North America Hvac Equipment Market - Growth, Trends, Covid-19 Impact, And Forecasts (2023 - 2028)

North America Hvac Equipment Market - Growth, Trends, Covid-19 Impact, And Forecasts (2023 - 2028)

The North American HVAC equipment market is expected to register a CAGR of 7.10% during the forecast period. Heating, ventilation, and air conditioning (HVAC) systems are widely adopted across North America due to the multiple advantages of HVAC systems, most notably the power-saving techniques.

• Increasing disposable income, rapidly expanding construction activity in emerging economies, and changing weather patterns are driving the growth of the market studied. North America is witnessing a significant increase in the implementation of smart home and smart city programs, driving the market's growth. The government in the area is also trying to get people to move to "smart cities," which will help the market study grow.
• Growing government support, in the form of higher budget allocations designed to increase sustainable community development, may contribute to the continually growing commercial and industrial construction sectors. Besides, increased construction activities, rapid urbanization, and infrastructural reforms result in an upsurge in HVAC unit replacements, thus driving the HVAC equipment market.
• The growth of the North American HVAC equipment market is driven by an increase in demand for smart systems and the integration of the Internet of Things (IoT), industrial automation systems, smart manufacturing, and industry 4.0. A significant portion of the market's above-average growth is anticipated from the uptick in green building construction activities. The smart home market, which is expanding rapidly, is projected to boost the HVAC system market's growth.
• High energy consumption is expected to restrain the global HVAC equipment market's growth during the forecast period. Major entities in the commercial segment, such as retail complexes, hostels, entertainment centers, and others, typically rely on centralized HVAC systems for space conditioning.
• The demand for environmental control during the COVID-19 crisis significantly increased because air filtration, airflow, and humidity are all three critical components in minimizing the risk. Due to this, shutting down an HVAC system during a crisis such as this is not recommended. Filtration is essential in ensuring indoor air quality (IAQ) because if the virus can be captured in the filtration system, it cannot make someone sick inside the building. The HVAC system is poised to play a prominent role in bringing employees back to work by ensuring IAQ levels.

• A heat pump is a device that uses a compressor to draw heat from the outside and pump it inside, as well as a circulating structure of a refrigerant in a liquid or gaseous state, to transfer heat from the source to the point of application. The system can efficiently cool and heat homes, businesses, and industrial buildings.
• The market share that heat pumps are predicted to command is significant. Due to various factors, including climatic conditions, the convenience provided by the equipment, government tax credit benefits, regulations, etc., the use of heat pumps has steadily increased in the North American region.
• Due to a paradigm shift toward adopting energy-efficient products and rising consumer spending, the residential heat pump market in the United States will continue to expand steadily. The business environment will be stimulated by the ongoing progress toward a decarbonized economy, which will be supported by legislative energy policies and incentives. As the number of old buildings that are being fixed up goes up, there will be more demand for flexibility and better comfort. This will make the industry more dynamic.
• The heat pumps are categorized based on types, such as air source, water source, and ground source. The air-source heat pump (ASHP) takes in electricity, extracts heat from the surrounding air, and produces hot water up to 90 degrees Celsius.Due to the extraction of heat from the ambient air, it gets cooler. Thus, the requirement for both hot water and cold air is driving the growth of air-source heat pumps.
• Furthermore, the major players in the HVAC market have been increasing their investments in R&D for fresh, cutting-edge technological solutions that are expected to advance the market further. The market for HVAC in North America is expected to grow as a result of the expanding use of HVAC in smart homes.

• The United States is one of the essential equipment markets, witnessing a steady growth rate. The growing construction activity, availability of high-efficiency systems, and extreme climatic conditions favour system installation across the facilities. Additionally, the presence of leading manufacturers, such as Carriers, Emerson Electric Co., and others, is complementing the growth of the North American market in the future.
• Additionally, with the Internet of Things (IoT) integration, several manufacturers have initiated smart heating, air conditioning, and ventilation system offers that, in turn, are propelling market growth across the United States.
• To ensure a sustainable future, the United States Department of Energy (DOE) is heavily investing in improving energy efficiency standards throughout the country. The DOE wants to make sure that America is safe and doing well by finding science and technology solutions to its environmental, energy, and nuclear problems.
• Moreover, the US Energy Information Administration's (EIA) Residential Energy Consumption Survey (RECS) estimates that 76 million primarily occupied US homes (64% of the total) use central air-conditioning equipment. About 13 million households (11%) use heat pumps for heating or cooling. By 2023, all new residential air-conditioning and air-source heat pump systems sold in the United States will require meeting the latest energy efficiency standards, fueling the growth of HVAC equipment.
• Furthermore, according to the US Census Bureau, new home construction in the United States in June 2022 was around 1.36 million. There were approximately 1.55 million new privately owned housing units in the United States in June 2022. This is further expected to create significant new demand for heat pumps in the country over the forecast period.

The competitive rivalry in the North American HVAC equipment market is high, as the market studied is home to prominent vendors like Daikin, Carrier, and Lennox that command a major market share in different segments and have access to well-established distribution networks. Owing to the HVAC equipment industry being one of the largest markets, the existence of such a high number of major vendors without compromising on their market shares is sustainable. However, each vendor, especially in the heating and cooling segments, is fiercely competing to gain a larger share of the market studied.

In October 2022, Carrier Corporation declared that it had increased the capacity range of its AquaEdge 19DV water-cooled centrifugal chiller in North America. The AquaEdge19DV can now fulfil customer demands for bigger capacity applications, such as commercial high-rise and mixed-use buildings, huge manufacturing enterprises, and healthcare institutions, with a capacity of up to 1150 tons.

In September 2022, Johnson Controls, a provider of smart, healthy, and sustainable buildings, will increase the value of housing through strong financing options and rebates designed to maximize newly announced savings through the Inflation Reduction Act. They are making energy efficiency more affordable and accessible to homeowners. High-efficiency HVAC units from Johnson Controls allow homeowners to reduce heating and cooling costs by up to 50% compared to less efficient systems.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support