The global HVAC Systems market was worth around USD 196.10 billion in 2021 and is estimated to grow to about USD 286.14 billion by 2028, with a compound annual growth rate (CAGR) of approximately 6.50 % over the forecast period.
The global HVAC Systems market was worth around USD 196.10 billion in 2021 and is estimated to grow to about USD 286.14 billion by 2028, with a compound annual growth rate (CAGR) of approximately 6.50 % over the forecast period. The report analyzes the HVAC Systems market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the HVAC Systems market.
HVAC (heating, ventilation, and air conditioning) equipment is a type of indoor and vehicular comfort technology that helps to provide thermal comfort and good indoor air quality. It is a vital component in single-family homes, apartment buildings, hotels, and senior living facilities, as well as medium to large industrial and office buildings, such as skyscrapers and hospitals, vehicles, such as cars, trains, airplanes, ships, and submarines, and marine environments, where safe and healthy building conditions, such as temperature and humidity, are regulated using fresh air from the outside
A rise in multi-family and single-family homes is paving the way for future development. The HVAC sector is steadily putting a greater emphasis on energy efficiency. Several OEMs are focusing on green efforts, with the goal of saving money while lowering greenhouse gas emissions. As a result, there has been a shift in recent years toward environmentally friendly HVAC devices. This includes goods that use less energy and are powered by renewable energy sources, lowering energy expenses. As a result, the usage of geothermal cooling and heating equipment has increased in recent years, reducing reliance on fuel-based equipment. The desire for comfort among customers is paving the way for expansion.
Every business was affected by the pandemic, and the HVAC industry was no exception. According to data from the Associated Builders and Contractors, nonresidential construction faced the most difficulties at the start of 2020. (ABC). The economy of the US shrank by 4.8 %in the first quarter of 2020 due to the covid 19. The Air Conditioning Contractors of America (ACCA) sponsored a study in March 2020 to learn more about how HVAC professionals felt about the market's future in the aftermath of the outbreak. The majority of individuals polled (70%) thought the pandemic's medical effects would last only three months, whereas 65 % expected a long-term impact on economic viability, and 9% were concerned that their firms would not survive. Construction activities for hotels were predicted to drop by more than 20%, while those for recreational and amusement facilities would drop by 13%, offices by 11%, retail by 8%, and education by 7%.
Increasing government regulatory policies and incentives to ensure energy saving and conservation of natural resources to drive global market growth
Various governments are enacting strict regulatory standards for vendors when constructing and retrofitting energy-efficient HVAC systems. For example, starting in January 2015, the European Union's Ozone Depleting Substances (ODS) legislation prohibited the use of the R-22 refrigerant in all EU member states. Currently, R-22 is used in a huge number of HVAC systems; however, R-22 will grow more expensive over time, and there will be a scarcity. As a result, consumers will need to replace their existing HVAC systems, which will boost demand for contemporary, energy-efficient HVAC systems with programmable thermostats for temperature management throughout the day..
The HVAC business is expected to grow at a steady pace. For optimal operation and to avoid failure, HVAC systems require fine-tuning and specific manufacture of parts during installation. As a result, professionals are required to install HVAC systems properly. If the installation is not done properly, the end user may have to pay extra for repairs in the future, or the HVAC systems may not function properly. The user is likely to pay greater costs as a result of the need for skilled workers. As a result, it may stymie the HVAC system market's implementation.
The rapid transformation of IoT within the HVAC industry to bring growth opportunities for the global market
The Internet of Things (IoT) is a situation in which HVAC systems are connected to the internet and data is shared. It manages HVAC systems, collects data, and stores it in the cloud; it enhances HVAC operations for increased efficiency, and it maintains a maintenance schedule that is predictive. It also monitors, regulates, and diagnoses units in a cost-effective manner over the internet. In addition, IoT allows for reduced HVAC system maintenance and repair expenses in the long run. IoT-enabled buildings, for example, can provide facility managers with early alerts of any operational irregularities and enable remote diagnostics and adjustment of units, thereby saving money by reducing system failures.
