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U.S. Residential HVAC Market Analysis

  • Report ID: GMI11267
  • Published Date: Sep 2024
  • Report Format: PDF

U.S. Residential HVAC Market Analysis

Based on the product type, the heat pump segment was worth around 6.8 billion in 2023 and is anticipated to grow at a CAGR of 7.7% during 2024 to 2032. Heat pump systems optimize energy use and cost efficiency by switching between an electric heat pump and a gas furnace, depending on outdoor temperatures.
 

According to the U.S. Department of Energy, these systems leverage the efficiency of heat pumps during milder weather while relying on furnaces for extreme cold. The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) reports that geothermal heat pumps, which tap into the earth's stable temperature, can provide up to 70% savings on heating costs compared to traditional systems, albeit with high initial costs. Ducted heat pumps, utilizing a network of ducts for air distribution, are ideal for larger homes but necessitate significant ductwork. In contrast, ductless heat pumps, or mini splits, connect outdoor units to indoor ones, making them perfect for homes lacking ductwork or for adding targeted comfort.
 

U.S. Residential HVAC Market Revenue Share, By installation, 2023

Based on the installation, the replacement/retrofit segment held around 55% of the market share in 2023 and is anticipated to grow at a CAGR of 7.2% through 2032. Homeowners in the U.S. are increasingly upgrading to high-efficiency HVAC systems to reduce energy costs and enhance comfort. The trend is moving towards replacing older units with modern systems featuring higher SEER ratings and better performance. Variable-speed furnaces and heat pumps are popular for their consistent temperature control and lower energy consumption. Additionally, there is a growing interest in retrofitting homes with smart HVAC technology and advanced air filtration systems to improve indoor air quality and integrate with smart home setups.
 

U.S. Residential HVAC Market Size, 2021 – 2032, (USD Billion)

The U.S. residential HVAC market size surpassed USD 14.2 billion in 2023 and is anticipated to grow at a CAGR of 7.3% during 2024 to 2032, due to its large housing sector, advanced technology, and strong regulations. The country's varied climate from cold northern areas to hot southern states creates a steady need for heating and cooling, making HVAC systems essential in most homes. Many U.S. homes have air conditioning and heating units. The U.S. government's focus on energy efficiency and sustainability, along with federal and state incentives, has sped up the move to more energy-efficient HVAC systems. This has driven innovation among manufacturers and increased the availability of high-performance units that meet the country's diverse climate needs.
 

Authors: Avinash Singh, Sunita Singh

Frequently Asked Questions (FAQ) :

The market size of U.S. residential HVAC was worth over USD 14.2 billion in 2023 and is anticipated to register a CAGR of 7.3% between 2024 to 2032, owing to the growing housing sector and rapid urbanization.

The heat pump segment of the U.S. residential HVAC industry was worth around 6.8 billion in 2023 and is anticipated to record a CAGR of 7.7% through 2032, as they optimize energy use and cost efficiency by switching between an electric heat pump and a gas furnace, depending on outdoor temperatures.

The replacement/retrofit segment held around 55% market share in 2023 and is anticipated to record a CAGR of 7.2% through 2032, as homeowners in the U.S. are increasingly upgrading to high-efficiency HVAC systems to reduce energy costs and enhance comfort.

Bryant Heating & Cooling Systems, Carrier Corporation, Daikin, Goodman Manufacturing, Honeywell International Inc., Ingersoll Rand, Johnson Controls, Lennox International Inc., LG Electronics USA, and Midea Group among others.

U.S. Residential HVAC Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 15
  • Tables & Figures: 311
  • Countries covered: 1
  • Pages: 390
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