×
Request Free Sample ×

Kindly complete the form below to receive a free sample of this Report

Leading companies partner with us for data-driven Insights

clients tt-cursor
Hero Background

US Ductless HVAC system Market

ID: MRFR/EnP/13521-HCR
100 Pages
Snehal Singh
October 2025

US Ductless HVAC System Market Research Report By Equipment Type (Heating, Ventilation, Cooling), By Implementation Type (New Commercial, Retrofit) and By Application (Residential, Commercial, Industrial) - Forecast to 2035

Share:
Download PDF ×

We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

US Ductless HVAC system Market Infographic
Purchase Options

US Ductless HVAC system Market Summary

As per MRFR analysis, the US Ductless HVAC System Market Size was estimated at 10.81 USD Billion in 2024. The US ductless hvac-system market is projected to grow from 11.53 USD Billion in 2025 to 22.0 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.67% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US ductless HVAC system market is experiencing a robust shift towards energy efficiency and smart technology integration.

  • The market is increasingly driven by a focus on energy efficiency, with consumers seeking sustainable solutions.
  • Smart technology integration is becoming prevalent, enhancing user control and system performance.
  • Customization and versatility are key trends, allowing systems to meet diverse consumer needs and preferences.
  • Rising energy costs and increased awareness of indoor air quality are major drivers propelling market growth.

Market Size & Forecast

2024 Market Size 10.81 (USD Billion)
2035 Market Size 22.0 (USD Billion)

Major Players

Mitsubishi Electric (JP), Daikin Industries (JP), LG Electronics (KR), Panasonic Corporation (JP), Fujitsu General (JP), Samsung Electronics (KR), Toshiba Carrier (JP), Gree Electric Appliances (CN), Trane Technologies (IE)

US Ductless HVAC system Market Trends

The The ductless HVAC system market is currently experiencing a notable shift towards energy efficiency and sustainability. This trend is driven by increasing consumer awareness regarding environmental impacts and rising energy costs. As a result, manufacturers are focusing on developing systems that utilize advanced technologies to enhance energy performance. The integration of smart technology into ductless systems is also becoming more prevalent, allowing users to monitor and control their energy consumption effectively. Furthermore, government incentives and regulations aimed at reducing carbon footprints are likely to encourage the adoption of these systems, making them more appealing to both residential and commercial sectors. In addition, the The ductless HVAC system market is witnessing a growing demand for customizable solutions. Consumers are increasingly seeking systems that can be tailored to their specific needs, whether for heating, cooling, or both. This trend is particularly evident in urban areas where space constraints necessitate compact and efficient designs. As the market evolves, it appears that the focus will remain on providing versatile and user-friendly options that cater to diverse consumer preferences, ultimately shaping the future landscape of heating and cooling solutions in the US.

Energy Efficiency Focus

The ductless hvac-system market is increasingly prioritizing energy efficiency. Manufacturers are developing systems that meet stringent energy standards, appealing to environmentally conscious consumers. This trend is further supported by government initiatives promoting energy-saving technologies.

Smart Technology Integration

There is a growing trend towards integrating smart technology within ductless hvac systems. These advancements allow users to control their systems remotely, enhancing convenience and optimizing energy usage. This shift aligns with the broader movement towards smart home solutions.

Customization and Versatility

Consumers are seeking more customizable ductless hvac solutions that cater to their specific heating and cooling needs. This trend reflects a demand for systems that can adapt to various living spaces, particularly in urban environments where space is limited.

US Ductless HVAC system Market Drivers

Rising Energy Costs

The The ductless HVAC system market is experiencing a notable surge in demand due to rising energy costs across the United States. As energy prices continue to climb, consumers are increasingly seeking energy-efficient solutions to mitigate their utility bills. Ductless systems, known for their high efficiency and ability to provide targeted heating and cooling, are becoming a preferred choice. According to recent data, ductless systems can reduce energy consumption by up to 30% compared to traditional HVAC systems. This shift towards energy-efficient technologies is likely to drive growth in the ductless hvac-system market, as homeowners and businesses alike prioritize cost-effective solutions that align with their sustainability goals.

Regulatory Support for Energy Efficiency

The The ductless HVAC system market is poised for growth due to increasing regulatory support for energy efficiency initiatives in the United States. Government policies and incentives aimed at promoting energy-efficient technologies are encouraging consumers to adopt ductless systems. For instance, various state and federal programs offer rebates and tax credits for homeowners who install energy-efficient HVAC systems. This regulatory environment is likely to stimulate demand for ductless systems, as consumers are incentivized to invest in technologies that align with energy efficiency standards. As regulations continue to evolve, the ductless hvac-system market may see a significant uptick in adoption rates.

