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, 2022-2029

The North America HVAC system market size was valued at USD 41.67 billion in 2021. The market is projected to grow from USD 43.67 billion in 2022 to USD 62.31 billion by 2029, exhibiting a CAGR of 5.2% during the forecast period. Based on our analysis, this market exhibited an average growth of 4.4% in 2020 as compared to 2019.

The heating, ventilation, and cooling 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 smart systems coupled with the integration of internet of things (IoT), industrial automation systems, 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 HVAC system market size.

Though, the market witnessed a minimal slump because of the COVID-19 pandemic; thus, the production processes of leading key 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

The North America heating, ventilation, and cooling equipment market has observed a moderate downfall in 2020 and is projected to exhibit positive growth in 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 North America HVAC system market participants have invested in R&D and technological advancement. The workforces also adopted the new working normal by 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, 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 market growth over the forecast period.

LATEST TRENDS

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Fast-tracked Construction of Green Buildings is Laying 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 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) is encouraged by government initiatives and investments 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 North American countries is a vital trend in the market.

DRIVING FACTORS

Smart HVAC System Installation is Brightening 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 buildings 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. 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. As a result, it 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 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 failure of the entire 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 heating, ventilation, and cooling system market size.

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 type, the market is classified into single splits, variable refrigerant flow system, 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 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.

The 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 drive the chillers market growth across industrial applications. The others segment is anticipated to witness steady growth in future.

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

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 construction of schools, hospital facilities, telecom centers, laboratories, and new commercial spaces, thereby bolstering the North America HVAC system 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.

REGIONAL INSIGHTS

The North America market is anticipated to showcase strong growth over 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 the Internet of Things (IoT) integration, several manufacturers have initiated the smart Heating, air conditioning and ventilation system offering that, in turn, is propelling the market growth across the U.S. and Canada.

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

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

The mounting construction spending across Canada compliments the equipment demand across several applications. The building owners are focusing 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 the North America market.

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 are offering 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 green-house 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.


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

REPORT COVERAGE

An Infographic Representation of North America HVAC System Market

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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 market, current key market trends, and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2022 to 2029 to provide the financial competency of the market. The information gathered in this report has been taken from several primary and secondary sources.

Report Scope & Segmentation