GVR Report cover HVAC Rooftop Units Market Size, Share & Trends Report

HVAC Rooftop Units Market Size, Share & Trends Analysis Report By Capacity (Upto 3 Tons, 3 to 7 Tons), By Distribution Channel (New Installation, Replacement), By Application (Residential, Industrial), By Region, And Segment Forecasts, 2025 - 2030

  • Report ID: GVR-4-68040-496-4
  • Number of Report Pages: 152
  • Format: PDF, Horizon Databook
  • Historical Range: 2018 - 2023
  • Forecast Period: 2025 - 2030 
  • Industry: Advanced Materials

HVAC Rooftop Units Market Size & Trends

The global HVAC rooftop units market size was valued at USD 47.12 billion in 2024 and is projected to grow at a CAGR of 5.5% from 2025 to 2030. The market growth can be attributed to the rising demand for cost-effective and energy-efficient space cooling and heating systems in commercial applications in the U.S. Moreover, the surging demand for heating equipment with a high seasonal coefficient of performance (SCOP), which can work efficiently in both winter and summer seasons, is expected to fuel the growth of the HVAC rooftop units market over the forecast period.

HVAC Rooftop Units Market Size, by Capacity, 2020 - 2030 (USD Billion)

The increasing number of construction projects in the Asia Pacific and North America regions is expected to greatly enhance the demand for HVAC rooftop units. This growth is largely fueled by the development of urban infrastructure, commercial buildings, and residential complexes, all of which require efficient HVAC rooftop units to ensure sustainable and comfortable living conditions. As construction activities rise, the demand for innovative and energy-efficient HVAC solutions becomes increasingly critical, positioning rooftop units as a vital element in contemporary architectural design.

Drivers, Opportunities & Restraints

The growing investment in construction worldwide, along with ongoing maintenance and replacement needs for HVAC rooftop units, is expected to significantly boost the demand for energy-efficient heating solutions in the global industry. Many countries' construction industries are increasingly prioritizing the development of sustainable and energy-efficient buildings. For instance, the Leadership in Energy and Environmental Design (LEED) certification, introduced by the U.S. Green Building Council (USGBC), emphasizes reducing energy consumption to mitigate the environmental impact of excessive energy use. These trends are likely to drive up the demand for HVAC rooftop units globally.

Additionally, the introduction of incentives such as tax credits for energy-efficient home improvements is playing a pivotal role in promoting the adoption of HVAC rooftop units. Such programs can substantially influence homeowners' choices toward energy efficiency and the integration of clean energy solutions. For example, a homeowner may benefit from rebates that cover up to 30% of the investment in energy-efficient HVAC rooftop units, making the upfront cost of rooftop units more attractive. This financial relief encourages homeowners to select high-efficiency units, further driving demand in the industry.

However, the availability of alternative cooling solutions, such as chillers, could pose a challenge to the growth of the HVAC rooftop units market on a global scale. Chillers are often viewed as more efficient and cost-effective options for large commercial and industrial cooling applications. For example, a large data center or manufacturing plant may choose a chiller system over rooftop units due to its superior performance in handling significant cooling loads in expansive settings. This preference can limit the industry demand for rooftop units, particularly in sectors requiring continuous and robust cooling, thereby affecting the overall growth of the HVAC rooftop units market globally.

Market Concentration & Characteristics

The industry growth stage is medium, and the pace is accelerating. The industry is characterized by a high degree of innovation, which is attributable to rapid technological advancements. Moreover, market players are adopting organic and inorganic growth strategies, such as product launches, geographical expansions, mergers & acquisitions, and collaborations, to strengthen their position in the global market.

Regulations play a significant role in shaping the dynamics of the HVAC rooftop units industry, influencing everything from product design to operational practices. The recent enhancement of existing tax incentives, such as the 179D tax deductions and the 45L tax credits, aims to encourage greater energy efficiency in commercial and multifamily buildings. This legislative push toward sustainability and energy efficiency is likely to have a significant impact on the HVAC rooftop units industry.

HVAC Rooftop Units Industry Dynamics

The HVAC rooftop units among end-users are driven by the growing emphasis on energy efficiency, sustainability, and the need for improved indoor air quality within various sectors. HVAC rooftop units are widely utilized in commercial applications to provide centralized heating, cooling, and ventilation in various settings, including offices, retail stores, and schools. Their installation on rooftops optimizes space utilization and delivers efficient climate control tailored to the specific needs of commercial spaces.

