North America Air Conditioning Equipment Market Size (2024 - 2029)

North America Air Conditioning Equipment Market Analysis

The North America Air Conditioning Equipment Market size is estimated at USD 27.36 billion in 2024, and is expected to reach USD 36.53 billion by 2029, growing at a CAGR of 5.90% during the forecast period (2024-2029).

An air conditioner is a system that cools a space by extracting heat and transferring it outside. This cooled air is then distributed throughout a building via ventilation. As an essential part of the HVAC system, air conditioners regulate home temperatures to enhance comfort and livability.

• The US real estate market is witnessing a robust upswing, buoyed by escalating construction outlays and a surge in building permits across residential, commercial, and industrial segments. Notably, the US construction sector is poised for further expansion, fueled by substantial federal investments in infrastructure. This momentum extends beyond public initiatives, with private commercial construction endeavors also gaining traction.
• These interconnected and smart AC equipment offer numerous benefits. Smart AC systems help optimize energy usage by learning user preferences and adjusting cooling schedules accordingly. This not only provides comfort but also reduces energy consumption and costs. The ability to control AC systems remotely via smartphone apps or voice commands is becoming a standard consumer expectation. Advanced smart AC systems can monitor their own performance and alert users to potential issues before they become major problems. This can extend the life of the unit and ensure it operates efficiently.
• Efforts to promote energy efficiency in homes have experienced significant fluctuations since the oil shocks of the 1970s, which increased the financial incentives for reducing energy consumption. Currently, energy efficiency is a primary driver for home renovations, supported by various policies across North America. These policies include energy audits, energy performance certificates, and financial incentives like grants, subsidies, tax credits, low-interest loans, and third-party financing.
• The North American HVAC industry is required to follow strict safety regulations and standards. Utilizing gas detection and monitoring systems shows dedication to compliance and following safety guidelines. By incorporating these systems, HVAC companies can meet regulatory standards, create a safe workplace, and reduce the likelihood of facing penalties or legal consequences.
• IoT-enabled smart air conditioning equipment gained traction among consumers as these systems enable users to operate and manage ACs using smartphones and desktops. In April 2024, Soracom Inc., a prominent global IoT connectivity provider, announced its collaboration with Mitsubishi Electric Europe BV. The partnership aims to integrate Soracom's cellular connectivity into MELCloud, Mitsubishi Electric's cloud-based remote management system. MELCloud specifically caters to Mitsubishi Electric's air conditioning, heating, and heat recovery/ventilation products, ushering in a new era of remote control and management capabilities.

North America Air Conditioning Equipment Industry Segmentation

The market is defined by the revenue accrued through the sale of AC equipment by various players in North America.

The North American air conditioning equipment market is segmented by type (unitary air conditioners [duct splitting, ductless mini-split, and indoor packages and rooftops], room air conditioners, packaged terminal air conditioners, and chillers), end user (residential, commercial, and industrial), country (United States and Canada), and efficiency (low efficiency [13 SEER] and high efficiency [>13 SEER]). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.