North America HVAC Distribution Market To Reach $93.50 Billion By 2030

North America HVAC Distribution Market Growth & Trends

The North America HVAC distribution market size is anticipated to reach USD 93.50 billion by 2030 and is expected to expand at a CAGR of 6.2% from 2025 to 2030, according to a new report by Grand View Research, Inc. The North American HVAC distribution market is increasingly driven by the demand for energy-efficient and environmentally friendly systems. Regulatory frameworks such as energy efficiency standards and ENERGY STAR certifications are pushing manufacturers and distributors to prioritize high-efficiency HVAC units. This includes systems with variable-speed compressors, smart thermostats, and advanced refrigerants like R-32 with lower global warming potential (GWP). Distributors are responding by diversifying their inventories to include products that meet or exceed these standards, supporting both regulatory compliance and consumer preferences for sustainable living.

Technological innovation is a defining trend in North America's HVAC distribution market. The widespread adoption of smart technologies and Internet of Things (IoT) integration has transformed customer expectations and product offerings. Distributors are now stocking systems equipped with remote diagnostics, real-time energy monitoring, and integration with home automation platforms such as Amazon Alexa and Google Home. These advancements not only enhance energy management but also drive after-sales services, such as predictive maintenance and performance analytics, adding value for both residential and commercial users.

The residential HVAC segment remains a key growth driver in North America, particularly due to aging infrastructure and the rising trend of home renovation and replacement systems. The increasing frequency of extreme weather events across the U.S. and Canada has further underscored the importance of reliable heating and cooling systems, prompting homeowners to invest in modern, efficient HVAC units. Distribution channels are adapting by offering more consumer-focused support, including flexible financing options, energy rebates, and quick-turnaround installation services to meet the rising demand from homeowners upgrading outdated systems.

The HVAC distribution landscape in North America is undergoing significant transformation with the expansion of both traditional wholesale networks and digital distribution channels. Major HVAC distributors and OEMs are investing in logistics infrastructure, including regional distribution centers and same-day delivery capabilities, to reduce lead times and enhance service levels. At the same time, e-commerce is playing a growing role, with platforms enabling contractors and end-users to research, compare, and purchase systems online. This omni-channel approach is becoming increasingly important, particularly as end-user expectations shift toward convenience and speed of service.

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North America HVAC Distribution Market Report Highlights

• Based on equipment, the heat pump segment led the market in 2024. Heat pump distribution demand in North America is surging due to growing emphasis on energy efficiency and decarbonization in both residential and commercial sectors. Government incentives, such as tax credits under the Inflation Reduction Act in the U.S., are accelerating adoption.

• In the residential HVAC distribution market, there is a growing preference for energy-efficient, compact systems like ductless mini-splits and smart thermostats, driven by rising energy costs and environmental concerns. In addition, home automation integration is becoming more common, as homeowners seek seamless control over their HVAC systems through mobile apps and voice assistants.

• The offline HVAC distribution market continues to thrive through traditional dealer networks, contractors, and wholesalers, providing hands-on support and expertise to customers. Despite the rise of online sales, many consumers and businesses still prefer the personalized service, installation, and after-sales support offered by offline distributors.

• The North American HVAC retrofit & renovation market is experiencing significant growth, driven by stringent energy efficiency mandates and carbon reduction targets. Moreover, the increasing awareness of indoor air quality and the need for improved ventilation systems are contributing to the rising demand for HVAC renovations in both residential and commercial sectors.

• Based on country, U.S. led the market in 2024. The increasing adoption of smart HVAC systems, integration of low-GWP refrigerants, and a shift towards eco-friendly practices such as renewable energy integration and advanced environmental control technologies is driving the demand.

• In May 2025, DSG launched a new distribution center and branch in North Dakota, expanding its capacity threefold to better meet growing market demand.

North America HVAC Distribution Market Segmentation

For the purpose of this report, Grand View Research, Inc. has segmented the North America HVAC distribution market based on equipment, end use, distribution channel, application, and country.

North America HVAC Distribution Equipment Outlook (Revenue, USD Billion, 2018 - 2030)

• Heat Pump

• Furnace

• Unitary Heaters

• Boilers

• Air Purifier

• Dehumidifier

• Air Handling Units

• Ventilation Fans

• Air Conditioning

• Chillers

• Others

North America HVAC Distribution End Use Outlook (Revenue, USD Billion, 2018 - 2030)

• Commercial

• Residential

• Industrial

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

• Offline

  • B2B

  • B2C

• Online

North America HVAC Distribution Application Outlook (Revenue, USD Billion, 2018 - 2030)

• New Construction

• Retrofit & Renovation

North America HVAC Distribution Country Outlook (Revenue, USD Billion, 2018 - 2030)

• U.S.

• Canada

• Mexico

List of Key Players in the North America HVAC Distribution Market

• HVAC Distributors

• Watsco, Inc.

• Ferguson Enterprises

• Reece Group

• Winsupply Inc.

• Johnstone Supply

• United Refrigeration, Inc.

• Duncan Supply Co. Inc.

• Crescent Parts & Equipment

• Northeastern Supply Co.