United States HVAC Market By Equipment (Heat Pump, Air Conditioner, Humidifier & Dehumidifier, Others), By End User (Residential, Commercial, Industrial), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

United States HVAC Market was valued at USD 31.26 Billion in 2024 and is expected to reach USD 38.45 Billion by 2030 with a CAGR of 7.87% during the forecast period. The United States HVAC market is driven by the increasing construction activities, both residential and commercial, fuel demand for efficient heating, ventilation, and air conditioning systems. Technological advancements, such as smart thermostats, energy-efficient systems, and IoT integration, contribute to growing market appeal, with consumers seeking smarter, greener solutions. Also, rising awareness about indoor air quality and the need for improved ventilation, especially considering the COVID-19 pandemic, boosts HVAC sales. Government regulations and incentives promoting energy efficiency and sustainability also encourage the adoption of energy-saving systems. Lastly, extreme weather conditions, including rising temperatures and unpredictable climates, create a strong need for reliable HVAC solutions to ensure comfort and safety in homes and businesses.

Key Market Drivers

Surging Population Across the Region

A surging population across the United States is a significant driver of the HVAC market. As the population continues to grow, there is an increased demand for housing, commercial spaces, and infrastructure, all of which require HVAC systems for climate control and air quality. As a part of this, according to a recent study, as of 2023, the U.S. population hit 340.1 million, an increase of 0.98% from 336.8 million marking the highest annual increase since the 0.99% rise between 2000 and 2001.With more people moving into urban and suburban areas, especially in climate-sensitive regions, the need for efficient heating, ventilation, and air conditioning systems grows in both new and existing buildings. Also, population growth often results in larger households and more commercial establishments, further driving the demand for HVAC solutions to maintain comfort and air quality. Also, the U.S. is experiencing demographic shifts, such as an aging population and diverse cultural trends, which influence preferences for HVAC technologies. Older individuals may have specific needs for temperature regulation, while diverse communities often look for customized HVAC solutions suited to their climates and living conditions. The growth in population also correlates with an expanding economy, which fuels the demand for both residential and commercial HVAC installations. More people in the workforce means more businesses, retail spaces, and industrial facilities that need reliable heating and cooling systems. Consequently, manufacturers and contractors are under increased pressure to meet the rising demand for HVAC systems that are energy-efficient, environmentally friendly, and equipped with modern technologies, making this demographic shift a key driver of the HVAC market in the U.S.

Rising Construction & Infrastructure Development

Rising construction and infrastructure development is a major driver of the HVAC market in the United States. As a part of this, according to a recent study, as of 2023, expenditures in the U.S. for private construction kept rising and surpassed public sector construction spending by more than a factor of three. When examining construction expenditures across the 50 U.S. states, Texas and California ranked first. As the country experiences growth in both population and urbanization, there is an increased demand for new residential, commercial, and industrial buildings. This surge in construction directly impacts the HVAC industry, as heating, ventilation, and air conditioning systems are essential for maintaining comfort and air quality in these new spaces. The growing construction of new homes, office buildings, shopping centers, hospitals, schools, and manufacturing plants requires efficient and reliable HVAC systems to meet the needs of residents, workers, and customers. Also, as cities expand, there is a strong demand for HVAC solutions in both new developments and large-scale renovation projects. As construction projects focus on creating sustainable, energy-efficient buildings, the HVAC market is also benefiting from the increased emphasis on green building standards. Many new buildings are designed to meet energy-efficiency certifications, such as LEED (Leadership in Energy and Environmental Design), which drives the adoption of advanced, eco-friendly HVAC systems that consume less energy while improving indoor air quality. Also, ongoing infrastructure development, including transportation hubs, airports, and public facilities, also relies heavily on HVAC systems to ensure comfortable environments for the public. As construction activities accelerate across both urban and suburban areas, the HVAC market is positioned for sustained growth, driven by the increasing need for high-performance heating, ventilation, and air conditioning solutions.

Growing Innovation by Key Players

Growing innovation by key players is a crucial driver of the HVAC market in the United States. As a part of this, as of February 2024, Midea, a key innovator in the HVAC industry, expanded its first national showroom and distribution center in Queens, New York. This state-of-the-art facility aims to improve access to heat pumps for both consumers and industry professionals, underscoring Midea's commitment to integrating advanced heat pump technology into North American homes. As consumer demands evolve and technology advances, HVAC manufacturers are increasingly investing in research and development (R&D) to create cutting-edge solutions that cater to energy efficiency, automation, and sustainability. The focus on innovation allows HVAC companies to provide smarter, more efficient systems that reduce energy consumption, improve indoor air quality, and enhance user convenience. Technological advancements like smart thermostats, IoT (Internet of Things) integration, and AI-powered climate control systems are revolutionizing how HVAC systems are designed and operated. These innovations enable consumers to control their HVAC systems remotely through smartphones, optimize energy usage, and adapt to their preferences in real time. For instance, smart HVAC systems can learn from users' behaviours, automatically adjusting settings for comfort while minimizing energy waste. In addition, eco-friendly solutions are gaining traction, with key players pushing the development of refrigerants with lower global warming potential (GWP) and systems that meet stringent environmental regulations. Companies are also focusing on creating quieter, more compact systems that fit seamlessly into residential and commercial spaces. The ongoing innovation by HVAC manufacturers not only improves system performance but also helps meet the growing demand for energy-efficient, sustainable solutions. As technology continues to evolve, these innovations will play a key role in shaping the future of the U.S. HVAC market.

Download Free Sample Report

Key Market Challenges

Strict Government Norms

Strict government norms present a significant challenge for the HVAC market in the United States. As a part of this, the rule proposed by the EPA in December 2022 targets the transition to alternative refrigerants by implementing sector-specific restrictions. Starting in 2025, the use of high-GWP HFCs will be banned in most new refrigeration, air conditioning, and heat pump applications. The rule aims to prohibit the manufacture and import of products containing these HFCs by January 1, 2025, with a subsequent ban on their sale, distribution, and export set for one year later. As environmental concerns rise, regulations around energy efficiency, emissions, and refrigerant usage have become more stringent, creating pressure for HVAC manufacturers and service providers to meet these evolving standards. The U.S. Environmental Protection Agency (EPA) and Department of Energy (DOE) impose rigorous requirements for both residential and commercial HVAC systems, pushing companies to continuously adapt their products to comply with changing regulations. One of the most notable challenges is the transition to low-global-warming-potential (GWP) refrigerants. The phase-out of high-GWP refrigerants, such as R-22, and the shift to more eco-friendly alternatives like R-410A and R-32, require manufacturers to redesign systems and retrain technicians for proper handling and servicing. While these changes aim to reduce the environmental impact of HVAC systems, they come with added costs and complexities for businesses, from R&D to installation and maintenance. Also, evolving energy efficiency standards, such as those outlined in the Energy Star program, push HVAC companies to develop systems that not only meet regulatory requirements but also provide consumers with long-term savings. Complying with these standards can be costly, especially for smaller players in the market, who may struggle to keep up with the technical and financial demands. Overall, while these strict government norms aim to benefit the environment and consumers, they present significant challenges to the HVAC industry, requiring substantial investment in innovation, training, and compliance.

Supply Chain Disruptions

Supply chain disruptions pose a significant challenge for the U.S. HVAC market. Global supply chain issues, including shortages of raw materials, components, and delays in shipping, have caused significant delays in manufacturing and product delivery. These disruptions often lead to increased lead times for HVAC systems and parts, affecting both residential and commercial installations. The shortage of key components, such as microchips and specialized HVAC parts, has slowed the production of advanced, energy-efficient systems. This, in turn, affects HVAC manufacturers’ ability to meet consumer demand for the latest technologies. Also, transportation bottlenecks and rising fuel costs have further increased logistics expenses, contributing to higher prices for HVAC products. The challenges extend beyond production to the installation phase. Contractors often face difficulties in securing the necessary equipment and components to complete projects on time, which can lead to project delays, customer dissatisfaction, and lost revenue. Also, HVAC companies must deal with fluctuating raw material costs, such as copper and steel, which can impact the overall cost structure. As supply chain disruptions continue, HVAC companies are forced to find alternative sourcing strategies, adopt just-in-time inventory practices, and adjust pricing strategies to maintain profitability. These challenges make it harder for the HVAC industry to meet market demands efficiently and cost-effectively, slowing overall growth.

