Air Conditioning Equipment Market in the US by Product, Market and Region

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.

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EXECUTIVE SUMMARY

OVERVIEW

Key Findings

Factors Influencing Air Conditioning Equipment Demand

Climate Zones

Energy Efficiency

Impact of Tax Credits on Air Conditioning Equipment Demand

Pricing Trends

Overall Air Conditioning Equipment Price Trends

Pricing Trends by Product

Market Volatility

Foreign Trade

Foreign Trade Overview

Imports

Exports

PRODUCTS

Key Findings

Historical Supply & Demand Trends

Supply & Demand Forecasts

Demand Forecast by Unit

Air Conditioning Equipment Demand by Product

Air Conditioning Equipment Product Overview

Unitary Air Conditioners

Overview

Supply & Demand

Demand Forecasts

Demand by Type

Overview of Unitary Air Conditioner Types

Split

Packaged

Room Air Conditioners

Overview

Supply & Demand

Demand Forecast

Packaged Terminal Air Conditioners

Overview

Supply & Demand

Demand Forecasts

Chillers

Overview

Supply & Demand

Demand Forecasts

Absorption Liquid Chillers

Overview

Supply & Demand

Demand Forecasts

MARKETS

Key Findings

Use of Central Air Conditioning Equipment by Market

Air Conditioning Equipment Demand by Market

Air Conditioning Equipment Markets Overview

Commercial

Air Conditioning Market Overview

Demand by Building Type

Demand by Product Type

Residential

Air Conditioning Market Overview

Existing Buildings

New Buildings

Demand by Building Type

Demand by Product Type

REGIONS

Key Findings

Relationship Between Air Conditioning Equipment Demand & Construction Spending

Air Conditioning Equipment Demand by Region

Northeast

Regional Overview

Demand Forecasts

Demand by Product

Midwest

Regional Overview

Demand Forecasts

Demand by Product

South

Regional Overview

Demand Forecasts

Demand by Product

West

Regional Overview

Demand Forecasts

Demand by Product

INDUSTRY STRUCTURE

Key Findings

Industry Composition

Market Share

Competitive Strategies

Product Development & Manufacturing

Marketing

Distribution

Cooperative Agreements

Mergers, Acquisitions, & Industry Restructuring

List of Industry Participants

APPENDIX

Scope

Methodology

Sources

Associations & Agencies

Related Freedonia Group Studies

Definitions

Abbreviations

Climate Zones

Macroeconomic Assumptions

Economic Environment

Demographic Trends

Consumer Spending

Building Construction

Residential

New Housing

Housing Stock

Improvements & Repairs

Nonresidential

List of Tables

OVERVIEW

Table 2-1 | Air Conditioning Equipment Pricing Trends, 2006-2021 (dollars/unit)

Table 2-2 | Foreign Trade in Air Conditioning Equipment, 2006-2021 (million dollars)

Table 2-3 | Air Conditioning Equipment Imports by Source, 2006-2016 (million dollars)

Table 2-4 | Air Conditioning Equipment Exports by Destination, 2006-2016 (million dollars)

PRODUCTS

Table 3-1 | Air Conditioning Equipment Supply & Demand, 2006-2021 (million dollars)

Table 3-2 | Air Conditioning Equipment Demand, 2006-2021 (million dollars)

Table 3-3 | Air Conditioning Equipment Demand by Unit, 2006-2021 (000 units)

Table 3-4 | Unitary Air Conditioner Supply & Demand, 2006-2021 (million dollars)

Table 3-5 | Unitary Air Conditioner Demand by Type, 2006-2021 (million dollars)

Table 3-6 | Room Air Conditioner Supply & Demand, 2006-2021 (million dollars)

Table 3-7 | Room Air Conditioner Demand by Value & Unit, 2006-2021

Table 3-8 | Packaged Terminal Air Conditioner Supply & Demand, 2006-2021 (million dollars)

Table 3-9 | Packaged Terminal Air Conditioner Demand by Value & Unit, 2006-2021

Table 3-10 | Chiller Supply & Demand, 2006-2021 (million dollars)

