Global Residential HVAC Equipment

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HVAC

This study examines the global residential HVAC equipment industry. Demand for residential HVAC equipment is segmented by product and global geographic region. Historical data (2010, 2015, and 2020) and forecasts for 2025 and 2030 are presented in current US dollars (including inflation) at the global, regional, and country regions.

For the purposes of this study, residential HVAC equipment is defined as that used in:

single-family detached houses
single-family attached houses (e.g., townhouses)
apartment or condominium buildings with multiple dwelling units
manufactured homes, which are housing units constructed on a permanent chassis with wheels for on-road transportation to the site at which the unit will be placed

HVAC equipment discussed includes:

room air conditioners (both window units and through-the-wall air conditioners)
heat pumps:
- air source heat pumps (also known as conventional heat pumps), including split heat pumps and packaged heat pumps
- geothermal heat pumps (including both ground source and water source types), which include closed loop and open loops systems
unitary air conditioners (including split, multi-split and single package units)
central heating boilers, including:
- cast iron and steel types
- district heating boilers, including large-scale boilers and series of large-scale central boilers that generate hot water to provide heat for an industrial complex or a densely populated urban area
warm air furnaces, also known as forced air furnaces
other HVAC equipment, including absorption chillers, dehumidifiers, humidifiers, liquid chillers, packaged terminal air conditioners, and room and zone heaters

Excluded from the scope of this study are:

portable versions of equipment such as air conditioners, heaters, dehumidifiers, and humidifiers
sanitary hot water heat pumps
heat pumps used to solely produce hot water, to heat pools, or to provide refrigeration
products associated with combined heat and power generation systems
ventilation systems, including air handlers and ductwork
fluid circulation systems, including radiators used with boilers
used and rental equipment
equipment used in vehicles

Housing units located in a structure whose primary purpose is something other than habitation, such as a small living space contained in a larger retail facility, are outside of the study’s scope.

Demand by Region

Global demand for HVAC equipment in the residential market is forecast to increase 4.0% per year to $49.3 billion in 2025. Factors contributing to sales will vary across regions:

Higher income regions, where a significant amount of equipment is currently installed, will continue to generate large shares of demand from the replacement of existing units.
Demand gains in lower income areas will typically be associated with either new construction or the addition of HVAC systems to existing buildings lacking these features.

The Asia/Pacific region will account for the largest share of demand gains through 2025, with above average growth anticipated in China, India, and other emerging markets. Ongoing urbanization will fuel growth in new construction, while rising income levels will make HVAC systems more accessible to buyers.

North America will continue to represent a large portion of demand, reflecting high penetration of both heating and cooling equipment in the US. However, market growth is expected to slow somewhat relative to the 2015-2020 period, when performance was boosted by the strength of residential construction in the US in 2020.

Both Western and Eastern Europe achieved above average demand growth between 2015 and 2020, but this trend is not expected to be repeated through 2025. Strong growth over the 2015-2020 period in both regions was mainly attributable to recovery from weak 2015 sales, and market maturity will slow the pace of gains going forward.

Demand by Product

Through 2025, global demand for HVAC equipment is projected to rise 4.0% per year to $49.3 billion. Heat pumps are expected to achieve particularly strong gains:

Sales of these products will be supported by diverse incentives and initiatives promoting heat pumps as eco-friendly and efficient comfort cooling systems.
In particular, heat pumps are gaining market share in European countries, as adoption of these products will help EU member nations to meet climate targets.

Room air conditioners are forecast to account for the largest share of growth in value terms, and these products will remain the most widely used HVAC equipment type in unit terms. Sales of room air conditioners will be bolstered by market expansion in emerging markets like India, where the low price point of these models continues to be a major advantage.

Warm air furnaces are also projected to post rapid gains through 2025. Growth for this equipment will be driven mainly by a strong outlook in the US, which accounted for 66% of global demand in 2020.

