U.S. HVAC Systems Market Size, Growth, Trends, Report 2023-2032
The U.S. HVAC systems market size was estimated at around USD 17.19 billion in 2022 and it is projected to hit around USD 32.42 billion by 2032, growing at a CAGR of 6.55% from 2023 to 2032.
Key Pointers
Report Scope of the U.S. HVAC Systems Market
| Report Coverage | Details |
| Market Size in 2022 | USD 17.19 billion |
| Revenue Forecast by 2032 | USD 32.42 billion |
| Growth rate from 2023 to 2032 | CAGR of 6.55% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Companies Covered | Carrier Corporation; Daikin Industries, Ltd.; Emerson Electric Co.; Johnson Controls International plc; Lennox International, Inc.; Trane Technologies |
Global warming and the resultant extreme climatic conditions will help uptick the market demand over the forecast period. In addition, the demand for energy-efficiency equipment together with the growing real estate market will also upkeep HVAC demand in the U.S. over the next few years. 2020 was an uncertain year with the onset of the pandemic, with an unfavorable impact on several sectors in the first two quarters.
Furthermore, the U.S. government also offers rewards to promote low power consumption or the use of renewable energy sources. On account of rising concerns regarding global warming, standards established by the U.S. government to keep a check on HVAC systems operations will play a pivotal role in driving the demand. In addition to efficiency standards on the demand side; standardizing manufacturing processes on the supply side of the market has also helped tremendously in reducing hazards to the environment and carbon emissions. For instance, tax credits are offered approximately 20-30% of the installation cost on energy-efficient products.
As such, the HVAC industry also witnessed a minor setback in terms of slow sales; however, the last two quarters of 2020 registered above-average sales figures. Therefore, the market growth matched the 2017 levels in 2020 without the much-anticipated massive dip in sales. The U.S. customers have an access to favorable tax credit and rebate programs making HVAC systems a lucrative commodity in the country. In addition, the citizens also enjoy several other monetary benefits ascribed to the purchase and installation of energy-efficient systems with minimum impact on the environment.
Another recent example is the New Jersey government’s COOL Advantage Program, which aims at offering tax credits and rebates on using or installing energy-conserving central heat pumps or Air Conditioners (ACs). All these monetary programs and favorable government support will help the product demand thrive over the long term. After China, the U.S. AC systems market is the largest, in terms of volume sales. Over 70% of homes in the U.S. have ACs installed as per a report published by the U.S. Department of Energy (DOE). Therefore, there is over 20-30% market opportunity for OEMs in terms of new unit sales as well as the oncoming replacement demand due to aging products.
Statistics suggest that on an average 2-3 million heating & cooling systems are replaced in the U.S. indicating avenues for favorable growth. In addition to the new and replacement demand, maintenance & repair activities will also witness an uptick. Frequent cleaning to avoid damage or failure of the entire system is another potential revenue stream for existing OEMs. Similarly, the replacement of parts and components, such as motors, coolants, and filters, due to their shorter lifespan will also help OEMs thrive in the otherwise competitive industry. Research suggests that over USD 10 billion are spent each year on HVAC repair & maintenance services. Although this could create a potential growth area for OEMs by expanding their service offering along with products, it could also pose a challenge to product sales.
Product Insights
On the basis of products, the overall market has been further divided into three main types, namely, heating, ventilation, and cooling. The cooling product segment dominated the market in 2022. The segment accounted for the largest share of 58% of the total revenue in the same year. The cooling segment is further projected to retain its dominant market position expanding at the fastest growth rate during the forecast period. This product category largely comprises unitary ACs, split & packaged systems, portable ACs, and cooling towers.
These products are ideal in commercial as well as residential settings making them a popular choice. As the real estate sector keeps growing, the demand for such cooling products will continue to grow. Replacing indoor air to improve or control the quality of an indoor space is referred to as ventilation. The ventilation product segment is estimated to register a significant growth rate over the next eight years as the ventilation is pivotal to any closed space to remove odor, pollutants, humidity, etc. Ventilation, over the years, has proven an efficient way of improving the building’s air quality.
End-use Insights
On the basis of end uses, the overall market has been further segmented into residential, commercial, and industrial. HVAC products are used in residential, commercial, and industrial buildings. The demand for HVAC systems in the commercial end-use sector is anticipated to witness the fastest growth rate of more than 7.06% from 2023 to 2032. The growth of the commercial segment can be attributed to the rapidly expanding real-estate sector in the U.S., particularly commercial spaces, such as malls, hotels, airports, and offices.
HVAC also forms an integral part of the industrial sector, particularly in manufacturing plants or cold chain storage spaces. It is critical to maintaining the temperature in such spaces to maintain the quality of the products and, hence, the demand for HVAC systems is gaining traction in the industrial end-use segment. Some of the industrial HVAC systems include furnaces, boilers, thermostats, and chillers. However, the industrial segment is expected to register a slightly sluggish growth rate owing to the low frequency of upgrades or replacements in industries.
U.S. HVAC Systems Market Segmentations:
By Product
By End-use
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on U.S. HVAC Systems Market
5.1. COVID-19 Landscape: U.S. HVAC Systems Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. U.S. HVAC Systems Market, By Product
8.1. U.S. HVAC Systems Market, by Product, 2023-2032
8.1.1. Heating
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Ventilation
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. Cooling
8.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 9. U.S. HVAC Systems Market, By End-use
9.1. U.S. HVAC Systems Market, by End-use, 2023-2032
9.1.1. Residential
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Commercial
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. Industrial
9.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 10. U.S. HVAC Systems Market, Regional Estimates and Trend Forecast
10.1. U.S.
10.1.1. Market Revenue and Forecast, by Product (2020-2032)
10.1.2. Market Revenue and Forecast, by End-use (2020-2032)
Chapter 11. Company Profiles
11.1. Carrier Corporation
11.1.1. Company Overview
11.1.2. Product Offerings
11.1.3. Financial Performance
11.1.4. Recent Initiatives
11.2. Daikin Industries, Ltd.
11.2.1. Company Overview
11.2.2. Product Offerings
11.2.3. Financial Performance
11.2.4. Recent Initiatives
11.3. Emerson Electric Co.
11.3.1. Company Overview
11.3.2. Product Offerings
11.3.3. Financial Performance
11.3.4. Recent Initiatives
11.4. Johnson Controls International plc
11.4.1. Company Overview
11.4.2. Product Offerings
11.4.3. Financial Performance
11.4.4. LTE Scientific
11.5. Lennox International, Inc.
11.5.1. Company Overview
11.5.2. Product Offerings
11.5.3. Financial Performance
11.5.4. Recent Initiatives
11.6. Trane Technologies
11.6.1. Company Overview
11.6.2. Product Offerings
11.6.3. Financial Performance
11.6.4. Recent Initiatives
Chapter 12. Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
Chapter 13. Appendix
13.1. About Us
13.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers