North America Air Conditioning Equipment Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.10 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Air Conditioning Equipment Market Analysis
The North America Air Conditioning Equipment Market is expected to register a CAGR of 8.1% over the forecast period (2022 - 2027). The increasing number of residential and commercial users, combined with government regulations for energy efficiency and eco-friendly equipment, is driving the adoption of air conditioners.
- For instance, The Federal Energy Management Program (FEMP) has set standards for minimum energy efficiency requirements with Energy Star. For example, when the air conditioner's minimum efficiency starts from 9.5 EER and 11.0 IEER and goes up to 15.0 SEER and 12.5 EER (for single-phase), the efficiency rating varies based on the equipment size and capacity.
- Moreover, the rooftop air conditioner standards in North America are expected to take effect, which covers new units found in low-rise buildings, such as hospitals, schools, and big-box stores. The effect was determined in two phases, of which increased the minimum efficiency by about 10% already came into existence on January 1, 2018, and by 25%-30% is expected to be covered by January 1, 2023. Such developments are expected to further increase the demand from the commercial sector.
- However, with no clear direction from the federal government about the long-term approach to managing HFC refrigerants, the demand forecast of the studied market is declining. It is further anticipated that most OEMs will build toward the toughest regulatory environment and consolidate their portfolio around this to drive long-term business sustenance.
- Further, with the recent outbreak of Covid-19, decreasing consumer spending capacity has influenced the market demand for air conditioners in the region, with demand for ductless splits maintaining a steady pace due to the cost-effective nature of the products. This is expected to change over the coming months, with the demand for centralized AC equipment from the sector gaining traction post-COVID-19 impact.
North America Air Conditioning Equipment Market Trends
This section covers the major market trends shaping the North America Air Conditioning Equipment Market according to our research experts:
United states is expected to hold significant demand
- The United States commands a prominent share of the region's demand for air conditioners due to the sheer size of the population, higher penetration rates, and climatic conditions in various states. According to Warner Service, about 84% of all US homes have some air conditioning type, and it is more common to have centralized air conditioning in the country.
- The country's demand for energy due to air conditioning is growing at an exponential rate. According to EIA, the United States will gain over 58 million people and 24 million households by 2050. The US residence's total square footage is expected to expand by 33%, with 71% of households being single-family homes that typically have more air-conditioned floor space. Such developments are expected to further expand the demand in the country.
- According to the US Department of Energy, air conditioners in the United States use about 6% of all the electricity with an annual cost of USD 29 billion to homeowners. A major share of the country's air conditioning systems employ halogenated chlorofluorocarbons (HCFCs) as a refrigerant; these are being gradually phased out with most production and imports stopped by 2020, and all production and imports are being stopped by 2030.
- Moreover, the shipments of air conditioners are expected to increase during the forecast. According to Air-Conditioning, Heating, and Refrigeration Institute, the shipments of air conditioners from the United States accounted for 6.28 million in 2021 compared to 5.91 million in 2020. Such growth indicates the demand for Air conditioner manufacturers in the country.
Indoor Packaged and Roof Tops is expected to hold significant market share
- Packaged AC units are used when air conditioning is required due to climate or in case of an inadequate main source of central air conditioning. For indoor installation of packaged air conditioners, they must be vented to push the heat from the controlled environment; these solutions are rarely the first choice as they are not efficient, and installation costs are comparatively higher than that of mini-splits and other options available in the market.
- A prominent share of the applications of such solutions is seen in commercial space owing to the demand for high and fast cooling requirements; the residential sector is expected to command a significantly smaller share of the market demand.
- In addition to this, the packaged & rooftop air conditioning solutions providers are preparing for the energy standards that are to be revised again in 2023, which was agreed upon during the previous revision in 2018. As part of the rooftop, air conditioner standards that cover the new units found on the buildings such as schools, hospitals, and big box stores were to take effect in two phases.
- Further, according to the US Census Bureau, the public construction spending on commercial projects accounted for USD 3.54 billion. However, despite the drop in spending for new commercial constructions, the need for energy conservation is driving the replacement of old AC conditioners with energy-efficient indoor packaged and Rooftop air conditioners.
North America Air Conditioning Equipment Industry Overview
The North Amrica Air Conditioning Equipment Market is moderately fragmented due to many valve market players. Factors such as industrial automation, increased commercial and residential constructions in the region is driving the Vendors to expand the production capacity, exercise merger and acquistion and invest in research and development for newer innovations in the Market.
- In June 2022 - Carrier launched single-stage split system air conditioners (Compliant with upcoming 2023 Department of Energy's test procedures and efficiency requirements). The product has earned SEER2 rating of up to 16.5 (17 SEER), and EER2 up to 13.5 (14.5 EER). Additionally, the products have reduced SKUs for the southern regions of America.
