The U.S. HVAC market size was valued at USD 27.85 billion in 2022 and is projected to reach USD 33.81 billion by 2028, growing at a CAGR of 3.28%.

The US HVAC Equipment Market report segments the industry into By Type Of Equipment (Air Conditioning Equipment, Heating Equipment, Ventilation Equipment), By End User (Residential, Commercial, Industrial), and By Region (West, South, Midwest, Northeast). Get five years of historical data alongside five-year market forecasts.

US HVAC Services Market is Segmented by Service Category (Design and Engineering, Installation Contracting and More), by System Type Served (Heating, Services, Cooling / Air-Conditioning Services and More ), by End User (Residential, and Commercial, and More), by Contract Model (Project-Based (One-Off), and More). The Market Sizes and Forecasts are Provided in Terms of Value (USD).

United States HVAC Market was valued at USD 31.26 Billion in 2024 and is expected to reach USD 38.45 Billion by 2030 with a CAGR of 7.87% during the forecast period.

United States HVAC Systems Market size was valued at USD 11165.74 Million in 2024 and is projected to reach USD 15577.43 Million by 2031, growing at a CAGR of 4.25% during the forecast period 2024-2031.

United States HVAC Systems Market Drivers

The market drivers for the United States HVAC Systems Market can be influenced by various factors. These may include:

Growing The Construction Industry: The need for HVAC systems is greatly increased by the expansion of residential, commercial, and industrial construction activities. Modern HVAC installations are frequently needed for new construction and remodeling projects in order to satisfy occupant comfort requirements and energy efficiency criteria.

Trends In Energy Efficiency And Sustainability: The demand for energy-efficient HVAC systems is driven by growing environmental consciousness regarding energy consumption. Adoption of energy-efficient HVAC systems and lower carbon footprints are also greatly aided by government rules and incentives for energy-efficient products.

Technological Progress: Advanced thermostats, IoT-enabled devices, and smart HVAC systems are a few examples of HVAC technological innovations that improve energy management, user ease, and system performance. Customers searching for cutting-edge and effective HVAC solutions are drawn in by these technical developments.

Climate Variability And Severe Weather: Warmer summers and colder winters are becoming more common, which increases the need for dependable HVAC systems to keep people comfortable indoors. This pattern is particularly noteworthy in areas where there are extremes in temperature.

Population Growth And Urbanization: More homes and businesses are built as a result of urbanization, which calls for the construction of HVAC systems. The need for residential HVAC systems rises in tandem with population growth as more homes are constructed to house the expanding population.

Retrofitting And Replacing Outdated Systems: The HVAC systems in many American buildings are antiquated, inefficient, and expensive to run. The market is growing because it is necessary to upgrade or retrofit these systems with more contemporary, energy-efficient options.

Legal And Construction Code Requirements: Market demand is stimulated by strict building rules and regulations that require energy-efficient HVAC systems to be installed in new construction and renovations. Modern HVAC technology must frequently be upgraded in order to comply with these rules.

Increasing Living Standards And Disposable Income: Better and more energy-efficient HVAC systems can be purchased by consumers who have more disposable income and a higher level of life. Comfort and energy efficiency are given top priority by homeowners in the residential sector, where this tendency is most noticeable.

Governmental Programs And Awards: The use of sophisticated HVAC systems is supported by government initiatives and incentives designed to reduce greenhouse gas emissions and promote energy efficiency. These programs include grants, tax credits, and rebates for energy-efficient house upgrades.

Demand In The Commercial And Industrial Sectors: HVAC systems are necessary for a number of purposes in the commercial and industrial sectors, including as maintaining regulated environments in data centers, office buildings, and manufacturing. The need for HVAC systems is rising as a result of the expansion of these industries.

The United States HVAC Equipment & Services Market Report is Segmented by Equipment (Split Systems, Packaged Units, Chillers, and More), Service Type (New Installations, Retrofits, Maintenance), Distribution Channel (Direct Sales, Distributors, Retail, Online), End User (Residential, Commercial, Industrial, Institutional), Technology (Ducted, Ductless, Smart HVAC). Market Forecasts are Provided in Terms of Value (USD).

In 2023, the U.S. HVAC Systems Market reached a value of USD 52.36 billion, and it is projected to surge to USD 79.85 billion by 2030.