With the rapid advancement of technology, it is important to educate end customers about the advantages of new technology. In the case of HVAC systems, consumer understanding of cost and environmental benefits is minimal; they are typically seen as expensive, which makes market penetration in developing economies difficult. There is also a paucity of knowledge about energy-efficient HVAC systems. Despite various innovations, such as the development of low GWP refrigerants for HVAC, HVAC system adoption is not commensurate with the benefits they provide. Furthermore, there is a lack of awareness of HVAC system standards among HVAC system contractors. Higher SEER criteria, such as 21 SEER units, have just been introduced, which home HVAC building firms are ignorant of, causing their business to suffer.
The global HVAC Systems market is segregated based on cooling equipment, heating equipment, ventilation equipment, implementation type, application, and region.
By cooling equipment, the market is classified into unitary air conditioners, VRF systems, chillers, room air conditioners, coolers, and cooling towers. Buildings, schools, businesses, and retail establishments all use unitary systems, especially where starting costs and easy installation low are vital. A tiny self-contained electrical unit containing a motor-driven refrigeration compressor, evaporative cooling coil, an air-cooled condenser, as well as filters, fans, and controls, is known as a unitary air conditioner. Unitary air conditioners are mounted on the roof or on the exterior of structures. They are both high-performing and energy-saving. Unitary air conditioners include split air conditioners and packaged air conditioners. Daikin, Ingersoll Rand, Johnson Controls, Nortek, and Lennox are among the leading producers of unitary air conditioners.
By heating equipment, the market is divided into heat pumps, furnaces, unitary heaters, and boilers. During the projected period, the market for furnaces is expected to develop at the fastest CAGR. The low starting cost, longer lifespan, and rising demand in residential applications are driving the expansion of the furnaces segment. The residential market for furnaces dominated the HVAC system market. The demand for furnaces in residential applications is likely to rise as a result of government grants and rebates for homeowners replacing aging heating equipment with new furnaces. For example, the government of British Columbia (BC) provides households up to USD 700 in rebates for a new gas heater.
|Historic Years||2016 - 2020|
|Forecast Years||2021 - 2028|
|Segments Covered||By Product Type, By Application, and By End Use|
|Forecast Units||Value (USD Billion), and Volume (Units)|
|Quantitative Units||Revenue in USD million/billion and CAGR from 2021 to 2028|
|Regions Covered||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World|
|Countries Covered||U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others|
|Number of Companies Covered||10 companies with scope for including additional 15 companies upon request|
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.|
|Customization Scope||Avail customized purchase options to meet your exact research needs.|
During the projected period, the HVAC systems market in APAC is expected to have the biggest market share. China, Japan, and India are just a few of the prominent players in the APAC HVAC system industry. Growing development activity and a growing population are two main reasons driving the region's HVAC system industry forward. In countries like Japan, South Korea, and China, there is a high demand for smart houses. The need for HVAC systems in the region is expanding as a result of rapid urbanization and industry. Furthermore, regulatory programs such as the Commercial Building Disclosure (CBD) Program in Australia, the launch of Energy Conservation Building Codes in India, the launch of the LEED-India project, and the formation of the Indian Society of Heating, Refrigeration, and Air-Conditioning Engineers (ISHRAE) all help to promote HVAC system adoption in the region.
Some of the main competitors dominating the global HVAC Systems market include - DAIKIN INDUSTRIES (Japan), Johnson Controls (US), Carrier (US), Trane Technologies plc, (US), LG Electronics (South Korea), Emerson Electric Co. (US), Honeywell International Inc. (US), Mitsubishi Electric Corporation (Japan), Nortek Air Management (US), and Samsung Electronics (South Korea. (US)
The global HVAC Systems market is segmented as follows:
Heating, ventilation, and air conditioning (HVAC) systems provide heating and cooling services. These systems control the indoor air quality, humidity, and temperature of buildings and vehicles. HVAC systems are used in commercial, residential, and industrial buildings.
