A2L Equipment Surpasses 50% of Market Share

Heating, Air-conditioning & Refrigeration Distributors International (HARDI) has announced 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.”

Rollout affected by EPA deadlines

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.”