The Heating, Ventilation, and Air Conditioning (HVAC) industry plays a crucial role in creating comfortable and energy-efficient environments across various sectors, including residential, commercial, and industrial applications. In recent years, Mexico has positioned itself as a key global hub for HVAC manufacturing, leveraging its strategic location, skilled workforce, and competitive cost structures.
Market Overview and Growth Trends
The HVAC industry in Mexico is witnessing steady growth due to factors such as:
- Increasing demand for energy-efficient and sustainable HVAC systems.
- Expansion of manufacturing operations by global HVAC giants.
- Rising infrastructure and commercial construction projects.
- Government initiatives promoting sustainable building practices.
North American HVAC Market
Although estimates vary, the North American HVAC market is expected to experience substantial growth. This is mostly driven by advanced technological innovation (including artificial intelligence), growing demand for energy efficiency, and a general increase in extreme weather events that is driving cooling demand.
Major HVAC manufacturers, including Carrier, Daikin, Lennox, and Trane hold over 60% of the U.S. market, and have manufacturing presence in Mexico, while sourcing components in China. This makes the market especially vulnerable to tariffs throughout the supply chain.
Mexican HVAC Manufacturing
Total HVAC exports in 2024 was $7.6 billion dollars (INEGI), marking a 12% increase over exports from 2023 ($6.8 billion dollars). The primary destinations of exports were the United States (98%), United Arab Emirates, Canada, Brazil and Saudi Arabia (Data Mexico).
As of the most recent data of 2022, Mexico was the 3rd largest exporter of HVAC equipment and components in the world, behind China and Thailand (BACI). The primary HVAC importing countries of the world are the United States, Japan and Germany.
Total HVAC imports in 2024 was $5.3 billion dollars (INEGI), marking a 9% increase over imports from 2023 ($4.9 billion dollars). The primary commercial origins include China (52%), the United States (30%), South Korea, Thailand, and Canada (Data Mexico).
Industry Growth Drivers & Future Outlook
The Mexican HVAC industry is poised for further expansion, driven by:
Nearshoring & USMCA Trade Benefits
- Favorable trade terms under the USMCA (United States-Mexico-Canada Agreement) make Mexico an ideal manufacturing hub.
- Reduction in tariffs and faster cross-border logistics.
Government Incentives for Green & Energy-Efficient HVAC Solutions
- Mexico’s Energy Transition Law promotes energy-efficient appliances and HVAC systems.
- Incentives for sustainable commercial buildings.
Expanding Domestic Demand
- Rising middle-class population and increased residential air conditioning adoption.
- Growth in commercial real estate and industrial infrastructure.
Integration with Smart & IoT Technologies
- Increasing demand for smart HVAC solutions with IoT-enabled automation.
- Global brands are integrating AI-driven climate control systems.
Key HVAC Manufacturing Hubs in Mexico
Several cities in Mexico have emerged as leading hubs for HVAC production, thanks to their industrial infrastructure, skilled labor, and proximity to the U.S.
Monterrey, Nuevo León
- Known as Mexico's industrial capital, Monterrey hosts several HVAC manufacturing plants.
- Benefits from proximity to the U.S. border, well-developed logistics, and a strong engineering workforce.
Queretaro, Queretaro
- A growing industrial hub with a strong presence of international HVAC manufacturers.
- Well-developed aerospace, automotive, and electronics sectors that complement HVAC production.
- Access to a skilled workforce and a business-friendly environment.
Saltillo, Coahuila
- A key manufacturing hub with a strong automotive and industrial base, which supports HVAC component production.
- Close proximity to Monterrey enhances supply chain efficiency.
- A growing workforce trained in mechanical and industrial engineering.
Reynosa, Tamaulipas
- Strategically located on the U.S.-Mexico border, facilitating rapid exports to the U.S. market.
- Home to several HVAC component manufacturers, including those specializing in compressors and heat exchangers.
- Access to a well-established maquiladora industry with a skilled labor force.
Guadalajara, Jalisco
- A diversified manufacturing base with strong electronics and HVAC sectors.
- Home to several HVAC R&D and production facilities.
Tijuana, Baja California
- A major center for electronics and precision manufacturing, which benefits HVAC component production.
- Proximity to California allows for efficient supply chain integration with U.S. companies.
- Strong maquiladora presence providing cost-effective labor and manufacturing solutions.
Mexico City
- One of the largest consumer markets in Latin America, with a well-established industrial base.
- Hosts manufacturing and distribution centers for major HVAC brands.
- Strong infrastructure and access to a vast labor pool.
Top International HVAC Companies Manufacturing in Mexico
According to ANFAD (National Association of Domestic Appliances), there are over 50 manufacturing facilities in Mexico
Carrier Corporation (Santa Catarina, Nuevo León)
- 6 manufacturing facilities employing 6,000+ workers.
- Produces air conditioners, heating systems, ventilation systems, and refrigeration equipment.
Trane Technologies (Apodaca, Nuevo León)
- First plant opened in 1998, producing 2 million compressors per year.
- 25 facilities across Mexico.
- Recognized by Great Place to Work Mexico for multiple years.
Daikin Industries (San Luis Potosí)
- Investing $300 million in a new 11-hectare manufacturing facility.
- Facility will create 2,500+ new jobs, fully operational by 2024.
Johnson Controls (San Pedro Garza García, Nuevo León)
- Established in Mexico in 1957.
- Key supplier of HVAC controls and automation.
