North America Residential Unitary HVAC Market Size

Consumers are becoming more conscious of their carbon footprint and are opting for systems with higher energy efficiency ratings, such as those with ENERGY STAR certifications. This trend is further fueled by government regulations and incentives aimed at promoting energy-efficient technologies. For instance, the U.S. Department of Energy estimates that ENERGY STAR certified products can save homeowners up to 30% on energy costs.  

The rising demand for energy-efficient and sustainable cooling solutions is the primary factor boosting the North America residential unitary HVAC market growth. With an increasing focus on sustainability and energy efficiency, consumer behavior has changed significantly in the last several years. People are choosing unitary HVAC systems that offer comfort, energy efficiency, and minimal environmental impacts. According to the International Energy Agency, energy consumption for space cooling increased by over 5% in 2022 from 2021.
 

According to the U.S. Energy Information Administration, nearly 88% of U.S. households use Air-conditioning (AC).  The North America residential unitary HVAC market is experiencing a surge in demand, driven by emerging advancements in technology for unitary HVAC. These technologies are advancing energy efficiency, improving Indoor Air Quality (IAQ), enhancing user comfort, and expanding market opportunities. Unitary HVAC equipment can offer cooling, heating, or both. A direct expansion (DX) system is most commonly used for cooling, while heating can be delivered by a variety of systems including gas (natural or propane), electric resistance, and heat pump (air-to-air).

Furthermore, developments in building automation technology have resulted in new unitary HVAC products that can optimize energy use through real-time data analysis. These sophisticated controls continually monitor elements such as occupancy, outdoor temperatures, and humidity levels, adjusting HVAC operation to maximum economy while preserving comfort.
 

The energy shortage and crises across North America are emerging as major challenges for the North America residential unitary HVAC market. According to the U.S. Energy Information Administration, two-third of North America is at risk of energy shortfalls in summer during periods of extremely high electricity demand. In summer, electricity demand increases as temperatures rise and homes and businesses turn up the air conditioning to cope.
 

Above-normal summer temperatures further push up the demand and can reduce electricity supply if power plant outages or reduced output stem from heat-related issues. In addition, widespread heat waves can limit electricity transfers as electricity is needed to meet the local demand. The combination of higher electricity demand and reduced supply can cause energy shortfalls.