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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, Industrial) and Country Forecast, 2021-2028

Region : North America | Format: PDF | Report ID: FBI106243

 

KEY MARKET INSIGHTS

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The North America HVAC system market size was USD 39.82 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with HVAC system witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 4.4% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 41.63 billion in 2021 to USD 58.56 billion in 2028 at a CAGR of 5.0% during the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


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


Increased demand for smart systems coupled with integration of internet of things (IoT), industry automation system, smart manufacturing and industry 4.0 is driving the North America HVAC equipment market growth. Additionally, the surge in green building construction activities is anticipated to contribute significantly to the aforesaid market growth. Moreover, the ever-growing smart homes market is projected to boost the market growth.


Though, the market witnessed minimal slump because of 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 is Boosting Product Demand


The North America heating, ventilation and cooling equipment market has observed a moderate downfall in the year 2020 and is projected to exhibit positive growth in the future ahead. It is because 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 of existing energy recovery ventilators (ERVs), changing the operation of such equipment and others were halted in first quarter of 2020 that has impacted the market growth.


However, the market participants have applied themselves in investing in R&D and technological advancement. The workforces also adopted the new working normal i.e. maintaining the social distance and improving productivity. Additionally, The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) recommended strategies to mitigate the COVID-19 transmission, which has eventually boosted the demand across the United States and Canada.


Hence, the future growth trajectory is projected to be strong with the COVID-19 pandemic providing the opportunities to automate these systems, that is anticipated to strengthen the market growth in the forecast period.


LATEST TRENDS


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


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


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


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


DRIVING FACTORS


Smart HVAC System Installation is Brightening Market Prospects


Installation of smart systems is strengthening the sustainability efforts. The algorithm set-up in the system interprets the information from various sources that controls the HVAC consumption in unoccupied buildings zones. It is therefore, providing transparency, control, data collection and reduced the overall operating costs.


The advent of industry 4.0, industry automation system and smart manufacturing are exceedingly growing across the globe. In these scenarios, smart system integration is vital 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. Therefore, the smart HVAC system installation is boosting the 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 HVAC systems’ manufacturing and installation across commercial, industrial and residential applications. However, the high replacement and maintenance and cost is a major factor that is limiting the market surge. The maintenance refers to cleaning of dust settled and sediments to avoid damage that may result in failure of the entire heating, ventilation and cooling system.


Additionally, filters, motors, refrigerants, coolants and others are required to replace or repair frequently as per their operating life cycle. The frequent repair and maintenance results in additional operating cost. That in turn, is impeding the heating, ventilation and cooling system market growth.


SEGMENTATION


By Type Analysis


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


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


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


Single splits segment is growing steadily owing to its utilization to keep home warm in the winter and cool in summer. The reducing energy-consumption characteristics coupled with industry-leading technological advancements is driving the chillers market growth across the industrial applications. Others segments are anticipated to witness steady growth in the future years.


By Application Analysis


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


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


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


The residential segment is growing at a sturdy growth rate owing to the 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.


REGIONAL INSIGHTS


The North America HVAC system market is anticipated to showcase strong growth in the forecast period owing to the increasing trend of green buildings initiative, rising residential, commercial (renovated buildings, and new construction buildings) construction and industrial facilities, government incentives and growing demand for energy efficient solutions. Additionally, with Internet of Things (IoT) integration, several manufacturers have initiated the smart HVAC system offering that in turn, is propelling the market growth across the U.S. and Canada.


The U.S. being one of the biggest equipment market is witnessing a steady growth rate. The growing construction activity, availability of high-efficiency systems and extreme climatic conditions is favoring the system installation across the facilities. Additionally, the presence of leading manufacturers such as Carriers, Emerson Electric Co. and others is complimenting and others is driving the growth of HVAC systems market in North America in the coming years.


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


The mounting construction spending across Canada is complimenting such equipment demand across the applications. The building owners are focusing on upgrading the air conditioning, ventilation and other systems across the facilities to support lowering energy-consumption trend. Additionally, the government energy-efficiency incentives are expected to benefit North America HVAC system market.


