The U.S. HVAC (heating, ventilation and air conditioning) market was valued at $17.15 billion in 2022 and is expected to grow at a CAGR of 5.6% from 2022 to 2030, according to Research and Markets. In addition, by 2030, the HVAC industry will experience an 8% increase in job growth.
Extreme climate conditions, infrastructure developments, and a rising focus on comfort are behind the growth of the HVAC market in the U.S. In response, the HVAC industry continually innovates to pave the way for more efficient and effective systems. Here is a look at some of the trends continuing in the HVAC market.
Energy-Efficient and Smart HVAC Systems
HVAC technologies that use less energy in residential and commercial buildings have the potential to provide environmental and economic benefits. According to Research and Markets, optimizing energy-efficient HVAC technologies and proper installation planning can help achieve up to 40% energy savings.
Variable refrigerant flow (VRF), smart controls, and energy recovery systems are gaining popularity. Smart thermostats, connected sensors, and advanced control systems enable users to optimize energy usage, monitor system performance remotely, and enhance comfort levels. Integration with home automation and voice assistants also provides convenience. Replacing existing equipment with energy-efficient HVAC technologies will boost the HVAC market’s growth rate.
Traditional centralized HVAC systems are being complemented or replaced by decentralized systems. These decentralized systems, such as ductless mini-split systems, allow for more precise control over individual zones, greater installation flexibility, and reduced energy waste.
Renewable Energy Integration
Legislation such as the 2022 Inflation Reduction Act is accelerating the HVAC industry’s transition to renewable energy through regulatory changes and financial incentives to make energy-efficient purchases more affordable and clean energy and electric equipment more accessible. The Better Energy, Emissions, and Equity (E3) Initiative of the United States Department of Energy (DOE) is focused on deploying clean heating and cooling systems, such as advanced water heaters, heat pumps, environmentally friendly refrigerants, and smarter HVAC diagnostic tools for residential and commercial buildings. Furthermore, the DOE Cold Climate Heat Pump Program, which began in 2021, is reducing carbon emissions by improving the efficiency and affordability of electric heating equipment.
New Seasonal Energy Efficiency Ratio (SEER) ratings went into effect in 2023, changing the standard efficiency of HVAC equipment that can be sold and installed in the U.S. New air conditioners sold in the U.S. must have a minimum SEER of 14 in the northern states and 15 in the southern states by 2023. SEER ratings determine the energy efficiency of air conditioners.
Green Building Standards
The growing emphasis on green building standards and energy codes impacts the HVAC market. Building codes are increasingly promoting the use of energy-efficient HVAC systems and encouraging compliance with environmental regulations. This trend drives innovation in HVAC technologies and encourages manufacturers to develop eco-friendly products.
Indoor Air Quality (IAQ)
Concerns about indoor air quality have been amplified, increasing demand for HVAC systems that effectively address IAQ issues. Customers seek systems with better filtration, humidity control, and ventilation capabilities to ensure healthier indoor environments. As a result, IAQ sensors and air purification technologies are becoming common features in modern HVAC systems.
Maintenance and Predictive Analytics
The HVAC industry is shifting toward proactive maintenance and predictive analytics. HVAC systems equipped with sensors and IoT connectivity can collect real-time performance data and provide predictive maintenance insights. This approach helps optimize system efficiency, minimize downtime, and reduce long-term costs.
The Road Ahead
To meet rising demand, the HVAC market is well positioned to continue to grow. Additional HVAC industry trends focused on energy efficiency and sustainability are expected to emerge in the coming years. HVAC manufacturers are creating products that use cutting-edge technology to save energy, with smart HVAC technology expected to become even more popular among homeowners to lower energy consumption and reduce carbon footprint.