James A. Trane gained experience in heating and plumbing supplies while working at the W. A. Roosevelt Company. Trane opened his own business at 320 Pearl St. in 1885 and soon gained a reputation for excellence as a plumber. Reuben Trane, James' son, earned a mechanical engineering degree at the University of Wisconsin-Madison, and joined his father's plumbing firm. In 1913, James and Reuben incorporated The Trane Company.

By 1916, the father and son were no longer in the plumbing business, but rather were focusing their attention on manufacturing heating products. Reuben conceived the idea of the first convector radiator in 1925 which replaced the heavy, bulky, cast-iron radiators that prevailed at the time. Trane's first air conditioning unit was developed in 1931. In 1938 Trane Company launched the Turbovac to air condition large buildings.

The company continued to grow and expand. Manufacturing plants were opened in other U. S. cities, and divisions in foreign countries also grew. Improvements in designs, products and an educated sales force were Trane's hallmarks.

In 1984 Trane was acquired by the American Standard Companies. On February 1, 2007, American Standard Companies announced it would break up its three divisions. The company sold off its namesake kitchen and bath division and spun off WABCO. American Standard's vehicle controls division, while retaining The Trane Company. American Standard then renamed itself Trane, Inc. effective November 28, 2007. On December 17, 2007, Trane announced it had agreed to be acquired by Hamilton, Bermuda-based Ingersoll Rand in a cash and stock transaction. The sale was completed on June 5, 2008.