Table 3-11 | Chiller Demand by Value & Unit, 2006-2021

Table 3-12 | Absorption Liquid Chiller Supply & Demand, 2006-2021 (million dollars)

Table 3-13 | Absorption Liquid Chiller Demand by Value & Unit, 2006-2021

MARKETS

Table 4-1 | Air Conditioning Equipment Demand by Market & Segment, 2006-2021 (million dollars)

Table 4-2 | Commercial Air Conditioning Equipment Demand by Segment, 2006-2021 (million dollars)

Table 4-3 | Commercial Air Conditioning Equipment Demand by Building Type, 2006-2021 (million dollars)

Table 4-4 | Commercial Air Conditioning Equipment Demand by Product, 2006-2021 (million dollars)

Table 4-5 | Residential Air Conditioning Equipment Demand by Segment, 2006-2021 (million dollars)

Table 4-6 | Residential Air Conditioning Equipment Demand by Building Type, 2006-2021 (million dollars)

Table 4-7 | Residential Air Conditioning Equipment Demand by Product, 2006-2021 (million dollars)

REGIONS

Table 5-1 | Air Conditioning Equipment Demand by Region, 2006-2021 (million dollars)

Table 5-2 | Northeast: Air Conditioning Equipment Demand by Market, 2006-2021 (million dollars)

Table 5-3 | Northeast: Air Conditioning Equipment Demand by Product, 2006-2021 (million dollars)

Table 5-4 | Midwest: Air Conditioning Equipment Demand by Market, 2006-2021 (million dollars)

Table 5-5 | Midwest: Air Conditioning Equipment Demand by Product, 2006-2021 (million dollars)

Table 5-6 | South: Air Conditioning Equipment Demand by Market, 2006-2021 (million dollars)

Table 5-7 | South: Air Conditioning Equipment Demand by Product, 2006-2021 (million dollars)

Table 5-8 | West: Air Conditioning Equipment Demand by Market, 2006-2021 (million dollars)

Table 5-9 | West: Air Conditioning Equipment by Product, 2006-2021 (million dollars)

INDUSTRY STRUCTURE

Table 6-1 | Air Conditioning Equipment Sales by Company, 2016 (million dollars)

Table 6-2 | R&D Spending for Selected Air Conditioning Equipment Companies, 2016 (million dollars)

Table 6-3 | Selected Cooperative Agreements

Table 6-4 | Selected Acquisitions & Divestitures

APPENDIX

Table 7-1 | Study Scope: Air Conditioning Equipment Markets

Table 7-2 | Study Scope: US Regions

Table 7-3 | Relevant NAICS Codes (2012)

Table 7-4 | Abbreviations & Acronyms Used in Study

Table 7-5 | Macroeconomic Indicators, 2006-2021 (billion 2009 dollars)

Table 7-6 | Population & Households, 2006-2021 (million persons)

Table 7-7 | Personal Consumption Expenditures, 2006-2021 (billion dollars)

Table 7-8 | Building Construction Expenditures, 2006-2021 (billion dollars)

Table 7-9 | Residential Building Construction Expenditures, 2006-2021 (billion dollars)

Table 7-10 | New Housing Indicators, 2006-2021 (thousand units)

Table 7-11 | Housing Stock by Type, 2006-2021 (million units)

Table 7-12 | Residential Improvement & Repair Expenditures, 2006-2021 (billion dollars)

Table 7-13 | Nonresidential Building Construction Expenditures, 2006-2021 (billion dollars)

List of Charts

EXECUTIVE SUMMARY

Figure 1-1 | Key Trends in the US Market for Air Conditioning Equipment

OVERVIEW

Figure 2-1 | Key Trends in the US Air Conditioning Equipment Market

Figure 2-2 | Air Conditioning Equipment Pricing Trends, 2006-2021 (annual percent change)

Figure 2-3 | Air Conditioning Equipment Demand, 2006-2016 (million dollars)