The HVAC systems market is driven by the rising demand for air conditioning systems. In 2017, the global demand for air condition systems was about 110.56 million units, a rise of about 8% from 2016. Major countries contributing to this growth were the U.S. and China. In 2016, the U.S and China contributed to almost 60% of the total global air conditioning systems stock. The annual AC sales in the U.S. were about 24 million units during the same year. Furthermore, in 2016, it was estimated that the residential air conditioning systems sales in China alone were about 40 million units. Thus, it is expected that the rising demand for air conditioning systems will fuel the HVAC systems market during the forecast period.
Rising investments made in commercial properties is anticipated to drive the HVAC systems market during the estimated timeframe. Global commercial real estate sector investment increased by 6% from 2016 to 2017. It is projected that the commercial construction expenses would increase by 4% in 2018. These investments are anticipated to increase during the forecast period. However, high investments for energy-efficient HVAC systems are expected to have an adverse effect on this market. Additionally, integration of IoT with HVAC systems will open new avenues for the HVAC systems market.
The HVAC systems market is fragmented into the heating product, air conditioning product, ventilation product, application area, and region. Based on air conditioning product, the global HVAC market is divided into the room/unitary air conditioners, chillers, VRF systems, coolers, and others. The room/unitary air conditioners segment is anticipated to hold a considerable share during the forecast period, owing to increasing investments made in the residential construction sector. Heat pumps, furnaces, space heaters, and boilers form the heating product segment of the HVAC systems market. The heat pumps segment is anticipated to grow at a substantial rate during the forecast period, due to their rising demand in the European region.
Asia Pacific is projected to hold a significant share in the global HVAC systems market during the forecast timeframe. This is due to the presence of major players in the region, such as LG Electronics Inc., Samsung Electronics Co. Ltd., Panasonic Corporation, etc. Technological developments and the rising investments made in the consumer electronics sector in the Asia Pacific region are further fueling the growth of the HVAC systems market. Thus, the Asia Pacific region is expected to have a considerable market share during the estimated period.
Top manufacturers in the HVAC system market include LG Electronics Inc., Daikin, Honeywell, Emerson, Electrolux, United Technologies, Johnson Controls, Ingersoll-Rand, Nortek, Lennox, Samsung Electronics, Hitachi, Mitsubishi Electric, Panasonic Corporation, and Whirlpool, among others.
The development is being paved by an increase in multi-family and single-family residences. Energy efficiency is becoming increasingly important in the HVAC industry. Several automakers are concentrating on green initiatives in order to save money while reducing greenhouse gas emissions. As a result, in recent years, there has been a shift toward ecologically friendly HVAC equipment. This comprises things that consume less energy and are powered by renewable energy sources, resulting in lower energy costs.
According to the Market Research report, the global HVAC Systems market was worth about 196.10 (USD billion) in 2021 and is predicted to grow to around 286.14 (USD billion) by 2028, with a compound annual growth rate (CAGR) of around 6.50 percent.
The HVAC systems market in APAC is predicted to have the largest market share throughout the forecast period. China, Japan, and India are just a handful of the major APAC HVAC system manufacturers. The HVAC system sector in the region is being propelled forward by two key factors: increasing development activity and a growing population. Smart houses are in high demand in nations such as Japan, South Korea, and China. As a result of increased urbanisation and industry, the need for HVAC systems in the region is growing.
Some of the main competitors dominating the global HVAC Systems market include -DAIKIN INDUSTRIES (Japan), Johnson Controls (US), Carrier (US), Trane Technologies plc, (US), LG Electronics (South Korea), Emerson Electric Co. (US), Honeywell International Inc. (US), Mitsubishi Electric Corporation (Japan), Nortek Air Management (US), and Samsung Electronics (South Korea. (US)