Product demand trends vary across region, with sales dependent on a region’s:

level of economic development
local climate
preference for comfort cooling
building design trends
age of building stock

Heating equipment is generally viewed as a necessity, especially in colder climates, while comfort cooling is seen as more of a luxury or convenience in many nations.

Unitary Air Conditioners

Unitary air conditioners utilize compressed refrigerant gas to cool air that is distributed throughout a building via ductwork. Unitary air conditioners are the most widely used type of central air conditioning equipment in the world. Unitary air conditioners can be segmented into two types: split unitary conditioners and packaged units.

Global demand for unitary air conditioners is projected to increase 3.1% per year to $5.9 billion in 2025:

Growth will be supported by rising residential building construction activity in the US, which accounts for nearly two-thirds of global demand.
However, sales gains will be restrained by the maturity of the US market, as there is little untapped opportunity for greater market penetration in the country.

Outside of North America, the greatest sales gains are expected in the Asia/Pacific region. This region is home to numerous emerging markets in hot weather climates, and rising building construction combined with increasingly modern design standards will allow for significant sales gains. Growth will be relatively healthy in Western Europe despite the general maturity of the region’s construction industries, with opportunities for greater market penetration as AC has been uncommon historically.

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Table of Contents

1. Executive Summary

2. About This Report

Report Details

Study Scope & Product Description

Impact of COVID-19 Pandemic

3. Overview

Historical Market Trends

Residential Construction Outlook & Demand Factors

Demand by Region

Leading Country Markets

Leading Producers

4. Products

Demand by Product

Room Air Conditioners

Heat Pumps

Unitary Air Conditioners

Central Heating Boilers

Warm Air Furnaces

Other Residential HVAC Equipment

5. North America

North America: Residential HVAC Equipment Market Size & Historical Trends

North America: Demand by Country & Product

United States

United States: Residential HVAC Equipment Market Size & Historical Trends

United States: Demand by Product

Canada

Canada: Residential HVAC Equipment Market Size & Historical Trends

Canada: Demand by Product

Mexico

Mexico: Residential HVAC Equipment Market Size & Historical Trends

Mexico: Demand by Product

6. Central & South America

Central & South America: Residential HVAC Equipment Market Size & Historical Trends

Central & South America: Demand by Country & Product

Brazil

Brazil: Residential HVAC Equipment Market Size & Historical Trends

Brazil: Demand by Product

Other Central & South America

Other Central & South America: Residential HVAC Equipment Market Size & Historical Trends

