Rooftop HVAC Units Market by Type (Single Package, Split System), Capacity (Below 10 Tons, 10-30 Tons, Above 30 Tons), Technology (Conventional, VRF, Heat Pump), Application, End User, and Geography—Global Forecast to 2035

What is the Rooftop HVAC Units Market Size?

The global rooftop HVAC units market size was valued at USD 12.45 billion in 2024 and is expected to increase from USD 13.42 billion in 2025 to USD 24.85 billion by 2035, at a CAGR of 6.4% from 2025 to 2035. The rising demand for space-efficient HVAC solutions in commercial buildings, along with a focus on energy-efficient heating and cooling systems, is driving market growth worldwide. Rapid urbanization and the expansion of retail, healthcare, and educational infrastructure globally are also contributing to this trend.

Rooftop HVAC Units Market Key Highlights

• In terms of revenue, the global rooftop HVAC units market is valued at USD 13.42 billion in 2025 and is projected to reach USD 24.85 billion by 2035.
• The market is expected to grow at a CAGR of 6.4% from 2025 to 2035.
• North America dominates the global rooftop HVAC units market with the largest market share of 42% in 2025.
• Asia Pacific is expected to witness the fastest CAGR during the forecast period.
• By type, the single package units segment captures the largest market share of 75% in 2025.
• By type, the split system units segment is expected to witness the fastest CAGR during the foreseeable period.
• By capacity, the 10-30 tons segment contributes the largest market share of 45-50% in 2025.
• By capacity, the above 30 tons segment is expected to witness the fastest CAGR during the forecast period.
• By technology, the conventional rooftop units segment holds the largest market share of 50-55% in 2025.
• By technology, the heat pump rooftop units segment is expected to witness the fastest CAGR during the forecast period.
• By application, the commercial segment generates the major market share of 70% in 2025.
• By application, the industrial segment is expected to witness the fastest CAGR through 2035.
• By end user, the retail & shopping centers segment accounts for a significant market share of 25-30% in 2025.
• By end user, the data centers segment is expected to witness the fastest CAGR through 2035.
• By distribution channel, the direct sales segment holds the largest market share of 60-65% in 2025.
• By distribution channel, the online sales segment is expected to witness the fastest CAGR during the forecast period.

Market Overview and Insights

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The rooftop HVAC units market includes the design, manufacturing, installation, and servicing of heating, ventilation, and air conditioning systems placed on building rooftops for commercial and industrial use. These self-contained units house all key HVAC components, such as compressors, condensers, evaporators, fans, and controls in weatherproof enclosures. This setup removes the need for indoor mechanical rooms and maximizes usable floor space.

Rooftop units differ from traditional split systems. They allow for easier installation, centralized maintenance access, less noise inside buildings, and flexible zoning options. The market growth stems from rising commercial construction projects, the need to replace old HVAC systems, strict energy efficiency regulations, an increased demand for better indoor air quality, and advancements in variable refrigerant flow systems, smart controls, and eco-friendly refrigerants in retail, office, healthcare, educational, and industrial facilities worldwide.

How is AI Transforming the Rooftop HVAC Units Market?

Artificial intelligence rooftop HVAC units allow for predictive maintenance, improve energy use with machine learning, provide fault detection and diagnostics, and support automatic climate control based on occupancy and weather. AI systems look at real-time data to spot inefficiencies, predict when parts might fail, and adjust settings for the best performance and energy savings. Machine learning models evaluate past usage patterns, outdoor conditions, and building features to create comfort profiles while reducing energy use. AI helps with load balancing among multiple rooftop units, smart economizer control for free cooling, and automatic scheduling based on occupancy predictions. This cuts operational costs by 20-30%, boosts occupant comfort, and extends the life of equipment by optimizing operation.

What are the Key Trends in the Rooftop HVAC Units Market?

• Integration with Building Automation Systems (BAS): A key trend in the rooftop HVAC units market is the smooth connection with building automation systems and IoT platforms. Modern rooftop units have controllers that communicate with BAS using standard protocols like BACnet and Modbus. This allows for centralized monitoring, control, and optimization of several units across facilities. With this setup, facility managers can monitor performance metrics, energy use, and maintenance needs through cloud-based dashboards. It helps in making informed decisions and allows for proactive maintenance strategies.
• Adoption of variable refrigerant flow (VRF) technology: Another significant trend driving market growth is the rising use of VRF technology in rooftop units. This technology provides better energy efficiency and zone control. VRF systems enable simultaneous heating and cooling in different areas. They also offer precise temperature control and heat recovery between zones. As a result, these systems can save 30-40% on energy compared to traditional systems. This technology is especially appealing for buildings with varying thermal loads and occupancy patterns, such as hotels, offices, and mixed-use developments.

Market Scope

Market Dynamics

Drivers

Growing Commercial Construction and Retrofitting Activities

A major factor driving the growth of the rooftop HVAC units market is the strong increase in commercial construction around the world. This is especially true in emerging economies where urbanization and economic development are happening quickly. The construction of retail spaces, office buildings, warehouses, healthcare facilities, and educational institutions requires efficient HVAC solutions. These systems need to maximize usable indoor space while ensuring reliable climate control.

Additionally, many existing rooftop units are aging, usually around 15 to 20 years old. This situation offers significant opportunities for replacement as building owners aim to improve energy efficiency, lower maintenance costs, and meet updated building codes. Government incentives for energy-efficient upgrades, like tax credits and utility rebates, also speed up the replacement process. The growing trend of adapting industrial buildings for commercial use drives demand for rooftop units that can be installed easily without major structural changes.

Restraint

High Installation and Maintenance Costs

Despite increasing demand, the rooftop HVAC units market encounters obstacles due to high initial investment costs and ongoing maintenance issues. Installation expenses include the equipment itself as well as structural reinforcement, crane services for placing units on the roof, electrical upgrades, and ductwork changes; this often adds up to 2-3 times the cost of the unit. Units on rooftops face harsh weather, which demands strong weatherproofing and more frequent maintenance than indoor systems. Maintenance on rooftops can be difficult, raising service costs and safety concerns; this requires technicians to have special training and equipment. Larger rooftop units can weigh too much for the roof load capacity of older buildings, leading to costly structural upgrades. These challenges can make it hard for adoption, especially for small building owners with limited budgets.

Opportunity

Energy-Efficient and Sustainable HVAC Solutions

The growing focus on sustainability and net-zero building goals offers profitable chances for rooftop HVAC units with high-efficiency parts, renewable energy options, and low-GWP refrigerants. Heat pump rooftop units that heat and cool through electric power support electrification aims and remove the need for natural gas. Connecting with rooftop solar panels for direct energy supply or thermal storage systems for load shifting adds more value. The rising demand for LEED and ENERGY STAR certified buildings encourages the use of high-efficiency rooftop units that help achieve certification points. Smart grid integration features that allow for demand response participation provide extra income for building owners and help maintain grid stability. This creates market opportunities for manufacturers offering sustainable solutions.

Type Insights

Why are Single Package Units Preferred for Rooftop Applications?

The single package units segment holds the largest market share, around 75% in 2025. Single package units include all HVAC components in one weatherproof enclosure. This setup allows for easier installation, shorter refrigerant piping, and fewer roof penetrations compared to split systems. These self-contained units do not need indoor mechanical space, which maximizes the leasable area in commercial buildings. The factory-installed design ensures quality control, cuts down on installation time and labor costs, and makes maintenance easy because all components are accessible from the rooftop. Single package units are especially popular in retail stores, restaurants, and small office buildings, where indoor space is limited and standardized solutions meet comfort needs.

The split system units segment is expected to see the fastest growth during the next several years. The increasing use of VRF split systems for rooftop applications is driving this segment. These systems offer better energy efficiency, allow for control in individual zones, and operate more quietly by placing noisy components on the roof, separate from the indoor air handlers.

Technology Insights

How do Conventional Rooftop Units Maintain Market Leadership?

The conventional rooftop units segment holds the largest market share, around 50-55% in 2025. Conventional constant-speed units with staged compressors offer a cost-effective solution for standard commercial applications. They are reliable and easy to maintain. These units use familiar technology that HVAC technicians can service easily, ensuring that parts and expertise are widely available. Although they are less efficient than newer options, conventional units meet basic comfort needs at lower initial costs. This makes them appealing to budget-conscious buyers and suitable for applications with moderate runtime hours. The large number of installed conventional units also boosts replacement demand since building owners tend to prefer similar technology that works with existing setups.

The heat pump rooftop units segment is expected to grow at the fastest CAGR through 2035. There is a growing focus on electrification and reducing carbon emissions, which boosts the adoption of heat pump technology. This technology eliminates natural gas use while providing efficient heating and cooling. Advanced heat pumps with cold climate capabilities create new opportunities in northern regions that previously relied on gas heating.

Capacity Insights

How does the 10-30 Tons Segment Dominate the Market?

The 10-30 tons segment accounts for 45-50% share of the overall market in 2025. This capacity range serves most commercial buildings, including retail stores, restaurants, bank branches, and small office buildings. These units strike a good balance between capacity and efficiency for typical commercial loads. They also fit within standard electrical service capabilities. The 10-30 ton range allows for modular setups, where multiple units provide redundancy and control for medium-sized buildings. Standardization in this range helps manufacturers achieve economies of scale and competitive prices.

The segment above 30 tons is expected to grow the fastest in the coming years. Rising demand from large commercial facilities, data centers, and industrial applications needing significant cooling capacity drives this growth. Improvements in high-capacity scroll and screw compressors enhance the efficiency and reliability of large rooftop units.

Application Insights

Why do Commercial Applications Drive Market Demand?

The commercial segment holds the largest share of 70% of the overall rooftop HVAC units market in 2025. Commercial buildings, including retail stores, offices, hotels, hospitals, and schools, depend heavily on rooftop units for space-efficient HVAC solutions. This approach keeps valuable indoor space available for revenue-generating activities. The commercial sector focuses on occupant comfort, indoor air quality, and operational efficiency, which drives a continuous demand for new installations and replacements. Shorter replacement cycles in commercial applications result from higher runtime hours and changing efficiency standards, creating steady market demand. The variety of commercial building types and sizes allows for a wide array of rooftop unit configurations and capacities.

The industrial segment is expected to grow at the fastest CAGR during the forecast period. Increased use in warehouses, distribution centers, and manufacturing facilities drives this growth. The expansion of e-commerce and the return of manufacturing create a need for climate-controlled industrial spaces. Modern rooftop units with precise temperature and humidity control meet the requirements of industrial processes.

End User Insights

Why have Retail & Shopping Centers Found Maximum Application?

The retail and shopping centers segment holds the largest market share, nearly 25-30%, in 2025. Retail environments need reliable HVAC systems to ensure comfortable shopping conditions. This comfort encourages customers to spend more time in stores and boosts sales. Rooftop units provide ideal solutions for retail spaces. They preserve sales floor area, offer flexible zoning for different store sections, and allow individual tenant control in multi-tenant properties. The modular design of rooftop units makes it easy to adjust capacity as retail spaces change or are repurposed. The high visibility of energy costs in retail operations leads to the adoption of efficient rooftop units that lower operational expenses while keeping comfort levels high.

The data centers segment is expected to grow the fastest during the foreseeable period. The rapid increase in data center construction and higher heat densities from high-performance computing drive the need for specialized rooftop units. These units require precise temperature and humidity control, high sensible heat ratios, and redundant setups to meet mission-critical cooling needs.

Distribution Channel Insights

Why are Direct Sales Dominant in the Market?

The direct sales segment is expected to hold the largest market share of 60-65% in 2025. Direct sales through manufacturers' sales teams and authorized representatives provide the technical knowledge needed for proper equipment selection, system design, and application engineering. Commercial HVAC projects often require customization, value-engineering, and coordination with mechanical contractors that benefit from direct manufacturer involvement. Having direct relationships allows for better project support, warranty management, and access to technical resources. Large commercial projects and national accounts prefer direct purchasing relationships to get volume pricing, standardization across portfolios, and dedicated support services.

However, the online sales segment is projected to witness the fastest growth rate during the upcoming years. The shift towards digital in HVAC distribution enables online selection tools, configurators, and e-commerce platforms that make purchasing easier for standard rooftop units. Online channels lower transaction costs and improve access for smaller contractors and end-users.

U.S. Rooftop HVAC Units Market Size and Growth 2025 to 2035

The U.S. rooftop HVAC units market is projected to be worth around USD 8.92 billion by 2035, growing at a CAGR of 6.3% from 2025 to 2035.

How is the North America Rooftop HVAC Units Market Growing Dominantly Across the Globe?

North America holds the largest market share of around 40-45% of the global rooftop HVAC units market in 2025. This is mainly attributed to the widespread use of rooftop units as the standard HVAC solution for commercial buildings. This trend is driven by a lot of low-rise commercial construction and a preference for packaged equipment. The established replacement market, with millions of rooftop units reaching the end of their life, creates steady demand. Strict energy codes, such as ASHRAE 90.1 and Title 24 in California, encourage the use of high-efficiency units.

Major manufacturers like Trane Technologies, Carrier, Johnson Controls, Lennox, and Rheem have extensive distribution networks that ensure product availability and service support. Features such as economizers, demand-controlled ventilation, and energy recovery are common in North American markets, which supports premium pricing and overall market value.

Which Factors Support the Asia Pacific Rooftop HVAC Units Market Growth?

Asia Pacific is expected to grow at the fastest CAGR from 2025 to 2035. This growth is primarily attributed to the rapid urbanization and the development of commercial infrastructure in China, India, Southeast Asia, and other emerging markets. The rising popularity of organized retail, modern warehousing, and international building standards increases the demand for rooftop HVAC solutions. Higher disposable incomes and expectations for comfort in tropical climates create a strong need for cooling, which rooftop units in commercial spaces can effectively meet.

Government programs that promote energy efficiency and green buildings, like China's carbon neutrality goals and India's Energy Conservation Building Code, support the adoption of improved rooftop units. Local manufacturing capabilities and competitive pricing also help expand the market, while technology transfers from global manufacturers enhance product quality and efficiency.

Value Chain Analysis

• Component Manufacturing This stage focuses on producing key components including compressors, heat exchangers, fans, motors, controls, and sheet metal enclosures optimized for rooftop applications. Key Players: Copeland (Emerson), Danfoss, Bitzer, ebm-papst
• System Design and Assembly This stage involves engineering complete rooftop units, assembling components, testing performance, and ensuring compliance with efficiency standards and building codes.
• Key Players:
  • Trane Technologies plc
  • Carrier Global Corporation
  • Johnson Controls International plc
  • Daikin Industries Ltd.
  • Lennox International Inc.
  • Rheem Manufacturing Company
  • Goodman Manufacturing (Daikin)
  • Nortek Global HVAC
  • AAON Inc.
  • Mitsubishi Electric Corporation
  • LG Electronics Inc.
  • Samsung Electronics Co. Ltd.
  • Gree Electric Appliances Inc.
  • Midea Group Co. Ltd.
  • Hitachi Ltd.
  • Fujitsu General Limited
  • Bosch Thermotechnology (Robert Bosch GmbH)
  • Toshiba Corporation
  • Panasonic Corporation
  • York (Johnson Controls)

Recent Developments

• August 2025 - Trane Technologies introduced the IntelliPak™ 2 rooftop units, featuring enhanced energy efficiency and part-load performance, aligning with new industry energy efficiency requirements.
• July 2025 - Daikin Applied expanded its Rebel® and Rebel Applied® rooftop systems, incorporating heat pump technology, low-GWP R-32 refrigerant, and inverter compressors to enhance heating and cooling efficiency.
• February 2025 - Trane Technologies launched the Symbio™ 800 controller, offering advanced integration and control capabilities for IntelliPak™ and other rooftop units, facilitating improved building performance management.

Segments Covered in the Report

By Type

• Single Package Units
• Split System Units

By Capacity

• Below 10 Tons
• 10-30 Tons
• 30-50 Tons
• 50-100 Tons
• Above 100 Tons

By Technology

• Conventional Rooftop Units
• Variable Refrigerant Flow (VRF) Units
• Heat Pump Rooftop Units
• Evaporative Cooling Units
• Hybrid Systems

By Application

• Commercial
• Industrial

By End User

• Retail & Shopping Centers
• Office Buildings
• Healthcare Facilities
• Educational Institutions
• Hospitality
• Data Centers
• Warehouses & Distribution Centers
• Manufacturing Facilities
• Government Buildings
• Others

By Distribution Channel

• Direct Sales
• Distributors & Dealers
• Online Sales
• Contractors & Installers

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

Frequently Asked Questions