U.S. HVAC Systems Market is estimated to expand at the fastest growth rate By 2030

raghurajgvr

Jun 6

U.S. HVAC Systems Industry Overview

The U.S. HVAC systems market size was valued at USD 16.54 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 5.6% from 2022 to 2030.

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.

Gather more insights about the market drivers, restrains and growth of the U.S. HVAC Systems Market

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.

Browse through Grand View Research's HVAC & Construction Industry Research Reports.

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U.S. HVAC Systems Market Segmentation

Grand View Research has segmented the U.S. HVAC systems market on the basis of product, end-use, and region:

U.S. HVAC Systems Product Outlook (Revenue, USD Billion, 2018 - 2030)
- Heating
- Ventilation
- Cooling

U.S. HVAC Systems End-use Outlook (Revenue, USD Billion, 2018 - 2030)
- Residential
- Commercial
- Industrial

U.S. HVAC Systems Regional Outlook (Revenue, USD Billion, 2018- 2030)
- Northeast
- Southeast
- Midwest
- Southwest
- West

Market ShareInsights

September 2019: Trane acquired the Arctic Chiller Group, which is an HVAC manufacturer based in Canada. This acquisition provided Trane with access to high-efficiency air and water cooler modular and process chillers used for commercial HVAC applications.

Key Companies profiled:

Some prominent players in the U.S. HVAC Systems market include