A2L Equipment Surpasses 50% of Market Share as HFC Transition Accelerates

Columbus, OH — Heating, Air-conditioning & Refrigeration Distributors International (HARDI) announced today that the HVACR industry has reached a significant milestone in its transition to lower-global warming potential refrigerants. According to HARDI’s April 2025 Unitary Market Intelligence Report, central ducted HVAC systems using A2L refrigerants accounted for 51% of sales, with preliminary May data indicating further growth to 60%. The Unitary Market Intelligence Report uses automated submissions of distributor sales data to model the national, regional, and state-level HVAC market. The transition has accelerated since November 2024, when A2L-based equipment made up less than 5% of the market.

“This milestone confirms that the industry is embracing the new A2L refrigerants,” said HARDI CEO Talbot Gee. “Despite facing price volatility and ongoing shortages of R-454B cylinders, distributors and contractors are adopting the next generation of HVAC systems at a rate no one anticipated.”

Even with rapid adoption, the transition has been complicated by a rule from the Environmental Protection Agency that links compliance deadlines to installation dates instead of the date of manufacture or import. This regulatory structure unnecessarily burdens distributors unable to sell their R-410A inventory, adding unwanted complexity, inefficiency, and risk to the supply chain.

“This installation date requirement is bad policy,” said Alex Ayers, Vice President of Government Affairs at HARDI. “It creates significant uncertainty for businesses without delivering any additional environmental benefit. We urge Congress to ensure that future regulations avoid this flawed approach. No agency should be able to punish businesses over political pressure from outside groups.”

As the industry adapts to new regulatory requirements, HARDI continues to support a stable, market-based transition that preserves consumers’ ability to repair existing systems while efficiently filling the supply chain with new systems for installation. The Unitary Market Intelligence Report remains a vital benchmarking tool for HVACR distributors navigating this complex regulatory environment.

Distributors who are interested in participating in HARDI’s Unitary Market Intelligence program can reach out to HARDI’s Market Intelligence team to enroll.

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About HARDI

HARDI (Heating, Air-conditioning, and Refrigeration Distributors International) is the single voice of wholesale distribution within the North American and Latin American HVACR markets.

A non-profit association, HARDI serves its members through government affairs and advocacy efforts, market intelligence and benchmarking, training programs, and world-class events. HARDI proudly represents more than 550 distributor members and their 5,000+ branch locations, and close to 500 suppliers, manufacturer representatives, and service vendors. HARDI Distributor members serve installation and service/replacement contractors in residential and commercial markets, as well as commercial/industrial and institutional maintenance staff. HARDI Affiliate members market, distribute, and support heating, air-conditioning, and refrigeration equipment, parts, and supplies.

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