The threat of substitutes for the HVAC rooftop unit industry is moderate. These alternatives, ranging from split systems to portable and window units, offer several advantages that attract residential as well as commercial users. For instance, split system air conditioners are gaining popularity for their flexibility in installation and operation, allowing for a more targeted approach to heating and cooling specific areas of a building.

Capacity Insights

The 3 to 7 tons segment held the largest share in 2024. HVAC rooftop units (RTUs) with capacities ranging from 3 to 7 tons are essential for medium-sized commercial spaces, such as larger retail stores, restaurants, small office buildings, and educational facilities. These units are designed to handle spaces between 1,500 and 3,500 square feet, depending on the building’s insulation and climate.

The demand for the 7 to 15 tons segment is expected to grow at a significant CAGR from 2025 to 2030. These 7 to 15 tons HVAC rooftop units are extensively used for large retail malls, expansive office complexes, hospitals, large educational institutions, and manufacturing facilities. They provide powerful and efficient heating, ventilation, and air conditioning.

Distribution Channel Insights

The replacement distribution channel segment held the largest share in 2024. The growing demand for HVAC rooftop unit (RTU) replacements is driven by several key factors, including the aging infrastructure of existing buildings, advancements in HVAC technology, increased regulatory pressures, economic considerations, and a focus on energy efficiency and sustainability. Further, older RTUs require more frequent and expensive maintenance.

The demand for the new installation segment is expected to grow at a significant CAGR from 2025 to 2030. Owing to a significant rise in construction spending across the U.S., the demand for new HVAC installations is anticipated to rise in the coming years, as these RTUs with advanced filtration systems can significantly improve air quality and reduce the spread of airborne diseases and allergens.

Application Insights

The commercial application segment held the largest share and 78.9% market share in 2024. According to the U.S. Census Bureau, the total construction spending in 2023 reached USD 2,096.0 billion, marking a significant increase of 9.0% compared to USD 1,840.9 billion in 2022. This notable uptick in spending for commercial buildings can be attributed to evolving business demands, urbanization trends, rapid industrial expansion, and overall economic growth.

HVAC Rooftop Units Market Share, By Application, 2024 (%)

The demand for the industrial application segment is expected to grow at a significant CAGR from 2025 to 2030. HVAC rooftop units are crucial for the industrial sector because they provide efficient climate control, offer high air quality, ensure compliance with regulations, and support operational efficiency. Industrial processes often generate dust, fumes, and other airborne contaminants that can compromise indoor air quality.

Regional Insights

North America HVAC rooftop units market is driven by increasing demand in commercial, industrial, and residential sectors, where energy-efficient and cost-effective climate control solutions are highly sought after. The commercial sector, particularly in retail, hospitality, and office buildings, is the dominant user of RTUs due to their compact size, ease of installation, and scalability for large spaces.

U.S. HVAC Rooftop Units Market Trends

The U.S. HVAC rooftop units market held an 84.5% share in the North American market. In the U.S., the HVAC rooftop units market is seeing strong demand, particularly in the commercial real estate, retail, and healthcare sectors, where RTUs are preferred due to their ease of installation, maintenance, and ability to manage large spaces. The push for energy efficiency in line with stringent federal and state regulations is pushing the market towards newer, eco-friendly models, such as those that utilize alternative refrigerants and incorporate variable speed drives for better energy management.

Canada HVAC rooftop units marketheld a 12.4% share in the North America market. Canada's HVAC rooftop units market is growing steadily, fueled by the need for energy-efficient solutions in both urban and industrial environments. In major metropolitan areas like Toronto and Vancouver, commercial buildings increasingly adopt RTUs to meet stringent energy codes and environmental regulations. The demand for RTUs is particularly pronounced in the retail, educational, and healthcare sectors, where large HVAC rooftop units are required to ensure comfort and air quality in expansive facilities.

Asia Pacific HVAC Rooftop Units Market Trends

The Asia Pacific HVAC rooftop units market led the market and accounted for 41.3% of the global revenue share in 2024. The demand for HVAC rooftop units in the Asia Pacific region is experiencing steady growth, driven by rapid urbanization, industrial expansion, and the increasing need for energy-efficient cooling solutions. Rising temperatures due to climate change, combined with the growing construction of commercial and residential buildings, are fueling the adoption of advanced HVAC systems.

