The U.S. HVAC systems market size is expected to value at USD 26.93 billion by 2030, expanding at a compound annual growth rate (CAGR) of 5.6% during the forecast period. The market is predominantly driven by the increase in global warming and the subsequent climate changes. Furthermore, the use of equipment with a low carbon footprint, along with the booming real estate sector is anticipated to fuel the adoption of HVAC in the U.S. in the forthcoming years. With the start of the pandemic, 2020 became a challenging year with a detrimental impact on various industries during the first two quarters.
The U.S. government offers incentives to encourage the use of renewable or energy-efficient resources. The U.S. government's regulations put in place to monitor HVAC system performance in response to the rising global warming will factor in market opportunities during the forecast period. Standardizing production procedures on the supply side of the market has also greatly assisted in lowering environmental risks and carbon emissions. For instance, tax credits are provided for energy-efficient items, ranging from 20 to 30 percent of the installation cost.
The COOLAdvantage Program by the New Jersey government is a recent example of initiatives undertaken by the state government. It attempts to provide tax credits and rebates on using or building central heat pumps or air conditioners that conserve energy. Long-term product sales growth will be supported by all these financial initiatives and supportive governmental policies.
In terms of volume sales, the U.S. AC systems market is the largest after China. According to a survey released by the U.S. Department of Energy, air conditioning is installed in more than 70% of American households (DOE). As a result, OEMs have a market opportunity of between 20 and 30 percent in terms of both new unit sales and impending replacement demand from older devices.
The market is competitive and marginally consolidated, with multinational vendors dominating the industry. Daikin Industries, Ltd., Lennox International, Inc., Carrier Corporation, Mitsubishi Electric U.S. Inc., and Johnson Controls International Plc were the top OEMs in the 2021 market. For the majority of players, research and development activities will be crucial to success, particularly when it comes to peculiar items that suit the local climatic circumstances. Likewise, IoT penetration has expanded over time, and customers are increasingly drawn to devices with cutting-edge capabilities that are also affordable. Vendors will be able to keep their sales at a lucrative level if they concentrate on these aspects in the upcoming years.
Research Support Specialist, USA
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