Key Market Trends

Increased Awareness Among Consumer Regarding Indoor Air Quality

Increased awareness among consumers regarding indoor air quality (IAQ) is a significant trend in the U.S. HVAC market. As concerns about health and the environment grow, particularly following the COVID-19 pandemic, there is a heightened focus on improving air quality in homes and commercial spaces. Consumers are becoming more conscious of the importance of ventilation, air filtration, and humidity control in creating a healthier indoor environment. This trend is driving demand for HVAC systems equipped with advanced air filtration technologies, such as HEPA filters, UV-C air purifiers, and advanced humidity control features. These systems help remove allergens, dust, pollutants, and harmful pathogens from the air, contributing to better IAQ and overall well-being. Also, many homeowners and businesses are now looking for HVAC systems that not only provide climate control but also ensure optimal air quality, leading to the integration of IAQ sensors and smart technology in HVAC units. Smart systems allow users to monitor and control air quality in real time, enhancing comfort and energy efficiency. As the awareness of IAQ continues to grow, it is shaping the HVAC market, with an increasing focus on healthier, more sustainable indoor environments. This trend is expected to drive innovation in HVAC technologies, prompting companies to develop more advanced solutions to meet the rising demand for cleaner, healthier air.

Increased Demand for Energy-Efficiency & Sustainable Product

Increased demand for energy-efficient and sustainable products is a key trend in the U.S. HVAC market. As consumers and businesses become more environmentally conscious and seek ways to reduce energy costs, there is a strong push for HVAC systems that are both energy-efficient and sustainable. Rising utility costs and stricter government regulations around energy consumption have further fuelled this demand. Consumers are increasingly opting for systems that offer better energy performance, such as high SEER (Seasonal Energy Efficiency Ratio) air conditioners, energy-efficient heat pumps, and smart thermostats. These products not only reduce energy consumption but also lower carbon footprints, aligning with growing environmental awareness. Also, government incentives, rebates, and green building certifications, such as LEED, are encouraging the adoption of energy-efficient HVAC solutions. Manufacturers are responding by developing products that use eco-friendly refrigerants and meet stringent energy efficiency standards. The trend toward sustainability is also prompting innovations in HVAC technology, including solar-powered systems, geothermal heat pumps, and air-source heat pumps, which offer greener alternatives to traditional systems. As the demand for energy-efficient and sustainable HVAC products continues to rise, the market is shifting towards more advanced, environmentally friendly solutions that help consumers reduce their environmental impact while improving long-term cost savings.

Rising Popularity of Decentralized HVAC System

The rising popularity of decentralized HVAC systems is a notable trend in the U.S. HVAC market. Decentralized systems, such as ductless mini-split systems, offer a flexible and efficient alternative to traditional centralized HVAC systems. These systems are gaining traction due to their ability to provide customized climate control for individual rooms or zones, making them ideal for both residential and commercial applications. One key advantage of decentralized HVAC systems is their energy efficiency. Since they do not require ductwork, they eliminate energy losses typically associated with air ducts, resulting in more precise temperature control and lower energy consumption. These systems also allow homeowners and businesses to heat or cool specific areas, offering greater comfort and reduced operational costs by avoiding the need to condition unused spaces. Also, decentralized systems are particularly popular in retrofit applications and older buildings, where installing traditional duct systems may be challenging or cost prohibitive. Their compact size and easy installation make them a versatile solution for both small and large spaces. The growing trend toward open-concept floor plans in homes and businesses is also driving the demand for decentralized systems, as they allow for zoned heating and cooling to accommodate diverse space layouts. With increasing demand for energy-efficient, cost-effective, and easy-to-install HVAC solutions, the popularity of decentralized systems is expected to continue rising, reshaping the U.S. HVAC market.

