United States Commercial HVAC Market By Product Type (Chillers, Cooling Towers, Air Handling Units, VRF, Heat Pumps, Others (HVAC Control Systems, Boilers, Ductable Splits, etc.)), By End User (Industries, Institutional, Commercial Real Estate, HORECA, Others (Data Centers, Cold Storages, etc.)), By Sales Channel (Distributor/Dealer, Institutional Sales), By Region, Competition Forecast Opportunit
Published Date: November - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Consumer Goods and Retail | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationUnited States Commercial HVAC Market By Product Type (Chillers, Cooling Towers, Air Handling Units, VRF, Heat Pumps, Others (HVAC Control Systems, Boilers, Ductable Splits, etc.)), By End User (Industries, Institutional, Commercial Real Estate, HORECA, Others (Data Centers, Cold Storages, etc.)), By Sales Channel (Distributor/Dealer, Institutional Sales), By Region, Competition Forecast Opportunit
The U.S. commercial HVAC (Heating, Ventilation, and Air Conditioning) market is experiencing significant growth, driven by increasing demand for energy-efficient systems and advancements in technology.In 2024, the market size is estimated at approximately USD 41.79 billion, with projections to reach around USD 63.70 billion by 2029, reflecting a compound annual growth rate (CAGR) of 8.80% during this period.
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Commercial HVAC Market Analysis
The Commercial HVAC Market size is estimated at USD 45.47 billion in 2025, and is expected to reach USD 69.32 billion by 2030, at a CAGR of 8.8% during the forecast period (2025-2030).
- Any commercial building, including offices, restaurants, hotels, hospitals, and schools, needs heating and cooling systems to give its occupants a comfortable space. These systems are widely used in offices to maintain the right temperature and ventilation, which enhances worker productivity and working conditions while preventing health problems brought on by incorrect humidity levels.
- The increasing government initiatives and investments in the adoption of energy-efficient equipment will drive market growth. For instance, in February 2024, the Indian government’s announcement to allocate INR 11.11 lakh crore for infrastructure in the 2024-25 budget created a conducive environment for the HVAC sector's growth. This investment, coupled with the government's focus on self-reliance through initiatives like Atmanirbhar Bharat, is expected to further fuel the industry's expansion.
- In an effort to meet climate change targets, the European Union declared that nations would have to renovate energy-guzzling buildings at a faster pace and adhere to stricter energy-saving targets. The draft proposal would require states to renovate three state-owned and occupied buildings each year to convert them into "near-zero energy buildings." This includes hospitals, government buildings, schools, and social housing, and it will amount to more than 700,000 renovated buildings per year.
- The increase in the construction of offices, rising temperature conditions, and rising adoption of IoT and green technologies are some of the driving factors contributing to the overall growth of the commercial HVAC market. In addition, according to the Office for National Statistics (United Kingdom), in the first quarter of 2023, the gross value added (GVA) of the construction industry in the United Kingdom was over GBP 4 billion higher than in the same period of the previous year.
- The market is witnessing a growing trend toward smart HVAC systems due to increased energy consumption and the need for higher system efficiency. Increasingly, buyers are looking for smart solutions with IoT integration, real-time monitoring, and improved controls. These intelligent systems maximize energy efficiency, improve comfort, and offer more control over interior spaces.
- The increasing energy prices worldwide make energy-efficient HVAC systems attractive for cost savings. Despite the potential benefits, the initial expenses of installing these systems could limit their widespread use and hinder market expansion.
- The commercial HVAC market is highly affected by factors such as government regulations and new initiatives by the governments of various regions to boost the adoption of energy-efficient equipment. For instance, over the past decade, several types of EU legislation have been introduced to minimize energy consumption, stimulate renewable energy use, and reduce CO2 equivalent emissions to decrease the impact of global warming.
Commercial HVAC Market Trends
Air Conditioning /Ventilation Equipment Witnessed Increasing Demand
- The market for air conditioning equipment in the commercial sector is expanding significantly due to factors such as increasing urbanization, infrastructure development, and the growing emphasis on comfort in business environments.