US HVAC Market Size, Share & Analysis 2024 By Product Type, By End Use Sector (Residential; Commercial Real Estate; Marine & Offshore etc) Competition Forecast & Opportunities

In 2021, the size of the automotive heating, ventilation, and air conditioning (HVAC) market in the United States (U.S.) reached a value of 7.07 billion U.S. dollars. It is projected that the market size will increase with a compound annual growth rate (CAGR) of 5.07 percent from 2022 to 2027, reaching a value of 9.72 billion U.S. dollars in 2027.

Snapshot img

Commercial HVAC Market Size 2025-2029

The commercial HVAC market size is forecast to increase by USD 28.8 million, at a CAGR of 4.7% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing number of data centers and the emergence of smart and connected HVAC systems. The proliferation of data centers necessitates advanced cooling solutions to maintain optimal operating temperatures, leading to increased demand for Commercial HVAC systems. Furthermore, the integration of IoT technologies in HVAC systems enables remote monitoring, predictive maintenance, and energy efficiency, making them an attractive investment for businesses. However, the market faces formidable competition, with numerous players vying for market share. This intense competition necessitates continuous innovation and differentiation to gain a competitive edge.
Additionally, the integration of new technologies into HVAC systems can pose challenges, such as high implementation costs and the need for specialized expertise. Building management systems and IoT integration facilitate data analytics and remote monitoring, allowing for real-time performance optimization. Companies seeking to capitalize on market opportunities must focus on delivering cost-effective, energy-efficient, and technologically advanced solutions while navigating these challenges effectively. By staying abreast of market trends and addressing customer needs, businesses can position themselves for long-term success in the market.

What will be the Size of the Commercial HVAC Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

The market continues to evolve, driven by the need for carbon footprint reduction, improved air filtration, and enhanced indoor air quality. HVAC systems, including air handlers, packaged units, and rooftop units, are being integrated with advanced technologies such as variable speed drives, flow sensors, and demand response programs. These innovations enable energy efficiency, optimized performance, and demand response capabilities. New construction projects and building renovations are embracing sustainable design, adhering to codes and standards, and implementing green building practices. HVAC systems are being modeled and simulated to ensure optimal energy usage and carbon footprint reduction.

Air conditioning systems are being augmented with air filtration and indoor air quality solutions, such as air purifiers, UV air treatment, and humidity sensors. Water systems are being optimized for energy efficiency and carbon footprint reduction through the use of heat pumps and cooling towers. Variable refrigerant flow and VAV systems are gaining popularity for their energy efficiency and ability to adapt to changing environmental conditions. Smart controls and building automation systems are being employed to enhance overall system performance and reduce energy consumption. Carbon dioxide monitoring and temperature sensors are becoming essential components of HVAC systems, ensuring optimal indoor air quality and maintaining a healthy environment for building occupants.

HVAC software and cloud-based platforms are facilitating the integration of these advanced technologies, enabling building owners and operators to make data-driven decisions and maximize their return on investment.

How is this Commercial HVAC Industry segmented?

The commercial HVAC industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Equipment
  Services


Type

  Heat pump
  Furnaces
  Boilers
  Unitary heaters


Technology

  Conventional HVAC systems
  Smart HVAC systems


Variant

  Retrofit and replacement
  New installation


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

The Equipment segment is estimated to witness significant growth during the forecast period. HVAC equipment, which includes heating, ventilation, and air conditioning systems, is experiencing significant demand due to the construction boom in the Middle East and Asian economies. In Europe and North America, where harsh winters necessitate heating, underfloor heating (UFH) systems are increasingly popular due to their energy savings and minimal space requirement. Split systems, a type of air conditioning equipment, are also gaining traction due to their energy efficiency and flexibility. Cloud-based platforms and building management systems are

Snapshot img

Industrial HVAC Market Size 2025-2029

The industrial hvac market size is forecast to increase by USD 6.81 billion at a CAGR of 7.9% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing demand for energy-efficient systems that cater to the expanding industrial sector. This trend is further fueled by the growing adoption of advanced refrigerants in air conditioning systems, which offer improved thermal efficiency and reduced environmental impact. However, the market faces regulatory hurdles that impact adoption, with frequent changes in regulations governing the use of certain refrigerants and emissions standards. These regulatory shifts necessitate continuous innovation and adaptation from market players. Additionally, supply chain inconsistencies temper growth potential due to the complex nature of the industrial HVAC value chain, which involves multiple stakeholders and components. To capitalize on market opportunities and navigate these challenges effectively, companies must stay informed of regulatory developments and invest in robust supply chain management strategies. By focusing on energy efficiency, regulatory compliance, and supply chain resilience, players can differentiate themselves in the competitive landscape and seize growth opportunities in the market.

