November 2024 | Report Format: Electronic (PDF)
U.S. Residential HVAC Systems Market Growth & Trends
The U.S. residential HVAC systems market size is anticipated to reach USD 9.96 billion by 2030, according to a new report by Grand View Research, Inc. The market is projected to grow at a CAGR of 5.6% from 2023 to 2030. This can be attributed to the increasing demand for energy-efficient equipment coupled with the growing real estate market, which is expected to increase the demand for U.S. residential HVAC systems over the forecast period. For instance, as of today, customers or HVAC end users have high expectations concerning the desired safety, health, and comfort level. In addition to these expectations, product choices regarding reliability, efficiency, and performance are also crucial considerations for manufacturers. Thus, OEMs are anticipated to focus on meeting these requirements, which will subsequently play a key role in spurring product sales over the forecast period.
For instance, the integrated HVAC solutions provided by Panasonic Corporation and Schneider Electric establish a seamless connection between Panasonic Corporation’s VRF-based HVAC systems and Schneider Electric’s building management systems via ZigBee wireless communication standards. The integration enables the users or building owners to monitor all the HVAC equipment, power, electrical distribution, lighting, and security on a single platform. It also provides the users with actionable insights, which help reduce energy consumption resulting in cost savings.
A residential HVAC unit is used to keep the room temperature comfortable. Residential HVAC systems are often made of two independent units: the inner evaporator and the outer compressor. A closed-loop refrigerant system is used in residential HVAC equipment. This refrigerant is the force that continuously circulates between the evaporator and condenser to provide conditioned air inside the home.
The rapid use of new technologies such as AI, IoT, blockchain, machine learning, and others is having a significant positive impact on market growth. The rising acceptance of IoTs in both developing and developed countries has bolstered the demand for HVAC systems in the U.S. Thus, rising disposable income and increasing usage of HVAC equipment for personal comfort are rapidly driving this segment. For instance, in December 2021, Mitsubishi Electric Corporation launched a low-carbon heat pump Ecodan Hydrodan for the multi-residential market. The heat pump is the company’s entry into the multi-residential market while already launching a wide variety of renewable heating technologies for single homes.
Furthermore, in November 2020, Emerson Electric Co. completed the acquisition of 7AC TECHNOLOGIES, INC. The acquisition is expected to provide residential customers with best-in-class solutions designed to ensure energy efficiency and human comfort. The two companies have already been collaborating on commercializing a new, fully modular, and flexible membrane-based liquid desiccant technology that can potentially help retailers achieve the desired temperature and relative humidity in a single step. These aforementioned factors are anticipated to drive the demand for residential HVAC systems.
Manufacturers of residential HVAC systems are looking for product launches, investments, and expansions to develop new products. For instance, in June 2022, Trane Technologies plc announced establishing operations in Greenville County to create new jobs and added nearly 300,000 square feet of manufacturing capacity in Greenville County. Furthermore, in May 2021, Mitsubishi Electric increased its air conditioner production capacity in Turkey in response to the growing demand for air conditioners due to stay-at-home protocols. This new production unit began manufacturing air conditioners in August 2022.
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U.S. Residential HVAC Systems Market Report
U.S. Residential HVAC Systems Market Report Highlights
- Based on product, the cooling segment led the market with the largest revenue share of 56.5% in 2022. The cooling segment mainly comprises air conditioning units and refrigeration units. Air conditioning is a system for controlling and regulating temperature, ventilation, and humidity in closed spaces such as buildings & vehicles to maintain constant indoor temperature and improve air quality. Further, refrigeration is the process of removing moisture and heat from an enclosed, insulated colder area to a hotter space
- The heating segment is anticipated to witness a CAGR of 5.4% over the forecast period. The entire energy system is smarter, more efficient, environmentally friendlier, and dependable owing to the extensive use of digitization, which regulates temperature while integrating production facilities, distribution networks, buildings, and individual residences in real-time
- The increased awareness and desire for clean & non-contaminated air is driving the demand for ventilation systems such as air purifiers, humidifiers, and dehumidifiers. Furthermore, manufacturers are expected to introduce ventilation systems with new changes to comply with Centers for Disease Control and Prevention (CDC) requirements to improve indoor air circulation quality to reduce the transmission of the coronavirus. Such improvements are projected to necessitate the installation of new ventilation systems as well as the retrofitting of HVAC equipment
- The West region led the market and held a 25.0% revenue share in 2022. The growth can be attributed to the region’s vast number of residential construction projects, with a particular emphasis on green buildings and office space development. For instance, according to the February 2021 published data, 32 properties with 7 million square feet area were under construction for office spaces. Most of them were completed in 2020 and 2021
- The Southeast region is expected to witness the fastest CAGR of 8.5% over the forecast period. The Southeast is known as a “humid & hot” region with mild winters, demanding HVAC systems that can survive such conditions. Homes in the Southeast require effective cooling and dehumidifying systems, as well as a modest winter heating option, due to the mild climate
U.S. Residential HVAC Systems Market Segmentation
Grand View Research has segmented the U.S. Residential HVAC Systems market based on product and region:
U.S. Residential HVAC Systems Product Outlook (Revenue, USD Billion, 2018–2030)
- Heating
- Ventilation
- Cooling
U.S. Residential HVAC Systems Regional Outlook (Revenue, USD Billion, 2018–2030)
- Northeast
- Southeast
- Midwest
- Southwest
- West
List of Key Players in the U.S. Residential HVAC Systems Market
- Carrier
- Daikin Industries, Ltd.
- Emerson Electric Co.
- Haier Group
- Johnson Controls
- LG Electronics
- Lennox International
- Mitsubishi Electric Corporation
- Rheem Manufacturing Company
- Trane Technologies plc
- Robert Bosch GmbH