Increased Awareness of Indoor Air Quality

The The ductless HVAC system market is benefiting from a growing awareness of indoor air quality (IAQ) among consumers. With rising concerns about health and well-being, individuals are increasingly recognizing the importance of maintaining clean and healthy indoor environments. Ductless systems, which often come equipped with advanced filtration technologies, can significantly improve IAQ by reducing allergens and pollutants. This heightened focus on IAQ is likely to propel the ductless hvac-system market, as consumers seek systems that not only provide comfort but also contribute to a healthier living space. The market is projected to expand as more individuals prioritize their health and invest in solutions that enhance their indoor environments.

Technological Advancements in HVAC Systems

The The ductless HVAC system market is witnessing a wave of technological advancements that are enhancing system performance and user experience. Innovations such as smart thermostats, remote control capabilities, and improved inverter technology are making ductless systems more appealing to consumers. These advancements not only increase energy efficiency but also provide users with greater control over their heating and cooling preferences. As technology continues to evolve, the ductless hvac-system market is likely to attract a broader customer base, particularly among tech-savvy consumers who value convenience and efficiency in their HVAC solutions.

Growing Demand for Flexible Installation Options

The The ductless HVAC system market is experiencing growth driven by the increasing demand for flexible installation options. Unlike traditional HVAC systems, ductless systems offer the advantage of being installed in various configurations, making them suitable for a wide range of residential and commercial applications. This flexibility is particularly appealing in urban areas where space constraints may limit installation options. As more consumers seek adaptable solutions that can be tailored to their specific needs, the ductless hvac-system market is likely to expand. The ability to install these systems without extensive ductwork further enhances their attractiveness, positioning them as a viable option for modern living spaces.

Market Segment Insights

By Equipment Type: Heating (Largest) vs. Cooling (Fastest-Growing)

In the US ductless hvac-system market, the equipment type segment is notably diverse, with Heating capturing a significant market share followed closely by Cooling and Ventilation. Heating is favored for its robust efficiency, making it the dominant choice among consumers. However, Cooling has seen an increasing share, driven by rising temperatures and the growing need for energy-efficient solutions, indicating a competitive market landscape. Growth trends reveal that the Cooling segment is the fastest-growing due to heightened demand for efficient air conditioning systems, particularly in response to climate change and increasing consumer awareness. The Ventilation segment, while essential, is experiencing slower growth as it often complements the primary equipment types, relying on technological advancements to enhance system efficacy and indoor air quality.

Heating: Dominant vs. Cooling: Emerging

Heating remains the dominant force in the equipment type segment of the US ductless hvac-system market, characterized by its strong demand across various applications, such as residential and commercial spaces. This segment is primarily driven by advancements in technology that enhance energy efficiency and comfort. In contrast, Cooling represents an emerging trend, particularly as summer temperatures rise and consumers increasingly seek efficient climate control solutions. The focus on sustainability and energy-saving technologies in cooling systems is leading to innovative designs and functionalities, positioning it as a promising player in the future market landscape.

By Implementation Type: New Construction (Largest) vs. Retrofit (Fastest-Growing)

In the US ductless hvac-system market, the New Construction segment holds the largest market share as builders increasingly integrate advanced HVAC solutions from the outset of new buildings. This trend is driven by a growing emphasis on energy efficiency and sustainability, leading to significant demand for modern HVAC designs that can support these goals. On the other hand, the Retrofit segment is gaining traction as existing structures undergo renovations to improve energy usage, making it a rapidly expanding segment in the market. The growth of the Retrofit segment is largely fueled by the aging infrastructure of many buildings and the need for upgraded systems that can provide better climate control. Additionally, government incentives and increasing consumer awareness regarding energy efficiency are driving renovations, making the Retrofit sector one of the fastest-growing areas in the HVAC industry. Innovations in technology also contribute to this trend as older systems are replaced with more efficient ductless solutions.

New Construction (Dominant) vs. Retrofit (Emerging)

The New Construction segment is characterized by its strong presence in the market, as it benefits from direct integration during the construction phase, allowing for optimal design and performance of ductless HVAC systems. This segment appeals to builders and developers focusing on energy-efficient designs, as these systems provide superior comfort and reduced operating costs. On the other hand, the Retrofit segment is emerging rapidly due to increasing demand for upgrading existing HVAC systems, particularly in older buildings. This segment is strategically important as it allows property owners to enhance energy efficiency without extensive renovations, attracting a growing consumer base motivated by sustainability. Both segments play pivotal roles, with New Construction as the established leader and Retrofit capturing the interest of modernization efforts.

