US HVAC Equipment Market Trends and Forecast
The future of the US HVAC equipment market looks good with opportunities in commercial and residential sectors. The US HVAC equipment market is expected to reach an estimated $33 billion by 2030, and it is forecast to grow at a CAGR of 4% from 2023 to 2030. The major drivers for market growth are higher rate of building renovation and federal tax credits offered in the US to make existing facilities energy efficient and to control greenhouse gas emissions.
The production of HVAC equipment in the US relies on key raw materials such as metals (steel, aluminum) for structural components and heat exchangers, copper for tubing and electrical wiring due to its conductivity, and plastics for insulation and ductwork. Additionally, refrigerants are critical chemicals used in cooling systems, with a shift towards environmentally friendly options. Electronic components like sensors and circuitry are also essential for control and automation, driving efficiency and performance improvements in HVAC systems. The price of US HVAC equipment competes closely with global competitors, reflecting a balance between quality, technological advancements, and market demand. While US manufacturers often emphasize high-quality standards and innovative features, pricing remains competitive due to global sourcing of raw materials and manufacturing efficiencies. Factors such as economies of scale and regulatory compliance also influence pricing dynamics, ensuring a competitive position in the global HVAC market.
• Lucintel forecasts that commercial will remain the largest segment over the forecast period due to increasing commercial construction activity and the demand for heat pumps, which expected to surge in low penetrated markets.
• Within the US HVAC equipment market, furnace, heat pump, central AC, and room AC are the major products. Central AC will remain the largest segment over the forecast period.
Country Wise Outlook for the US HVAC Equipment Market
The US HVAC equipment market is witnessing substantial growth globally, driven by increased demand from various industries such as residential, commercial, industrial, and health sector. Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major US HVAC equipment producers in key regions: the USA.
Emerging Trends in the US HVAC Equipment Market
Emerging trends in the US HVAC equipment market shaping its future applications and market dynamics:
• Growing adoption of IoT and AI: Growing adoption of IoT (Internet of Things) and AI (Artificial Intelligence) for smart HVAC systems that offer remote monitoring, predictive maintenance, and optimized performance.
• Enhance Indoor Air Quality: Rising awareness and demand for HVAC systems that enhance indoor air quality through advanced filtration, ventilation, and humidity control technologies.
• Increasing Demand for Customization and Personalization: Increasing demand for customizable HVAC solutions that cater to specific building types, sizes, and user preferences.
• Expansion of Remote Monitoring and Maintenance: Technologies like ecobee smart thermostat and nest learning thermostat offer remote management capabilities and tools for anticipating equipment failures and optimizing maintenance schedules.
A more than 150 pages has been developed to help in your business decisions. Sample figures with some insights are shown below.
Recent Developments by the US HVAC Equipment Market Suppliers
Recent developments in US HVAC equipment by various companies highlight ongoing innovations and advancements across different sectors:
• Energy Efficiency Regulations: The current trend towards energy-efficient HVAC equipment is still strong. Federal and state regulations, as well as voluntary industry standards like ENERGY STAR, have impacted product design and consumer choices.
• Smart HVAC Systems: HVAC systems are increasingly incorporating smart technologies. These include IoT devices, smart thermostats, and remotely controllable HVAC units via smartphones among other devices.
• Heat Pump Adoption: Technology advances have made heat pumps more efficient and applicable for greater climate variation hence they are being used instead of traditional HVAC systems.
• Electrification Trends: Efforts to reduce carbon emissions are driving a shift towards electric HVAC systems. That is, heating systems that previously relied on fossil fuels are now being electrified.
• Supply Chain Challenges: Like many other industries, the supply chain problems in the market for heating ventilating and air conditioning equipment have had an impact on component parts availability and costs of finished products.
• Shift Towards Sustainable Practices: Product development and customer choice increasingly focus on sustainability. This includes not only energy efficiency but also eco-friendly coolants or materials among others.
• Advancements in Refrigerants: The Kigali Amendment to the Montreal Protocol which phased out hydrofluorocarbon (HFC) refrigerants has compelled the search for less polluting substitute refrigerants with lower global warming potential (GWP).