Segmental Insights

Equipment Insights

Heat Pump dominated the United States HVAC market, due to their energy efficiency and versatility. Unlike traditional HVAC systems, heat pumps provide both heating and cooling by transferring heat rather than generating it, making them more energy efficient. They can extract heat from the air, ground, or water, allowing for year-round comfort while consuming less energy compared to conventional systems. This energy efficiency is particularly appealing as consumers seek ways to reduce utility bills and minimize their environmental footprint. Heat pumps are also an eco-friendly solution, using lower-GWP (global warming potential) refrigerants and generating fewer carbon emissions compared to traditional heating systems. With advancements in technology, including variable-speed compressors and integration with smart thermostats, heat pumps are becoming more affordable and effective in a variety of climates, including colder regions. The push toward sustainable and energy-efficient solutions, coupled with incentives and rebates for heat pump installation, has cemented their position as a leading choice in the U.S. HVAC market.

Download Free Sample Report

Regional Insights

The West region dominated the United States HVAC market, due to its diverse climate conditions and rapid urbanization. With both hot summers and cold winters in many areas, HVAC systems are essential for maintaining indoor comfort year-round. The region also experiences significant demand for energy-efficient HVAC solutions, driven by California’s stringent environmental regulations and incentives for green building practices. In addition, the West is home to numerous residential, commercial, and industrial developments, fuelling the demand for HVAC systems. The growing population in major metropolitan areas like Los Angeles, San Francisco, and Seattle further contributes to this demand. The trend toward sustainable, energy-efficient HVAC systems is also more pronounced in this region, as consumers prioritize eco-friendly solutions in line with regional environmental goals.

Recent Developments

• In January 2025, Panasonic Corporation launched its Heating & Ventilation A/C Company (HVAC Company) OASYS Residential Central Air Conditioning System in the US market. This central air conditioning system, regarded as the first of its kind in the US,*1 includes a Mini Split AC, an ERV (Energy Recovery Ventilator),*4 and transfer fans that utilize DC motor-driven ventilation fans. Compared to conventional systems*3, it can reduce energy consumption for heating and air conditioning by over 50%. It creates a healthy and comfortable environment through its ability to circulate large volumes of air with minimal temperature variations, air purification technology, and whisper-quiet operation.
• In March 2024, Trane Technologies (NYSE: TT), a worldwide climate innovator, launched a new residential product lineup featuring innovative design enhancements to its highly efficient heat pumps and air conditioners, including a next-generation refrigerant with 78% less global warming potential (GWP). The company’s products, redesigned for even greater efficiency, will allow homeowners to satisfy their heating and cooling requirements while cutting back on energy expenditures and carbon emissions.
• In May 2024, Lennox a top provider of innovative climate solutions in the HVACR sector, and Samsung, a reliable global brand with four decades of experience in innovative HVAC technology, entered into an agreement to establish a joint venture aimed at selling ductless AC and heat pump (mini-split, multi-split, VRF) products in the United States and Canada. The joint venture that has recently been set up will be named Samsung Lennox HVAC North America.
• In June 2024, Mitsubishi Electric Trane HVAC US LLC (METUS), a prominent provider of Ductless and Ducted Mini-split and Variable Refrigerant Flow (VRF) heat pump and air-conditioning systems, launched a new product line that employs a refrigerant with low global warming potential (GWP), representing a major advancement in environmental sustainability for light commercial and residential heating and cooling solutions. This innovative product line, suitable for both light commercial and residential use, surpasses current regulatory standards while maintaining optimal performance.

Key Market Players

• Daikin North America LLC
• Johnson Controls International plc
• Nortek Global HVAC LLC
• Danfoss
• LG Electronics U.S.A., Inc.
• Mitsubishi Corporation
• Rheem Manufacturing Company
• Ab Electrolux
• Carrier Global Corporation
• Samsung Electronics Co., Ltd

Report Scope:

In this report, the United States HVAC Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States HVAC Market, By Equipment:

o   Heat Pump

o   Air Conditioner

o   Humidifier & Dehumidifier

o   Others

• United States HVAC Market, By End User:

o   Residential

o   Commercial

o   Industrial

• United States HVAC Market, By Region:

o   South

o   West

o   Mid-West

o   North-East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the United States HVAC Market.

Available Customizations:

United States HVAC Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

United States HVAC Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com