What will be the Size of the Industrial HVAC Market during the forecast period?

Request Free SampleThe market in the US is witnessing significant growth, driven by the increasing demand for high-performance systems in various sectors, including food and beverage production. Energy management and air quality are key priorities, leading to the adoption of demand-controlled ventilation, airside economizers, and energy recovery units. Thermal energy storage and evaporative cooling systems are also gaining traction due to their energy efficiency. HVAC design is focusing on airflow management, pressure control, and zone control to optimize energy usage and enhance precision air conditioning. Energy audits are essential for identifying areas of improvement and implementing energy-saving measures. HVAC services are essential for maintaining the performance of HVAC equipment, including fan coil units, air conditioning coils, and refrigerant systems. Data centers require specialized HVAC solutions, such as humidity control systems and cooling towers, to maintain optimal operating conditions. Industrial refrigeration systems are another critical application, requiring efficient and sustainable HVAC technology, including heat exchangers and condensing units. Cloud-based HVAC management and remote monitoring systems are increasingly popular for enhancing system performance and reducing maintenance costs. The building envelope, including window glazing and exhaust systems, plays a crucial role in HVAC system design and efficiency. Air curtains and thermal storage are also essential components for maintaining temperature control and reducing energy consumption. HVAC innovation continues to drive advancements in HVAC technology, including new designs for air conditioning coils, heat exchangers, and pressure control systems.

How is this Industrial HVAC Industry segmented?

The industrial hvac industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. End-userProcess industryAutomotiveData CentersHealthcareEnergy & PowerCommercial BuildingsMiningPulp & PaperTypeHVAC equipmentHVAC servicesEquipmentHeat PumpFurnaceUnitary SystemsBoilersAir PurifierDehumidifierAir HandlingUnitsVentilation FansChillersCooling TowersRooftop UnitsHumidifiersDuct SystemsControls/Control SystemsFiltersGeographyNorth AmericaUSCanadaEuropeFranceGermanyUKMiddle East and AfricaUAEAPACChinaJapanSouth KoreaSouth AmericaBrazilRest of World (ROW)

By End-user Insights

The process industry segment is estimated to witness significant growth during the forecast period.The market encompasses various sectors, including food and beverage, data centers, heavy industries, and more. In the food and beverage industry, demand-controlled ventilation and energy management systems are essential for maintaining optimal indoor air quality and reducing energy consumption. Energy efficiency is a top priority for data centers, leading to increased adoption of smart HVAC systems, IoT integration, and building automation. Heavy industries, such as oil and gas, power generation, and manufacturing, are implementing energy-efficient solutions like variable refrigerant flow and VAV systems to minimize energy usage and meet sustainability goals. The integration of renewable energy sources and predictive maintenance strategies further enhances the efficiency of HVAC systems in these industries. Industrial ventilation systems are crucial

