Residential HVAC Market Updates

Global Residential HVAC Market size was valued at USD 83.8 Billion in 2024 and is poised to grow from USD 89.6 Billion in 2025 to USD 144.53 Billion by 2032, growing at a CAGR of 6.9% in the forecast period (2025-2032).

Increasing technology requires skilled technicians with up-to-date training and hands-on experience with technologies such as IoT, AI, and energy-saving systems. But demand exceeds supply, and thus there remains room for postponed installations, increased service fees, and diminished system performance. Shortage may prove to be a limitation in market expansion and affect adoption of advanced technology in HVAC. Residential HVAC Market is competitive with large players vying on the grounds of energy consumption efficiency and technological advancement to capture market share. 'Carrier Global Corporation (USA)', 'Daikin Industries, Ltd. (Japan)', 'Lennox International Inc. (USA)', 'LG Electronics Inc. (South Korea)', 'Johnson Controls International plc (Ireland)', 'Trane Technologies (USA)', 'Rheem Manufacturing Company (USA)', 'Mitsubishi Electric Corporation (Japan)', 'Emerson Electric Co. (USA)', 'Honeywell International Inc. (USA)', 'Hitachi, Ltd. (Japan)', 'Haier Smart Home Co., Ltd. (China)', 'Samsung Electronics Co., Ltd. (South Korea)', 'Fujitsu General Ltd. (Japan)', 'Midea Group Co., Ltd. (China)', 'Nortek Global HVAC (USA)', 'Goodman Manufacturing (USA)', 'York (USA) ', 'Bosch Thermotechnology (Germany)', 'Vaillant Group (Germany)'

Increasing awareness of energy savings and increasing energy usage cost are the primary drivers of demand for energy-saving residential HVAC products. Buyers want products that provide comfort at affordable utility bills and reduced carbon footprints. Government incentives such as tax credits and rebates for installing high-efficiency HVAC systems also drive demand. This demand compels businesses to develop and bring new products like heat pumps, intelligent thermostats, and high-SEER air conditioners, all of which play a role in developing the market.

Technologies of intelligence are being incorporated into HVAC systems and revolutionizing home indoor climate control. Home automation programs, networked air conditioning, heating, and ventilation, and smart thermostats offer accurate temperature adjustment, highest energy efficiency, and remote monitoring. The systems learn the users' habits, adapt automatically, and offer energy consumption intelligence. The growing use of networked home devices and voice assistants accelerate the trend and demand HVAC systems that are suitable for the networked home environment.

What are the Primary Drivers of North America's Dominance in the Residential HVAC Market?