Press release
Rooftop HVAC Units Market Forecast 2025-2035: Trends, Growth, and Opportunities
The global rooftop HVAC units market has been witnessing steady growth due to increasing demand for space-efficient heating, ventilation, and air conditioning solutions in commercial buildings. Valued at USD 12.45 billion in 2024, the market is expected to rise to USD 13.42 billion in 2025 and further reach USD 24.85 billion by 2035, growing at a CAGR of 6.4% during the forecast period. The expansion of commercial and industrial infrastructure, particularly in retail, healthcare, and educational sectors, alongside rapid urbanization worldwide, is fueling this growth.
Rooftop HVAC units are self-contained systems installed on the rooftops of buildings, combining compressors, condensers, evaporators, fans, and controls in a weatherproof enclosure. This design eliminates the need for indoor mechanical rooms, maximizes usable floor space, and simplifies maintenance access. Compared to traditional split systems, rooftop units allow for centralized control, reduced indoor noise, and flexible zoning options, making them an attractive solution for a wide range of applications.
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Market Drivers and Growth Factors
One of the key factors driving the rooftop HVAC units market is the rapid growth of commercial construction projects. New retail outlets, office buildings, healthcare facilities, educational institutions, and hotels require efficient HVAC solutions that optimize floor space while providing reliable heating and cooling. At the same time, aging rooftop units in existing buildings create significant opportunities for replacements. Many systems installed over the past two decades are now due for upgrade, driven by energy efficiency regulations and government incentives such as tax credits and utility rebates.
Advancements in technology, such as variable refrigerant flow (VRF) systems, smart controls, and eco-friendly refrigerants, further support market growth. These innovations enhance energy efficiency, improve indoor air quality, and reduce operational costs, encouraging building owners to invest in modern rooftop units.
How is AI Transforming Rooftop HVAC Units?
Artificial intelligence is increasingly integrated into rooftop HVAC units to optimize performance and energy usage. AI-driven systems can perform predictive maintenance, detect faults, and adjust climate control automatically based on occupancy and weather data. Machine learning algorithms analyze historical usage patterns, outdoor conditions, and building features to develop comfort profiles while minimizing energy consumption. AI also enables load balancing across multiple units, economizer control for free cooling, and intelligent scheduling, leading to operational savings of up to 20-30% and extended equipment life.
Key Trends in the Rooftop HVAC Units Market
Modern rooftop units are increasingly integrated with building automation systems (BAS) and IoT platforms. This connectivity allows centralized monitoring and management of multiple units across facilities, enabling energy optimization, predictive maintenance, and remote troubleshooting. Standard communication protocols like BACnet and Modbus facilitate this integration, allowing facility managers to track energy use and system performance through cloud-based dashboards.
Another notable trend is the adoption of VRF technology. VRF systems enable simultaneous heating and cooling in different zones and allow heat recovery between areas, improving energy efficiency by 30-40% compared to traditional systems. These systems are ideal for buildings with varying thermal loads, including hotels, offices, and mixed-use developments.
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Segment Insights
The single package units segment dominates the rooftop HVAC units market, accounting for approximately 75% of market share in 2025. These units contain all HVAC components in a single enclosure, which simplifies installation, reduces refrigerant piping, and minimizes roof penetrations. Single package units are especially popular in retail stores, restaurants, and small offices, where maximizing indoor space is critical. Meanwhile, split system units are expected to witness the fastest growth due to their quiet operation, enhanced energy efficiency, and compatibility with VRF technology.
Conventional rooftop units currently hold the largest market share in terms of technology, with 50-55% of the market in 2025. These units offer a cost-effective solution for standard applications and are easy to maintain with readily available parts. Heat pump rooftop units, however, are projected to grow at the fastest rate due to the global push for electrification and low-carbon solutions. Heat pumps provide efficient heating and cooling without relying on natural gas, appealing to regions aiming to reduce carbon emissions.
In terms of capacity, the 10-30 ton range dominates the market, representing 45-50% share in 2025. This capacity meets the needs of most commercial buildings, offering a balance between efficiency and scalability. Higher capacity units above 30 tons are expected to grow rapidly, driven by demand from large commercial facilities, data centers, and industrial applications.
Application and End User Insights
Commercial applications account for 70% of the rooftop HVAC units market. Offices, hospitals, schools, hotels, and retail spaces rely on rooftop units for space-efficient climate control, maintaining occupant comfort while maximizing revenue-generating floor space. Industrial applications, including warehouses, manufacturing facilities, and distribution centers, are expected to register the fastest growth due to increased demand for climate-controlled environments and precision temperature management.
Retail and shopping centers are the largest end users, with 25-30% market share, as they require reliable HVAC solutions to enhance customer comfort and experience. Data centers are projected to grow fastest, driven by high heat loads from advanced computing equipment and the need for precise temperature and humidity control.
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Regional Insights
North America dominates the global rooftop HVAC units market, holding a 40-45% share in 2025. This leadership is attributed to widespread adoption in commercial construction, stringent energy efficiency standards, and a mature replacement market. Leading manufacturers, including Trane Technologies, Carrier, Johnson Controls, and Lennox, support this market with extensive distribution networks, energy-efficient products, and service support.
Asia Pacific is expected to witness the fastest growth through 2035, fueled by rapid urbanization, rising commercial infrastructure, and growing disposable incomes. Governments in China, India, and Southeast Asia are promoting energy efficiency and green buildings, which encourages the adoption of high-performance rooftop units.
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