US HVAC Market Size Likely to Surpass at a CAGR of 6.1% By 2033

As per the current market research conducted by the CMI Team, the US HVAC Market size is expected to record a CAGR of 6.1% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 34,148.8 Million. By 2033, the valuation is anticipated to reach USD 58,185.4 Million.

US HVAC Market: Growth Factors and Dynamics

• Technological Advancements: Continuous innovation in HVAC technologies, such as energy-efficient systems, smart thermostats, and variable-speed compressors, drives market growth. Manufacturers invest in R&D to develop products that offer improved performance, energy savings, and enhanced comfort, driving demand for replacement and upgrade projects.

• Increasing Demand for Energy Efficiency: Growing awareness of environmental sustainability and energy conservation motivates consumers and businesses to invest in energy-efficient HVAC solutions. Federal and state regulations, along with incentives for energy-efficient upgrades, encourage the adoption of high-efficiency heating and cooling systems, driving market growth.

• Rising Construction Activities: The booming construction industry, including residential, commercial, and industrial sectors, fuels demand for HVAC systems in new building projects and renovations. Urbanization, population growth, and infrastructure development contribute to the expansion of the construction market, driving the installation of HVAC equipment.

• Focus on Indoor Air Quality (IAQ): Heightened concerns about indoor air quality, particularly in light of health crises like the COVID-19 pandemic, drive demand for HVAC systems that can provide ventilation, filtration, and purification. Increasing emphasis on IAQ standards and certifications, along with consumer preferences for healthier indoor environments, stimulate growth in the HVAC market.

• Replacement and Retrofit Opportunities: Aging HVAC infrastructure in existing buildings creates opportunities for replacement and retrofit projects. Property owners and facility managers seek to upgrade outdated systems with energy-efficient and technologically advanced HVAC equipment, driving demand for replacement units, components, and retrofit solutions.

• Impact of Climate Change: Extreme weather events and climate change factors, such as rising temperatures and increased frequency of heat waves, drive demand for cooling solutions in regions prone to high temperatures. HVAC systems play a critical role in maintaining comfort and safety during extreme weather conditions, stimulating market growth for cooling equipment and services.

• Smart Building Integration: The integration of HVAC systems with smart building technologies and automation solutions drives market growth. Building owners and operators increasingly adopt smart HVAC controls, predictive maintenance algorithms, and data analytics platforms to optimize energy usage, reduce operational costs, and enhance occupant comfort.

US HVAC Market: Partnership and Acquisitions

• In 2023, Daikin Comfort Technologies subsidiary AirReps acquired Integrated Systems and Controls LLC and InControl to bolster its service capabilities. These acquisitions enable Daikin, along with AirReps, to meet the commercial market’s demand for integrated services, including VRV and Light Commercial business support, service, remote monitoring, and predictive maintenance programs.

• In 2023, KOVA, a building material solutions provider, unveiled KOVA Comfort Intelligent HVAC, an AI-powered system designed to seamlessly integrate into building projects. Leveraging behavioral, environmental, and unit-specific data, it optimizes comfort and energy efficiency, promising healthier and more comfortable environments based on users’ daily routines.

Report Scope

US HVAC Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the US HVAC Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Supply Chain Disruptions: The COVID-19 pandemic disrupted global supply chains, leading to delays in the manufacturing and distribution of HVAC equipment and components. Shortages of raw materials, components, and labor affected production schedules and led to inventory challenges for manufacturers and distributors.

• Decline in Commercial Construction: Lockdown measures and economic uncertainty during the pandemic resulted in a slowdown in commercial construction activities. Delayed or canceled construction projects reduced demand for HVAC systems in new buildings and renovations, impacting the market growth.

• Pent-up Demand: As lockdown measures eased and economic activities resumed, pent-up demand for HVAC equipment and services surged. Delayed construction projects resumed, leading to an increase in demand for HVAC systems in both residential and commercial sectors.

• Focus on Indoor Air Quality: Heightened awareness of indoor air quality (IAQ) and ventilation as preventive measures against airborne viruses led to increased demand for IAQ solutions. HVAC manufacturers and service providers responded by offering IAQ products, such as air purifiers, UV germicidal lamps, and advanced filtration systems.

• Government Stimulus Programs: Government stimulus programs and incentives for energy-efficient upgrades and renovations provided financial support to consumers and businesses investing in HVAC systems. Tax credits, rebates, and grants incentivized the adoption of high-efficiency HVAC equipment and accelerated market recovery.

• Adoption of Remote Monitoring and Maintenance: The pandemic accelerated the adoption of remote monitoring and maintenance technologies in the HVAC industry. HVAC service providers implemented remote diagnostics, predictive maintenance algorithms, and cloud-based monitoring platforms to optimize service delivery and minimize physical contact with customers.

• Resilience in Residential Market: Despite challenges in the commercial sector, the residential HVAC market demonstrated resilience during the pandemic. Increased focus on home comfort, indoor air quality, and energy efficiency drove demand for residential HVAC systems, contributing to market recovery in the post-pandemic period.

In conclusion, the COVID-19 pandemic has had a mixed impact on the US HVAC Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the US HVAC Market:

• Carrier Corporation
• Trane Technologies
• Lennox International Inc.
• Daikin Industries Ltd.
• Johnson Controls International plc
• Mitsubishi Electric Corporation
• Rheem Manufacturing Company
• Goodman Manufacturing Company L.P.
• York International Corporation
• American Standard Companies Inc.
• Fujitsu General Ltd.
• Bryant Heating & Cooling Systems
• Amana Corporation
• Ruud Manufacturing Company
• Emerson Electric Co.
• Others

The US HVAC Market is segmented as follows:

By Type

• Single Splits
• Variable Refrigerant Flow (VRF) Systems
• Chillers
• Others

By Implementation

• New Construction
• Retrofit Buildings

By End User

• Commercial
• Residential
• Industrial