The North America fan coil market was valued at US$ 754.37 million in 2023 and is projected to reach US$ 1,139.14 million by 2031. The market is estimated to record a CAGR of 5.3% from 2023 to 2031. Smart fan coil units and a shift toward low-noise operations are likely to remain a key market trends in the coming years.
Modern fan coil units are becoming an integral part of the Internet of Things (IoT) ecosystem. These units can be easily automated and controlled by connecting them with other smart devices. Homeowners can combine fan coil units with smart home systems for automated climate management, or they can remotely change settings using smartphones. In accordance with the users' everyday activities, this connectivity guarantees peak performance and energy efficiency. Advanced sensor technologies are being explored for their potential to make fan coil units smarter in improving indoor comfort and air quality. Thus, such innovative fan coil units would be able to make dynamic adjustments based on sensors' abilities to determine temperature, humidity, occupancy, and air contaminants. The development of fan coil units running on renewable energy sources is also underway in the North American market. Clean energy for heating and cooling may be obtained by connecting these units to geothermal, solar, and wind power sources. This integration encourages a more sustainable and greener energy landscape in addition to lowering dependency on fossil fuels. Thus, advanced sensors and smart connectivity, and innovations regarding energy efficiency and integration with renewable energy are making fan coil units more intelligent, efficient, and user-friendly. As a result, they are expected to play a crucial role in creating comfortable, healthy, and sustainable indoor environments in North American countries in the coming years.
A fan coil unit (FCU) is employed to heat or cool spaces without a requirement for ductwork. These units are operated either manually through on/off switches or using thermostats to control the temperature inside the concerned spaces. A fan coil unit consists of components such as air intake, filter, fan, cooling coil, heating coil, discharge, and grille. Fan coil units are frequently found in offices and other commercial structures. The North America fan coil market growth is ascribed to factors such as the flourishing construction sector, rising data center investments, and evolving energy efficiency regulations. Further, increasing retrofitting activities are expected to provide lucrative growth opportunities for the market in the coming years. Smart fan coil units and a shift toward low-noise operation are emerging as significant trends in the North America fan coil market.
The North American construction sector has recorded significant growth in recent years. The US construction sector continues to show remarkable resilience compared to the rest of the world, with a substantial number of enterprises operating across segments such as office buildings, retail spaces, and industrial facilities. According to Dodge Construction Network, the count of construction projects in the US jumped 6% through the first 8 months of 2024 compared to the same period in 2023. According to the US Census Bureau, and the US Department of Housing and Urban Development, the country reached the mark of ~1.406 million completions of privately owned housing units as of August 2023, indicating an increase of 5.3% from the revised estimate of ~1.335 million in July 2023 and a 3.8% rise compared to the ~1.355 million completions in August 2022. The construction industry in the US has experienced a notable increase in investments in recent years owing to factors such as economic recovery, urbanization, and infrastructure needs. According to ABC, construction spending in the US rose at a rate greater than 41% from April 2020 to July 2024.
Fan coils are commonly used in residential, commercial, and industrial buildings that use ducted split air conditioning or central plant cooling. The adoption of fan coils is increasing with an upsurge in new residential and commercial projects with the growing construction industry. These units offer compact solutions that can fit into various architectural designs, making them ideal for both high-rise buildings and smaller spaces. Furthermore, the compatibility of fan coils with modern smart building technologies complements automation and energy management strategies implemented in newly constructed facilities. Thus, as urban development continues, the integration of fan coil units becomes essential, driving the North America fan coil market growth.
Retrofitting refers to the process of updating existing buildings to improve their energy efficiency and performance. This practice has emerged as a critical movement across North America due to the urgent need to address climate change and aging infrastructure. Major cities in the US, such as New York, Toronto, and San Francisco, are emphasizing on retrofitting projects; property owners in these cities are also increasingly upgrading their existing buildings to meet modern energy efficiency standards and sustainability goals. According to a report by JLL, the US needs to triple its retrofit rate as of 2023 to meet net-zero targets by 2050. The report estimated that deep retrofits of whole office buildings could bring 40–60% energy efficiency savings, compared to 10–15% brought by light retrofits. As per the Pembina Report on Beyond Energy Efficiency in 2024, Canada needs to retrofit 600,000 existing homes and 32 million square meters of existing commercial spaces each year to reach 2050 net-zero targets. In May 2021, the Canada Greener Homes Grant program was launched with a budget to support 700,000 retrofits over a period of 7 years. Such rising retrofitting activities to meet stringent energy efficiency standards and sustainability goals are likely to stimulate the need for replacing outdated HVAC systems with modern fan coil units that offer superior energy performance and smart building integration capabilities. Thus, rising retrofitting activities provide lucrative growth opportunities for the North America fan coil market.
Key segments that contributed to the derivation of the North America fan coil market analysis are type and end user.
The regional trends and factors influencing the North America Fan Coil Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses North America Fan Coil Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 754.37 Million |
| Market Size by 2031 | US$ 1,139.14 Million |
| Global CAGR (2023 - 2031) | 5.3% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The North America Fan Coil Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the North America Fan Coil Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The North America fan coil market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the North America fan coil market are listed below:
(Source: Carrier, Press Release, March 2024)
(Source: Daikin Applied, Press Release, October 2024)
The "North America Fan Coil Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
The List of Companies - North America Fan Coil Market
The incremental growth expected to be recorded for the North America fan coil market during the forecast period is US$ 384.77 million.
The North America fan coil marketis expected to reach US$ 1139.14 million by 2031.
The key players holding majority shares in the North America fan coil market are DAIKIN INDUSTRIES, Ltd; Carrier; Midea; Johnson Controls; and Systemair AB.
Smart fan coil units and shift toward low-noise operations are anticipated to play a significant role in the North America fan coil market in the coming years.
Flourishing construction sector, rising data centre investments, and evolving energy efficiency regulations are the major factors that propel the North America fan coil market.
The North America fan coil market was estimated to be US$ 754.37 million in 2023 and is expected to grow at a CAGR of 5.3 % during the forecast period 2023 – 2031.