North America HVAC System Market Size, Share & COVID-19 Impact Analysis, By Type (Single Split, Variable Refrigerant Flow (VRF) Systems, Chillers, and Others), By Application (Commercial, Residential, and Industrial), and Country Forecast, 2023-2030

The North America HVAC system market size was valued at USD 44.53 billion in 2022. The market is projected to grow from USD 46.74 billion in 2023 to USD 67.47 billion by 2030, exhibiting a CAGR of 5.4% during the forecast period.

The Heating, Ventilation and Cooling (HVAC) system transfers air between indoor and outdoor spaces. It filters the indoor air to keep the environment healthy, thus maintaining humidity level at the ideal comfort.

Increased demand for advanced systems, coupled with the industrial automation solution, integration of the Internet of Things (IoT), industry 4.0, and smart manufacturing, is driving the North America HVAC market growth. Additionally, the surge in green and eco-friendly building construction projects is anticipated to contribute majorly to market growth. Moreover, the ever-growing smart homes market is projected to boost the North America HVAC system market share.

Though the market witnessed a minimal slump due to the COVID-19 pandemic; thus, the production processes of leading market players were on track, resulting in surplus HVAC equipment installation across the region.

COVID-19 IMPACT

Opportunity to Manufacture Automated HVAC Systems amid COVID-19 to Boost Product Demand

This market has observed a moderate downfall in 2020 and is projected to exhibit positive growth in the future. The current pandemic has shown the importance of indoor air quality (IAQ) that overcomes the possible threat of diseases caused by breathing.

The COVID-19 pandemic reasonably affected the business as several HVAC-related activities such as fixing air-conditioned (AC) units, repairing existing energy recovery ventilators (ERVs), changing the operation of such equipment, and others were halted in the first quarter of 2020 that has impacted the market share across the region.

However, the market participants have invested in R&D and technological advancement. The workforce also adopted the new working normal by maintaining social distance and improving productivity. Additionally, the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) recommended strategies to mitigate COVID-19 transmission, eventually boosting the demand across the U.S. and Canada.

Hence, the future growth trajectory is projected to be strong, with the COVID-19 pandemic providing the opportunities to automate these systems, which is anticipated to strengthen the North America HVAC system market growth over the forecast period.

LATEST TRENDS

Fast-tracked Construction of Green Buildings is Laying the Foundation for Future Growth

Green building construction projects support the empowerment of the North America HVAC equipment market. Installation of this equipment with standards imposed by the governmental bodies for rising awareness of occupant’s health, energy consumption, and rising hazardous emissions is becoming a vital unit in green building designs.

The U.S. and Canada’s governmental bodies are emphasizing on this concept to enhance indoor air quality. For instance, in 2019’s budget, the Government of Canada concentrated on reducing greenhouse gas (GHG) emissions via energy-efficient buildings and industry-leading skills development to complement a clean economy. With this initiative, the Canada Green Building Council (CaGBC) is encouraged by government initiatives and investments in energy-efficient buildings. Additionally, the residential and commercial building owners are now tending toward green buildings construction as it is being perceived that there is a connection between financial rewards and healthy buildings.

Hence, the growing green building construction activities across North American countries is a vital trend in the North America market.

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DRIVING FACTORS

Smart Heating, Ventilation and Cooling System Installation is Creating Market Prospects

The installation of smart systems is strengthening sustainability efforts. The algorithm set-up in the system interprets the information from various sources that control the HVAC consumption in unoccupied building zones. Therefore, it provides transparency, control, data collection, and reduces the overall operating costs.

The advent of Industry 4.0, industry automation system, and smart manufacturing are exceedingly growing across the globe. Smart system integration is vital in these scenarios as it functions automatically and in the required section. This is eventually creating a positive impact on the market growth. For instance, in April 2021, Lennox International Inc. introduced ‘The Ultimate Comfort System’ to create ambient comfort across residential spaces. As a result, it is boosting the North America market growth.

RESTRAINING FACTORS

Excessive Maintenance and Repairing Cost is Impeding Market Growth

The fast-growing HVAC industry has generated the automation processes necessary for every product and service. As a result, it has raised the demand for advanced systems’ manufacturing and installation across commercial, industrial, and residential applications. However, the high replacement and maintenance cost is a major factor limiting the market surge. Maintenance refers to the cleaning of dust settled and sediments to avoid damage that may result in the failure of the entire Heating, Ventilation, and Cooling (HVAC) system.

Additionally, filters, motors, refrigerants, coolants, and others are required to be replaced or repaired frequently as per their operating life cycle. The frequent repair and maintenance results in additional operating costs. That in turn, is impeding the market growth.

SEGMENTATION

By Type Analysis

Two or More Controls in Single Device to Drive the Variable Refrigerant Flow (VRF) Systems Segment with the Highest CAGR

Based on type, the market is classified into single split, variable refrigerant flow systems, chillers, and others (multi-split system and others).

The variable refrigerant flow system segment is expected to capture the highest CAGR in the forecast period. It is due to regulating the refrigerant volume that is being provided to fan-coil units positioned across buildings. Additionally, it offers two or more controls in a single device, thus, exponentially growing in the forecast period.

