Market Trends of North America Air Conditioning Equipment Industry
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.
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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.
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