Other Central & South America: Demand by Product

7. Western Europe

Western Europe: Residential HVAC Equipment Market Size & Historical Trends

Western Europe: Demand by Country & Product

Germany

Germany: Residential HVAC Equipment Market Size & Historical Trends

Germany: Demand by Product

United Kingdom

United Kingdom: Residential HVAC Equipment Market Size & Historical Trends

United Kingdom: Demand by Product

Italy

Italy: Residential HVAC Equipment Market Size & Historical Trends

Italy: Demand by Product

France

France: Residential HVAC Equipment Market Size & Historical Trends

France: Demand by Product

Spain

Spain: Residential HVAC Equipment Market Size & Historical Trends

Spain: Demand by Product

Other Western Europe

Other Western Europe: Residential HVAC Equipment Market Size & Historical Trends

Other Western Europe: Demand by Product

8. Eastern Europe

Eastern Europe: Residential HVAC Equipment Market Size Historical Trends

Eastern Europe: Demand by Country & Product

Russia

Russia: Residential HVAC Equipment Market Size & Historical Trends

Russia: Demand by Product

Poland

Poland: Residential HVAC Equipment Market Size & Historical Trends

Poland: Demand by Product

Other Eastern Europe

Other Eastern Europe: Residential HVAC Equipment Market Size & Historical Trends

Other Eastern Europe: Demand by Product

9. Asia/Pacific

Asia/Pacific: Residential HVAC Equipment Market Size & Historical Trends

Asia/Pacific: Demand by Country & Product

China

China: Residential HVAC Equipment Market Size & Historical Trends

China: Demand by Product

Japan

Japan: Residential HVAC Equipment Market Size & Historical Trends

Japan: Demand by Product

India

India: Residential HVAC Equipment Market Size & Historical Trends

India: Demand by Product

South Korea

South Korea: Residential HVAC Equipment Market Size & Historical Trends

South Korea: Demand by Product

Indonesia

Indonesia: Residential HVAC Equipment Market Size & Historical Trends

Indonesia: Demand by Product

Australia

Australia: Residential HVAC Equipment Market Size & Historical Trends

Australia: Demand by Product

Other Asia/Pacific

Other Asia/Pacific: Residential HVAC Equipment Market Size & Historical Trends

Other Asia/Pacific: Demand by Product

10. Africa/Mideast

Africa/Mideast: Residential HVAC Equipment Market Size & Historical Trends

Africa/Mideast: Demand by Country & Product

Saudi Arabia

Saudi Arabia: Residential HVAC Equipment Market Size & Historical Trends

Saudi Arabia: Demand by Product

Turkey

Turkey: Residential HVAC Equipment Market Size & Historical Trends

Turkey: Demand by Product

Other Africa/Mideast

Other Africa/Mideast: Residential HVAC Equipment Market Size & Historical Trends

Other Africa/Mideast: Demand by Product

11. Appendix

Scope

Definitions

Freedonia Methodology

Study-Specific Methodology

Sources

Associations & Agencies

Related Studies & Reports

Country Lists by Region

Macroeconomic Assumptions

Global Economic Outlook

Global Population

Global Residential Building Construction Outlook

List of Tables

2. About This Report

Table 2-1 | Annual Global Residential HVAC Equipment Demand by Region, 2019 - 2021 (million dollars)

Table 2-2 | Annual Global Residential HVAC Equipment Demand by Product, 2019 - 2021 (million dollars)

3. Overview

Table 3-1 | Global Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

Table 3-2 | Global Residential HVAC Equipment Demand by Region, 2010 - 2030 (million dollars)

4. Products

Table 4-1 | Global Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 4-2 | Global Residential Room Air Conditioner Demand by Region, 2010 - 2030 (million dollars)

Table 4-3 | Global Residential Heat Pump Demand by Region, 2010 - 2030 (million dollars)

Table 4-4 | Global Residential Unitary Air Conditioner Demand by Region, 2010 - 2030 (million dollars)

Table 4-5 | Global Residential Central Heating Boiler Demand by Region, 2010 - 2030 (million dollars)

Table 4-6 | Global Residential Warm Air Furnace Demand by Region, 2010 - 2030 (million dollars)

Table 4-7 | Other Residential HVAC Equipment Demand by Region, 2010 - 2030 (million dollars)

5. North America

Table 5-1 | North America: Residential HVAC Equipment Demand by Country & Product, 2010 - 2030 (million dollars)

Table 5-2 | United States: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 5-3 | Canada: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million US dollars)

Table 5-4 | Mexico: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

6. Central & South America

Table 6-1 | Central & South America: Residential HVAC Equipment Demand by Country & Product, 2010 - 2030 (million dollars)

Table 6-2 | Brazil: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 6-3 | Other Central & South America: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

7. Western Europe

Table 7-1 | Western Europe: Residential HVAC Equipment Demand by Country & Product, 2010 - 2030 (million dollars)

Table 7-2 | Germany: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 7-3 | United Kingdom: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 7-4 | Italy: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 7-5 | France: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 7-6 | Spain: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 7-7 | Other Western Europe: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

8. Eastern Europe

Table 8-1 | Eastern Europe: Residential HVAC Equipment Demand by Country & Product, 2010 - 2030 (million dollars)

Table 8-2 | Russia: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 8-3 | Poland: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 8-4 | Other Eastern Europe: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

9. Asia/Pacific

Table 9-1 | Asia/Pacific: Residential HVAC Equipment Demand by Country & Product, 2010 - 2030 (million dollars)