The single split segment is growing steadily owing to its utilization to keep the home warm in the winter and cool in summer. The reducing energy-consumption characteristics coupled with industry-leading technological advancements drive the chillers market growth across industrial applications. The others segment is anticipated to witness steady market growth in future.

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By Application Analysis

Surge in Construction of Commercial Facilities to Favor Growth of the Commercial Segment

Based on application, the market is segmented into residential, commercial, and industrial.

The commercial segment is expected to grow at the highest CAGR over the forecast period. The growth is precisely ascribed to a considerable surge in the construction of schools, hospital facilities, telecom centers, laboratories, and new commercial spaces, thereby bolstering the market growth.

The residential segment is growing at a sturdy growth rate due to increasing per-capita spending and augmented housing services.

The industrial segment is witnessing steady growth attributed to the stable market of air handlers, chillers, and others.

COUNTRY INSIGHTS

The North America market is anticipated to showcase strong growth over the forecast period owing to the increasing trend of green building initiatives, rising residential, commercial (renovated buildings, and new construction buildings) construction and industrial facilities, government incentives, and growing demand for energy-efficient solutions. Furthermore, with the adoption of Internet of Things (IoT), various manufacturers are investing in the manufacturing of air conditioning, ventilation systems, and smart heating offering, which is propelling market growth across the U.S. and Canada.

The U.S. is the biggest HVAC system market which is growing at a steady growth rate. The increasing construction activity, extreme climatic conditions, and availability of high-efficiency systems favor the installation of systems across the Country. Furthermore, the availability of large manufacturers, such as Emerson Electric Co., Carriers, and others, is complimenting the North America market growth in the future.

Canada to Register Highest CAGR as Government Spends Heavily to Upgrade HVAC Systems

The mounting construction spending across Canada compliments the equipment demand across several applications. The building owners focus on upgrading the air conditioning, ventilation, and other systems across the facilities to support the lowering energy-consumption trend. Additionally, government energy-efficiency incentives are expected to benefit this market.

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KEY INDUSTRY PLAYERS

Major Players Are Emphasizing on Technological Advancement and Training Programs

Major players, including Carrier, Johnson Controls, Trane, DAIKIN INDUSTRIES, Ltd., LG Electronics, and others, are aggressively investing in technological developments to increase their profitability in air conditioners, refrigeration, and other products, expanding the product reach for the North America market. Additionally, these market participants offer training programs to boost the HVAC technicians count across the region. For instance, in July 2019, Trane partnered with ‘the National Coalition of Certification Centers (NC3)’ and ‘Lake Erie College, Ohio’ to support the future development of HVAC professionals.

DAIKIN INDUSTRIES, Ltd. is Striving for Excellence by Expanding its Product Offerings across the Region

DAIKIN INDUSTRIES, Ltd. focuses on increasing product extension and country-level coverage and high profitability by strengthening the core HVAC system business. As a result, the company is introducing new products, upgrading existing equipment, and utilizing refrigerants to align with reformed emission standards. For instance, in September 2019, North American Daikin companies developed ductless and ducted residential, light-commercial, and applied products utilizing R-32 refrigerant with a focus on reducing adverse climate impact and greenhouse gas emissions.

LIST OF KEY COMPANIES PROFILED:

• Carrier (U.S.)


• Lennox International Inc. (U.S.)


• SAMSUNG (South Korea)


• Nortek Air Solutions, LLC (U.S.)


• DAIKIN INDUSTRIES, Ltd. (Japan)


• Trane (Ireland)


• Emerson Electric Co. (U.S.)


• Johnson Controls (Ireland)


• LG Electronics (South Korea)


• Mitsubishi Electric Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS:

• December 2021 - Johnson Controls introduced a new product, ‘Latest YORK HVAC System’, with a new residential lease program that caters to high-efficiency models with 10 years of annual service and maintenance, labor, and part warranty for one low, monthly payment.


• July 2022 – Career, a leading air conditioned & heating ventilation and air conditioning system designer and manufacturer company, launched its high performance multizone heat pump outdoor ductless system, which is (38MG(R/H)B). This newly designed product replaced the old 38MGR series. This new product provides a better solution in VRF technology to its customers.


• August 2022: Airzone, an esteemed global pioneer in the field of dynamic HVAC control solutions, is poised to make its mark in the swiftly expanding North America market by introducing an exclusive cutting-edge smart control solution designed specifically for HVAC inverter systems.


• February 2023: Johnson Controls-Hitachi Air Conditioning presented its latest addition to the VRF lineup, known as the air365 Max. This cutting-edge product has been meticulously crafted to provide uninterrupted comfort, exceptional energy efficiency, and user-friendly functionality. The air365 Max represents a comprehensive solution tailored for HVAC professionals, architects, and building owners.


• January 2023: Daikin Comfort Technologies North America has successfully completed the acquisition of Williams Distributing, a prominent distributor specializing in HVAC equipment and residential building products in the Great Lakes region. This strategic move aligns with Daikin's overarching vision to foster the widespread adoption of inverter heat pump technology, particularly in colder climates.

REPORT COVERAGE

The report provides detailed information regarding various insights into the market. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the North America market, current trends, and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2019 to 2030 to provide the financial competency of the market. The information gathered in this report has been taken from several primary and secondary sources.

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Report Scope & Segmentation