Global HVAC systems market was valued at USD 127.3 billion in 2020. It is expected to grow at a compound annual rate (CAGR), of 5.9% between 2021 and 2028. The rise of new technologically advanced HVAC products that are more energy efficient and remotely accessible is driving the HVAC (Heating and Ventilation) market. Market growth is expected to be driven by the increasing use of natural refrigerants such as CO2, and the increased efforts made by different governments around the world to promote energy-efficient products. Over the forecast period, HVAC demand will be driven by a paradigm shift to energy-efficient air conditioners which reduce power wastage and costs.
The demand for HVAC systems has increased due to customers' increasing preference for comfort. Companies are creating products that provide additional benefits to customers, in addition to meeting their comfort needs. IoT-enabled cooling and heating systems can monitor and control the condition of their system in real time. These HVAC systems can also notify customers and managers about system failures, unusual behavior, maintenance cycles, and repair costs to lower repair costs. These factors will likely increase product demand in the future.
The main reason for the increasing adoption of cooling and heating equipment is climate change. Many customers see HVAC equipment as a worthwhile investment due to rising temperatures and unpredictable climatic conditions. HVAC units can also enhance the aesthetics of commercial and residential properties. Many design options are available and companies offer products that are visually appealing. In the next few years, customers will be more interested in new designs and other options.
Due to factors such as increasing disposable income, increased global warming and the need for comfort, the demand for HVAC units has been growing in all sectors. One of the largest consumers of HVAC systems has been the real estate sector. This sector includes four subsectors: retail, housing and commercial. The rising demand for office space, urban accommodation, and corporate growth is driving the real estate sector's growth.
The market is expected to grow steadily due to these benefits. However, market growth will be slowed by high maintenance and installation costs as well as high energy consumption and other operational problems. Additionally, the HVAC system's life expectancy can be affected by the climate in particular regions. These systems can be less effective in humid areas due to the corrosive effects of damp climates. This will likely limit market growth.
Although the market has seen a decline in 2020 due to the spread of coronavirus, it is expected to give the market a boost in the long-term. More customers are now investing in HVAC systems to purify the air and create a healthy indoor environment. This is due to increasing awareness of the health risks associated with impure air. The market has new opportunities due to the pandemic.
With a market share of more than 54% in 2020, the cooling product segment was the dominant player on the global market. It is expected to maintain its dominance for the next few years. Air conditioning units include room air conditioners and unitary air conditioners. They also include cooling towers, portable units, split & packed systems, and portable units. New cooling systems will be in demand due to technological advancements such as remote operation and IoT-integrated HVAC system. Also, compact units can help reduce costs and increase energy efficiency. The demand for cooling units will also increase due to changing climatic conditions throughout the Middle East and Asia Pacific.
Heat pumps, boilers, furnaces and furnaces are all widely used in commercial and residential settings. Heating equipment is used for space heating, mold making, floor heating, wall heating, steam generation and drying. The main drivers of segment growth are regions that have extreme cold conditions and industries that need heating. Because of the growing awareness regarding maintaining a safe and healthy environment, ventilation units are also gaining popularity. The demand for ventilation products that prevent air contamination will increase in the near future.
In 2020, the residential segment accounted for more than 40% of all revenue. Residential HVAC units are smaller and easier to install than industrial or commercial units. Equipment used in residential spaces includes equipment that is found in houses, small shops and restaurants. In the next few years, the demand for home equipment will increase due to the changing lifestyles and rising disposable incomes.
Due to increasing infrastructure development and increased urbanization in major regions, the commercial segment will see the fastest CAGR. This is due to the need for more office space. Commercial HVAC units take up large areas and can be installed on the rooftops of large restaurants, shopping centers, theaters, and other commercial spaces. These systems are more frequently used than residential units, so they have a higher wear and tear. Segment growth is expected to be driven by retrofitting and replacement of these units over the next seven year.
Asia Pacific was the largest consumer, accounting for more than 45% of global revenue share in 2020. This is due to factors such as rising disposable income, rapid urbanization and growing population. China is the largest consumer of air conditioning systems worldwide and was responsible for the largest unit sales in 2020. Another factor that contributes to the regional market growth is the presence of low-cost equipment suppliers in China and other countries.
North America was the second largest revenue share in 2020. It is expected to continue growing steadily during the forecast period. Europe's market is expected to grow due to the strong real estate and tourism sectors. Both regions' governments are encouraging the use of energy-efficient technologies by offering tax incentives and subsidies. In this way, new constructions are being made as well as existing customers upgrading to more energy-efficient systems.
To maintain market competition, companies engage in inorganic strategies of growth such as partnerships, mergers & acquisitions and geographic expansion. Johnson Controls International plc, for example, opened an Oklahoma HVAC rooftop center of excellence in April 2020. This facility is used for research, manufacturing, testing, and maintenance of HVAC rooftop units.
To gain an edge in the market, market players focus on R&D to create technologically advanced products that are compliant with regional regulations. Lennox International, Inc., for example, introduced four ultra-low emission gas furnaces in December 2019. These furnaces were the SL297NV, SSL280NV, El195NE, and El180NE. These new products are designed to meet the California South Coast Air Quality Management District's Rule 1111 and San Joaquin Valley Air Pollution Control District Extremely Low NOx Rule 4905. Both of these regulations focus on reducing nitrogen oxide emissions. The following are some of the major players in the global HVAC system market:
Daikin Industries, Ltd.
Emerson Electric Co.
Johnson Controls International plc
Lennox International, Inc.
Up Market Research published a new report titled “HVAC Systems Market research report which is segmented by Product (Ventilation, Cooling, Heating), by End-use (Industrial, Commercial, Residential), By Players/Companies Daikin Industries Ltd, Johnson Controls International plc, Hitachi Ltd, Lennox International Inc, Trane Technologies, Emerson Electric Co, Carrier Corporation”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
|Report Attributes||Report Details|
|Report Title||HVAC Systems Market Research Report|
|By Product||Ventilation, Cooling, Heating|
|By End-use||Industrial, Commercial, Residential|
|By Companies||Daikin Industries Ltd, Johnson Controls International plc, Hitachi Ltd, Lennox International Inc, Trane Technologies, Emerson Electric Co, Carrier Corporation|
|Regions Covered||North America, Europe, APAC, Latin America, MEA|
|Historical Year||2018 to 2019 (Data from 2010 can be provided as per availability)|
|Number of Pages||208|
|Number of Tables & Figures||146|
|Customization Available||Yes, the report can be customized as per your need.|
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Product (Ventilation, Cooling, Heating), by End-use (Industrial, Commercial, Residential).
HVAC Systems Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
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Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the HVAC Systems Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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