Table 9-2 | China: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 9-3 | Japan: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 9-4 | India: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 9-5 | South Korea: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 9-6 | Indonesia: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 9-7 | Australia: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million US dollars)

Table 9-8 | Other Asia/Pacific: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

10. Africa/Mideast

Table 10-1 | Africa/Mideast: Residential HVAC Equipment Demand by Country & Product, 2010 - 2030 (million dollars)

Table 10-2 | Saudi Arabia: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 10-3 | Turkey: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

Table 10-4 | Other Africa/Mideast: Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

11. Appendix

Table 11-1 | Relevant HS Codes

Table 11-2 | Relevant NACE Codes

Table 11-3 | Relevant NAICS & SIC Codes

Table 11-4 | Countries in North America

Table 11-5 | Countries in Central & South America

Table 11-6 | Countries in Western Europe

Table 11-7 | Countries in Eastern Europe

Table 11-8 | Countries in the Asia/Pacific Region

Table 11-9 | Countries in the Africa/Mideast Region

Table 11-10 | Global Gross Domestic Product by Region & Country, 2010 - 2030 (billion 2019 dollars)

Table 11-11 | Global Population by Region & Country, 2010 - 2030 (million persons)

Table 11-12 | Global Residential Building Construction Expenditures by Region & Country, 2010 - 2030 (billion 2019 dollars)

List of Figures

1. Executive Summary

Figure 1-1 | Global Residential HVAC Equipment Market

2. About This Report

Figure 2-1 | Annual Global Residential HVAC Equipment Demand, 2018 - 2025 (million dollars)

3. Overview

Figure 3-1 | Global Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

Figure 3-2 | Global Residential Building Expenditures by Region, 2010 - 2030 (billion 2019 dollars)

Figure 3-3 | Global Residential HVAC Equipment Demand by Region, 2010 - 2030 (million dollars)

Figure 3-4 | Residential HVAC Equipment: Leading Country Markets, 2020 (million dollars)

Figure 3-5 | Global Residential HVAC Equipment Market Share by Company, 2020 (billion dollars)

4. Products

Figure 4-1 | Global Residential HVAC Equipment Demand by Product, 2010 - 2030 (million dollars)

5. North America

Figure 5-1 | North America: Residential HVAC Equipment Market Key Indicators, 2020

Figure 5-2 | North America: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

Figure 5-3 | North America: Residential HVAC Equipment Demand by Country, 2020 (billion dollars)

Figure 5-4 | United States: Residential HVAC Equipment Market Key Indicators, 2020

Figure 5-5 | United States: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

Figure 5-6 | Canada: Residential HVAC Equipment Market Key Indicators, 2020

Figure 5-7 | Canada: Residential HVAC Equipment Demand, 2010 - 2020 (million US dollars & million Canadian dollars)

Figure 5-8 | Mexico: Residential HVAC Equipment Market Key Indicators, 2020

Figure 5-9 | Mexico: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & million peso)

6. Central & South America

Figure 6-1 | Central & South America: Residential HVAC Equipment Market Key Indicators, 2020

Figure 6-2 | Central & South America: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

Figure 6-3 | Central & South America: Residential HVAC Equipment Demand by Country, 2020 (billion dollars)

Figure 6-4 | Brazil: Residential HVAC Equipment Market Key Indicators, 2020

Figure 6-5 | Brazil: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & million real)

Figure 6-6 | Other Central & South America: Residential HVAC Equipment Market Key Indicators, 2020

Figure 6-7 | Other Central & South America: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

7. Western Europe

Figure 7-1 | Western Europe: Residential HVAC Equipment Market Key Indicators, 2020

Figure 7-2 | Western Europe: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

Figure 7-3 | Western Europe: Residential HVAC Equipment Demand by Country, 2020 (billion dollars)

Figure 7-4 | Germany: Residential HVAC Equipment Market Key Indicators, 2020

Figure 7-5 | Germany: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & million euro)

Figure 7-6 | United Kingdom: Residential HVAC Equipment Market Key Indicators, 2020

