Market Size of North America Air Conditioning Equipment Industry
| 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.