Figure 2-4 | US Foreign Trade in Air Conditioning Equipment, 2006-2016 (million dollars)

Figure 2-5 | Air Conditioning Equipment Imports by Source, 2006-2016 (million dollars)

Figure 2-6 | Air Conditioning Equipment Exports by Destination, 2006-2016 (million dollars)

PRODUCTS

Figure 3-1 | Key Trends in US Air Conditioning Equipment Products

Figure 3-2 | Air Conditioning Equipment Demand, 2006-2016 (million dollars)

Figure 3-3 | Air Conditioning Equipment Demand by Value & Unit, 2016 (percent of total)

Figure 3-4 | Unitary Air Conditioner Demand, 2006-2016 (percent annual change)

Figure 3-5 | Unitary Air Conditioner Demand by Type, 2006-2021 (million dollars)

Figure 3-6 | Room Air Conditioner Equipment Demand, 2006-2016 (percent annual change)

Figure 3-7 | Room Air Conditioners as a Share of Total Air Conditioning Equipment Demand by Value & Unit, 2016 (percent of total)

Figure 3-8 | Packaged Terminal Air Conditioner Demand, 2006-2016 (percent annual change)

Figure 3-9 | Chiller Demand, 2006-2016 (percent annual change)

Figure 3-10 | Absorption Liquid Chiller Demand, 2006-2016 (percent annual change)

MARKETS

Figure 4-1 | Key Trends in US Air Conditioning Equipment Markets

Figure 4-2 | Share of Residential & Commercial Building Stock with Central Air Conditioning Systems, 2006 & 2016 (percent of total building stock)

Figure 4-3 | Air Conditioning Equipment Demand by Market, 2006-2021 (percent of value demand)

Figure 4-4 | Commercial Air Conditioning Equipment Demand, 2006-2016 (million dollars)

Figure 4-5 | Commercial Air Conditioning Equipment Demand by Building Type, 2016 (billion dollars)

Figure 4-6 | Commercial Air Conditioning Equipment Demand by Product, 2016 (billion dollars)

Figure 4-7 | Residential Air Conditioning Equipment Demand by Segment, 2006-2021 (million dollars)

Figure 4-8 | Air Conditioning Equipment Demand in Existing Residential Buildings by Value, 2006-2016

Figure 4-9 | New Residential Building Air Conditioning Equipment Demand by Value, 2006-2016

Figure 4-10 | Residential Air Conditioning Equipment Demand by Building Type, 2006-2021 (billion dollars)

Figure 4-11 | Residential Air Conditioning Equipment Demand by Product, 2016 (billion dollars)

REGIONS

Figure 5-1 | Key Trends in US Air Conditioning Equipment Regions

Figure 5-2 | US Air Conditioning Equipment Demand Relative to Construction Spending by Region, 2016

Figure 5-3 | Air Conditioning Equipment Demand by Region, 2016 (billion dollars)

Figure 5-4 | Northeast: Air Conditioning Equipment Demand by Product, 2016 (billion dollars)

Figure 5-5 | Midwest: Air Conditioning Equipment Demand by Product, 2016 (billion dollars)

Figure 5-6 | South: Air Conditioning Equipment Demand by Product, 2016 (billion dollars)

Figure 5-7 | West: Air Conditioning Equipment by Product, 2016 (billion dollars)

INDUSTRY STRUCTURE

Figure 6-1 | US Air Conditioning Equipment Market Share, 2016 (billion dollars)

Figure 6-2 | Air Conditioning Equipment: Leading Supplier

Figure 6-3 | Air Conditioning Equipment: Second Leading Supplier

Figure 6-4 | Air Conditioning Equipment: Third Leading Supplier 8

APPENDIX

Figure 7-1 | Continental US Climate Zones

Figure 7-2 | Annual Growth in Real GDP, 2000-2016, Compared to 1980-2005 Average (percent)

Figure 7-3 | Annual Population Growth, 2001-2016 (percent)

Figure 7-4 | Housing Stock by Year of Construction, 2016 (percent)