• Increasing HVAC Maintenance and Retrofitting: To enhance energy efficiency; cut down operating expenses; comply with new laws etc., real estate owners are now putting more money into retrofitting outdated heating ventilation unit air conditioners (HVACs) while maintaining them properly.
Strategic Growth Opportunities for US HVAC Equipment Market
The US HVAC equipment market is very dynamic due to its unique properties of rapid technological advancements, stringent regulatory standards, diverse market segments, sustainability pressures. Some key strategic growth opportunities for this market include:
Energy Efficiency and Sustainability:
• There is a growing emphasis on energy-efficient HVAC systems due to increasing energy costs and environmental concerns. The market is witnessing a shift towards sustainable HVAC solutions that reduce carbon footprint and comply with stringent energy efficiency regulations. Innovations in HVAC equipment such as high-efficiency heat pumps, variable refrigerant flow (VRF) systems, and smart thermostats are well-positioned to capitalize on this trend. Manufacturers investing in research and development to enhance energy efficiency will likely see significant growth as businesses and homeowners seek to lower operating costs and meet sustainability goals.
Technological Advancements:
• Rapid advancements in technology are transforming the HVAC equipment landscape. Integration of IoT (Internet of Things) and smart technologies into HVAC systems allows for remote monitoring, predictive maintenance, and optimized performance. Smart HVAC controls, combined with data analytics, enable better energy management and operational efficiency. Additionally, developments in materials and manufacturing processes are improving the durability, reliability, and performance of HVAC equipment, further driving market growth.
Replacement and Upgrades:
• The US HVAC market benefits from a substantial base of existing HVAC systems approaching the end of their operational lifespan. This creates a significant opportunity for replacement and upgrades, particularly with newer, more efficient systems. Economic incentives such as tax credits and rebates for upgrading to energy-efficient HVAC equipment also stimulate market demand. Moreover, the increasing trend towards retrofitting older buildings with modern HVAC technologies presents a lucrative market segment for manufacturers and service providers.
Urbanization and Construction Activity:
• Urbanization trends and ongoing construction activities in residential, commercial, and industrial sectors contribute to the demand for HVAC equipment. Growing populations in urban areas necessitate new HVAC installations, while commercial developments such as office buildings, shopping malls, and healthcare facilities require robust HVAC systems to maintain indoor air quality and comfort. The expansion of infrastructure projects and residential construction further augments market opportunities for HVAC equipment suppliers.
Regulatory Environment:
• Stringent regulatory standards and policies aimed at reducing greenhouse gas emissions and promoting energy efficiency drive innovation and market growth in the HVAC sector. Compliance with regulations such as ENERGY STAR, LEED certification, and regional building codes encourages adoption of high-efficiency HVAC equipment. Manufacturers investing in technologies that meet or exceed these standards gain a competitive edge in the market.
By taking advantage of these strategic growth opportunities, the US HVAC equipment market can realize its full potential and transform numerous industries through innovation, energy efficiency advancements, and enhanced environmental sustainability.
US HVAC Equipment Market Driver and Challenges
US HVAC equipment plays a crucial role across diverse industries, including residential, commercial, healthcare, and manufacturing sectors. In residential settings, HVAC systems ensure comfort and air quality, impacting daily life and home value. In commercial buildings and healthcare facilities, HVAC systems maintain optimal indoor environments for occupant health, productivity, and regulatory compliance. Additionally, HVAC equipment supports industrial processes by providing climate control essential for product quality, machinery operation, and worker safety, highlighting its indispensable role in various sectors of the US economy.
The factors responsible for driving the US HVAC equipment market include:
1. Demand for Energy Efficiency: The increased awareness about energy usage and environmental sustainability has created demand for energy efficient HVAC equipment. This is facilitated by government regulations and incentives promoting adoption of high efficiency systems such as ENERGY STAR ratings and tax credits that encourage both residential and commercial sectors to upgrade their HVAC infrastructure.
