North America HVAC Compressor Market Size, Share & Trends Analysis Report By Product (2-stage Scroll Compressor, Variable Speed Scroll Compressor), By Country (U.S., Canada, Mexico), And Segment Forecasts, 2023 - 2030

Market Size & Trends

The North America HVAC compressor market size was valued at USD 838.7 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.7% from 2023 to 2030. The growth is driven by the growing demand for highly energy-efficient compressors in air conditioning and heat pump applications. In addition, the scroll compressor offers higher cooling than the rotary compressor, and the 2-stage & variable-speed scroll compressors are highly energy-efficient compared to fixed-speed scroll compressors. This is expected to boost the adoption of scroll compressors in commercial and residential applications.

The North America heating, ventilation, & air conditioning (HVAC) compressor market is expected to witness a positive trend over the forecast period owing to the surging awareness and regulatory guidelines related to the purchase of energy-efficient systems. Governments at various levels, namely Federation and state governments, have established standards to improve the operation of HVAC systems. Observing the market trend, companies are also taking the initiative to expand their product portfolio in energy-efficient products.

The demand for variable-speed air compressors is anticipated to increase in the country owing to the escalating demand for energy-efficient and power-saving products. With the advent of technologies such as inverter-based systems, the market is anticipated to witness a wide array of new product developments and innovations.

The rapid use of new technologies, such as AI, IoT, blockchain, machine learning, and others, is having a significant positive impact on HVAC system growth in the U.S. Moreover, integrating IoT with HVAC systems is expected to allow companies to examine exterior data such as the number of occupants in the room, each occupant's comfort preferences, humidity level, and outside temperature. HVAC systems employ this data to set optimal temperatures, modify fan speeds, and improve overall system energy efficiency.

The HVAC systems market is expected to witness an increase in sales with the benefit of allowance programs and tax credits as well as extra monetary benefits allied with the purchase of energy-efficient systems. Additionally, governments at various levels, namely state governments and federal, have established standards to improve the operation of HVAC systems.

Governments have established several regulations to encourage the production of energy-efficient equipment, thereby lowering risks to the environment and carbon footprints. Numerous governments also offer incentives for encouraging energy efficiency products through low power consumption or the use of renewable energy products, which would increase product demand in addition to tax and rebate programs.

The major manufacturers in the market are developing new products to expand their product portfolio and customer base. For instance, in February 2023, LG Electronics launched its latest compressors. The new compressors use eco-responsible low-GWP refrigerants, R32, and R454B. Unlike the commonly used R410A, which has a GWP of approximately 2,088, the refrigerants deployed by the company's recent models have a GWP below 750.

Product Insights

Single-stage scroll compressors led the market and accounted for 53.2% of the revenue share in 2022. The majority of household heating and cooling systems use single-stage scroll compressors. They have just one speed and are the most basic and cost-effective product. Homes can be effectively cooled or heated with single-stage scroll compressors.

In variable-speed compressors, the compressor capacity is managed via variable-speed technology, which alters the speed of the compressor in short intervals and over a broad operating range. The variable speed scroll compressor offers dependability and enhanced performance and is ideal for variable refrigerant flow (VRF) systems, thereby driving the demand for variable speed compressors in the coming years.

The 2-stage scroll compressor helps in compressor capacity adjustment by routing a portion of the gas in the scroll back to suction. The compressor can meticulously match the heating or cooling demand according to the requirement. The 2-stage scroll compressor is ideal for both commercial and household applications.

The U.S. government is working on various efforts to upgrade its community infrastructure. For instance, in June 2021, a USD 905.3 million investment was announced by the U.S. Department of Transportation in infrastructure development projects around the country.

The projects are carried out through the discretionary grant program-Infrastructure for Rebuilding America (INFRA). Twenty projects in twenty states are likely to receive funds to restore their bridges, ports, highways, and railroads. As a result, rising commercial construction in the country is expected to fuel the demand for HVAC systems in the U.S. and simultaneously bolster the product demand over the forecast period.

Country Insights

The U.S. led the market and accounted for 91.4% of the revenue share in 2022 and is expected to grow at a CAGR of 5.5% during the forecast period. The surging usage of new technologies, such as IoT, AI, blockchain, machine learning, and others, is having a significant positive impact on HVAC system growth in the U.S. Moreover, rising disposable income and increasing usage of HVAC equipment for personal comfort are rapidly driving the market growth in the U.S.

In Canada, the need for HVAC systems is mostly driven by the building industry. The demand for HVAC equipment and services has been steadily increasing in Canada with the increase in the development of commercial and residential buildings. Industrial HVAC systems are used in industrial infrastructures such as manufacturing plants and warehouses. Therefore, Canada is expected to witness steady growth for HVAC compressors, owing to the presence of growing chemical, shipbuilding, industrial marine, biopharmaceutical & pharmaceutical, construction, and other industrial sectors.

The Mexico HVAC compressor market is expected to expand at the fastest CAGR of 7.9% in terms of revenue during the forecast period. Increasing private investments in the construction of commercial malls, mixed-use buildings such as offices, housing, and commercial spaces, and industrial buildings such as distribution & manufacturing facilities are expected to boost the growth of the construction industry, thereby complementing the growth of HVAC products in the country.

Key Companies & Market Share Insights

Manufacturers of HVAC compressors use a variety of strategies, such as joint ventures, mergers, acquisitions, new product developments, and geographic expansions, to increase their market share and meet the shifting technological demands for equipment from various end-use sectors, including residential, commercial, and industrial.

For instance, in February 2023, Danfoss observed surging demand for cooling technology in the U.S. Therefore, the company announced the construction of a new sensor and compressor manufacturing unit in Apodaca, Mexico. The new facility is expected to manufacture sensors for HVAC-R, medium, and large scroll compressors, and A2L detection sensors for commercial and residential air conditioning and refrigeration. Some prominent players in the North America HVAC compressor market include:

• Danfoss Group

• Emerson Electric Co.

• Daikin Industries Ltd.

• Mitsubishi Electric Corporation

• LG Electronics

• Hitachi Ltd.

• Tecumseh Products Company LLC.

• Panasonic Group

North America HVAC Compressor Market Report Scope

North America HVAC Compressor Market Report Segmentation

This report forecasts volume and revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the North America HVAC compressor market report based on product and country:

• Product Outlook (Volume, Thousand Units; Revenue, USD Million, 2018 - 2030)

  • Single Stage Scroll Compressor

  • 2-stage Scroll Compressor

  • Variable Speed Scroll Compressor

• Country Outlook (Volume, Thousand Units; Revenue, USD Million, 2018 - 2030)

  • U.S.

  • Canada

  • Mexico