North America HVAC Compressor Market (By Product: 2-stage Scroll Compressor, Variable Speed Scroll Compressor) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The North America HVAC compressor market size was estimated at around USD 0.88 billion in 2022 and it is projected to hit around USD 1.54 billion by 2032, growing at a CAGR of 5.73% from 2023 to 2032.

Key Pointers

• Single-stage scroll compressors led the market and accounted for 53.25% of the revenue share in 2022. 
• The residential construction investment in Canada surged by 28.4%

Report Scope of the North America HVAC Compressor Market

The growth is driven by the growing demand for highly energy-efficient compressors in air conditioning and heat pump applications. In addition, the scroll compressor offers higher cooling than the rotary compressor, and the 2-stage & variable-speed scroll compressors are highly energy-efficient compared to fixed-speed scroll compressors. This is expected to boost the adoption of scroll compressors in commercial and residential applications.

The North America heating, ventilation, & air conditioning (HVAC) compressor market is expected to witness a positive trend over the forecast period owing to the surging awareness and regulatory guidelines related to the purchase of energy-efficient systems. Governments at various levels, namely Federation and state governments, have established standards to improve the operation of HVAC systems. Observing the market trend, companies are also taking the initiative to expand their product portfolio in energy-efficient products.

The demand for variable-speed air compressors is anticipated to increase in the country owing to the escalating demand for energy-efficient and power-saving products. With the advent of technologies such as inverter-based systems, the market is anticipated to witness a wide array of new product developments and innovations.

The rapid use of new technologies, such as AI, IoT, blockchain, machine learning, and others, is having a significant positive impact on HVAC system growth in the U.S. Moreover, integrating IoT with HVAC systems is expected to allow companies to examine exterior data such as the number of occupants in the room, each occupant's comfort preferences, humidity level, and outside temperature. HVAC systems employ this data to set optimal temperatures, modify fan speeds, and improve overall system energy efficiency.

The HVAC systems market is expected to witness an increase in sales with the benefit of allowance programs and tax credits as well as extra monetary benefits allied with the purchase of energy-efficient systems. Additionally, governments at various levels, namely state governments and federal, have established standards to improve the operation of HVAC systems.

Governments have established several regulations to encourage the production of energy-efficient equipment, thereby lowering risks to the environment and carbon footprints. Numerous governments also offer incentives for encouraging energy efficiency products through low power consumption or the use of renewable energy products, which would increase product demand in addition to tax and rebate programs.

The major manufacturers in the market are developing new products to expand their product portfolio and customer base. For instance, in February 2023, LG Electronics launched its latest compressors. The new compressors use eco-responsible low-GWP refrigerants, R32, and R454B. Unlike the commonly used R410A, which has a GWP of approximately 2,088, the refrigerants deployed by the company's recent models have a GWP below 750.

Product Insights

Single-stage scroll compressors led the market and accounted for 53.25% of the revenue share in 2022. The majority of household heating and cooling systems use single-stage scroll compressors. They have just one speed and are the most basic and cost-effective product. Homes can be effectively cooled or heated with single-stage scroll compressors.

In variable-speed compressors, the compressor capacity is managed via variable-speed technology, which alters the speed of the compressor in short intervals and over a broad operating range. The variable speed scroll compressor offers dependability and enhanced performance and is ideal for variable refrigerant flow (VRF) systems, thereby driving the demand for variable speed compressors in the coming years.

The 2-stage scroll compressor helps in compressor capacity adjustment by routing a portion of the gas in the scroll back to suction. The compressor can meticulously match the heating or cooling demand according to the requirement. The 2-stage scroll compressor is ideal for both commercial and household applications.

The U.S. government is working on various efforts to upgrade its community infrastructure. For instance, in June 2021, a USD 905.3 million investment was announced by the U.S. Department of Transportation in infrastructure development projects around the country.

The projects are carried out through the discretionary grant program-Infrastructure for Rebuilding America (INFRA). Twenty projects in twenty states are likely to receive funds to restore their bridges, ports, highways, and railroads. As a result, rising commercial construction in the country is expected to fuel the demand for HVAC systems in the U.S. and simultaneously bolster the product demand over the forecast period.

North America HVAC Compressor Market Segmentations:

By Product 

• Single Stage Scroll Compressor
• 2-stage Scroll Compressor
• Variable Speed Scroll Compressor