KEY INDUSTRY PLAYERS


Major Players Are Emphasizing on Technological Advancement and Training Programs


Major key 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 thereby expanding the product reach for North America HVAC system market. Additionally, these market participants are offering training programs to boost the HVAC technicians count across the region. For instance, in July 2019, Trane partnered with ‘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. is focusing 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 focus on reducing adverse climate impact and green-house gas emissions.


LIST OF KEY COMPANIES PROFILED:



  • Carrier (Florida, U.S.)

  • Lennox International Inc. (Texas, U.S.)

  • SAMSUNG (Suwon-si, South Korea)

  • Nortek Air Solutions, LLC (Missouri, U.S.)

  • DAIKIN INDUSTRIES, Ltd. (Osaka, Japan)

  • Trane (Dublin, Ireland)

  • Emerson Electric Co. (Missouri, U.S.)

  • Johnson Controls (Cork, Ireland)

  • LG Electronics (Seoul, South Korea)

  • Mitsubishi Electric Corporation (Tokyo, Japan)

  • Danfoss A/S (Syddanmark, Denmark)

  • Armstrong Fluid Technology (Ontario, Canada)

  • Evapco, Inc. (Maryland, U.S.)

  • Haier Inc. (Qingdao, China)

  • Schneider Electric (Paris, France)

  • AB Electrolux (Stockholm, Sweden)

  • GREE ELECTRIC APPLIANCES, INC. (Guangdong, China)

  • Robert Bosch LLC (Baden-Württemberg, Germany)


KEY INDUSTRY DEVELOPMENTS:



  • March 2021 - Lennox International Inc. introduced ‘PureAir S and PureAir air Purification Systems’ to deliver complete-home purification for perfect air amidst COVID-19 pandemic.

  • April 2020 - Daikin Industries, Ltd. invested in U.S.-based Locix, Inc., a cloud-based connected-devices and spatial intelligence solution developing company for commercial buildings, consumer homes. Daikin is aiming to reduce labor hours at the installation sites by utilizing Locix, Inc.’s accurate-location positioning technology, ‘Locix GPS’.


REPORT COVERAGE


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This report provides an elaborative analysis of the North America HVAC system market dynamics and competitive landscape. Various key insights presented in the report are market share analysis, recent developments in this market, including mergers & acquisitions, regulatory scenarios across key countries, macro and microeconomic factors, SWOT analysis, competitive landscape and company profiles.


Report Scope & Segmentation


















































  ATTRIBUTE



  DETAILS



Study Period



2017 – 2028



Base Year



2020



Estimated Year



  2021



Forecast Period



2021 – 2028



Historical Period



2017 – 2019



Unit



Value (USD billion)



Segmentation



By Type, Application and Region



By Type




  • Single Split Systems

  • Variable Refrigerant Flow (VRF) Systems

  • Chillers

  • Others (Multi-split Systems, etc.)



By Application




  • Commercial

  • Residential

  • Industrial



By Region




  • North America (By Type, Application and Country)

    • U.S. (By Type)

    • Canada (By Type)





Frequently Asked Questions

Fortune Business Insights says that the market stood at USD 39.82 billion in 2020.

Fortune Business Insights says that the market will reach USD 58.56 billion in 2028.

Steady growth of 5.0% CAGR will be observed during the forecast period.

Installation of Smart HVAC systems is driving the market

Carrier, DAIKIN INDUSTRIES, Ltd., Johnson Controls, LG electronics and Emerson Electric co. are the top companies in the market

The variable refrigerant flow (VRF) systems segment is expected to capture highest CAGR in the market

The commercial segment is expected to capture highest CAGR in the market.

The augmented construction of green buildings is a key trend in the market

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North America HVAC System Market Size, Share and Global Industry Trend Forecast till 2026
  • Jan, 2022
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  • 2017-2019
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