Figure 7-7 | United Kingdom: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & million pounds)

Figure 7-8 | Italy: Residential HVAC Equipment Market Key Indicators, 2020

Figure 7-9 | Italy: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & million euro)

Figure 7-10 | France: Residential HVAC Equipment Market Key Indicators, 2020

Figure 7-11 | France: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & million euro)

Figure 7-12 | Spain: Residential HVAC Equipment Market Key Indicators, 2020

Figure 7-13 | Spain: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & million euro)

Figure 7-14 | Other Western Europe: Residential HVAC Equipment Market Key Indicators, 2020

Figure 7-15 | Other Western Europe: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

8. Eastern Europe

Figure 8-1 | Eastern Europe: Residential HVAC Equipment Market Key Indicators, 2020

Figure 8-2 | Eastern Europe: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

Figure 8-3 | Eastern Europe: Residential HVAC Equipment Demand by Country, 2020 (billion dollars)

Figure 8-4 | Russia: Residential HVAC Equipment Market Key Indicators, 2020

Figure 8-5 | Russia: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & billion ruble)

Figure 8-6 | Poland: Residential HVAC Equipment Market Key Indicators, 2020

Figure 8-7 | Poland: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & million zloty)

Figure 8-8 | Other Eastern Europe: Residential HVAC Equipment Market Key Indicators, 2020

Figure 8-9 | Other Eastern Europe: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

9. Asia/Pacific

Figure 9-1 | Asia/Pacific: Residential HVAC Equipment Market Key Indicators, 2020

Figure 9-2 | Asia/Pacific: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

Figure 9-3 | Asia/Pacific: Residential HVAC Equipment Demand by Country, 2020 (billion dollars)

Figure 9-4 | China: Residential HVAC Equipment Market Key Indicators, 2020

Figure 9-5 | China: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & billion yuan)

Figure 9-6 | Japan: Residential HVAC Equipment Market Key Indicators, 2020

Figure 9-7 | Japan: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & billion yen)

Figure 9-8 | India: Residential HVAC Equipment Market Key Indicators, 2020

Figure 9-9 | India: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & billion rupee)

Figure 9-10 | South Korea: Residential HVAC Equipment Market Key Indicators, 2020

Figure 9-11 | South Korea: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & billion won)

Figure 9-12 | Indonesia: Residential HVAC Equipment Market Key Indicators, 2020

Figure 9-13 | Indonesia: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & billion rupiah)

Figure 9-14 | Australia: Residential HVAC Equipment Market Key Indicators, 2020

Figure 9-15 | Australia: Residential HVAC Equipment Demand, 2010 - 2020 (million US dollars & million Australian dollars)

Figure 9-16 | Other Asia/Pacific: Residential HVAC Equipment Market Key Indicators, 2020

Figure 9-17 | Other Asia/Pacific: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

10. Africa/Mideast

Figure 10-1 | Africa/Mideast: Residential HVAC Equipment Market Key Indicators, 2020

Figure 10-2 | Africa/Mideast: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

Figure 10-3 | Africa/Mideast: Residential HVAC Equipment Demand by Country, 2020 (billion dollars)

Figure 10-4 | Saudi Arabia: Residential HVAC Equipment Market Key Indicators, 2020

Figure 10-5 | Saudi Arabia: Residential HVAC Equipment Demand, 2010 - 2020 (million dollar & million riyals)

Figure 10-6 | Turkey: Residential HVAC Equipment Market Key Indicators, 2020

Figure 10-7 | Turkey: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars & million lira)

Figure 10-8 | Other Africa/Mideast: Residential HVAC Equipment Market Key Indicators, 2020

Figure 10-9 | Other Africa/Mideast: Residential HVAC Equipment Demand, 2010 - 2020 (million dollars)

Global Residential HVAC Equipment

Featuring 53 tables and 74 figures – now available in Excel and Powerpoint! Learn More

Demand by Region

Demand by Product

Unitary Air Conditioners

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