Market Trends of North America Air Conditioning Equipment Industry
Residential Sector to Dominate the Market
- The demand for residential air conditioning units in the region is increasing as they are crucial for providing comfort and relief from hot temperatures during the summer months. The types of air conditioning systems commonly used in residential settings vary depending on factors such as climate, building design, energy availability, and cultural preferences.
- According to the Energy Information Administration (EIA), central air conditioning is widely adopted by North Americans as the primary method of cooling their homes. The EIA reports a growing trend of households in the region opting for central air conditioning systems, which are significantly more favored than window or wall units. Another popular option is ductless mini-split systems. They provide zoned cooling, allowing homeowners to control the temperatures of different areas of the house independently.
- The rising temperatures in the region, attributed to climate change, have elevated the need for air conditioning systems from a luxury to a necessity in many states. Consequently, a growing number of individuals in the region are choosing to equip their homes with air conditioning. This adoption trend is poised to escalate further as the planet's temperature continues its upward trajectory. Given the shifting climate dynamics, the residential air conditioning market is set for significant growth over the forecast period.
- In addition, according to the US Census Bureau, construction of residential buildings and homes increased by 8% in April 2024 compared to April 2023. In April 2024, construction spending in residential reached an estimated annual rate of USD 902.29 billion. Such factors are anticipated to drive the market's growth. Furthermore, the growing residential construction across the region is expected to create new market opportunities in the coming years.
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Canada to Witness Significant Growth
- The country is experiencing a surge in air conditioning demand due to the rise in luxury residential infrastructure projects. Market players can expect numerous opportunities over the forecast period, thanks to factors such as increased urbanization and higher per capita income. Central air conditioning systems are highly favored in Canada and are ideal for mid-to-large family homes, as well as for homes with multiple stories.
- According to CREA, the number of home sales in 2023 was recorded at 443,511, and it is expected to reach almost 525,500 by 2025. Due to the variable climate and severe winters, air conditioner equipment has become essential in the majority of Canadian households. Numerous regions in Canada experience extreme heat events or heat waves characterized by soaring temperatures and high levels of humidity. According to the initial data disclosed by the BC Coroners Service, a total of 619 individuals lost their lives due to the intense heat during the prolonged summer heat wave in British Columbia.
- To avoid such circumstances, the government is focusing on providing free air conditioning equipment. For instance, in May 2024, the BC government announced an additional CAD 20 million (USD 14.53 million) to provide thousands of free air conditioning units to those who need financial assistance and people vulnerable to heat.
- The program managed by BC Hydro has distributed 6,000 complimentary AC units up to this point, with additional funding anticipated to result in a total of approximately 28,000 AC units being distributed.
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