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.
North America Fan Coil Market Analysis
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.
North America Fan Coil Market Overview
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.
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North America Fan Coil Market: Strategic Insights
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North America Fan Coil Market Drivers and Opportunities
Flourishing Construction Sector Propels Market Growth
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.
Increasing Retrofitting Activities to Generate Growth Opportunities in Market in Future
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.
North America Fan Coil Market Report Segmentation Analysis
Key segments that contributed to the derivation of the North America fan coil market analysis are type and end user.
- Based on type, the market is segmented into cassette fan coils, horizontal fan coils, vertical fan coils, wall-mounted fan coils, and others. The vertical fan coils segment dominated the market in 2023.
- Based on end user, the market is segmented into commercial, residential, and industrial. The commercial industry segment dominated the market in 2023.
North America Fan Coil Market Share Analysis by Country
- The North America fan coil market is segmented into the US, Canada, and Mexico. In terms of revenue, in 2023, the US held the largest share of the market. The market in North America is expected to witness significant growth during the forecast period owing to factors such as the increasing demand for energy-efficient HVAC solutions in commercial and residential buildings, including hotels, offices, hospitals, and multi-family residential complexes. The rising adoption of fan coil units can be attributed to their ability to provide individual zone temperature control and relatively compact size. The increasing number of housing projects with high construction spending, fast urbanization, and rising disposable income also favors the growth of the North America fan coil market growth in North America. Stringent government regulations such as ASHRAE (American Society of Heating, Refrigerating, and Air-Conditioning Engineers) and requirements outlined in building codes also contribute to the market.
North America Fan Coil Market Report Scope
North America Fan Coil Market News and Recent Developments
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:
- Carrier's latest single-stage heat pump launch marks the first heat pumps available to the field that are R-454B compatible well in advance of the 2025 regulatory shift. R-454B, known commercially as Puron Advance, is Carrier's refrigerant of choice for all ducted and ductless residential and light commercial applications. In addition to heat pumps, Carrier has also begun taking orders for R-454B compatible fan coils and evaporator coils.
(Source: Carrier, Press Release, March 2024)
- Daikin Applied announced that it had made a majority investment in Varitec Solutions, a Phoenix-based leader in designing, developing, and installing large-scale, energy-efficient HVAC systems for commercial buildings. Varitec's expertise in supporting engineers, contractors, and building owners with innovative solutions and quick delivery, combined with Daikin's industry leadership, serves customers as a unified source for comprehensive HVAC technology and services.
(Source: Daikin Applied, Press Release, October 2024)
North America Fan Coil Market Report Coverage and Deliverables
The "North America Fan Coil Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
- North America fan coil market size and forecast at regional and country levels for all the key market segments covered under the scope
- North America fan coil market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- North America fan coil market analysis covering key market trends, regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the North America fan coil market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
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.
1. Introduction
1.1 The Insight Partners Research Report Guidance
1.2 Market Segmentation
2. Executive Summary
2.1 Key Insights
2.2 Market Attractiveness
3. Research Methodology
3.1 Secondary Research
3.2 Primary Research
3.2.1 Hypothesis formulation:
3.2.2 Macro-economic factor analysis:
3.2.3 Developing base number:
3.2.4 Data Triangulation:
3.2.5 Country level data:
4. North America Fan Coil Market Landscape
4.1 Overview
4.2 PEST Analysis
4.3 Ecosystem Analysis
4.3.1 Component/Material Suppliers:
4.3.2 Fan Coil Manufacturers:
4.3.3 Suppliers and Authorized Distributors:
4.3.4 End Users:
4.3.5 List of Vendors in Value Chain
5. North America Fan Coil Market – Key Market Dynamics
5.1 North America Fan Coil Market – Key Market Dynamics
5.2 Market Drivers
5.2.1 Flourishing Construction Sector
5.2.2 Rising Data Center Investments
5.2.3 Evolving Energy Efficiency Regulations
5.3 Market Restraints
5.3.1 High Costs of Ownership
5.4 Market Opportunities
5.4.1 Increasing Retrofitting Activities
5.5 Trends
5.5.1 Smart Fan Coil Units
5.5.2 Shift Toward Low-Noise Operations
5.6 Impact of Drivers and Restraints:
6. North America Fan Coil Market Analysis
6.1 North America Fan Coil Market Revenue (US$ Million), 2021–2031
6.2 North America Fan Coil Market Forecast and Analysis
7. North America Fan Coil Market Analysis – by Type
7.1 Vertical Fan Coils
7.1.1 Overview
7.1.2 Vertical Fan Coils: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
7.2 Horizontal Fan Coils
7.2.1 Overview
7.2.2 Horizontal Fan Coils: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
7.3 Cassette Fan Coils
7.3.1 Overview
7.3.2 Cassette Fan Coils: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
7.4 Wall Mounted Fan Coils
7.4.1 Overview
7.4.2 Wall Mounted Fan Coils: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
7.5 Others
7.5.1 Overview
7.5.2 Others: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
8. North America Fan Coil Market Analysis – by End User
8.1 Commercial
8.1.1 Overview
8.1.2 Commercial: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
8.2 Residential
8.2.1 Overview
8.2.2 Residential: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
8.3 Industrial
8.3.1 Overview
8.3.2 Industrial: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
9. North America Fan Coil Market – Country Analysis
9.1 North America
9.1.1 North America Fan Coil Market Breakdown by Countries
9.1.2 North America Fan Coil Market Revenue and Forecast and Analysis – by Country
9.1.2.1 North America Fan Coil Market Revenue and Forecast and Analysis – by Country
9.1.2.2 United States: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
9.1.2.2.1 United States: North America Fan Coil Market Breakdown by Type
9.1.2.2.2 United States: North America Fan Coil Market Breakdown by End User
9.1.2.3 Canada: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
9.1.2.3.1 Canada: North America Fan Coil Market Breakdown by Type
9.1.2.3.2 Canada: North America Fan Coil Market Breakdown by End User
9.1.2.4 Mexico: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
9.1.2.4.1 Mexico: North America Fan Coil Market Breakdown by Type
9.1.2.4.2 Mexico: North America Fan Coil Market Breakdown by End User
10. Competitive Landscape
10.1 Heat Map Analysis by Key Players
10.2 Company Positioning & Concentration
11. Industry Landscape
11.1 Overview
11.2 Market Initiative
11.3 Merger and Acquisition
11.4 Product Development
12. Company Profiles
12.1 Carrier Global Corp
12.1.1 Key Facts
12.1.2 Business Description
12.1.3 Products and Services
12.1.4 Financial Overview
12.1.5 SWOT Analysis
12.1.6 Key Developments
12.2 Daikin Industries Ltd
12.2.1 Key Facts
12.2.2 Business Description
12.2.3 Products and Services
12.2.4 Financial Overview
12.2.5 SWOT Analysis
12.2.6 Key Developments
12.3 Johnson Controls International Plc
12.3.1 Key Facts
12.3.2 Business Description
12.3.3 Products and Services
12.3.4 Financial Overview
12.3.5 SWOT Analysis
12.3.6 Key Developments
12.4 TROX GmbH
12.4.1 Key Facts
12.4.2 Business Description
12.4.3 Products and Services
12.4.4 Financial Overview
12.4.5 SWOT Analysis
12.4.6 Key Developments
12.5 Swegon Group AB
12.5.1 Key Facts
12.5.2 Business Description
12.5.3 Products and Services
12.5.4 Financial Overview
12.5.5 SWOT Analysis
12.5.6 Key Developments
12.6 Midea Group Co Ltd
12.6.1 Key Facts
12.6.2 Business Description
12.6.3 Products and Services
12.6.4 Financial Overview
12.6.5 SWOT Analysis
12.6.6 Key Developments
12.7 Zehnder Group AG,
12.7.1 Key Facts
12.7.2 Business Description
12.7.3 Products and Services
12.7.4 Financial Overview
12.7.5 SWOT Analysis
12.7.6 Key Developments
12.8 Inner-Cool Systems
12.8.1 Key Facts
12.8.2 Business Description
12.8.3 Products and Services
12.8.4 Financial Overview
12.8.5 SWOT Analysis
12.8.6 Key Developments
12.9 Williams
12.9.1 Key Facts
12.9.2 Business Description
12.9.3 Products and Services
12.9.4 Financial Overview
12.9.5 SWOT Analysis
12.9.6 Key Developments
12.10 Ice Air
12.10.1 Key Facts
12.10.2 Business Description
12.10.3 Products and Services
12.10.4 Financial Overview
12.10.5 SWOT Analysis
12.10.6 Key Developments
13. Appendix
13.1 Word Index
13.2 About the Insight Partners
List of Tables
Table 1. North America Fan Coil Market Segmentation
Table 2. List of Vendors
Table 3. US States with Most Construction Spending, 2022
Table 4. Number of Completed Retrofits in Canada
Table 5. North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
Table 6. North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million) – by Type
Table 7. North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million) – by End User
Table 8. North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million) – by Country
Table 9. United States: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million) – by Type
Table 10. United States: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million) – by End User
Table 11. Canada: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million) – by Type
Table 12. Canada: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million) – by End User
Table 13. Mexico: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million) – by Type
Table 14. Mexico: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million) – by End User
Table 15. Company Positioning & Concentration
Table 16. List of Abbreviation
List of Figures
Figure 1. North America Fan Coil Market Segmentation, by Country
Figure 2. PEST Analysis
Figure 3. Impact Analysis of Drivers and Restraints
Figure 4. North America Fan Coil Market Revenue (US$ Million), 2021–2031
Figure 5. North America Fan Coil Market Share (%) – by Type, 2023 and 2031
Figure 6. Vertical Fan Coils: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
Figure 7. Horizontal Fan Coils: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
Figure 8. Cassette Fan Coils: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
Figure 9. Wall Mounted Fan Coils: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
Figure 10. Others: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
Figure 11. North America Fan Coil Market Share (%) – by End User, 2023 and 2031
Figure 12. Commercial: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
Figure 13. Residential: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
Figure 14. Industrial: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
Figure 15. North America Fan Coil Market Breakdown by Key Countries, 2023 and 2031 (%)
Figure 16. United States: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
Figure 17. Canada: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
Figure 18. Mexico: North America Fan Coil Market – Revenue and Forecast to 2031 (US$ Million)
Figure 19. Heat Map Analysis by Key Players
The List of Companies - North America Fan Coil Market
- Carrier Global Corp
- Daikin Industries Ltd
- Johnson Controls International Plc
- TROX GmbH
- Swegon Group AB
- Midea Group Co Ltd
- Zehnder Group AG
- Inner-Cool Systems
- Williams
- Ice Air
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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