2. Technological Advancements: The rapid advancement in HVAC technology like smart thermostats, variable refrigerant flow (VRF) systems, IoT integration etc. have improved the systems’ efficiency, comfortability and control. These inventions are able to meet the need for more intelligent and flexible HVAC solutions hence appealing to both customers as well as businesses who want optimized performance and operational cost savings.
3. Replacement and Retrofitting Demand:Old heating ventilating air conditioning (HVAC) systems in residential, commercial, or industrial buildings sometimes require replacement or upgrading so that they can meet the current requirements of efficiency standards or even performance expectations. This continuous cycle of replacement combined with retrofitting modern HVAC technologies into older buildings ensures market demand which supports industry growth.
4. Urbanization and Construction Activity: Continuing urbanization along with construction activities necessitates new HVAC installations in residential & commercial buildings. As a result of growing populations in urban areas coupled with expansion of commercial infrastructures there is a need for reliable HVAC systems so as to maintain indoor air quality, comfort and productivity.
Challenges facing the US HVAC equipment market are:
1. Cost Constraints: Some consumers including smaller entities or those on tight budgets find it expensive to buy new energy-efficient heating ventilating air conditioning (HVAC) equipment resulting from installation processes itself. Therefore initial cost remains a challenge towards large scale acceptance of highly efficient systems despite long-term energy savings.
2. Complex Regulatory Landscape: Meeting ever changing federal, state level as well as local regulations that include energy efficiency standards plus environmental mandates keep adding complexity & costs to manufacturing/installing HVAC equipment. There exist variance in regulatory requirements across different regions creating challenges for manufacturers as well as contractors who navigate compliance landscape.
3. Skills Gap and Workforce Development: The HVAC industry is grappling with workforce shortages and skills gaps especially in areas such as installation, maintenance and repair of HVAC systems. However, the end result is that a skilled labor force capable of handling advanced heating ventilating air conditioning (HVAC) systems must be ensured which is important for growth in the industry as well as customer satisfaction.
4. Technological Integration and Compatibility: Integrating new HVAC technologies like smart controls and Internet of Things (IoT) appliances into existing building infrastructure can be complex. Compatibility issues between different HVAC components and building management systems may require additional investment in training and system integration to ensure seamless operation and performance.
Innovations in material science and manufacturing processes have driven significant advancements in the US HVAC equipment market. For instance, the use of advanced composite materials has enabled lighter and more durable components, while precision manufacturing techniques have improved efficiency and reliability. Additionally, the adoption of additive manufacturing has streamlined prototyping and customization capabilities, fostering rapid innovation and product development in the industry.
US HVAC Equipment Market Suppliers and Their Market Shares
In this globally competitive market, several key players such as Lennox International Inc., Nortek Inc., United Technologies Corporation, Emerson Electric, LSB Industries, Inc., etc. dominate the market and contribute to industry’s growth and innovation. These players capture maximum market share. To know the current market share of each of major players us by email at helpdesk@lucintel.com
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies US HVAC equipment companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the US HVAC equipment companies profiled in this report includes.
• Lennox International Inc.
• Nortek Inc.
• United Technologies Corporation
• Emerson Electric
• LSB Industries, Inc.
These companies have established themselves as leaders in the US HVAC equipment market, with extensive product portfolios, global presence, and strong research and development capabilities. They continually strive to enhance their market positions through strategic partnerships, mergers and acquisitions, and product innovations.
The market share dynamics within the US HVAC equipment market are evolving, with the entry of new players and the emergence of innovative US HVAC equipment market technologies. Additionally, collaborations between material suppliers, manufacturers, and end-users are fostering technological advancements and expanding market opportunities.
US HVAC Equipment Market by Segment
The US HVAC equipment market is experiencing growth in several key segments. Energy-efficient systems are in high demand due to regulatory requirements and a focus on sustainability, driving the adoption of technologies like variable-speed drives and smart controls. There is also increasing interest in smart HVAC solutions, integrating IoT capabilities for remote monitoring and energy management. Additionally, demand is rising for indoor air quality products, such as advanced filtration systems, driven by heightened awareness of health benefits associated with cleaner indoor environments.