The US HVAC (Heating, Ventilation, and Air Conditioning) industry, a significant segment of the global market, is experiencing robust growth fueled by several key factors. The increasing demand for energy-efficient systems, driven by rising energy costs and environmental concerns, is a primary driver. Furthermore, the aging housing stock in the US necessitates significant retrofitting projects, contributing substantially to market expansion. Stringent building codes and regulations promoting energy efficiency are also pushing adoption of advanced HVAC technologies. The commercial sector, encompassing office buildings, retail spaces, and industrial facilities, is a significant contributor to the market size, with ongoing construction and renovation activities driving demand for new installations and upgrades. Residential installations, while a large segment, show growth influenced by new home construction rates and homeowner investments in home comfort and energy efficiency. Technological advancements, such as smart thermostats, inverter technology, and the integration of renewable energy sources, are reshaping the industry, creating opportunities for innovative products and services. Competition is intense, with established players like Lennox International and Carrier Corporation vying for market share alongside numerous regional and specialized HVAC companies. The market’s growth trajectory, currently estimated at a CAGR of 6.60%, points towards a substantial increase in market value over the forecast period (2025-2033). The US HVAC market's segmentation reveals key trends. While the residential sector remains large, the industrial and commercial sectors demonstrate higher growth potential due to large-scale projects and infrastructure development. New installations dominate in commercial construction, while retrofitting activities are substantial in the residential and industrial sectors. The geographical distribution reflects high concentration in densely populated areas and regions with extreme climates requiring effective heating and cooling solutions. Future growth is projected to be influenced by government policies supporting energy efficiency, technological innovation in areas like heat pump technology and smart home integration, and shifts in consumer preferences towards sustainability and energy conservation. The industry’s future hinges on its ability to innovate, adapt to evolving regulatory landscapes, and meet the rising demand for sustainable, efficient, and technologically advanced HVAC solutions. This includes a potential expansion in the adoption of geothermal systems and other renewable-energy-integrated HVAC solutions. Recent developments include: May 2022: NearU Services announced its partnership with Bullman Heating and Air, an HVAC service provider in North Carolina. The collaboration with Bullman and NearU's May partnership with Mountain Air Mechanical Contractors will boost NearU's service capabilities in the rapidly-growing Asheville area., January 2022: Marcone, a home appliance, HVAC, and plumbing repair parts distributor across North America, announced the acquisition of Munch, a distributor of HVAC equipment, parts, and supplies. The acquisition established Marcone as one of the leaders in the HVAC sector.. Key drivers for this market are: Growth in Construction Activity, Higher Awareness on Energy Awareness Systems; Large Installed Base of HVAC Equipment in the Country. Potential restraints include: Growth in Construction Activity, Higher Awareness on Energy Awareness Systems; Large Installed Base of HVAC Equipment in the Country. Notable trends are: Industrial and Commercial Segment to Grow Significantly.

Having seen growth through the end of 2025, revenue for the heating and air-conditioning contractors industry is influenced by changes in per capita disposable income, interest rates, consumer spending and a host of other drivers. HVAC contractors operate a steady business thanks to the necessity of their services and regular repair and maintenance work. Government support, including Qualified Improvement Property (QIP) tax write-offs, has aided revenue growth. Coming off the heels of historically low rates, interest rate hikes weakened residential and nonresidential markets since 2022. The elevated cost of borrowing particularly reduced residential construction activity, while nonresidential construction managed to continue expanding amid a hot reopened economy. Manufacturing construction spending, in particular, saw strong growth amid supportive federal policies. Interest rate cuts, which began in 2024 and have continued into 2025, provide a bright spot for contractors. Overall, revenue for heating and air-conditioning contractors is expected to expand at a CAGR of 2.5% during the current period, reaching $156.2 billion in 2025, when revenue is set to climb 2.4%. As interest rate cuts are set to continue and construction activity continues to expand along with the broader US economy, HVAC contractors will see expanding opportunities. High wages and corporate profit will hike spending from the residential and nonresidential sectors, aiding revenue growth. Contractors will see new opportunities as consumers seek newer and environmentally friendly systems. Tax credits and grants for energy-efficient heating and cooling equipment under the Inflation Reduction Act (IRA) will provide an avenue of growth for the industry. However, some of the second Trump administration's policies could threaten HVAC contractors; the administration paused certain funding included in the IRA, which could threaten rebates for heat pumps. A potentially escalating trade war also stands to drive up prices. Still, revenue for heating and air-conditioning contractors is forecast to rise at a CAGR of 2.6% during the outlook period, reaching $177.7 billion in 2030, while profit is set to see tepid growth amid continued labor shortages.

