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U.S. HVAC Systems Market Size & Analysis, 2025 | Industry Report

U.S. HVAC Systems Market Analysis Report By Product, By Technology, By End Use And Segment Forecasts From 2019 To 2025

Report ID: MN17620034  |  Published: August 2020  |  No of Pages: 110
Format: Electronic (PDF)  |  Industry: HVAC (Heating, Ventilation, & Air Conditioning)  |  Publisher: Grand View Research

Industry Insights

The U.S. HVAC systems market size was accounted for USD 16.3 billion in 2018. The market is estimated to register 9.7% CAGR over the forecast duration 2019 to 2025. There were over 14 million units of HVAC systems were sold in the United States in 2018. The increasing focus from customers on comfort and rising demand for energy-efficient systems are driving the market growth. In addition, increasing construction activities coupled with rising purchasing power in the country is supplementing the market growth.

Over the past few years, the demand for new houses has surged in the U.S. This demand is influenced by the increasing disposable income of the people. The total construction spending increased to USD 1,293.9 billion in 2018 from USD 809.26 billion in 2010, as per the U.S Census Bureau. In addition, privately-owned houses growth were higher by 6.3% in July 2019 as compared to the last year. Thus, increasing housing construction is driving the demand for HVAC system in the U.S.

U.S. HVAC system market

Favorable initiatives by the government are further augmenting the market growth. For example, consumers can easily apply for Federal Energy Tax Credit under payer Relief Act of 2012 (U.S.)-2017. However, the tax relief is not applicable to all HVAC system. The applicable HVAC systems can avail the discount up to USD 500 on installation cost.

The New Jersey government offers COOL Advantage Program to provide a tax credit on energy-efficient air conditioners. Similarly, a New York-based company Con Edison offered up to USD 800 discount in 2016 on mini-split heat pumps. Although it was a temporary program, a large number were consumers were benefitted from this. The introduction of similar initiatives is projected to propel the market growth in the next few years.

However, the high cost involved in the installation and maintenance of the HVAC system is expected to hinder the market growth. The cost of maintenance of an HVAC system ranges between USD 350-1500 on average. Moreover, the installation cost is much higher and changes depending on the type of the system. The average installation cost can be USD 5,600, although variable. The high cost is estimated to drive consumers towards cheaper alternatives that may not be efficient.

Product Insights

Depending on the product, the air conditioner category accounted for the majority of share in 2018. Further, the segment is likely to register over 9.0% CAGR from 2019 to 2025. Increasing penetration of ACs in the country is driving the segment growth. Almost three-quarter of all houses has ACs in the country as per the United States Department of Energy. Further, growing need to replace these systems is anticipated to bolster the demand over the forecast duration.

Heat pumps are used in transferring thermal energy in a direction that is opposite to heat flow by absorbing heat from a cooler environment and releasing it to the warmer environment. Refrigerants are used to transfer the heat in heat pumps. These pumps are not only energy-efficient but they also release lesser CO2. Due to these benefits, the heat pump category is estimated to register considerable growth over the forecast years.

Technology Insights

Based on technology, the U.S. HVAC systems marketis categorized into non-inverter and inverter. The heat pump and AC divisions are further bifurcated into non-inverter and inverter technologies. The inverter segment is estimated to register significant growth over the forecast duration. It is estimated that the U.S inverter AC industry would worth more than 20 billion by 2025.

The inverter heat pump category is projected to witness more than 12.5% CAGR over the next six years. Inverter technology integrated heat pump make use of optimum energy to offer comfort with less noise. In addition, it has an automatic temperature control feature, which helps against damages in cased of voltage fluctuation. Owing to these benefits, it has lower maintenance cost and increased efficiency.

End-use Insights

Depending on the end-use, the market is segregated into commercial, industrial and residential. Of them, in 2018, the residential category held the largest share in the market of around 48%. Residential HVAC units are smaller than industrial and commercial ones. Places such as small restaurants, small store and homes are ideal for its installation. Growing demand for compact equipment in households is estimated to augment the growth of HVAC units in the residential segment.

