US Fan Coil Market Size Likely to Surpass at a CAGR of 3.4% By 2033

According to current market research conducted by the CMI Team, the US Fan Coil Market is expected to record a CAGR of 3.4% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 2,230.1 Million. By 2033, the valuation is anticipated to reach USD 3,013.1 Million.

US Fan Coil Market: Growth Factors and Dynamics

• Energy Efficiency Regulations: The effluent measures of the US government policies have induced the requirement for fan coil unit (FCU) systems. Other reasons for the growing use of FCUs in residential and commercial use include their energy efficiency characteristics. For example, ASHRAE standards endorse high-performance HVAC systems, and therefore, fan coiling systems are quite suitable for contractors and facility managers looking for compliance.

• Increase in Commercial and Residential Construction: A primary driver for the growth of the US fan coil market is the rise in construction and other business activities, especially in urbanized regions. Rising construction work on new buildings, especially multifamily houses, business offices, and hotels, creates a demand for good HVAC systems. Fan coils are considered due to their space economy and price advantage. Besides, the existing base of construction renovations to improve HVAC systems also adds to the market’s growth.

• Retrofitting and Upgrading Aging Infrastructure: Most of the buildings, especially the commercial ones in the USA, are drawn and need the upgrading of HVAC systems. This is why fan coil units are frequently chosen for replacement projects – they can relatively easily be incorporated into any existing system without radically reconstructing it. This helps enhance energy consumption and indoor air quality of old buildings cost-effectively since it is normally incorporated into the existing system.

• Technological Advancements in HVAC: The recent advances in features such as wireless control, smart control features and variable speed motors have enhanced the attractiveness of fan coil units. Such further developments improve energy yield and comfort of the users, as well as the management of the systems, making FCUs a better proposition. Fans of modern coil systems can track their performance in smart building systems and even use a smartphone app with integrated building’s smart control systems to adjust any indoor climate conditions further. Sustainability and Green Building Certifications: Environmental concerns and the need for green construction dominate the fan coil market. Certification in LEED and other building codes provides a reason for investing in energy-efficient HVAC systems, compelling FCUs as a key option for builders. Many modern designs of fan coil units are still eco-friendly, operating on green refrigerants and materials that can be recycled, promoting sustainability.

• Growing Demand for Energy Savings in Large Spaces: Fan coil systems are used more commonly in large commercial spaces like hotels, office complexes, and hospitals, and they require individual room temperature regulation, making them very practical. Being modular, they allow heating and cooling of zones only as per the demand, thereby having the benefit of conditioning only occupied areas to save energy. This versatile application has made FCUs a favourite in structures whose occupation levels vary with time and those with extensive and complicated arrangements.

• Increased Focus on Indoor Air Quality (IAQ): Since the pandemic, significant steps have been taken to improve the air quality in houses and occupational buildings. To improve the indoor air quality (IAQ) of a building, high-efficiency filtration systems with condensing unit fan coil types filter out particulates or pathogens that can not be stopped. Because of their capacity to regulate indoor temperatures without compromising indoor air quality, FCUs appeal to health-conscious building owners.

• Urbanization and Space Constraints: High operational costs make building owners and managers seek more advanced HVAC systems. Mechanical fan coil units are effective in energy conservation by enhancing acceptable internal environmental parameters for the occupants, thus reducing the energy demand on the building and its systems. That energy-efficient feature and the expected low cost of such devices attract clients to FCU systems in new construction and remodeling activities.

US Fan Coil Market: Partnership and Acquisitions

• In 2023, Idealair Group announced an agreement with Polar Global Asia Pty. Polar Global Asia HK Limited is today Idealair Group’s official distributor of Polar Air products. This cooperation is intended to improve the HVAC market in all aspects and promote new products.

• In 2022, Daikin announced its Fusion 25 management plan for the 2021-2025. The plan focuses on achieving carbon neutrality, improving connectivity, supply chain optimization, and digital transformation, which are believed to enhance the firm’s sustainable growth and innovation in the long term.

Report Scope

US Fan Coil Market: COVID-19 Analysis

The COVID-19 pandemic negatively affected the US fan coil market largely due to supply chain disruptions, halted construction projects, and economic changes. Construction projects were suspended, and many manufacturing plants produced HVAC equipment, for instance, air conditioners, fan coils, and other devices were assembled, closed for a while, or worked only partially.

Because of this, there were delays in the production and shipment of fan coil units. Furthermore, the construction sector, which represents a major market for fan coils, suffered a serious downturn as most of the projects were put on hold or cancelled due to health issues, shortages of workers, and economic uncertainty.

At the same time, the supply of old and new HVAC equipment was low, as quite a lot of commercial real estate was empty during the quarantines, and there was little need for HVAC renovation or fresh installation. In addition, the recession compelled businesses and individuals to refrain from purchasing and replacing HVAC equipment, fan coils being one of those accouterments, prompting extensions in waiting for replacement activities.

Although the pandemic increased many people’s awareness of indoor air quality, their attention shifted from those appetizing projects to the relevance of keeping the business running and addressing the health needs of many people rather than upgrading or replacing the HVAC system in buildings.

List of the prominent players in the US Fan Coil Market:

• Johnson Controls International plc
• Carrier Global Corporation
• Daikin Industries Ltd.
• Trane Technologies plc
• Lennox International Inc.
• Mitsubishi Electric Corporation
• Fujitsu General Limited
• Samsung Electronics Co. Ltd.
• Panasonic Corporation
• LG Electronics Inc.
• Zehnder Group AG
• Mestek, Inc.
• TROX GmbH
• Systemair AB
• Titus HVAC
• Others

The US Fan Coil Market is segmented as follows:

By Type of System

• Two-Pipe System
• Four-Pipe System

By Mounting Type

• Horizontal Fan Coils
• Vertical Fan Coils

By Control System

• Manual Control
• Thermostatic Control
• Smart Control

By End Users

• Residential
• Commercial