HVAC Rooftop Units Market Trends, by Region, 2025 - 2030

China HVAC rooftop units market held a 50.4% share in the Asia Pacific market. In China, the demand for HVAC rooftop units is on the rise, primarily due to urbanization, a booming real estate sector, and industrialization. With major cities expanding and new commercial establishments being developed, there is a growing need for reliable and cost-effective cooling solutions. Furthermore, China's commitment to reducing carbon emissions and increasing energy efficiency has led to a strong push for high-performance HVAC systems, including rooftop units that offer both convenience and energy savings in large-scale buildings.

The HVAC rooftop units market in India held an 11.6% share in the Asia Pacific market. India is witnessing a surge in demand for HVAC rooftop units, driven by rapid urban growth, a rising middle class, and expanding infrastructure projects. With high temperatures prevalent throughout much of the country, cooling solutions have become essential in commercial, industrial, and residential buildings. The growing awareness of energy conservation and the need for sustainable solutions is pushing the adoption of energy-efficient HVAC rooftop systems, supported by government incentives and regulations promoting greener technologies.

Europe HVAC Rooftop Units Market Trends

The HVAC rooftop units market in Europe is influenced by increasing emphasis on energy efficiency, environmental regulations, and smart building technologies. With the European Union's stringent climate targets and energy performance regulations, building owners are increasingly turning to RTUs with better energy management capabilities. Additionally, the need for centralized HVAC rooftop units in large commercial and retail spaces, as well as the adoption of renewable energy sources, is helping to drive the market for advanced rooftop solutions.

Germany HVAC rooftop units market held a 32.4% share in the European market. Germany is a leader in the European HVAC rooftop units market, with a strong focus on energy efficiency and environmental sustainability. The country’s rigorous energy regulations, such as the Energy Efficiency Directive and the GHG reduction targets, are prompting commercial buildings and industries to adopt RTUs that use natural refrigerants and offer better performance. With increasing investments in the green building sector, Germany's demand for high-performance rooftop units is driven by a need for optimal indoor climate control while reducing energy consumption and CO2 emissions.

The HVAC rooftop units market in France held a 13.3% share in the Europe market. One of the primary drivers in the French HVAC market is the increasing emphasis on energy efficiency. The government has implemented and continues to reinforce regulations to reduce energy consumption and promote sustainable practices in buildings. These regulations influence the demand for HVAC rooftop units that meet high energy efficiency standards.

Latin America HVAC Rooftop Units Market Trends

The HVAC rooftop units market in Latin America is witnessing steady growth, driven by increasing urbanization, a booming construction industry, and rising demand for energy-efficient building solutions. Countries like Brazil, Mexico, and Argentina are seeing a rise in commercial and industrial buildings, which fuels the demand for RTUs. Additionally, government regulations aimed at improving energy efficiency and reducing greenhouse gas emissions are pushing the market towards the adoption of more sustainable HVAC solutions.

Brazil HVAC rooftop units market held a 49.3% share in the Latin America market. In Brazil, the HVAC rooftop units market is expanding due to a growing demand for energy-efficient systems in commercial and industrial buildings. With rapid urban development and a rising middle class, the construction of new office buildings, retail spaces, and hospitals is driving the need for reliable and scalable HVAC solutions. These aforementioned factors are anticipated to drive the HVAC rooftop units market over the forecast period.

Middle East & Africa HVAC Rooftop Units Market Trends

The HVAC rooftop units market in the Middle East and Africa is strongly influenced by the need for reliable and energy-efficient cooling systems due to extreme temperature conditions, particularly in countries like the UAE, Qatar, and Saudi Arabia. RTUs are widely used in commercial buildings, shopping malls, and hotels in these regions, where cooling demands are high year-round. The demand is further driven by the growing focus on sustainability and energy efficiency, with building owners and developers adopting RTUs that meet LEED (Leadership in Energy and Environmental Design) standards and reduce operational costs.

Saudi Arabia HVAC rooftop units market held a 39.1% share in the Middle East & African market. The Saudi Arabian industry is booming, driven by the country’s large-scale infrastructure projects, including commercial buildings, malls, and hotels. The government’s Vision 2030, which focuses on diversifying the economy and creating sustainable urban developments, has led to increased demand for energy-efficient, high-performance RTUs. Additionally, extreme weather conditions, particularly high temperatures in the summer, drive the need for reliable and efficient HVAC solutions.

Key HVAC Rooftop Units Company Insights

Some of the key players operating in the market include Carrier, DAIKIN INDUSTRIES, Ltd., Johnson Controls, and LG Electronics.

  • Carrier is a provider of safe, sustainable, intelligent building and cold chain solutions. The company was acquired by United Technologies Corporation in 1979, but it was spun off as an independent company in April 2020. Carrier Global Corporation provides heat pumps, air conditioners, boilers, furnaces, air purifiers, humidifiers, dehumidifiers, ventilators, air scrubbers, thermostats, UV lamps, energy services, and building controls to retail, commercial, transport, and food service sectors.

  • DAIKIN INDUSTRIES Ltd. sells and manufactures air conditioning systems and chemical products. The company was formerly known as Daikin Kogyo Co., Ltd. and changed its name in 1982. It owns 313 consolidated subsidiaries worldwide and offers air-conditioning systems, room heating and heat pumps, hot water supply systems, room air conditioning systems, packaged air-conditioning systems, and air conditioning systems for plants, facilities, and office buildings.

AAON and Danfoss are some of the emerging participants in the HVAC rooftop units market.

  • Danfoss manufactures products and provides services involving air conditioning, refrigeration, heating, off-highway machinery, and motor control. The company also operates in the field of district energy infrastructure, as well as renewable energy for residential and commercial industries.

  • AAON also offers three different series of rooftop units, including the RQ Series, which has five cooling dimensions available ranging from 2 to 6 tons; the RN Series, which has 28 cooling dimensions available that range from 6 to 140 tons; and the RZ Series, which has 15 cooling dimensions available in the range of 45 to 261 tons.

Key HVAC Rooftop Units Companies:

The following are the leading companies in the HVAC rooftop units market. These companies collectively hold the largest market share and dictate industry trends.

View a comprehensive list of companies in the HVAC Rooftop Units Market

Recent Developments

  • In May 2024, Johnson Controls revealed the expansion of its acclaimed YORK Sun Premier commercial rooftop unit (RTU) portfolio, introducing new models ranging from 90 to 150 tons of capacity. Tailored for facilities such as office buildings, hospitals, and educational institutions, these top-tier RTUs aim to diminish carbon emissions and bolster sustainability efforts while cutting down operational and maintenance costs.

  • In May 2024, SAMSUNG announced a Joint Venture with Lennox International, Inc. company for ductless and variable refrigerant flow HVAC rooftop units and provided cooling and heating solutions across the U.S. and Canada. As part of this new partnership, SAMSUNG will hold a 50.1% stake, while Lennox will control the remaining 49.9%.

HVAC Rooftop Units Market Report Scope

Report Attribute

Details

Market size value in 2025

USD 49.55 billion

Revenue forecast in 2030

USD 64.87 billion

Growth Rate

CAGR of 5.5% from 2025 to 2030

Historical data

2018 - 2023

Forecast period

2025 - 2030

Quantitative units

Revenue in USD million/billion and CAGR from 2025 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Capacity, application, distribution channel, region

Region scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S., Canada, Mexico, UK, Germany, France, Italy, UK, Spain, India, China, South Korea, Japan, Australia, Brazil, Argentina, Saudi Arabia, South Africa, UAE

Key companies profiled

Carrier, DAIKIN INDUSTRIES, Ltd., Johnson Controls, LG Electronics., Danfoss, Lennox International, Inc., Rheem Manufacturing Company, Trane, SAMSUNG, Mitsubishi Electric Corporation, Fujitsu, AAON

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Global HVAC Rooftop Units Market Report Segmentation

This report forecasts revenue growth at global, regional & 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 global HVAC rooftop units market report on the basis of capacity, application, distribution channel, and region:

Global HVAC Rooftop Units Market Report Segmentation

  • Capacity Outlook (Revenue, USD Billion, 2018 - 2030)

    • Upto 3 Tons

    • 3 to 7 Tons

    • 7 to 15 Tons

    • 15 to 25 Tons

    • 25 to 45 Tons

    • Above 45 Tons

  • Application Outlook (Revenue, USD Billion, 2018 - 2030)

    • Commercial

      • Supermarkets & Hypermarkets

      • Retail Stores

      • Restaurants

      • Workspaces/Office

      • Shopping Malls

      • Other Commercial Applications

    • Industrial

    • Residential

  • Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

    • New Installation

    • Replacement

  • Regional Outlook (Revenue, USD Billion, 2018 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • Italy

      • UK

      • Spain

    • Asia Pacific

      • China

      • India

      • South Korea

      • Japan

      • Australia

    • Latin America

      • Brazil

      • Argentina

    • Middle East & Africa

      • Saudi Arabia

      • South Africa

      • UAE

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