The US HVAC equipment market, a significant segment of the global market, exhibits robust growth potential. With a global market size of $45.46 billion in 2025 and a Compound Annual Growth Rate (CAGR) of 5.76%, the US market likely commands a substantial share, considering its large residential and commercial building stock. Growth is driven by several key factors: increasing urbanization and construction activity leading to higher demand for new HVAC installations, rising disposable incomes boosting consumer spending on energy-efficient home upgrades, and stringent government regulations promoting energy conservation and reducing carbon emissions. These regulations are driving the adoption of high-efficiency equipment like heat pumps and smart thermostats. Furthermore, technological advancements leading to the development of more efficient and sustainable HVAC systems, such as those integrating renewable energy sources, are contributing to market expansion. However, challenges remain, including supply chain disruptions impacting equipment availability and price fluctuations, increased material costs, and potential labor shortages impacting installation timelines. The market segmentation reveals strong demand across residential, commercial, and industrial sectors. Within equipment types, air conditioning units, particularly unitary and room air conditioners, dominate due to rising temperatures and increased reliance on climate control. However, the growing awareness of energy efficiency and sustainability is driving increased adoption of heating equipment like heat pumps, offering both heating and cooling capabilities, representing a significant growth opportunity. The competitive landscape is characterized by established players like Daikin, Lennox, Rheem, Trane, and Carrier, alongside emerging companies focusing on innovative technologies. The US market's projected growth trajectory for the next decade reflects a positive outlook, although fluctuations due to economic conditions and technological disruptions should be considered. The forecast period (2025-2033) is expected to witness substantial growth, fueled by the aforementioned drivers, positioning the US HVAC market as a lucrative investment opportunity. Recent developments include: August 2024 - Daikin Applied unveiled its latest self-contained HVAC system, the SWP J-Vintage. This cost-effective and highly efficient unit is upgraded with the low-global warming potential (GWP) R-32 refrigerant. Tailored for floor-by-floor applications, the SWP J-Vintage is packed with features that empower customers to shrink their carbon footprint, all while ensuring top-notch performance at reduced costs., May 2024 - Lennox and Samsung, a globally trusted brand with 40 years of pioneering HVAC technology, inked a deal to form a joint venture. This venture is expected to focus on selling ductless AC and heat pump products (including mini-split, multi-split, and VRF) across the United States and Canada. The newly minted entity is expected to operate under the name Samsung Lennox HVAC North America.. Key drivers for this market are: Growing Adoption of Home and Building Automation Systems, Increasing Demand for Energy-efficient Devices. Potential restraints include: Growing Adoption of Home and Building Automation Systems, Increasing Demand for Energy-efficient Devices. Notable trends are: Residential Sector to be the Largest End User.

The global heating, ventilation, and air conditioning (HVAC) market is projected to reach about ***** billion U.S. dollars by 2030, based on a compound annual growth rate (CAGR) of *** percent between 2020 and 2030. A more recent projection estimates that the market volume of the HVAC market will reach ***** million units by 2024. Growth in the HVAC market is likely due to continued growth in construction sector revenues, from both publicly and privately funded projects. Air conditioning Mini split air conditioners generate over half of the HVAC market sales revenue, likely due to its early and widespread adoption within the residential sector. Split air conditioner systems have an outdoor and indoor unit. Installation for split air conditioners tend to be much easier as it does not require ductwork and instead, just uses electric wires and tubing to connect the indoor and outdoor units. The demand for air conditioning is increasing worldwide as global temperatures increase. HVAC systems promote improved quality within indoor environments through thermal comfort and acceptable air quality.

Snapshot img

Residential HVAC Market Size 2025-2029

The residential HVAC market size is forecast to increase by USD 48.82 billion at a CAGR of 8.8% between 2024 and 2029. The market is experiencing significant growth, driven primarily by the increasing demand for energy-efficient heating and cooling systems in the construction industry.

Major Market Trends & Insights

APAC dominated the market and accounted for a 49% share in 2023.
The market is expected to grow significantly in Europe region as well over the forecast period.
Based on the Type, the HVAC euipment segment led the market and was valued at USD 58.79 billion of the global revenue in 2023.
Based on the Product, the air conditioning system segment accounted for the largest market revenue share in 2023.

Market Size & Forecast

2024 Market Size: USD 92.84 Billion
Future Opportunities: USD 48.82 Billion
CAGR (2024-2029): 8.8%
APAC: Largest market in 2023

The market is experiencing significant advancements, driven by the integration of smart grids and HVAC automation. Data analytics plays a crucial role in optimizing HVAC systems, enabling energy savings and improved customer satisfaction. HVAC innovation continues to evolve, with sustainable design and LEED certification gaining prominence in the industry. HVAC troubleshooting and repair techniques are being enhanced through remote monitoring and predictive maintenance. Building codes and regulations mandate higher energy efficiency standards, driving the demand for HVAC optimization software and commissioning services.

