U.S. HVAC Steam Generator Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

U.S. HVAC Steam Generator Market Trends and Drivers

Integration of Smart Technologies Is the Key Market Trend

The integration of smart technologies in HVAC steam generators such as the Internet of Things, artificial intelligence, and cloud computing is transforming the steam generators industry in the United States.

With the help of IoT sensors, consumers can continuously monitor temperature, pressure, and humidity levels and further help with real-time data collection, which minimizes energy waste and ensures the consistency of the steam generator's operations.

With the integration of smart technologies, consumers can easily monitor and control HVAC steam generators remotely with the help of connected devices such as mobile apps and web platforms.

Furthermore, smart HVAC steam generators with smart technologies can easily integrate with advanced building management systems, which helps steam generators to easily operate with other HVAC equipment like chillers, boilers, and ventilation systems.

Most companies in the market are integrating AI technologies into HVAC steam generators. For instance, in December 2024, Trane Technologies acquired the BrainBox AI autonomous HVAC controls and generative artificial intelligence building technologies, to integrate AI technologies in their generators.

Urbanization and Infrastructure Development Is a Key Market Driver

The rise in urbanization in the U.S. has led to the increasing demand for HVAC systems especially for steam generators as they are essential components in commercial buildings, industrial applications, healthcare facilities, educational institutions, residential complexes, and many other large-scale infrastructures.

The United States is witnessing large-scale infrastructure developments such as airports, railways, and data centers, which require an HVAC system with steam generators.

Additionally, ongoing smart city developments are rising in the U.S. The advanced HVAC systems integrated with the IoT and smart technologies are capable of easily integrated with the advanced building management systems further helping in the completion of the smart city initiative of the United States government.

Furthermore, there is a rise in retrofitting projects in the country, which are demanding the replacements of older HVAC components with new HVAC components with advanced technologies, which further drives the demand for smart generators in the country.

In January 2025, Holtec International started a retrofitting project in the Palisades nuclear plant in Michigan, which included the maintenance of the steam generators.

U.S. HVAC Steam Generator Market Segmentation and Category Analysis

Product Type Analysis

• Based on product type, the fuel-fired steam generators held the largest share of 40% in the market in 2024. This is due to its widespread adoption in industries such as petrochemicals, manufacturing, pharmaceuticals, and food processing.
• The heat recovery steam generators will grow at the highest CAGR of 5.21% during the forecast period. This growth can be attributed to the country’s emphasis on energy efficiency and waste heat recovery.
• These generators are easily integrated into the combined heat and power systems, where they convert waste heat from gas turbines and industrial processes into useful steam.

Based on product type, the market has the following categories:

• Fuel-Fired Steam Generator (Largest Category)
• Electric Steam Generator
• Heat Recovery Steam Generator (Fastest-Growing Category)
• Modular Steam Generator
• Coil-Type Steam Generator
• Customized Steam Generator

Capacity Insights

• The large-capacity generators held the largest market share of 50% in 2024. The dominance of the category is due to its adoption in heavy industrial applications such as petrochemicals, power generation, pharmaceuticals, and manufacturing, which require high-volume steam generation.
• Additionally, the combined heat and power (CHP) plants and district heating systems are dependent on large-capacity generators further driving the growth of the market in this category.
• The medium-capacity steam generators will grow at the highest CAGR of 5.67% during the forecast period. This growth can be attributed to their adoption in mid-size and commercial industrial applications.
• The further adoption of medium-capacity steam generators is due to the expansion of the urban infrastructure such as hospitals, data centers, and educational institutes.

Based on capacity, the market has the following categories:

• Small (Up to 12 kW)
• Medium (12 kW to 30 kW) (Fastest-Growing Category)
• Large (Above 30 kW) (Largest Category)

Application Insights

• The power generation category held the largest market share of 35% in 2024. This dominance of the category is due to the increased use of steam generators in power plants, refineries, and industrial facilities.
• The health and wellness category will grow at the highest CAGR of 5.45% during the forecast period. This growth can be attributed to the rise in the healthcare infrastructure development in the U.S.
• Consumers are demanding steam-based therapies in the United States further drives the demand for HVAC steam generators in spa and wellness service centers in the country.

Based on application, the market has the following categories:

• Health and Wellness (Faster-Growing Category)
• Power Generation (Largest Category)
• Humidification
• Residential
• Hospitality
• Others

Distribution Channel Insights

• Based on the distribution channel, the offline category held a larger market share of 70% in 2024. The offline sales channel has an established network and provides direct engagement to the consumer, which is further driving the growth of this category.
• Whereas, the online category will grow at a higher CAGR of 5.58% during the forecast period. Online platforms provide consumers with a variety of product options.
• Additionally, the expanding e-commerce sector in the U.S. is another key reason for the category growth.

Based on distribution channel, the market has the following categories:

• Offline (Larger Category)
• Online (Faster-Growing Category)

U.S. HVAC Steam Generator Market Regional Growth Dynamics

The northeast region held the largest market share of 35% in 2024. This dominance is due to the region’s high population density and colder climate further demanding efficient HVAC heating solutions.

Additionally, the region is witnessing higher retrofitting projects in comparison to other regions of the country further driving the market growth in the region.

The regions analyzed in this report are:

• Northeast (Largest Regional Market)
• Midwest
• West (Fastest-Growing Regional Market)
• South

U.S. HVAC Steam Generator Market Share

The U.S. HVAC steam generator market is fragmented due to the large international and local players working in this sector. These players are focusing on the acquisition of smaller players and investing in modern technologies to advance their product portfolio to acquire market dominance.