North America HVAC Equipment Market Overview
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 31.12 Billion |
| Market Size (2030) | USD 43.86 Billion |
| Growth Rate (2025 - 2030) | 7.10% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America HVAC Equipment Market Analysis
The North America HVAC Equipment Market size is estimated at USD 31.12 billion in 2025, and is expected to reach USD 43.86 billion by 2030, at a CAGR of 7.1% during the forecast period (2025-2030).
The North American HVAC equipment industry is experiencing a significant transformation driven by technological advancements and sustainability initiatives. Smart HVAC systems leveraging IoT technology have become increasingly prevalent, allowing end-users to remotely control and monitor their heating and cooling systems. According to the Consumer Technology Association, connected home products revenue in the United States reached USD 5.94 billion, reflecting the growing consumer preference for smart climate control solutions. The integration of building automation systems with HVAC equipment has enabled building managers to view and control all core building systems, including security, lighting, and power distribution, through a single interface, leading to improved operational efficiency and energy management.
Green building initiatives and environmental regulations are reshaping the HVAC equipment landscape in North America. According to Clean Energy and the US Department of Energy, as of January 2023, California implemented 146 regulations dedicated to renewables and energy efficiency, leading the nation in sustainable building practices. The industry has witnessed a surge in the development of energy-efficient systems, with manufacturers focusing on products that comply with stringent environmental standards. The trend toward sustainable construction has led to increased adoption of advanced HVAC technologies that minimize environmental impact while maximizing performance.
The construction sector's robust growth has significantly influenced HVAC equipment demand across North America. According to Statistics Canada, investment in building construction reached USD 20.9 billion in October 2022, with Ontario accounting for the majority of gains. The surge in both residential and commercial construction activities has created substantial opportunities for HVAC equipment manufacturers and suppliers. The industry has responded with innovative solutions designed specifically for new construction projects, including integrated building automation systems and energy-efficient heating and cooling solutions.
Economic factors and changing consumer preferences continue to shape the market dynamics. According to the Bureau of Labor Statistics, the inflation rate reached 6.5% in December 2022, influencing purchasing decisions and driving demand for more cost-effective and energy-efficient HVAC systems. Manufacturers have responded by developing products that balance initial investment costs with long-term operational savings. The industry has also witnessed a shift toward preventive maintenance and smart diagnostics, enabling proactive system management and reduced operational costs. This evolution has led to the development of subscription-based service models and remote monitoring capabilities, transforming traditional business models within the HVAC sector.
North America HVAC Equipment Market Trends
Rise in Residential and Non-residential Users
The increasing adoption of residential HVAC equipment across both residential and commercial HVAC sectors is primarily driven by rising construction activities and government support for energy-efficient systems. According to the Energy Information Administration's (EIA) Residential Energy Consumption Survey, approximately 76 million primarily occupied U.S. homes, representing 64% of the total, utilize central air conditioning equipment, while about 13 million households (11%) employ heating equipment such as heat pumps for heating or cooling purposes. This substantial installed base is complemented by new construction activity, with the U.S. Census Bureau reporting approximately 1.55 million new privately-owned housing units in June 2022, creating significant opportunities for HVAC equipment manufacturers and suppliers.
The non-residential sector is experiencing equally robust growth, with the American Institute of Architects projecting a 6% increase in U.S. non-residential construction for 2023, with hotel construction leading at an expected year-on-year growth of nearly 14%. This growth is further supported by the implementation of new minimum energy efficiency standards in 2023 for all new residential central air conditioning and air-source heat pump systems, driving the adoption of more efficient HVAC solutions. The integration of smart technologies and building automation systems is also contributing to market expansion, with features such as IoT connectivity and advanced controls becoming increasingly standard in both residential and commercial installations. These technological advancements, combined with government initiatives promoting energy efficiency and sustainable building practices, are creating a strong foundation for continued market growth across both user segments. The demand for HVAC installation and HVAC services is expected to rise as these sectors expand.