What will be the Size of the Residential HVAC Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

The market is experiencing significant growth, driven primarily by the increasing demand for heating, ventilation, and air conditioning systems in the construction industry. HVAC financing, incentives, rebates, and warranties facilitate the adoption of advanced technologies. HVAC engineering and research are at the forefront of developing new solutions, while building automation systems and demand response programs enable better energy management. HVAC education and training programs ensure a skilled workforce, ensuring the industry remains at the forefront of technological advancements. The HVAC services segment is the second largest segment of the type and was valued at USD 27.24 billion in 2023.

This trend is particularly notable as new homes and renovations prioritize sustainable and technologically advanced HVAC solutions. Furthermore, the integration of power evaluation software in HVAC systems is revolutionizing energy management and efficiency, offering substantial cost savings for homeowners and property developers. However, market expansion is not without challenges. Regulatory hurdles impact adoption, as stringent energy efficiency standards and certifications necessitate considerable investment in research and development for manufacturers.

Additionally, inconsistencies in the supply chain, particularly regarding raw materials and component availability, can temper growth potential and necessitate effective risk management strategies for market participants. Companies seeking to capitalize on market opportunities must navigate these challenges while staying abreast of evolving consumer preferences and technological advancements to maintain a competitive edge. Smart home integration and home automation are transforming the industry, enabling efficiency optimization and allergen removal.

How is this Residential HVAC Industry segmented?

The residential HVAC industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  HVAC equipment
  HVAC services


Product

  Air conditioning system
  Heating system
  Ventilating system


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The HVAC equipment segment is estimated to witness significant growth during the forecast period. The segment was valued at USD 58.79 billion in 2023. It continued to the largest segment at a CAGR of 7.02%. In the realm of residential and industrial HVAC systems, there is a growing emphasis on energy efficiency and sustainability. New home construction and home remodeling projects are integrating advanced HVAC technologies, such as energy-star certified heat pumps, air conditioning units with high SEER and HSPF ratings, and mini-split systems. These systems not only provide optimal temperature control but also contribute to energy savings. Additionally

The North America Commercial HVAC Market Report is Segmented by Type of Component (HVAC Equipment [Heating Equipment, Air Conditioning/Ventilation Equipment] and HVAC Services), End-User Industry (Hospitality, Commercial Building, Public Building, and Other End-User Industries), and Country (United States and Canada). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Heating and air conditioning wholesalers have enjoyed growth. During the pandemic, the residential market boomed thanks to low interest rates, which drove housing starts and home improvement projects. Wholesalers thrived because of this, with substantial demand for HVAC systems. However, interest rate hikes in 2022 and 2023 cooled this surge, leading to a drop in single-family home construction. Still, low housing stock and rate cuts in 2024 boosted new single-family construction activity. Wholesalers have also benefited from the commercial market's recovery, particularly renovations of existing properties and the expansion of warehousing driven by e-commerce and growth in new hotel construction. Industry revenue has been increasing at a CAGR of 0.7% over the past five years to total an estimated $74.3 billion in 2024, including an estimated increase of 4.9% in 2024. Interest rate cuts late in 2024 will contribute to some growth. HVAC wholesalers saw substantial gains amid fluctuating market conditions. The pandemic created an unprecedented demand for residential HVAC systems as people invested in their homes. However, the rise in raw material costs like copper and steel elevated production expenses, impacting wholesalers. Despite these challenges, price-based gains were prevalent, with wholesalers passing increased costs down the supply chain. Enhanced energy efficiency standards pushed wholesalers toward selling more sophisticated and expensive equipment, driving revenue. While the office building construction market lagged because of high vacancy rates, the hotel and warehouse markets provided steady opportunities, contributing to wholesalers' growth. The future is promising for heating and air conditioning wholesalers. Continued interest rate reductions will likely stimulate new residential construction, spurring demand for HVAC systems in single-family and multifamily units. The commercial market is also set to expand, with new retail and restaurant developments on the horizon. However, the need for new office spaces will remain minimal because of high vacancy rates. Environmental regulations are another crucial factor, with impending bans on HCFCs pushing consumers toward greener products. Wholesalers will especially benefit from the growing demand for advanced, eco-friendly HVAC solutions. Industry revenue is forecast to climb at a CAGR of 1.9% to total an estimated $81.7 billion through the end of 2029.