This US HVAC equipment market report provides a comprehensive analysis of the marketÄX%$%Xs current trends, growth drivers, challenges, and future prospects in all major segments like above. It covers various segments, including product and end use. The report offers insights, highlighting the major markets for US HVAC equipment and their growth potentials. The study includes trends and forecast for the US HVAC equipment market by product and end use as follows:
US HVAC Equipment Market By Product [$B from 2018 to 2030]:
• Furnace
• Heat Pump
• Central AC
• Room AC
• Others
US HVAC Equipment Market By End Use [$B from 2018 to 2030]:
• Residential
• Commercial
o Office
o Retail
o Hospitality
o Education
o Healthcare
o Others
Features of the US HVAC Equipment Market
• Market Size Estimates: US HVAC equipment market size estimation in terms of value ($B).
• Trend and Forecast Analysis: Market trends (2018-2023) and forecast (2024-2030) by various segments.
• Segmentation Analysis: US HVAC equipment market size by various segments, such as product and end use.
• Growth Opportunities: Analysis on growth opportunities in different product and end use for US HVAC equipment market.
• Strategic Analysis: This includes M&A and competitive landscape for the US HVAC equipment.
• Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
If you are looking to expand your business in US HVAC equipment markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
FAQ
Q1. What is the US HVAC equipment market size?
Answer: The US HVAC equipment market is expected to reach an estimated $33 billion by 2030.
Q2. What is the growth forecast for US HVAC equipment market?
Answer: The US HVAC equipment market is expected to grow at a CAGR of 4% from 2023 to 2030.
Q3. What are the major drivers influencing the growth of the US HVAC equipment market?
Answer: The major drivers for this market are higher rate of building renovation and federal tax credits offered in the US to make existing facilities energy-efficient and to control greenhouse gas emissions.
Q4. What are the major applications or end use industries for US HVAC equipment?
Answer: Commercial and residential are the major end use of US HVAC equipment.
Q5. What are the emerging trends in US HVAC equipment market?
Answer: Emerging trends, which have a direct impact on the dynamics of the industry, include growing adoption of iot and ai, enhance indoor air quality, increasing demand for customization and personalization, and expansion of remote monitoring and maintenance.
Q6. Who are the key US HVAC equipment companies?
Answer: Some of the key US HVAC equipment companies are as follows:
• Lennox International Inc.
• Nortek Inc.
• United Technologies Corporation
• Emerson Electric
• LSB Industries, Inc
Q7.Which US HVAC equipment product segment will be the largest in future?
Answer: Lucintel forecasts that cental AC will remain the largest product segment over the forecast period.
Q8. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% Customization Without any Additional Cost.
This report answers following 11 key questions
Q.1 What are some of the most promising, high growth opportunities for the US HVAC equipment market by product (furnace, heat pump, central AC, room AC, and others) and by end use (residential and commercial (office, retail, hospitality, education, healthcare, and others))?
Q.2 Which segments will grow at a faster pace and why?
Q.3 What are the key factors affecting market dynamics? What are the drivers and challenges of the US HVAC equipment market?
Q.4 What are the business risks and threats to the US HVAC equipment market?
Q.5 What are emerging trends in this US HVAC equipment market and the reasons behind them?
Q.6 What are some changing demands of customers in the US HVAC equipment market?
Q.7 What are the new developments in the US HVAC equipment market? Which companies are leading these developments?
Q.8 Who are the major players in the US HVAC equipment market? What strategic initiatives are being implemented by key players for business growth?
Q.9 What are some of the competitive products and processes in the US HVAC equipment market, and how big of a threat do they pose for loss of market share via material or product substitution?
Q.10 What M&A activities did take place in the last five years in the US HVAC equipment market?
For any questions related to the US HVAC equipment market or related to US HVAC equipment market share, US HVAC equipment market analysis, and US HVAC equipment market size, write to Lucintel analysts at helpdesk@lucintel.com. We will be glad to get back to you soon.