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Segment Analysis: By Equipment
Air Conditioning Equipment Segment in North America HVAC Equipment Market
The air conditioning equipment segment maintains its dominant position in the North American HVAC equipment market, commanding approximately 50% of the total market share in 2024. This substantial market presence is driven by the increasing adoption of central air conditioning systems across residential and commercial sectors in the United States and Canada. The segment's growth is further supported by stringent energy efficiency regulations, particularly the Department of Energy's new minimum efficiency standards implemented in 2023, which require residential systems to meet specific Seasonal Energy Efficiency Ratio (SEER) requirements - a minimum of 14 SEER in northern regions and 15 SEER in southern regions. The integration of smart technologies and IoT capabilities in modern air conditioning systems has also contributed to the segment's market leadership, enabling features like remote monitoring and automated temperature control.
Heat Pump Segment in North America HVAC Equipment Market
The heat pump segment is emerging as the fastest-growing category in the North American HVAC equipment market, projected to grow at approximately 9% during 2024-2029. This remarkable growth is primarily driven by increasing awareness of energy efficiency and environmental sustainability, coupled with government initiatives promoting heat pump adoption. The segment's expansion is further supported by technological advancements in heat pump systems, particularly in cold-climate performance capabilities. Recent initiatives like the Inflation Reduction Act of 2022, which provides substantial incentives for heat pump installations, are expected to accelerate adoption rates. The segment is also benefiting from the growing trend toward electrification in building heating and cooling systems, with many states and provinces implementing programs to encourage the transition from traditional heating systems to heat pumps.
Remaining Segments in Equipment Segmentation
The heating equipment and dehumidifiers/humidifier segments continue to play vital roles in the North American HVAC equipment market. The heating equipment segment maintains its significance, particularly in regions with severe winter conditions, offering solutions like furnaces and boilers for both residential and commercial applications. The segment's evolution is marked by the introduction of high-efficiency models and smart control capabilities. Meanwhile, the dehumidifiers and humidifier segment, though smaller in market share, serves crucial applications in maintaining optimal indoor air quality and comfort levels, particularly in healthcare facilities, data centers, and specialized industrial applications where precise humidity control is essential.
Segment Analysis: By End User
Residential Segment in North America HVAC Equipment Market
The residential HVAC segment dominates the North America HVAC equipment market, commanding approximately 65% market share in 2024, while also exhibiting the strongest growth trajectory. This commanding position is driven by the widespread adoption of HVAC systems in North American homes, given the region's variable climate and extreme weather conditions. Central air conditioning has emerged as one of the most common cooling solutions, with an increasing number of households investing in central air systems rather than window or wall units. The segment's growth is further propelled by the rising adoption of energy-efficient solutions, particularly heat pumps, which have become a preferred choice for both new homes and retrofits of existing heating and cooling systems. The integration of smart home technologies and building automation systems has also contributed significantly to the segment's expansion, with manufacturers offering advanced HVAC solutions featuring IoT connectivity and smart controls for enhanced comfort and energy efficiency.
Industrial and Commercial Segments in North America HVAC Equipment Market
The industrial HVAC and commercial HVAC segments collectively represent significant portions of the North America HVAC equipment market, each serving distinct yet crucial applications. The industrial HVAC segment, accounting for about 21% of the market, encompasses manufacturing facilities, data centers, and other institutional facilities, with HVAC systems playing a vital role in maintaining optimal operating conditions and equipment performance. The commercial HVAC segment, representing approximately 15% of the market, serves various establishments including offices, hospitals, schools, and hotels, where HVAC systems are essential for maintaining comfortable environments and ensuring proper ventilation. Both segments are experiencing steady growth driven by increasing focus on energy efficiency, stringent regulatory requirements, and the adoption of smart building technologies. The expansion of commercial real estate and industrial infrastructure, coupled with growing emphasis on sustainable building solutions, continues to fuel the demand for advanced HVAC equipment in these sectors.
North America HVAC Equipment Market Geography Segment Analysis
North America HVAC Equipment Market in United States
The United States dominates the North American HVAC equipment market, commanding approximately 88% market share in 2024 and demonstrating robust growth with a projected CAGR of around 7% from 2024 to 2029. The country's market leadership is driven by stringent energy efficiency regulations, particularly the Department of Energy's new minimum efficiency standards implemented in 2023 for residential air conditioning and air-source heat pump systems. The growing emphasis on smart building technologies and automation has spurred innovation in HVAC systems, with manufacturers developing IoT-integrated systems that offer enhanced control and energy management capabilities. The residential sector continues to be a major growth driver, supported by increasing home construction activities and rising consumer awareness about energy-efficient HVAC solutions. The commercial sector's expansion, particularly in data centers, healthcare facilities, and smart office buildings, has created substantial demand for advanced HVAC systems. Additionally, government initiatives promoting green building standards and sustainable development have accelerated the adoption of energy-efficient HVAC equipment across various end-user segments.
