaining a healthy environment, especially concerning moisture levels. As concerns over fossil fuel usage persist, the heat pump market continues to expand, offering efficient alternatives. Ultimately, as technology evolves, the focus remains on achieving optimal comfort while minimizing environmental impact and operating costs.

North America HVAC Equipment 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, 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.

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What are the Key Data Covered in the Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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