Global HVAC Rooftop Units Market Size, Share, and COVID-19 Impact Analysis, By Capacity (Upto 3 Tons, 3 to 7 Tons, 7 to 15 Tons, 15 to 25 Tons, 25 to 45 Tons, and Above 45 Tons), By Application (Commercial, Industrial, and Residential), By Distribution Channel (New Installation and Replacement), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035

Global HVAC Rooftop Units Market SizeForecasts to 2035

• The Global HVAC Rooftop Units Market Size Was Estimated at USD 47.05 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 5.44% from 2025 to 2035
• The Worldwide HVAC Rooftop Units Market Size is Expected to Reach USD 84.25 Billion by 2035
• North America is expected to grow the fastest during the forecast period.

The global HVAC rooftop units market size was worth around USD 47.05 billion in 2024 and is predicted to grow to around USD 84.25 billion by 2035 with a compound annual growth rate (CAGR) of 5.44% from 2025 to 2035. An increasing demand for cooling and heating systems for commercial use, demand for heating equipment, and an increasing number of construction projects with the growing urbanization are driving the HVAC rooftop units market.

Market Overview

The HVAC rooftop units market is an industry that emphasizes the design, manufacturing, and sale of HVAC (heating, ventilation, and air conditioning) units that are installed on the roofs of buildings, primarily commercial buildings. HVAC rooftop units, or RTUs, are packaged HVAC systems that are installed on the roof of a building to provide heating, cooling, and ventilation to a building in a self-contained, space-efficient manner. There is growing adoption of HVAC rooftop unit systems by businesses to minimize energy consumption and carbon footprint. Further, the stringent regulations and standards regarding energy usage lead to more efficient rooftop units. The emergence of advanced HAVC systems includes the integration of better filtration and ventilation techniques are bolstering the market growth.

Investment in construction, ongoing maintenance, and replacement needs for HVAC rooftop units, driving demand for energy-efficient heating solutions as well as the preference for sustainable and energy-efficient buildings, are escalating the market growth opportunities.

Report Coverage

This research report categorizes the HVAC rooftop units market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the HVAC rooftop units market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the HVAC rooftop units market.

Driving Factors

An increasing demand for cooling and heating systems for commercial use due to factors including urbanization, consumer awareness about energy-efficient solutions, and the need for comfort & productivity in commercial space is driving the market demand for HVAC rooftop units. Consumers and businesses are prioritizing advanced, eco-friendly heating solutions due to energy efficiency and environmental concerns, which is driving the market. HVAC rooftop units are installed in commercial construction, saving valuable indoor space and providing climate control for buildings.

Restraining Factors

The increased installation and maintenance costs is challenging the market growth. Further, the limited availability of skilled labor and alternative cooling solutions such as chillers may hamper the market.

Market Segmentation

The HVAC rooftop units market share is classified into capacity, application, and distribution channel.

• The 3 to 7 tons segment dominated the market with the largest share in 2024 and is projected to grow at a substantial CAGR during the forecast period.

Based on the capacity, the HVAC rooftop units market is divided into upto 3 tons, 3 to 7 tons, 7 to 15 tons, 15 to 25 tons, 25 to 45 tons, and above 45 tons. Among these, the 3 to 7 tons segment dominated the market with the largest share in 2024 and is projected to grow at a substantial CAGR during the forecast period. 3 to 7 tons of rooftop units are used among medium-sized commercial spaces, including larger retail stores, restaurants, and small offices. They are well suited for areas between a range of 1500 and 3500 square feet.

• The commercial segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the application, the HVAC rooftop units market is divided into commercial, industrial, and residential. Among these, the commercial segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. An increasing investment in advanced HVAC systems to cater to the demand for improved air quality in commercial spaces is propelling the market. Further, the evolving business demand with industrial expansion and urbanization trends is responsible for driving the segmental market growth. 

• The replacement segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the distribution channel, the HVAC rooftop units market is divided into new installation and replacement. Among these, the replacement segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. Replacement of HVAC rooftop units offers several benefits, including high efficiency, reduced maintenance, and low long-term energy costs. Further, an aging infrastructure of existing buildings with increasing advancements in HVAC technology and regulatory pressures is anticipated to propel the market growth.

Regional Segment Analysis of the HVAC Rooftop Units Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the HVAC rooftop units market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the HVAC rooftop units market over the predicted timeframe. The growing number of construction projects in the region, driven by the development of urban infrastructure, commercial buildings, and residential complexes, is contributing to driving the market demand. Further, the region’s strong economic growth, driving demand for commercial spaces, ultimately driving the demand for innovative and high-quality HVAC equipment and services, thereby escalating the market.

North America is expected to grow at a rapid CAGR in the HVAC rooftop units market during the forecast period. The increasing demand for HVAC rooftop systems with energy-efficient and cost-effective climate control solutions across commercial, industrial, and residential sectors is propelling the market. Further, the emergence of smart HVAC systems that are increasingly being connected to the internet that enables data sharing, efficient monitoring, and predictive maintenance are promoting the market growth.

Europe is anticipated to hold a substantial share of the HVAC rooftop units market during the predicted timeframe. The growing focus on energy efficiency, environmental regulations, and smart building technologies are all contributing factors of HVAC rooftop units market. Further, the technological advancements, including the IoT integration are significantly contributing to propel the market growth of HVAC rooftop units.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the HVAC rooftop units market, along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

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

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Recent Development

• In May 2024, Johnson Controls, the global leader for smart, healthy, and sustainable buildings, announced the expansion of the award-winning YORK Sun Premier commercial rooftop unit (RTU) portfolio with new 90-150-ton units.
• In May 2024, Samsung Electronics announced that it has agreed to form a joint venture with Lennox, a leading provider of innovative climate solutions in the HVACR industry, to sell ductless HVAC systems in the US and Canada.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the HVAC rooftop units market based on the below-mentioned segments: 

Global HVAC Rooftop Units Market, By Capacity

• Upto 3 Tons
• 3 to 7 Tons
• 7 to 15 Tons
• 15 to 25 Tons
• 25 to 45 Tons
• Above 45 Tons

Global HVAC Rooftop Units Market, By Application

• Commercial
• Industrial
• Residential

Global HVAC Rooftop Units Market, By Distribution Channel

• New Installation
• Replacement

Global HVAC Rooftop Units Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa