Press release
Rooftop HVAC Units Market to Reach USD 24.85 Billion by 2035
Rooftop HVAC units support energy-efficient cooling and heating across modern commercial buildings.
The global rooftop HVAC units market is witnessing steady growth as commercial and industrial buildings increasingly adopt space-efficient and energy-efficient heating, ventilation, and air conditioning solutions. The market was valued at USD 12.45 billion in 2024 and is projected to grow from USD 13.42 billion in 2025 to USD 24.85 billion by 2035, registering a compound annual growth rate (CAGR) of 6.4% during the forecast period from 2025 to 2035.
Market growth is primarily driven by rapid urbanization, rising investments in commercial infrastructure, and increasing emphasis on energy-efficient building systems. Expansion of retail, healthcare, education, and data center facilities across both developed and emerging economies is further accelerating demand for rooftop HVAC units worldwide.
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What Are Rooftop HVAC Units
Rooftop HVAC units are self-contained heating, ventilation, and air conditioning systems installed on building rooftops to serve commercial and industrial spaces. These units integrate compressors, condensers, evaporators, fans, and control systems within weather-resistant enclosures, eliminating the need for indoor mechanical rooms and maximizing usable floor space.
Compared to traditional split HVAC systems, rooftop units offer simplified installation, centralized maintenance access, reduced indoor noise levels, and flexible zoning options. These advantages make rooftop HVAC units a preferred solution for retail stores, offices, healthcare facilities, educational institutions, warehouses, and industrial buildings.
Increasing Demand for Space-Efficient and Energy-Saving HVAC Solutions
The rising need to optimize building space and improve indoor air quality is driving widespread adoption of rooftop HVAC units. These systems help building owners meet evolving energy efficiency standards while maintaining occupant comfort. Advancements in smart controls, variable refrigerant flow (VRF) technology, eco-friendly refrigerants, and high-efficiency compressors are improving system performance and reducing operating costs.
Additionally, replacement of aging rooftop units-many of which have exceeded 15 to 20 years of service life-is creating strong aftermarket demand, particularly in North America and Europe.
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Impact of Artificial Intelligence on Rooftop HVAC Units
Artificial intelligence is transforming the rooftop HVAC units market by enabling predictive maintenance, intelligent energy optimization, and automated climate control. AI-powered systems analyze real-time operating data, weather conditions, and occupancy patterns to optimize cooling and heating performance.
Machine learning algorithms help detect faults early, reduce unplanned downtime, and extend equipment lifespan. AI-based load balancing and smart economizer control can reduce energy consumption by 20-30%, improving both operational efficiency and occupant comfort in commercial buildings.
Key Market Trends Shaping the Industry
One of the major trends in the rooftop HVAC units market is the integration with building automation systems (BAS) and IoT platforms. Modern rooftop units support protocols like BACnet and Modbus, enabling centralized monitoring, remote control, and data-driven decision-making across large facilities.
Another significant trend is the growing adoption of heat pump and VRF-based rooftop systems. These technologies provide superior energy efficiency, precise zoning control, and support electrification goals by reducing reliance on fossil fuels. Heat pump rooftop units are gaining traction as governments push for low-carbon and net-zero buildings.
Market Segmentation Highlights
By type, single package units dominate the market, accounting for nearly 75% of the global market share in 2025, due to their compact design, ease of installation, and cost-effectiveness.
By capacity, the 10-30 tons segment leads with 45-50% market share, serving the majority of commercial buildings.
By technology, conventional rooftop units hold the largest share at 50-55%, while heat pump rooftop units are expected to witness the fastest growth during the forecast period.
By application, the commercial segment represents approximately 70% of total demand, driven by retail, office, healthcare, and educational facilities.
Regional Market Insights
North America dominates the global rooftop HVAC units market, accounting for approximately 42% market share in 2025. The region benefits from widespread use of rooftop units as the standard HVAC solution for low-rise commercial buildings, a strong replacement market, and strict energy efficiency regulations like ASHRAE 90.1 and Title 24.
Asia Pacific is expected to register the fastest CAGR during the forecast period, supported by rapid urban development, expanding commercial infrastructure, rising demand for cooling in tropical climates, and government initiatives promoting energy-efficient buildings in countries like China and India.
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Competitive Landscape
The rooftop HVAC units market features a mix of global HVAC manufacturers and regional players focused on innovation, efficiency, and digital integration. Leading companies operating in the market include Trane Technologies plc, Carrier Global Corporation, Johnson Controls International plc, Daikin Industries Ltd., Lennox International Inc., Rheem Manufacturing Company, Mitsubishi Electric Corporation, LG Electronics, and Samsung Electronics.
Manufacturers are investing in smart controls, low-GWP refrigerants, and high-efficiency heat pump technologies to strengthen their market position and meet evolving regulatory requirements.
Future Outlook
As commercial construction activity expands and building owners prioritize energy efficiency, indoor air quality, and sustainability, rooftop HVAC units are expected to remain a core component of modern building infrastructure. Continued advancements in AI-driven controls, electrification technologies, and digital connectivity will further enhance system performance and lifecycle value.
With strong demand from retail, healthcare, industrial, and data center applications, the rooftop HVAC units market is set for consistent growth through 2035.
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