- There are several reasons why air conditioning systems are becoming more and more common in commercial buildings. Air conditioners are essential for preserving a comfortable atmosphere in contemporary commercial buildings. By moving air through water-cooled or refrigerant systems, these units efficiently reduce the temperature while also removing too much moisture from the air.
- Commercial air conditioning systems tend to be larger in size than domestic ones, and they are more complex. These systems are made up of a number of fundamental components that work together to ensure the highest comfort, air quality, and energy efficiency in business settings. This is because properly designed, maintained, and installed air conditioning systems create favorable environments for employees, customers, and operations while also facilitating the efficient utilization and recycling of energy. By regulating temperature levels effectively, air conditioning aids in sustaining productivity levels regardless of the external heat.
- Furthermore, the business landscape is changing due to factors like growing awareness of indoor air quality, sustainability regulations, and the integration of IoT (Internet of Things) and building automation systems. These changes present opportunities for innovation and market expansion.
- Moreover, several companies are constantly investing in introducing various products catering to the demand for these air conditioning systems in the commercial segment. For instance, in April 2024, Haier announced the launch of its latest range of "super heavy-duty" air conditioners. The new range comes with the company's Hexa Inverter and Supersonic cooling technologies.
- Further, in May 2024, Carrier Midea India Pvt. Ltd announced the opening of India's first Midea Cooling Solutions ProShop in Gurugram. This innovative experiential concept is designed to transform the customer buying experience for air-conditioning products. A wide variety of cutting-edge air conditioning solutions are available for exploration at the Midea ProShop; the company offers a comprehensive selection of Midea HVAC solutions for commercial and residential applications. This covers a full range of VRF (Variable Refrigerant Flow) systems to meet the air-conditioning needs of residential, small businesses, offices, large commercial buildings, and project applications. It also includes a variety of split air conditioners, ducted units, cassette units, and tower units.
- Voltas, an Indian manufacturer, reported sales of over 2 million air conditioners in FY 2023-24, the largest-ever annual sales of ACs in India, according to the company. The company's robust offline and online distribution network, creative new launches, and a steady demand for cooling products were all factors leading to an annual volume growth of 35%, which was accelerated by a 72% growth in Q4.
Asia-Pacific is Expected to Witness Significant Growth
- The expansion of offices, malls, hotels, data centers, hospitals, and retail outlets in India and China is a major driver for the region's commercial HVAC market. In Asia-Pacific, the hospitality sector is a significant user of HVAC equipment and services.
- The hotel industry has more needs and considerations compared to virtually any other sector when it comes to HVAC systems. A comprehensive approach is needed to meet the complex needs of commercial hotels for heating and ventilation, from guest comfort and reliability to overall efficiency and energy savings. Thus, the rising hospitality sector in the region is expected to drive the market’s growth.
- In January 2024, Indian Hotels Company (IHCL) announced the completion of nine pilot projects in collaboration with IFC's TechEmerge Sustainable Cooling Innovation Program within a span of 18 months. This highlights the firm's unwavering commitment to fostering environmentally responsible practices in order to provide efficient, climate-friendly, and cost-effective cooling solutions for India's hospitality industry.
- Many commercial buildings in the region are also pursuing green certifications like LEED, which mandate the installation of energy-efficient HVAC systems. According to the report published by the International Energy Agency, China is the global leader in new heat pump sales. According to the IEA report, China has a large number of new heat pump installations. Furthermore, China boasts the largest workforce dedicated to installing HVAC systems like heat pumps and holds the largest market share in heat pump manufacturing, accounting for 45%.
- Several players in the market are also supporting the growth of HVAC in the region. For instance, in November 2023, Carrier Corporation announced that it had hosted more than 300 commercial HVAC dealers from across China during its annual conference in the designated National Famous Historical and Cultural City of Changsha. Through this event, the company will provide dealers the opportunity to learn more about its innovative solutions, the company's plan to help customers become carbon neutral, and how it is investing in disruptive technologies to accelerate next-generation sustainable solutions. The event focused on how the HVAC industry can help China achieve its dual carbon strategy with intelligent and green building solutions.
