Air Conditioning Equipment Market in the US

Report Overview

Replacement of Aging Equipment to Remain the Key Driver of Growth

US demand for air conditioning equipment is expected to advance 4% annually through 2021. The replacement of aging equipment in existing structures and a rising installation rate for central air conditioning in new buildings will continue to drive overall sales. However, demand is expected to slow from gains recorded during the 2011-2016 period, when there was a higher level of replacement sales to alleviate pent up demand following the Great Recession. Replacement cycles are expected to normalize going forward, slowing the overall pace of growth.

Key Findings in the Air Conditioning Equipment Study:

Unitary Air Conditioners to Remain Dominant

Unitary air conditioners are the most widely used type of air conditioning equipment in the US and accounted for 80% of all value sales in 2016. In both residential and light commercial buildings, a unitary air conditioner can be easily paired with a warm air furnace, which allows it to utilize the same ductwork.

Room Air Conditioner and Absorption Chiller Demand to Decline Through 2021

As more buildings are either constructed with or retrofitted to utilize central air conditioning systems, the need for supplemental room air conditioners will become limited, negatively impacting equipment sales. In addition, the rising efficiencies of mechanically operated chillers will continue to take market share away from absorption liquid chillers in commercial settings.

Residential Market to Remain the Faster Growing

The residential market for air conditioning equipment is expected to outperform the commercial market through 2021. Ongoing replacement activity will remain the key factor boosting equipment sales. Continued strength in the construction of new housing units will also have a positive impact on demand.

Study Coverage

This industry study presents historical demand data (2006, 2011, and 2016) and forecasts (2021) by product (warm air furnace, boiler, and room and zone heating equipment), market (commercial and residential), and US region (Midwest, South, Northeast, and West). Demand is presented in both dollars and units. The study also evaluates company market share and provides a competitive analysis of leading manufacturers, including Daikin Industries, Ingersoll-Rand, Johnson Controls, Lennox, LG Electronics, Nortek, Rheem, and United Technologies.