Latin America Commercial HVAC Equipment Market

Latin America Commercial HVAC Equipment Market Analysis

The Latin America Commercial HVAC Equipment Market size is estimated at USD 2.20 billion in 2025, and is expected to reach USD 3.06 billion by 2030, at a CAGR of 6.8% during the forecast period (2025-2030).

• Agriculture is one of the major end users of the refrigerated trucking industry in the United States. The growth in agriculture products and increasing trade have led to a growing dependence on the refrigerated trucking industry. The United States is the world’s second-largest agricultural trader after the European Union. The US exports of agricultural and related products reached USD 191 billion in 2023, down 10% from 2022's record as commodity prices and shipment volumes declined.
• Refrigerated trucks are crucial for transporting perishable goods and ensuring fresh food and vital medications reach their destinations at controlled temperatures. These trucks, known as reefers, constitute about 70% of the US food transportation system, with 500,000 units maintaining the cold chain nationwide. In 2023, the US frozen food sector achieved annual sales of USD 77.6 million, according to Conagra's 2024 Future of Frozen Food report. From 2019 to 2023, US frozen food sales volumes grew by 5%, driven by Millennials' preference for convenient and health-conscious options. Traditional supermarkets dominate the frozen food market with over 40% share but face competition from mass merchants and supercenters. Online grocery shopping is rising, with 86% of online shoppers purchasing frozen products in 2023. The demand for fresh and frozen food and the rise in online grocery shopping drive the need for refrigerated trucking services nationwide.
• There was an increased demand for fresh vegetables, fruits, and packaged foods during the COVID-19 pandemic due to panic-buying behaviors among consumers. The sector is recovering from the effects of the COVID-19 pandemic.

Latin America Commercial HVAC Equipment Market Trends

Growth in Commercial Building to Propel Demand

Commercial real estate in Latin America has seen significant growth and transformation over the past few decades, driven by various economic, demographic, and social factors. Latin America is one of the most urbanized regions in the world, with a large and growing urban population.

• According to World Bank data, 81.2% of the population of Latin America lived in urban areas and cities, and by 2050, this number is expected to reach 89%. This demographic trend has fueled demand for commercial real estate, especially in major cities like Sao Paulo, Mexico City, Buenos Aires, and Bogota. Urbanization has led to increased investment in office spaces and retail centers.
• Consequently, Latin American cities are experiencing a construction boom, emphasizing high-rise buildings like office towers. These structures require sophisticated HVAC systems to maintain comfortable indoor environments for occupants. As the number of high-rise buildings grows, so does the demand for HVAC equipment to provide heating, cooling, and ventilation solutions. Brazil peaked at its 2014 construction activity level in 2023, as the GDP contribution from the construction industry reached BRL 327.9 billion (USD 60.18 billion) from the 2014 peak of BRL 306.95 billion (USD 56.34 billion).
• Latin America has attracted significant foreign investment in its commercial real estate sector, particularly from North America. Investors are drawn to the region's economic potential, labor costs, and growing consumer markets, and factors such as nearshoring are driving the resurgence of the sector.
• Capital cities are recording positive demand, with countries such as Mexico and Brazil leading the way, with demand in terms of coworking companies and call centers, along with a rise in business process outsourcing in countries such as Colombia and Peru.

Mexico to Witness Significant Growth

• Mexico's economy has been steadily growing, accompanied by rapid urbanization. As more people move to urban areas, a growing demand for commercial buildings drives the demand for HVAC equipment. Urbanization also increases construction activity, including developing high-rise buildings and shopping malls requiring HVAC systems. As of 2023, Mexico's urbanization rate stands at 81.3%.
• Mexico has planned to reduce carbon emissions, leading to increased use of heat pumps. For instance, Mexico has raised its goals for reducing greenhouse gas emissions, aiming for a 35% decrease by 2030. The government of Mexico has expressed its intentions to boost clean energy production to 40 GW by 2030.
• Government policies and regulations to mitigate climate change include measures to incentivize using low-carbon heating products like heat pumps. These policies consist of building codes that mandate using energy-efficient HVAC systems or incentives such as tax credits or rebates for installing heat pumps.
• The surge in nearshoring has prompted American companies to establish commercial buildings in Mexico, fueling the demand for HVAC systems. Nearshoring, the practice of relocating business operations closer to a company's home country, has made Mexico an increasingly attractive destination for American firms.
• Growing public awareness of climate change and its environmental impacts has increased consumer interest in sustainable and eco-friendly products, including HVAC systems. As consumers become more conscious of their carbon footprint, there is a greater demand for heating and cooling solutions that offer both comfort and environmental benefits, driving the adoption of heat pumps.

Latin America Commercial HVAC Equipment Industry Overview

The Latin American HVAC equipment market is competitive, owing to the presence of multiple domestic and international companies. The market appears semi-consolidated, with significant players adopting strategies like product innovation, partnerships, and collaborations. Some key regional players in the market include Carel, Klima HVAC Solutions, and Westric, and international players include Midea Group, Trane Inc., Johnson Control's International PLC, Carrier Corporation, Rheem Manufacturing Company, Systemair, and many more.

• August 2023: Trane announced expanding its production facility in Monterrey, Nuevo Leon. It added 10,000 square meters to its air conditioner facility. The construction began in January 2023 and was completed in July 2023. The company plans to increase its production and service volume while reducing lead times. The company announced its intention to invest in new technologies and improve its manufacturing processes to offer competitive products and services.
• July 2023: Lennox International Inc. recently held a ceremony after expanding into Saltillo, Mexico, through the completion of its new factory for its HVAC commercial business. The new facility will be located close to its existing residential factory. The new factory will manufacture high-volume, low-variation equipment for the emergency replacement market. It will start production in the second half of 2024.

Latin America Commercial HVAC Equipment Market Leaders

Latin America Commercial HVAC Equipment Market News

• May 2024: Daikin announced its plan to build a new custom HVAC and computer room AHU manufacturing facility in Tijuana, Mexico. It will be built in partnership with its subsidiary, Alliance Air Products. The new 460,000-square-foot facility will help Daikin expand its presence in Mexico. This, in turn, will allow the company to serve customers in Mexico for end-to-end HVAC solutions. The production of the USD 121 million facility is expected to be completed.
• April 2024: Hartell, a prominent pump manufacturer based in the US, launched its venture into the Latin American market. Leveraging over six decades of experience, Hartell, known for its industrial and commercial pump innovations, is entering Latin America through a strategic collaboration with Mr. German Beroes of HVAC Global representative. Hartell specializes in crafting condensate removal pumps, utility sink pumps, and OEM icemaker replacement pumps tailored for the HVAC, plumbing, refrigeration, and icemaking sectors.