Lennox (Saltillo, Coahuila)
- First plant opened in 2008, employing 500+ direct labor workers.
- 2022 expansion announcement for a new commercial HVAC unit plant.
The Consumer Market for Air Conditioning
According to LG Electronics, about 30% of Mexican households have an air conditioner.
% of Households with Air Conditioners in Mexico, 2020
Source: INEGI, 2020 Census
There are several regions in Mexico that regularly top 40oC, especially in the northern part of the country. According to Yoelle Rojas, General Director of CLELAC, about 1 million HVAC systems are installed in Mexico per year, driven by the growing demand for cooling based on climactic events, and the growing middle class in Mexico. According to news from the AHR Expo Mexico, between 2024 and 2032, a 7% increase in the purchase and installation of air conditioners is expected.
Opportunities in the industry include key sectors like health, education and data centers in Mexico.
Some potential challenges face the HVAC industry in Mexico, including:
- Energy consumption and availability - about 40% of the use of air conditioners is concentrated in the 4-hottest months of the year, and air conditioners concentrate 10% of the total energy consumption
- Growing scrutiny of refrigerants - like hydrofluorocarbons (HFC's) that have the potential to increase global warming, and PFAs (forever chemicals), according to experts
Regulatory Bodies for HVAC in Mexico
Several regulatory bodies oversee HVAC standards and compliance in Mexico:
- Mexican Official Standards (NOM): Establish mandatory safety, quality, and efficiency requirements for HVAC systems, including diffusers and grilles.
- Secretariat of Energy (SENER): Develops energy efficiency policies to reduce consumption and environmental impact in HVAC operations.
- National Commission for the Efficient Use of Energy (CONUEE): Promotes best practices for energy efficiency, setting guidelines for optimal HVAC performance.
Roles & Responsibilities:
- NOM ensures HVAC systems meet design, installation, and maintenance standards for safety and efficiency.
- SENER sets energy-saving regulations to enhance system performance.
- CONUEE promotes sustainability and efficiency through industry guidelines.
These organizations update standards, enforce compliance through inspections and certifications, and educate industry professionals on HVAC efficiency and regulatory adherence.
Relevant Building Codes and Standards for HVAC in Mexico
Overview of NOM Standards
The Mexican Official Standards (NOM) regulate HVAC systems, ensuring safety, performance, and energy efficiency.
Key NOM Standards for HVAC Components
- NOM-001-ENER – Sets energy efficiency requirements, defining EER (Energy Efficiency Ratio) and SEER (Seasonal Energy Efficiency Ratio) for HVAC equipment.
- NOM-002-ENER – Establishes safety and performance standards for HVAC components, including materials, construction, and installation requirements.
- NOM-003-ASEA – Focuses on the environmental impact of HVAC systems.
- NOM-004-ENER – Addresses noise levels, ensuring HVAC components minimize noise pollution.
Compliance & Certification
- Manufacturers and installers must ensure HVAC components meet NOM standards.
- Certification process involves testing, documentation, approval from CONUEE/SENER, and regular inspections for continued compliance.
Inspections & Testing
- Routine inspections and performance testing ensure HVAC components remain compliant.
- Maintenance checks extend the lifespan of diffusers and grilles.
Impact of Non-Compliance
- Legal penalties, including fines and sanctions.
- Safety hazards, such as fire risks and poor air quality.
- Higher energy consumption, leading to increased operational costs and environmental impact.
Staying updated on regulatory changes and adhering to compliance standards is crucial for ensuring efficient, safe, and legally compliant HVAC operations in Mexico.
The Future of the HVAC Industry in Mexico
The HVAC industry in Mexico is at a pivotal moment, driven by nearshoring trends, increasing demand for energy efficiency, and technological advancements. As one of the top global HVAC manufacturing hubs, Mexico plays a crucial role in supplying the North American market.
However, the industry also faces challenges, including rising energy consumption, evolving environmental regulations, and geopolitical trade tensions. The ongoing tariff war particularly threatens the industry’s supply chain, as a significant portion of HVAC components are sourced from China. These vulnerabilities underscore the need for manufacturers to explore alternative sourcing strategies and invest in regional supply chain resilience.
Despite these challenges, Mexico remains well-positioned for continued growth. With strong government incentives, a highly skilled workforce, and increasing investment in smart and sustainable HVAC solutions, the sector is expected to expand significantly over the next decade.
Key Takeaways
- Mexico is a leading HVAC manufacturing hub, exporting $7.6 billion in 2024, primarily to the United States.
- The North American HVAC market is growing, driven by AI integration, extreme weather events, and energy efficiency trends.
- Key global manufacturers such as Carrier, Daikin, Trane, and Lennox operate in Mexico, benefiting from its skilled workforce and strategic location.
- Nearshoring and USMCA benefits continue to make Mexico an attractive location for HVAC production.
- Energy efficiency regulations and government incentives are shaping the future of HVAC manufacturing in Mexico.
- Tariff vulnerabilities exist due to Mexico’s integrated supply chain, with 52% of HVAC components imported from China—making the sector particularly sensitive to trade disputes.
- Sustainability is becoming a priority, with increasing scrutiny of refrigerants and energy consumption.
- Opportunities for growth exist in emerging sectors, including healthcare, education, and data centers.
To remain competitive, HVAC companies must embrace innovation, diversify supply chains, and prioritize energy efficiency and sustainability. Mexico’s strategic advantages and manufacturing strength position it as a key player in the future of HVAC production, both regionally and globally.