- In February 2022 - LG launched range of AI Dual Inverter air conditioners. Powered by AI. The products are desinged with multiple in-built sensors and dual rotary compressors technology. Additionaly the products are equipped with anti-virus protection filter which is coated with Cationic Silve that is capable of 99% visrus and bacteria.
North America Air Conditioning Equipment Market Leaders
Lennox International Inc.
Nortek Air Management
Johnson Controls International PLC
Rheem Manufacturing Company
Carrier Corporation
*Disclaimer: Major Players sorted in no particular order
North America Air Conditioning Equipment Market News
- In May 2022 - EcoFlow launched EcoFlow Wave Portable Air Conditioners that offers 8 hours of runtime and flexible charging methods designed under the budget of 40 pounds making it ideal for cabins, small apartments and RVs. Additionaly, EcoFlow Wave requires eight minutes to lower the temprature in an 86ft² (8m²) space from 84 to 75 (30 to 24).
North America Air Conditioning Equipment Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Assessment of the Impact of COVID-19 on the Industry
4.4 Industry Value Chain
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Replacement of Existing Equipment with Better Performing Ones and Reinstating of Tax Credits for Heat Pumps
5.2 Market Challenges
5.2.1 Lack Of Regulations Related To Refrigerant Usage Is Expected To Create Uncertainties For Industry Participants
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Unitary Air Conditioners
6.1.1.1 Ducted Splits
6.1.1.2 Ductless Mini-Splits
6.1.1.3 Indoor Packaged & Roof Tops
6.1.2 Room Air Conditioners
6.1.3 Packaged Terminal Air Conditioners
6.1.4 Chillers
6.2 By End User
6.2.1 Residential
6.2.2 Commercial & Industrial
6.3 By Country
6.3.1 United States
6.3.2 Canada
6.4 By Efficiency (only for relevant equipment which are regulated by Federal Standards)
6.4.1 Low Efficiency (13 SEER)
6.4.2 High Efficiency (greater than 13 SEER)
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 DAIKIN INDUSTRIES LTD
7.1.2 Carrier GLOBAL corporation (UNITED TECHNOLOGIES corporation)
7.1.3 RHEEM MANUFACTURING COMPANY
7.1.4 Trane technologies plc (ingersol-rand plc)
7.1.5 Johnson Controls International plc
7.1.6 Nortek AIR MANAGEMENT (Melrose industries plc) -
7.1.7 LENNOX INTERNATONAL INC.
7.1.8 Honeywell International Inc.
7.1.9 ROBERT BOSCH GMBH
7.1.10 ELECTROLUX AB
7.1.11 LG ELECTRONICS INC.
7.1.12 EMERSON ELECTRIC CO.
7.1.13 Schneider ELECTRIC SE
7.1.14 GE APPLIANCES
7.1.15 whirlpool corporation
- *List Not Exhaustive
8. Energy Star Penetration for Selected
9. Cooling Equipment - Central Air Conditioners, and Room Air Conditioners
9.1 Direct
9.2 Retailers
9.3 Wholesalers/Dealers/Contractors
10. INVESTMENT ANALYSIS
11. FUTURE OF THE MARKET
North America Air Conditioning Equipment Industry Segmentation
Air Conditioning is a system used by the useres of residential and commercial sector to cool down the temprature insider a given space and remove the moisture and heat from the surrounding.
The North America Air Conditioning) market includes the different equipment provided to the end users by the OEMs and other local players. The end users include residential, commercial and industrial. The study characterizes the market based on the Implementation type such as New Construction and Retrofit Buildings. In terms of the market the scope includes market revenues acrued from the sales of Air Conditioning Equipment in United States and Canada.
| By Type | |||||
| |||||
| Room Air Conditioners | |||||
| Packaged Terminal Air Conditioners | |||||
| Chillers |
| By End User | |
| Residential | |
| Commercial & Industrial |
| By Country | |
| United States | |
| Canada |
| By Efficiency (only for relevant equipment which are regulated by Federal Standards) | |
| Low Efficiency (13 SEER) | |
| High Efficiency (greater than 13 SEER) |
North America Air Conditioning Equipment Market Research FAQs
What is the current North America Air Conditioning Equipment Market size?
The North America Air Conditioning Equipment Market is projected to register a CAGR of 8.10% during the forecast period (2024-2029)
Who are the key players in North America Air Conditioning Equipment Market?
Lennox International Inc., Nortek Air Management , Johnson Controls International PLC , Rheem Manufacturing Company and Carrier Corporation are the major companies operating in the North America Air Conditioning Equipment Market.
What years does this North America Air Conditioning Equipment Market cover?
The report covers the North America Air Conditioning Equipment Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Air Conditioning Equipment Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Air Conditioning Equipment Industry Report
Statistics for the 2024 North America Air Conditioning Equipment market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Air Conditioning Equipment analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