According to Cognitive Market Research, the global HVAC Services market size was USD 72.5 billion in 2022 and will grow at a compound annual growth rate (CAGR) of 6.50% from 2023 to 2030. What Are The Main Drivers Influencing The HVAC Services Market?

Government Tax Credits And Rebate Programs Boost Market Expansion

The availability of tax credit and rebate schemes, as well as other monetary incentives connected with adopting energy-efficient systems, is likely to boost sales of HVAC systems. Various levels of government, including the federal and state governments, have created guidelines to enhance the operation of HVAC systems. Proactive government efforts will also emerge as market growth drivers over the predicted period.

For instance, Customers can apply for the Federal Energy Tax Credit under the Taxpayer Relief Act of 2012 (U.S.)-2017. The credit is not available for all HVAC units. HVAC systems that qualify for tax credits can claim 25C tax credits, which are 10% of the total installation expenses (up to USD 500 or a specified sum ranging from USD 50 to USD 300).

(Source: http://www.energystar.gov/about/federal_tax_credits/central_air_conditioning)

Similarly, Australia's Department of Environment and Energy has launched the 'discounted energy efficient air conditioners for household programs,' which offer a discount ranging from USD 200 to USD 1,000 to New South Wales residents who purchase high-efficiency air conditioners for household use. Similar programs would be critical in driving market expansion throughout the projection period.

(Source:http://www.energy.gov/energysaver/central-air-conditioning)

The Factors Limiting The Growth Of The HVAC Services Market

High Cost of Installation And Maintenance Limit Market Growth

HVAC systems have an average life of roughly 13 years with regular maintenance. This maintenance involves cleaning the filters on a regular basis to remove any silt and dust that has collected on them in order to minimize damage, which might result in the failure of the entire system. Furthermore, because to their limited lifespan and working life cycle, numerous HVAC unit components or parts, such as filters, motors, refrigerant, coolant, and so on, must be changed or serviced on a regular basis. These parts range in price from $50 to $200 or more.

According to consumer organizations and HVAC industry analysts, 90% of air conditioners and furnaces are inappropriately designed and installed. According to the study, ventilation is critical in creating pleasant interior spaces. Rarely, especially in new buildings, does a contractor install enough return air vents to support the system they install.

(Source: http://www.theyesmancan.com/blog/90-are-wrong/)

Impact of the COVID-19 Pandemic on the HVAC Services market:

During the early phases of the worldwide health crisis, official limitations imposed to prevent the spread of COVID-19 had an impact on the day-to-day operations of several vehicle manufacturers. Strict limitations and supply chain interruptions caused a scarcity of semiconductor chips, threatening the majority of market participants. Several Asia-Pacific economies witnessed dramatic drops in GDP in 2020, as many of the countries' economic activity came to a standstill. Machinery exports from China, Japan, and ASEAN countries fell. Travel restrictions, the appearance of the delta strain of COVID-19, and other challenges all had an influence on the global value chain (GVC) in 2021. Car exports to the Association of Southeast Asian Nations (ASEAN) were erratic, with the majority of items being electrical and equipment Introduction of HVAC Services:

The heating, ventilation, and air conditioning (HVAC) system moves air between interior and outdoor locations. They filter the interior air to keep the atmosphere healthy and humidity at a comfortable level. HVAC equipment is employed in a variety of settings, including retail malls, industrial buildings, and warehouses. It may be used to many locations and building types, such as proper air conditioning through heating and cooling, air pressure, and air supply. A feature that helps the building's residents feel comfortable and secure. Because of the increasing integration of HVAC goods with Internet of Things (loT) technology, the worldwide market is witnessing huge changes, making HVAC products more creative and inexpensive.

The focu...

Unlock data-backed intelligence on the U.S. HVAC Systems Market, size at USD 40.41 billion in 2023, featuring industry growth and key developments.