Residential Unitary Hvac Market Research Report By Equipment Type (Split Systems, Packaged Units, Ductless Mini-Splits, Heat Pumps), By Capacity (Up to 5 tons, 5-10 tons, Above 10 tons), By Efficiency (Standard Efficiency, High Efficiency, Ultra-High Efficiency), By Connectivity (Non-Connected, Wi-Fi Connected, Smart and Connected) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Residential Unitary Hvac Market Overview

Residential Unitary Hvac Market Size was estimated at 23.84 (USD Billion) in 2022.The Residential Unitary Hvac Market Industry is expected to grow from 24.83 (USD Billion) in 2023 to 35.8 (USD Billion) by 2032. The Residential Unitary Hvac Market CAGR (growth rate) is expected to be around 4.15% during the forecast period (2024 - 2032).

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Key Residential Unitary Hvac Market Trends Highlighted

The HVAC systems are yet another area enjoying the benefits of growth due to population movement towards cities, increase in income, and the arp to demand energy efficient products. The most significant part of changing these technologies to more green is that the market opportunities are growing, with heat pumps being beneficial tech solutions rather than warming and cooling backup units. 

The spread of ‘smart’ devices for home control of the heating and ventilation and the use of developing IoT technologies that allow to control of the operation of HVAC systems are soon to be post-strident appetites. There is a trend where the manufacturers concentrate on innovative features and upgrade existing products, incorporating variable expansion valves along with air cleaning systems and connectivity. At present, the increasing costs of energy as well as warming have contributed significantly in driving more people as well in the use of gadgets to save energy more and more to the minimum level.

Residential Unitary Hvac Market Drivers

Rising Demand for Energy-Efficient Solutions

The growing awareness of energy conservation and the need to reduce carbon footprint is driving the demand for energy-efficient HVAC systems in residential applications. Governments worldwide are implementing stringent regulations and offering incentives to promote the adoption of energy-efficient technologies, which is further fueling the growth of the Residential Unitary Hvac Market Industry. 

As consumers become more environmentally conscious and seek ways to lower their energy bills, the demand for energy-efficient HVAC systems is expected to continue growing steadily over the coming years. The rising demand for energy-efficient solutions is also being driven by the increasing popularity of smart homes and connected devices. These systems allow homeowners to remotely control and monitor their HVAC systems, which can lead to significant energy savings. 

Additionally, the integration of renewable energy sources, such as solar and geothermal energy, with HVAC systems is gaining traction, as it offers homeowners a sustainable and cost-effective way to reduce their energy consumption. Furthermore, the growing construction and renovation activities in both developed and developing countries are expected to contribute to the growth of the Residential Unitary Hvac Market Industry. As more homes are built or renovated, the demand for new and efficient HVAC systems will increase. This growth is particularly evident in emerging economies, where urbanization and rising disposable incomes are driving the demand for modern and comfortable living spaces.

Technological Advancements and Innovation

The Residential Unitary Hvac Market Industry is witnessing rapid technological advancements, which are leading to the development of more efficient, innovative, and user-friendly HVAC systems. Manufacturers are investing heavily in research and development to enhance the performance, functionality, and aesthetics of their products. One of the key technological advancements is the integration of artificial intelligence (AI) and machine learning (ML) into HVAC systems.

These technologies enable HVAC systems to learn from usage patterns and adjust their operation accordingly, resulting in optimized energy consumption and improved comfort levels. Additionally, the adoption of IoT (Internet of Things) technologies allows HVAC systems to be connected to other smart devices in the home, enabling remote monitoring and control.

Increasing Focus on Indoor Air Quality

The continuous increase in concerns about the quality of indoor air and the influence of pollutants, allergens 1, and pathogens contained in it on the life quality of individuals is one of the factors that drive the interest of both the public and the researchers in efficient solutions to the situation. HVAC systems are central in enhancing the quality of indoor air by filtering hazardous particles, adjusting humidity levels, and ensuring proper ventilation.

As a result, the systems have been empowered by high-efficiency air filters, UV germicidal lights, and humidity control systems that ensure that the level of pollutants in the air is as low as possible while the risk of mold and mildew occurrence and the level of humidity in a building are maintained at a comfortable level.

Residential Unitary Hvac Market Segment Insights

Residential Unitary Hvac Market Equipment Type Insights

The Residential Unitary Hvac Market is segmented by equipment type into split systems, packaged units, ductless mini-splits, and heat pumps. Among them, split systems occupied the largest market share in 2023, making up more than 55% of the revenue. The growth in the segment is promoted by the high energy efficiency, low price, and fast installation of this type of equipment. Packaged units are forecasted to demonstrate the fastest growth during the outlook period, as opposed to the parameters of other equipment. 

The reason is that, on the one hand, they offer the smallest dimensions and require less installation area.On the other hand, packaged units are able to provide heating in addition to cooling. Ductless mini-splits become more popular as they are easily installed in cases where the traditional HVAC systems are not appropriate. Heat pumps also grow more popular as they are becoming more affordable and are considered a budget choice as they can deliver both heating and cooling capacities. Overall, the growing demand for energy-efficient and affordable equipment ensures the growth of the market.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Residential Unitary Hvac Market Capacity Insights

The Residential Unitary Hvac Market segmentation by capacity is categorized into 'Up to 5 tons', '5-10 tons', and 'Above 10 tons'. Among these segments, the 'Up to 5 tons' segment held the largest market share in 2023, accounting for around 58.0% of the Residential Unitary Hvac Market revenue. 

This dominance can be attributed to the widespread adoption of smaller capacity units in residential applications, particularly in regions with moderate climates. The '5-10 tons' segment is projected to exhibit a steady growth rate during the forecast period, owing to the increasing demand for mid-sized units in larger homes and light commercial buildings.The 'Above 10 tons' segment is expected to witness significant growth in the coming years, driven by the rising adoption of high-capacity units in luxury homes and commercial establishments.

Residential Unitary Hvac Market Efficiency Insights

The Residential Unitary Hvac Market is segmented based on Efficiency into Standard Efficiency, High Efficiency, and Ultra-High Efficiency. Among these segments, Standard Efficiency held the largest market share in 2023, accounting for over 40% of the Residential Unitary Hvac Market revenue. 

High Efficiency segment is estimated to witness the highest CAGR of 5.2% during the forecast period 2023-2032. The Ultra-High Efficiency segment is expected to grow at a CAGR of 4.8% during the same period. The growth of the High Efficiency and Ultra-High Efficiency segments can be attributed to the increasing demand for energy-efficient appliances and government regulations promoting the adoption of energy-efficient technologies.

Residential Unitary Hvac Market Connectivity Insights

The Connectivity segment in the Residential Unitary Hvac Market is segmented into Non-Connected, Wi-Fi Connected, and Smart and Connected. In 2023, the Non-Connected segment held the largest market share, accounting for over 60% of the market revenue. However, the Smart and Connected segment is projected to grow at the highest CAGR during the forecast period, driven by the increasing adoption of smart home devices and the growing demand for energy-efficient HVAC systems. 

The Wi-Fi Connected segment is also expected to witness significant growth, as it offers convenience and remote access to HVAC systems.By 2032, the Residential Unitary Hvac Market is projected to reach a valuation of USD 35.8 billion, with the Connectivity segment contributing significantly to this growth.

Residential Unitary Hvac Market Regional Insights

The Regional segment of the Residential Unitary Hvac Market is segmented into North America, Europe, APAC, South America, and MEA. North America is expected to hold the largest market share in 2023, owing to the presence of well-established HVAC manufacturers and the increasing adoption of energy-efficient HVAC systems. 

Europe is expected to be the second-largest market, driven by government regulations and initiatives promoting energy efficiency. APAC is expected to witness the highest growth rate during the forecast period, owing to the growing construction industry and the rising demand for energy-efficient HVAC systems in developing countries.South America and MEA are expected to have a relatively smaller market share due to lower levels of urbanization and economic development.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Residential Unitary Hvac Market Key Players And Competitive Insights

Leading Residential Unitary Hvac Market players are chasing critical concepts that shape the market of heating, ventilation, and air conditioning equipment. In particular, they continuously research and develop new and innovative products that meet the demands of an ever-changing market. Moreover, they invest in new technology to boost the efficiency and performance of products. On top of that, they frequently analyze their distribution network molding strategy for further expansion and a higher share of the target market. 

Development of the Residential Unitary Hvac Market is driven by the soaring interest in energy-efficient and environmentally friendly products. The interest in the industry is boosted by the growing popularity and adoption of smart home technology. Residential Unitary Hvac Market Competitive Landscape is not consolidated as a myriad of small and medium-sized players compete among themselves. However, a number of larger players, including Carrier, Daikin, and Trane, control a significant share of the market. They enjoy a high brand presence and vast distribution networks.

Carrier is a respectable player in the Residential Unitary Hvac Market. The company offers a wide array of products, such as air conditioners, heat pumps, and furnaces. The brand is highly popular and possesses a rich distribution network. Carrier promotes innovation and demonstrates that many new products are currently being developed or have been recently released. Therefore, it is expected that the company will remain to be a key player in the Residential Unitary Hvac Market in the future.

LG is a major market player in the Residential Unitary Hvac Market. The company offers a variety of products, including air conditioners, heat pumps, and furnaces. LG enjoys a high brand presence and a wide distribution network. Being very innovative, LG constantly builds new products in its pipeline. Therefore, it is expected that the company will remain to be a key player in the Residential Unitary Hvac Market in the future.

Key Companies in the Residential Unitary Hvac Market Include

• Haier Smart Home Co., Ltd.


• Lennox International, Inc.


• Johnson Controls International plc


• Gree Electric Appliances, Inc.


• Hisense Group Co., Ltd.


• Mitsubishi Electric Corporation


• Panasonic Corporation


• LG Electronics Inc.


• Fujitsu General Limited


• Samsung Electronics Co., Ltd.


• Daikin Industries, Ltd.


• Carrier Corporation


• Shenzhen Midea Group Co., Ltd.


• Tosot Co., Ltd.

Residential Unitary Hvac Market Industry Developments

The increasing demand for energy-efficient and sustainable HVAC systems is driving the growth of the residential unitary HVAC market. Government regulations and incentives promoting energy efficiency are further fueling market expansion. 

Technological advancements, such as the integration of smart features and IoT connectivity, are enhancing the functionality and convenience of HVAC systems, contributing to market growth. The rising disposable income and urbanization in developing regions are also significant factors driving market demand. Major players are focusing on strategic partnerships, acquisitions, and new product development to expand their market presence and cater to evolving customer needs.

Residential Unitary Hvac Market Segmentation Insights

Residential Unitary Hvac Market Equipment Type Outlook

• Split Systems


• Packaged Units


• Ductless Mini-Splits


• Heat Pumps

Residential Unitary Hvac Market Capacity Outlook

• Up to 5 tons


• 5-10 tons


• Above 10 tons

Residential Unitary Hvac Market Efficiency Outlook

• Standard Efficiency


• High Efficiency


• Ultra-High Efficiency

Residential Unitary Hvac Market Connectivity Outlook

• Non-Connected


• Wi-Fi Connected


• Smart and Connected

Residential Unitary Hvac Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa