Technological Advancements Push U.S. Split Units Market Toward $2.89 Billion by 2032

According to the latest market research study published by P&S Intelligence, the U.S. split units market is poised for steady growth, with revenues projected to reach USD 2,185.5 million in 2024 and further expanding to USD 2,888.7 million by 2032, reflecting a compound annual growth rate (CAGR) of 3.7% from 2025 to 2032. This upward trajectory is driven by the increasing adoption of split unit systems across residential, commercial, and industrial sectors, attributed to their flexible installation options, energy efficiency, and superior temperature control capabilities.

The escalating average temperatures across the U.S. have heightened the demand for effective cooling solutions, positioning split units as a preferred choice for many consumers. Additionally, increased infrastructure spending has bolstered the installation and maintenance of these systems nationwide. Technological advancements, particularly the integration of inverter technology, have further enhanced the appeal of split units by offering reliable and energy-efficient cooling solutions.

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Key Insights

The market's growth is significantly influenced by the rising demand for energy-efficient cooling systems. Inverter-integrated split units, known for their variable-speed compressors and reduced power consumption, have become increasingly popular, especially in areas prone to frequent power outages. These systems operate more quietly than traditional models, making them suitable for noise-sensitive environments like residential neighborhoods, schools, libraries, and hospitals.

Technological innovations, including the incorporation of the Internet of Things (IoT), smartphone-based remote controls, and advanced air filtration systems, have enhanced the reliability and energy efficiency of split units. These advancements cater to the growing consumer preference for smart and connected home appliances.

Government initiatives aimed at promoting energy efficiency play a crucial role in market dynamics. For instance, in November 2023, the U.S. Department of Energy's Building Technologies Office (BTO) launched the Building Energy Efficiency Frontiers & Innovation Technologies (BENEFIT) 2024 initiative. This program focuses on advancing building decarbonization technologies, including high-efficiency cooling systems, to enhance energy performance in residential and commercial buildings.

The residential sector emerges as the largest end-user category, driven by the increasing adoption of smart home technologies and the need for efficient cooling solutions in urban areas. The trend toward urbanization has led to the construction of smaller living spaces, where split units are favored for their compact design and effective cooling capabilities.

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Regionally, the Southern United States holds the largest market share, attributed to its hot and humid climate, which necessitates advanced cooling solutions. The region's rapid population growth and urbanization further contribute to the heightened demand for split units.

The market is characterized by a fragmented landscape with numerous players competing to offer innovative and energy-efficient products. Companies are increasingly focusing on integrating advanced technologies and expanding their product portfolios to cater to the evolving consumer preferences and regulatory standards.

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