North America HVAC Equipment Market in Canada
Canada's HVAC equipment market is characterized by unique regional demands driven by its diverse climate conditions and stringent energy efficiency regulations. The country's focus on reducing greenhouse gas emissions has led to increased adoption of high-efficiency HVAC systems, particularly in the residential sector where space heating accounts for a significant portion of energy consumption. The Canadian government's initiatives, such as the CleanBC Better Homes low-interest financing program and various rebate schemes, have been instrumental in promoting the adoption of energy-efficient heating solutions. The commercial construction sector's growth, particularly in urban centers, has created new opportunities for HVAC equipment manufacturers. The market has witnessed significant technological advancements, with manufacturers introducing innovative solutions specifically designed for Canada's extreme weather conditions. The increasing focus on green building certifications and sustainable construction practices has further accelerated the demand for advanced HVAC systems. The country's commitment to reducing dependency on fossil fuels has also driven the adoption of alternative heating solutions, particularly heat pumps, in both residential and commercial applications.
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North America HVAC Equipment Industry Overview
Top Companies in North America HVAC Equipment Market
The North American HVAC equipment market features prominent players like Johnson Controls, Daikin Industries, Lennox International, Carrier Corporation, and Trane Technologies leading the industry through continuous innovation and strategic expansion. These companies are heavily investing in developing energy-efficient and smart HVAC solutions, with a particular focus on heat pump technologies and IoT-enabled systems. The market is characterized by aggressive product development cycles, with companies regularly launching new models featuring improved efficiency ratings and enhanced connectivity features. Strategic partnerships with technology providers and sustainability initiatives have become key differentiators, as companies work to meet evolving environmental regulations and consumer preferences. Companies are also expanding their distribution networks and service capabilities across the region, while simultaneously investing in manufacturing facilities to strengthen their local presence and reduce supply chain vulnerabilities.
Consolidated Market with Strong Global Players
The North American HVAC equipment market demonstrates a high level of consolidation, dominated by large multinational corporations with diverse product portfolios and extensive distribution networks. These established players leverage their global research and development capabilities, manufacturing scale, and brand recognition to maintain their market positions. The market structure is characterized by a mix of global conglomerates that offer comprehensive HVAC solutions and specialized manufacturers focusing on specific product segments or regional markets. The presence of strong local distribution networks and service providers adds another layer of complexity to the competitive landscape, creating barriers for new entrants while providing opportunities for strategic partnerships.
Merger and acquisition activities in the market are primarily driven by the need to acquire technological capabilities, expand geographic presence, and strengthen product portfolios. Large companies are particularly interested in acquiring smaller, innovative firms that possess advanced technologies in areas such as HVAC controls, energy efficiency, and sustainable heating solutions. The industry has also witnessed vertical integration strategies, with manufacturers expanding into distribution and service operations to capture more value across the supply chain and enhance their direct relationship with end-users.
Innovation and Service Excellence Drive Success
Success in the North American HVAC equipment market increasingly depends on companies' ability to innovate while maintaining operational excellence and customer service quality. Incumbent players are focusing on developing comprehensive solution portfolios that combine hardware, software, and services to create stronger value propositions and deeper customer relationships. The ability to provide energy-efficient solutions that comply with evolving environmental regulations while meeting customer demands for comfort and control has become crucial. Companies are also investing in digital capabilities, including predictive maintenance, remote monitoring, and smart building integration, to differentiate their offerings and create recurring revenue streams.
For contenders looking to gain market share, success lies in identifying and exploiting specific market niches or technological advantages that larger players may have overlooked. This includes focusing on specialized applications, developing innovative financing models, or targeting specific geographic regions or customer segments. The increasing emphasis on environmental sustainability and energy efficiency creates opportunities for companies that can offer superior solutions in these areas. Building strong service networks and maintaining close relationships with contractors and installers remains critical, as these channels significantly influence purchase decisions. Additionally, companies must navigate an increasingly complex regulatory landscape while maintaining cost competitiveness and service quality. The integration of building automation and thermal management systems is becoming increasingly important in providing comprehensive solutions that meet the demands of modern infrastructure.