U.S. HVAC systems market HVAC with variable speed is gaining traction in the residential sector due to their longevity as compared to traditional systems. These systems keep on changing their compressor speed and work on reduced fan speed, thereby, lowering humidity. Lower speed of fan ensures less noise while lower humidity prevents the growth of mold.

The commercial division is anticipated to register over 9.0% CAGR based on the revenue from 2019 to 2025. These systems need a considerable amount of space and they are placed on rooftops of commercial buildings like hotels, big restaurants and theatres. Growing focus on providing comfort to consumers in commercial buildings is driving the segment growth.

Regional Insights

The south region in the U.S accounted for the maximum share and estimated to register the highest CAGR in the next few years. There were nearly 48 million households in this region in 2018, as surveyed by the United States Census Bureau. Nearly 38 million of these households have more than USD 25,000 as their annual income. Thus, growing households’ income is attributing to the growth of the region.

In addition, the overall construction industry grew by around 6.0% in 2018 in the south region. The rapid rise in the construction of new houses is predicted to augment the growth of this region. On the other hand, the western region is likely to grow with the significant growth rate over the forecast duration.

Impact of COVID-19

The United States is one of the most affected countries by a coronavirus. The pandemic outbreak has adversely affected the growth of the U.S. HVAC system market. Owing to the disruption in supply chain and closure of industrial operations, manufacturing of new HVAC systems were reduced significantly. In addition, the outbreak has affected millions of households and their earning witnessed considerable decline. As the financial crisis is looming large across the United States, people spending on new houses and HVAC systems are estimated to reduce drastically. However, these impacts are for short-term only and the country is expected to recover from the ongoing economic crisis.

U.S. HVAC Systems Market Share Insights

Key market players are heavily investing in research & development of innovative technologies like IoT-based HVAC system. For example, Daikin Industries, in 2015, integrated Intel technology to provide cloud-based data. Cloud enables remote control and monitoring of systems. Using these technologies, the performance of HVACs systems can be managed along with addressing issues in the system.

Further, manufacturers are emphasizing on introducing environment-friendly HVAC systems that run on the alternate energy source. For example, Lennox International provides HVAC systems named SunSource that runs on solar energy. Some of the key manufacturers are Electrolux AB, Ingersoll Rand, Carrier Corporation and Fujitsu General among others.

Report Scope

Report Attribute

Details

Market size value in 2020

USD 19.50 billion

Revenue forecast in 2025

USD 31.08 billion

Growth Rate

CAGR of 9.7% from 2019 to 2025

Base year for estimation

2018

Historical data

2015 - 2017

Forecast period

2019 - 2025

Quantitative units

Revenue in USD billion and CAGR from 2019 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, technology, end use, and region.

Regional scope

South, West, Midwest, and Northeast

Key companies profiled

Daikin Industries, Ltd.; Carrier Corporation; Electrolux AB; Fujitsu General; Ingersoll Rand; and Rheem Manufacturing Company.

Customization scope

Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country; regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs.


Segments Covered in the Report

This report forecasts revenue growth at country levels, and provides an analysis on latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the U.S. HVAC systems market report based on the product, technology, end-use, and region:

• Product Outlook (Volume, Million Units; Revenue, USD Billion, 2015 - 2025)
    • Air Conditioners
        • Unitary
        • Rooftop
        • Packaged Terminal AC (PTAC)
    • Heat Pumps
        • Unitary
        • Rooftop
        • Packaged Terminal Heat Pumps (PTHP)

• Technology Outlook (Volume, Million Units; Revenue, USD Billion, 2015 - 2025)
    • Air Conditioner
        • Inverter
        • Non-Inverter
    • Heat Pumps
        • Inverter
        • Non-Inverter

• End-use Outlook (Volume, Million Units; Revenue, USD Billion, 2015 - 2025)
    • Residential
    • Commercial
    • Industrial

• Regional Outlook (Volume, Million Units; Revenue, USD Billion, 2015 - 2025)
    • South
    • West
    • Midwest
    • Northeast

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