HVACR Equipment Manufacturers

The 1,400 HVAC and refrigeration (HVACR) equipment manufacturers in the US produce and sell heating, ventilation and air conditioning systems for residential and nonresidential buildings, as well as commercial and industrial refrigeration and freezer equipment. Firms may also sell commercial and industrial fans and blowers and air purification equipment.

Dependence on Construction Activity

Demand for HVAC and refrigeration equipment is driven by new residential and commercial construction activity.

Energy Efficiency Regulations

HVACR equipment manufacturers are forced to keep up with evolving regulations to promote energy efficiency.

Sep 18, 2026 - Stakeholders Debate Proposed DOE Efficiency Rule Changes

• Utility Dive reports that manufacturers and efficiency advocates disagree over the Department of Energy's proposed changes to how appliance and equipment efficiency standards are set. Manufacturers generally support making DOE’s process rule binding because they say it would create a more transparent and predictable regulatory process, but they oppose applying deregulatory changes retroactively to standards already finalized. The proposal would also require at least 10% energy savings before the DOE could finalize a new standard. Efficiency advocates argue that a fixed threshold could block smaller incremental savings that add up over time and make it harder to adopt new standards. The changes also would apply to some commercial heating and cooling equipment. For HVACR manufacturers, the outcome could affect product planning, compliance requirements, certification schedules, and the pace of future efficiency upgrades.
• Canada imposed new tariffs on several categories of US-made HVACR equipment effective September 8, according to the Department of Finance Canada. The measures include 15% tariffs on certain air conditioners, heat pumps, ductless split systems, and air-conditioning chassis and cabinets, as well as 25% tariffs on certain air-conditioning equipment and compressors. The tariffs are part of Canadian countermeasures covering $27.6 billion in imports from the US. Higher import costs could make US-made HVACR equipment less competitive in Canada, potentially weakening Canadian demand for affected products. US manufacturers that sell into Canada may face pressure to absorb some tariff costs, raise prices, or adjust production and sales strategies as the trade dispute continues.
• Single-family construction declined in six of seven geographic categories in the second quarter, while multifamily construction expanded in six, according to the National Association of Home Builders' Home Building Geography Index. Large metro core counties recorded a 13.9% decline in single-family construction but an 11.6% increase in multifamily activity. Large metro suburban counties posted 7.9% multifamily growth. The shift toward multifamily construction could support demand for HVACR equipment used in apartments and other higher-density residential projects, partly offsetting weaker demand tied to single-family construction. Manufacturers serving both housing segments may benefit from adjusting product mix and production planning as residential construction patterns shift across markets.
• The Air-Conditioning, Heating, and Refrigeration Institute reported in September that US shipments of central air conditioners and air-source heat pumps rose 20.1% in July 2026 from a year earlier to 916,830 units. Central air conditioner shipments increased 22.3% to 503,151 units, while heat pump shipments rose 17.6% to 413,679 units. Gas warm air furnace shipments increased 2.1% to 265,810 units, and oil furnace shipments rose 36.6% to 2,681 units. Through July, combined air conditioner and heat pump shipments were up 5.5% from the same period in 2025, while gas furnace shipments were down 5.1%. The mixed trends provide HVACR manufacturers with a current gauge of equipment movement as they assess demand and production needs.

Industry size & Structure

The average HVAC and refrigeration equipment manufacturer operates a single plant, has 108 employees, and generates about $39.9 million in annual revenue.

• The HVAC and refrigeration equipment manufacturing industry consists of about 1,400 companies, employs 146,300 workers and generates $54 billion annually.
• The industry is somewhat concentrated, as the 20 largest companies represent 50% of industry revenue.
• Large companies include Carrier Corporation, Goodman (part of Daikin Group of Japan), Trane (part of Ingersoll-Rand), Johnson Controls, Lennox International, and Rheem.