North America HVAC Equipment Market Leaders
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Johnson Controls International PLC
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Daikin Industries Ltd
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Lennox International Inc.
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Electrolux AB
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Emerson Electric Co.
- *Disclaimer: Major Players sorted in no particular order
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North America HVAC Equipment Market News
- February 2023 - LG Electronics USA showcased its robust 2023 lineup of commercial,residential HVAC and light commercial, and solutions at the 2023 AHR Expo in Atlanta. Throughout the show, the company demonstrated its Variable Refrigerant Flow (VRF) technology, energy-efficient heat pump options, indoor air quality solutions, along with flexible building automation and connectivity products.
- January 2023 - Carrier introduced the AquaSnap 30RC air-cooled scroll chiller with Greenspeed intelligence and R-32 refrigerant, which complies with January 1, 2024, low global warming potential (GWP) requirements that deliver quieter operation within a tiered design for a broader operating range and design flexibility.
North America HVAC Equipment Industry Segmentation
Heating, ventilation, and air conditioning (HVAC) refers to the use of different technologies for controlling the temperature, humidity, and purity of the air in an enclosed space. HVAC equipment provides thermal comfort and acceptable indoor air quality in both the indoor and vehicular environments. It is an important part of residential structures, such as single-family homes, apartment buildings, hotels, and senior living facilities, as well as medium-to-large industrial and office buildings, such as hospitals, where safe and healthy building conditions are regulated with respect to temperature and humidity using fresh air from outdoors.
The North American HVAC Equipment Market is segmented by equipment (air conditioning equipment, heating equipment, heat pumps, dehumidifiers and humidifiers), end user (residential, industrial, commercial), and country (United States, Canada). The report offers market forecasts and size in value (USD) for all the above segments.
| By Equipment | Air Conditioning Equipment |
| Heating Equipment | |
| Heat Pumps | |
| Dehumidifiers and Humidifiers | |
| By End User | Residential |
| Industrial | |
| Commercial | |
| By Country | United States |
| Canada |
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North America HVAC Equipment Market Research Faqs
How big is the North America HVAC Equipment Market?
The North America HVAC Equipment Market size is expected to reach USD 31.12 billion in 2025 and grow at a CAGR of 7.10% to reach USD 43.86 billion by 2030.
What is the current North America HVAC Equipment Market size?
In 2025, the North America HVAC Equipment Market size is expected to reach USD 31.12 billion.
Who are the key players in North America HVAC Equipment Market?
Johnson Controls International PLC, Daikin Industries Ltd, Lennox International Inc., Electrolux AB and Emerson Electric Co. are the major companies operating in the North America HVAC Equipment Market.
What years does this North America HVAC Equipment Market cover, and what was the market size in 2024?
In 2024, the North America HVAC Equipment Market size was estimated at USD 28.91 billion. The report covers the North America HVAC Equipment Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the North America HVAC Equipment Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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North America HVAC Equipment Market Research
Mordor Intelligence provides a comprehensive analysis of the HVAC system industry, utilizing extensive expertise in heating, ventilation, and air conditioning system research. Our detailed report covers the full range of HVAC equipment, including heat pump technologies, air conditioning solutions, and advanced air filtration systems. The analysis includes crucial components such as air handling unit specifications, ductwork design, and integrated cooling system technologies. Our research methodology examines both commercial HVAC and residential HVAC segments while addressing essential aspects of HVAC maintenance and HVAC installation practices.
Stakeholders can download our report PDF for in-depth insights into industrial HVAC trends, climate control innovations, and building automation developments. The report explores emerging smart HVAC technologies, HVAC controls, and air purification solutions. It provides valuable data on thermal management strategies and HVAC components. Our analysis covers refrigeration equipment, heating equipment, and ventilation equipment, with a special focus on building HVAC integration and HVAC services. The comprehensive research supports strategic decision-making across various market segments, offering actionable insights on everything from central air conditioning systems to advanced thermal management solutions.