By Application: Residential (Largest) vs. Commercial (Fastest-Growing)

The US ductless hvac-system market displays a distinct segmentation among the three primary applications: residential, commercial, and industrial. Among these segments, residential applications hold the largest market share, driven by the increasing consumer demand for efficient heating and cooling solutions in homes. Residential users are increasingly opting for ductless systems due to their flexibility, ease of installation, and energy efficiency, contributing to their significant share in the market. In contrast, while commercial applications currently represent a smaller segment, they are rapidly gaining traction as businesses seek to minimize operational costs and improve energy efficiency through advanced HVAC solutions. Growth trends within the application segment are heavily influenced by evolving consumer preferences and regulatory standards emphasizing energy efficiency. The residential segment is expected to continue thriving, bolstered by ongoing home renovations and the demand for smart home technology. Meanwhile, the commercial segment is forecasted to experience the fastest growth, fueled by high energy costs and corporate sustainability initiatives, prompting a shift towards more efficient ductless systems. Industrial applications, while stable, remain niche, focusing primarily on specific operational efficiencies rather than broad market adoption.

Residential: Dominant vs. Commercial: Emerging

The residential segment stands out as the dominant force in the US ductless hvac-system market, characterized by its substantial reliance on energy-efficient solutions for home comfort. Homeowners are increasingly drawn to ductless systems due to their versatility, allowing for personalized climate control across different areas of a house. This segment benefits from advancements in technology, promoting enhanced energy efficiency, which resonates well with environmentally conscious consumers. On the other hand, the commercial segment is emerging as a significant player, driven by the pressing need for businesses to optimize energy consumption and reduce overhead costs. As commercial enterprises embrace sustainability practices, the demand for ductless systems is rising, demonstrating adaptability to a variety of commercial spaces while aligning with energy-saving objectives.

Get more detailed insights about US Ductless HVAC system Market

Key Players and Competitive Insights

The ductless hvac-system market is characterized by a dynamic competitive landscape, driven by increasing demand for energy-efficient solutions and a growing emphasis on indoor air quality. Key players such as Mitsubishi Electric (Japan), Daikin Industries (Japan), and LG Electronics (South Korea) are strategically positioned to leverage these trends. Mitsubishi Electric (Japan) focuses on innovation, particularly in developing advanced inverter technology that enhances energy efficiency. Daikin Industries (Japan) emphasizes regional expansion, having recently increased its manufacturing capabilities in North America to better serve local markets. Meanwhile, LG Electronics (South Korea) is investing heavily in digital transformation, integrating smart technology into its product offerings to enhance user experience and operational efficiency. Collectively, these strategies contribute to a competitive environment that prioritizes technological advancement and customer-centric solutions.

In terms of business tactics, companies are increasingly localizing manufacturing to mitigate supply chain disruptions and reduce lead times. This approach appears to be particularly effective in a moderately fragmented market where several players vie for market share. The collective influence of these key players shapes a competitive structure that encourages innovation and responsiveness to consumer needs, thereby fostering a more resilient market.

In October 2025, Daikin Industries (Japan) announced a partnership with a leading smart home technology firm to integrate IoT capabilities into its ductless systems. This strategic move is likely to enhance the functionality of their products, allowing for greater energy management and user control, which could significantly improve customer satisfaction and loyalty. The integration of smart technology aligns with the growing consumer preference for connected home solutions, positioning Daikin favorably in the market.

In September 2025, LG Electronics (South Korea) launched a new line of ductless systems featuring advanced air purification technology. This initiative not only addresses the increasing consumer demand for healthier indoor environments but also reinforces LG's commitment to sustainability. By prioritizing air quality, LG is likely to differentiate itself from competitors, appealing to health-conscious consumers and potentially capturing a larger market share.

In November 2025, Mitsubishi Electric (Japan) unveiled a new energy-efficient ductless system that utilizes refrigerants with lower global warming potential. This development underscores the company's commitment to sustainability and regulatory compliance, which is becoming increasingly important in the current market landscape. By leading in environmentally friendly technology, Mitsubishi Electric may enhance its brand reputation and attract environmentally conscious consumers.

As of November 2025, current trends in the ductless hvac-system market include a strong focus on digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances are increasingly shaping the competitive landscape, enabling companies to pool resources and expertise to innovate more effectively. The shift from price-based competition to a focus on innovation, technology, and supply chain reliability is evident, suggesting that future competitive differentiation will hinge on the ability to deliver advanced, sustainable solutions that meet evolving consumer expectations.

