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.

Jul 18, 2026 - Remodeling Index Remains Positive

• The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the second quarter of 2026 was 61, down one point from the first quarter, according to a July 2026 report by the National Association of Home Builders (NAHB). Any RMI reading over 50 indicates that most remodelers feel market conditions are good. In the second quarter, the Current Conditions Index portion of the RMI remained unchanged at 70 compared to Q1 2026. The Future Indicators Index component of the RMI declined by two points to 52. The NAHB noted that the lock-in effect of high mortgage rates may incentivize existing homeowners to renovate rather than move, but that inflation may prompt some projects to be postponed, especially larger ones.
• According to The New York Times, the newly enacted 21st Century ROAD to Housing Act is the largest federal housing measure in decades. The law encourages local governments to support denser housing, faster permitting, build-to-rent communities, and expanded use of manufactured and modular housing through targeted incentives and regulatory changes. If the legislation gradually increases residential construction, HVAC equipment manufacturers could see stronger long-term demand for heating and cooling systems used in new single-family, multifamily, and factory-built homes. However, experts say local zoning rules, interest rates, limited federal funding, and the time required to plan and build projects will likely limit the law's near-term effect on housing supply and affordability.
• New US Census Bureau data shows that while more than 90% of US households have air conditioning, adoption varies widely by region, according to Builder Magazine. Washington, Vermont, Montana, California, and Wyoming report the highest shares of homes without cooling systems. The findings suggest builders should evaluate demand at the neighborhood level because statewide averages can mask significant local differences. For HVAC equipment manufacturers, regions with older housing stock and lower AC penetration represent potential growth opportunities for new system installations and replacement demand as consumer expectations and migration patterns increase interest in cooling. In contrast, Southern states such as Florida, Oklahoma, Texas, and Georgia have nearly universal AC adoption, shifting demand toward higher efficiency, durability, and energy performance.
• Home builder confidence in the single-family market fell in July as builders remain concerned about housing affordability, higher construction costs, and elevated interest rates, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), dropped two points to 34 in July 2026. Any HMI reading over 50 indicates that more builders see conditions as good than poor. July marked the 15th consecutive month the HMI remained below 40, a level not seen since the housing crisis in 2012. The survey also showed that 36% of builders reduced home prices in July to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged from June. While the NAHB noted that the recent enactment of the 21st Century ROAD to Housing Act is a positive step in expanding the US housing supply, it added that more reforms are needed at the state and local levels.

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.