5 Must-Know Insights about HVAC Innovation in 2026

The top HVAC innovations in 2026 include rapid adoption of heat pumps, AI-driven energy optimization, and accelerated advancements from companies like Budderfly offering smart thermostats, unique commercial heat pump systems, and virtual power plant technology.

Recently, a group of Budderfly experts attended the 2026 AHR Expo in Las Vegas, an event that showcases some of the most cutting-edge HVAC technologies and insights from leaders across the industry.

Heating, ventilation, and air conditioning (HVAC) technology is something most people take for granted. When it’s doing its job well, you’re comfortable and there’s not much to think about. But the impact of HVAC technology permeates so many aspects of our lives: utility bills, health, and the environment.

That why at Budderfly, we’re passionate about HVAC. HVAC innovation can transform businesses, create healthier environments, and lower carbon emissions that harm the climate. In recent years, a lot of exciting new developments have taken place.

Here are a few key insights we gained from the AHR Expo that are essential for business owners and facilities managers to understand.

5 Key HVAC Trends to Watch in 2026

1. Heat pumps are surging in popularity

Heat pumps have been commonly used around the globe for decades, but adoption has been slower in North America. That’s clearly changing, as DOAS and VRF heat pumps are being much more heavily marketed and innovated around. Their popularity as a solution for energy efficiency and electrification is finally taking off in the U.S. and in the upcoming years will become a new normal.

See how Budderfly uses heat pumps in our UHP HVAC systems.

 2. Artificial intelligence is optimizing energy management

There are a lot of new companies trying to leverage AI to track and optimize energy usage in various ways. AI has a lot of use cases that can help the industry. Based on data that can be collected, new technologies like smart thermostats are being developed that can analyze consumption and make smart recommendations to lower energy usage and keep bills low. (At Budderfly, this is something we’re on the forefront of.) AI is also being used to streamline installations, track sustainability data, and make building management more strategic.

3. The lack of good installers is an industry-wide problem

There has been a huge shift in recent years. Many installation firms are being sold and technicians are retiring. At the same time, there aren’t enough people joining these trades to fill the gap. The result is longer wait times for installations and service costs going up. There’s a big push for workforce development across the industry, with many companies offering to provide scholarships for people interested in HVAC-R careers. At Budderfly, it’s an issue we’re working to solve as well—with our Trade Schools Partnership Program and Apprenticeship Program—as we know a strong workforce is key to bringing innovation and energy savings to facilities across the country.

4. Supply chain issues remain a barrier

Supply chain issues touch every aspect of the industry, caused by a combination of problems leftover from the COVID pandemic to newer issues like tariffs. One example is about new refrigerant changes. The HVAC industry is transitioning to new, safer refrigerants due to mandates from the EPA. The timings of these changes, though, have been complex, leaving many in the industry unprepared to enact changes. The result is that the supply chain for new refrigerants is jammed, and prices have increased upwards of 300%. Plus, installers are having to delay projects and complicate what equipment they install across sites to make up for a lack of supplies.

The EPA is considering relaxing its deadlines for the new refrigerant roll-out, but regardless of what happens, the industry needs to work together to figure out a solution. At Budderfly, we work closely with suppliers and manufacturers to help customers reduce delays and navigate refrigerant transitions smoothly.

5. Budderfly is on the cutting edge

We saw so many exciting innovations at AHR Expo, and one of the biggest takeaways is that we are truly offering our customers industry-leading solutions: from our patented heat pump technologies and Ultra-High-Performance HVACs to the Budderfly Smart Thermostat and our Virtual Power Plant. Plus, we’re doing our part for some of the industry’s most urgent needs, with our own in-house installation experts and an apprenticeship program that fosters growing talent.

It’s an exciting time for HVAC, with new developments coming into the market to make equipment that performs better and lowers energy consumption for sustainability and cost savings.

Want to see how Budderfly applies these innovations to lower your facility’s energy costs? Connect with a Budderfly HVAC expert to get started.