Key Companies in the US Ductless HVAC system Market market include

Industry Developments

Recent developments in the US Ductless HVAC System Market indicate a growing demand, propelled by increasing energy efficiency regulations and consumer preference for environmentally friendly solutions. Major companies such as Daikin, LG Electronics, and Mitsubishi Electric are expanding their product lines, offering advanced features like smart technology integration and enhanced energy efficiency. In August 2023, Trane acquired a minority stake in a technology start-up focusing on innovative HVAC solutions, further emphasizing the trend toward modernization in the industry.

Additionally, in September 2023, Carrier launched a new series of ductless systems that comply with updated federal energy standards. The market has experienced notable growth, with valuations rising significantly over the last couple of years, reflecting the increasing adoption of ductless systems in both residential and commercial settings. In July 2022, Rheem Manufacturing expanded its product offerings with a new line of eco-friendly systems, indicating a focus on sustainability. The US Department of Energy has also increased its push for better efficiency, which plays a crucial role in shaping market trends and company strategies.

As of October 2023, the competitive landscape continues to evolve, marked by technological advancements and strategic partnerships among the leading manufacturers.

Future Outlook

US Ductless HVAC system Market Future Outlook

The ductless HVAC-system market is projected to grow at a 6.67% CAGR from 2024 to 2035, driven by energy efficiency, technological advancements, and increasing consumer demand.

New opportunities lie in:

  • Expansion of smart HVAC integration solutions
  • Development of energy-efficient ductless systems
  • Targeted marketing strategies for residential retrofitting

By 2035, the ductless HVAC-system market is expected to achieve substantial growth and innovation.

Market Segmentation

US Ductless HVAC system Market Application Outlook

  • Residential
  • Commercial
  • Industrial

US Ductless HVAC system Market Equipment Type Outlook

  • Heating
  • Ventilation
  • Cooling

US Ductless HVAC system Market Implementation Type Outlook

  • New Construction
  • Retrofit

Report Scope

MARKET SIZE 2024 10.81(USD Billion)
MARKET SIZE 2025 11.53(USD Billion)
MARKET SIZE 2035 22.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 6.67% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled Mitsubishi Electric (JP), Daikin Industries (JP), LG Electronics (KR), Panasonic Corporation (JP), Fujitsu General (JP), Samsung Electronics (KR), Toshiba Carrier (JP), Gree Electric Appliances (CN), Trane Technologies (IE)
Segments Covered Equipment Type, Implementation Type, Application
Key Market Opportunities Growing demand for energy-efficient solutions drives innovation in the ductless hvac-system market.
Key Market Dynamics Rising consumer preference for energy-efficient solutions drives innovation in the ductless HVAC system market.
Countries Covered US

Leave a Comment

FAQs

What is the projected market size of the US Ductless HVAC System Market in 2024?

The US Ductless HVAC System Market is projected to be valued at 13.8 USD Billion in 2024.

What is the expected value of the US Ductless HVAC System Market by 2035?

By 2035, the US Ductless HVAC System Market is expected to reach a value of 29.0 USD Billion.

What is the expected compound annual growth rate (CAGR) for the US Ductless HVAC System Market from 2025 to 2035?

The expected CAGR for the US Ductless HVAC System Market from 2025 to 2035 is 6.984%.

What is the market share for Heating in the US Ductless HVAC System Market in 2024?

In 2024, the market share for Heating in the US Ductless HVAC System Market is valued at 5.4 USD Billion.

How much is the Ventilation segment valued in the US Ductless HVAC System Market for 2024?

The Ventilation segment of the US Ductless HVAC System Market is valued at 3.6 USD Billion in 2024.

What are the projected revenues for the Cooling segment of the US Ductless HVAC System Market by 2035?

The Cooling segment is projected to be valued at 10.0 USD Billion in the US Ductless HVAC System Market by 2035.

Who are the key players in the US Ductless HVAC System Market?

Key players in the market include Daikin, LG Electronics, Samsung, and Mitsubishi Electric among others.

What is the expected market growth rate for the US Ductless HVAC System Market between 2025 and 2035?

The market is expected to grow at a rate of 6.984% from 2025 to 2035.

What trends are emerging in the US Ductless HVAC System Market?

Emerging trends include increasing energy efficiency and growing demand for smart HVAC technologies.

How do current industry challenges affect the US Ductless HVAC System Market?

Current challenges such as supply chain disruptions and rising material costs may impact market growth.

Download Free Sample

Kindly complete the form below to receive a free sample of this Report

Compare Licence

×
Features License Type
Single User Multiuser License Enterprise User
Price $4,950 $5,950 $7,250
Maximum User Access Limit 1 User Upto 10 Users Unrestricted Access Throughout the Organization
Free Customization
Direct Access to Analyst
Deliverable Format
Platform Access
Discount on Next Purchase 10% 15% 15%
Printable Versions