Market Definition
HVAC refers to Heating, Ventilation, and Air Conditioning. It includes all the systems and equipment associated with the control of air temperature, humidity, and purity, such as air conditioners, heating equipment, etc.
Market Insights
The Global HVAC System Market is projected to grow at a CAGR of around 6.5% during the forecast period, i.e., 2023-28. The market growth is driven by the changing climatic condition resulting in hot and harsh weather in numerous regions, raising consumers' demand for air cooling. Besides, the industry will likely flourish positively since HVAC systems are essential for maintaining comfortable indoor environments in residential, commercial, and industrial settings.
Moreover, the features such as being green-labeled, environmentally friendly, and run by solar energy, with additional features and benefits such as low maintenance, independent control, device monitoring, automatic adjustments according to the surrounding weather and temperature, improved life and lessened costs are adding to the industrial ascension. Besides, with the government of numerous countries encouraging the adoption of HVAC systems by providing various benefits to vendors, the industry is expected to proliferate in the coming years.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 6.5% |
| Regions Covered | North America: US, Canada, Mexico |
| Europe: Germany, The UK, France, Spain, Italy, Rest of Europe | |
| Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific | |
| South America: Brazil, Argentina, Rest of South America | |
| Middle East & Africa: The UAE, Saudi Arabia, Qatar, Egypt, South Africa, Rest of the Middle East & Africa, | |
| Key Companies Profiled | Danfoss, Fujitsu, Gree, Hitachi, Midea, Panasonic, Haier Smart Home, Toshiba, Whirlpool, Siemens |
| Unit Denominations | USD Million/Billion |
However, the lack of skilled labor for the installation and maintenance of the systems with the lack of awareness related to numerous features and benefits of HVAC systems could likely hamper the industrial graph. On the contrary, the prevalent adoption of Hybrid systems along with surging integration of technology such as the Internet of Things (IoT) in the system promises lucrative opportunities to the market.
Market Dynamics
Key Driver: Additional Features and Technological Advancements with Supportive Government Policies
The product is integrated with added features such as green-labeled, environmentally friendly, solar energy run, efficiency, etc., driving the market. Besides, the additional features and benefits such as low maintenance, independent control, device monitoring, automatic adjustments according to the surrounding weather and temperature, improved life, and lessened costs add to the market value. Additionally, the government of numerous countries introducing regulatory policies to facilitate the adoption of heating, ventilation, and cooling systems by providing benefits to the vendors and encouraging the consumer to shift to HVAC is also adding to industrial expansion.
Possible Restraint: Lack of Skilled Labor and Awareness Related to HVAC Systems
Since HVAC systems are becoming technologically advanced, the lack of qualified technicians for the heating, ventilation, and cooling systems could hinder the consumers from adopting and installing them since they require fine-tuning and the custom fabrication of parts during installation, which could delay the market expansion. In addition, the consumers may need to pay extra for repairs if the installation is not done by a professional. Moreover, the lack of awareness regarding the cost-saving and environment-friendly benefits of HVAC systems could further hamper industrial acceleration since the system is often perceived as expensive.
Growth Opportunity: Surging Integration of Technology and IoT with The System
The booming digitalization and integration of advanced technology into various devices and gadgets are also reaching the HVAC Systems. The added features of the systems with the integration of the Internet of Things (IoT), allowing it to be connected to the internet and have data sharing options, open lucrative opportunities for the industry. It would enable the systems to collect and store data and provide better efficiency to the consumers. Moreover, the ability to monitor, and control the system through another device like a smartphone, helping consumers have easier access to the devices and to diagnose the system in case of any issues, further raises growth opportunities for the industry.
Key Trend: Trending Adoption of Hybrid HVAC Systems
With the spreading popularity of HVAC systems, the rising demand for hybrid heating, ventilation, and cooling systems is accelerating the industry. Besides, the numerous benefits of hybrid systems are further facilitating their installation. Moreover, extending technological advancement leading to new exciting and convenient features in the technology and machine are likely to push the industry forward. Multiple features such as an automatic adjustment in temperature according to the surroundings, cost reductions due to high energy efficiency, along with reduced environmental impact promise further growth to the market.
Market Segmentation
Based on Cooling Equipment,
Among all, Unitary Air Conditioners are expected to experience the largest market acceleration in the forecast period owing to the vast requirement of such air-conditioners in different occasions such as events, conferences, and exhibitions. In addition, a prerequisite of such systems in halls and large spaces to provide comfort to players and audiences in an increasing number of sports events & cultural programs is extending the industrial ascension.
It is a small self-contained electrical unit enclosing a refrigerating compressor driven by a motor, evaporative cooling coil, and air-cooled condenser along with numerous controls, filters, and fans, majorly used for cooling by being placed on the roof or outside of buildings. Such equipment's high performance and energy efficiency will likely push the industry forward.
Further, the need for such systems in commercial and public spaces such as hospitals, complexes, stations, manufacturing, and industrial units, along with the increasing number of economic, social, and cultural programs and business & international conferences, would generate more market revenue.
Based on Application
Among the three, Commercial applications are projected to garner the most outstanding market share during the forthcoming years. It is attributed to the increasing demand and adoption of HVAC systems for commercial purposes, including corporate buildings and other commercial settings. Moreover, the growing demand for energy-efficient devices and spreading awareness about the environmental friendliness of such systems are likely to carry the industrial acceleration positively. Additionally, with high adoption of the systems to compensate for the increased heating expenses of numerous buildings, according to the geographical location, is fueling the industrial extension.
Regional Projection
Geographically, the Global HVAC system Market expands across:
Globally, Asia-Pacific is anticipated to garner the largest share of the HVAC system market in the forecasting period. The market growth is aided by the residing countries, including India, China, and Japan, being the major contributors to the industry. Additionally, infrastructural development improving construction activities in numerous parts of the region and elevated standard of living due to rising disposable income are promising new lucrative opportunities to the market.
Moreover, the surging demand for smart homes in countries such as South Korea and Japan, with the rapid integration of technology and digitalization along with spreading urbanization and industrialization in numerous countries, is promising hikes in market value. In addition, numerous regulatory programs enforced by the governments of different countries, such as the Commercial Building Disclosure (CBD) Program in Australia and the Energy Conservation Building Codes in India, are also pushing the industrial expansion.
On the other hand, North America is expected to garner considerable market share in the coming years due to the rising residential improvements leading to increased demands. Furthermore, market participants introducing HVAC systems with green technology, compatibility with smart devices, and higher energy efficiency propel the market ascension.
Recent Developments in the Global HVAC system Market
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Frequently Asked Questions
A. The HVAC system Market is projected to grow at a CAGR of around 6.5% during 2023-28.
A. Additional features and technological advancements with supportive government policies are expected to drive the HVAC system Market during 2023-28.
A. Danfoss, Fujitsu, Gree, Hitachi, Midea, Panasonic, Haier Smart Home, Toshiba, Whirlpool, and Siemens are the top players in the HVAC system Market.
A. Unitary Air Conditioners are anticipated to emerge as an area of remunerative opportunities for the leading players in the HVAC system Market during the forecast period.
A. Globally, Asia-Pacific would provide lucrative prospects for the HVAC system Market in the years ahead.
A. Surging adoption of hybrid HVAC Systems is the key trend shaping the growth of the HVAC system Market during 2023-28.
A. The surging integration of technology and IoT with the system are the growth opportunities driving the HVAC system Market through 2028.
A. Lack of skilled labor and awareness related to HVAC systems are the possible restraints affecting the growth of the HVAC system Market.