- Furthermore, the growing number of data centers, malls, schools, and universities, among others, in developing countries is driving the demand in the HVAC market. Asia-Pacific is witnessing several investments in the construction of advanced data centers. For instance, in April 2024, ST Telemedia Global Data Centres (STT GDC) announced the groundbreaking for its second data center facility in Tokyo, STT Tokyo 2, to support the demand for critical digital infrastructure in the country. The data center campus will provide up to 70 MW of IT capacity, while the STT Tokyo 2 project is estimated to generate up to 38 MW once it is completed.
Commercial HVAC Industry Overview
The commercial HVAC market is fragmented, favorably competitive, and has several prominent players. The market players are focusing on expanding their consumer base across foreign countries by leveraging strategic collaborative initiatives to increase their market share and profitability. These enterprises leverage strategic collaborative initiatives to boost their market share and profitability. Companies such as Carrier Corporation, Daikin Industries Ltd, BDR Thermea Group, Lennox International Inc., and Johnson Controls International PLC are significant players in the market.
- May 2024Lennox International announced the launch of a new HVAC line that reduces global warming potential ‘by up to 78%’. The new Lennox heating, ventilation, and air conditioning products will offer a comprehensive range of products and will use the environmentally responsible refrigerant R454B, which reduces global warming potential by as much as 78%.
- March 2024Panasonic Corporation announced the release of three new models of commercial air-to-water (A2W) heat pumps using environmentally friendly natural refrigerants for multi-dwelling units, stores, offices, and other light commercial properties.
The security, mechanical, HVAC, and humidity control systems were all designed to be controlled and monitored by the building automation system. Total control over the structure and autonomous facilities is the main objective of constructing an automation system. The market for building automation systems is expanding due to increased preference for smart and environment friendly structures among consumers, which is boosting the need for HVAC systems.
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Commercial HVAC Industry Segmentation
The study tracks the revenue accrued through the sale of commercial HVAC equipment and services by various players in the global market. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
The commercial HVAC market 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 geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
Booming Commercial Sector Boosting Market Growth
The construction industry is a key driver of rising demand for HVAC systems. The need for HVAC systems has expanded along with the construction of commercial buildings, fueling the expansion of the commercial HVAC market in the United States. The need for HVAC is anticipated to increase in the upcoming years due to the continued building of malls, schools, metros, airports, supermarkets, retail centers, and other structures around the nation. Several significant manufacturers are projected to expand their operations and manufacturing facilities in the United States over the course of the forecast period as commercial sector construction rises.
Market Segmentation
The United States Commercial HVAC Market is segmented based on product type, end user, sales channel, region, and competitional landscape. Based on product type, the market is further fragmented into chillers, cooling towers, air handling units, VRF, heat pumps, and others like, HVAC control systems, boilers, ductable splits, etc. Based on end user, the market is segmented into industries, institutional, commercial real estate, HORECA, and others such as data centers, cold storages, etc. Based on sales channels, the market is segmented into distributor/dealer and institutional sales. The market analysis also studies the regional segmentation to devise regional market segmentation, divided among South, West, Midwest, and Northeast.
Company Profiles
- Daikin North America LLC
- Carrier Global Corporation
- Mitsubishi Electric Trane HVAC US LLC (METUS)
- Johnson Controls
- Lennox International Inc
- Nortek Global HVAC LLC
- LG Electronics USA
- Samsung HVAC America
- Rheem Manufacturing Company
- Danfoss LLC
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Attribute |
Details |
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Base Year |
2022 |
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Historical Years |
2018 – 2021 |
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Estimated Year |
2023 |
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Forecast Period |
2024 – 2028 |
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Quantitative Units |
Revenue in USD Billion, and CAGR for 2018-2022 and 2023-2028 |
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Report Coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
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Segments Covered |
Product Type End User Sales Channel Region |
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Regional Scope |
South, West, Midwest, Northeast |
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Key Companies Profiled |
Daikin North America LLC, Carrier Global Corporation, Mitsubishi Electric Trane HVAC US LLC (METUS), Johnson Controls, Inc, Lennox International Inc, Nortek Global HVAC LLC, LG Electronics USA, Inc., Samsung HVAC America, LLC, Rheem Manufacturing Company, Danfoss LLC |
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Customization Scope |
10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
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Pricing and Purchase Options |
Avail of customized purchase options to meet your exact research needs. Explore purchase options |
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Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request) |
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