Global HVAC Systems Market: By Product (Heating, Ventilation, and Cooling), Ventilation Equipment (Air Filter, Ventilation Fan, Air Handling Units, Dehumidifiers, and Humidifiers), Heating Equipment (Furnaces, Boilers, Heat pumps, and Unitary Heaters), Cooling Equipment (Chillers, Coolers, Unitary Air Conditioners, VRF Systems, Room Air Conditioners, and Cooling Towers), Implementation (New Construction and Retrofit), Application (Residential, Commercial, and Industrial), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032
The global HVAC Systems Market size was worth around USD 166.9 billion in 2022 and is expected to grow to around USD 273 billion by 2032 with a compound annual growth rate of about 5.6% between 2023 and 2032.
The demand for heating, ventilation and air conditioning (HVAC) equipment is on the rise as more and more organizations look to achieve cost-efficiency, sustainability, and improved comfort levels. The growing focus on environmentally-friendly HVAC systems has led to the adoption of automation and smart technology, which allows for better data analysis and peak performance of the systems.
The use of HVAC systems is expected to continue growing across various sectors, such as apartment buildings, hotels, single-family homes, senior living facilities, and medium to large industrial and office buildings, including vehicles, skyscrapers, hospitals, and marine environments.
In recent years, automobile manufacturers have been increasingly focusing on green initiatives, which has led to the popularity of geothermal cooling and heating equipment, eliminating the need for fuel-powered equipment. HVAC systems market players have also increased their efforts to reduce the energy consumption of buildings, resulting in the development of innovative HVAC technologies and design strategies. Additionally, in commercial environments, these systems help conserve energy while providing a quieter environment. HVAC manufacturers are also collaborating with other companies to enhance their product offerings, which has further boosted the market size of HVAC systems.
- Based on the product, the cooling segment has shown the maximum market share
- Based on ventilation equipment, the air handling units were the leading revenue-generating in the market
- Based on heating equipment, the furnaces segment is expected to dominate over the forecast period
- Based on cooling equipment, the unitary air conditioners segment held the largest market share
- Based on the implementation, the new construction segment held the most dominating position
- Based on application, the residential segment is expected to dominate in the forthcoming years
- Based on region, North America was the leading revenue generator
Growing Adoption of Modern Infrastructure is Driving Growth of HAVC System Market Growth
The HVAC systems market is seeing significant growth driven by the increasing popularity of water-cooled chillers and energy-efficient solutions. The need for climate and temperature control in economies with hot climates has led to the significant adoption of HVAC systems. The rising demand for energy-efficient HVAC systems, coupled with the growing trend of smart homes, government initiatives, and increased investment in the construction industry, is driving market growth in the forecast period. Companies are investing in cost-effective systems to meet consumer demands and sustainable environmental goals, which is further driving demand for HVAC systems. These systems offer benefits such as cost and energy savings, making them increasingly attractive to consumers.
Transformation of IoT with HVAC Systems, which provides Lucrative Opportunities for the Growth of the Market
The integration of IoT technology in HVAC systems is driving market growth by enabling communication between HVAC systems and other connected devices. This allows for improved energy efficiency through monitoring and personalized suggestions for energy usage, heating, cooling, and maintenance. The proliferation of IoT-enabled devices in various sectors, such as residential, commercial, and industrial, is expanding opportunities for unique solutions for customers.
HVAC manufacturers have responded by developing intelligent systems that use wireless technology to communicate with smart devices and automatically adjust indoor climates. Market players are focusing on collaborations to integrate advanced technologies, such as smart HVAC systems, to enhance their product offerings. These factors are collectively driving the HVAC systems market share.
Economics Factors, Government Regulations, and High Energy Costs to Impede the Market Growth
Economic factors play a crucial role in determining the demand for HVAC systems. A downturn in the economy or a lack of disposable income among consumers can lead to a decrease in demand for HVAC systems. This can be a significant obstacle for companies in the HVAC industry as they may struggle to attract customers and generate revenue.
Government regulations can also have an impact on the demand for HVAC systems. Stringent regulations and building codes can make it more difficult and expensive to install HVAC systems. This can discourage consumers from purchasing HVAC systems and decrease demand in the market.
Energy costs are another factor that can affect the demand for HVAC systems. High energy costs can make it more expensive to operate HVAC systems, which can decrease demand among consumers. This can be a significant challenge for companies in the HVAC industry as they may need to find ways to make their products more energy-efficient in order to attract customers.
Based on product, the HVAC systems market is classified into heating, ventilation, and cooling where the cooling segment is expected to dominate over the forecast period. Growing population and increasing disposable income especially across the regions with hot climates have instigated the need for HVAC systems.
Based on ventilation equipment, the global HVAC system market is segmented into air filters, ventilation fans, air handling units, dehumidifiers, and humidifiers. The air handling units segment is holding its dominance over the market and is expected to continue the same during the forecast period. The growing use of air-handling units in various applications in various structures due to their minimal space requirements and portability benefits primarily contributes to this segment's large share.
Based on heating equipment, the market is segmented into furnaces, boilers, heat pumps, and unitary heaters. The market is experiencing considerable growth in the demand for furnaces across residential applications due to their enhanced lifespan, low cost, and government grants & rebates on replacing old heating equipment with new furnaces.
Based on cooling equipment, the HVAC systems market is segmented into chillers, coolers, unitary air conditioners, VRF systems, room air conditioners, and cooling towers. The unitary air conditioner dominance is expected to continue over the forecast period due to the high adoption in retail stores, schools, offices, and buildings. These establishments are making use of the system due to their high-energy efficiency and cooling capacity is the primary factor attributed to the prominent share of this segment.
In January 2022: Daikin Applied launched a portfolio of scalable, cloud-based technologies, SiteLine Building Controls to effortlessly attach, observe, and manage both individual pieces of HVAC equipment and construct integrated building systems. The product portfolio provides transparency into the entire HVAC ecosystem to help create comfortable and sustainable environments.
In May 2022: Johnson Controls invested USD 7.5 million into new automation equipment at its commercial HVAC manufacturing plant. The new equipment would aim to upgrade the capacity while improving product quality, safety, and assembly productivity at the 900,000-square-foot facility to modernize, expand the plant, and automate the manufacturing process.
North America is Dominating the Market Share due to the Government's Focus on the Use of Energy-Efficient HVAC system
The HVAC market in the North America region is witnessing significant growth due to a number of factors. One of the major drivers of growth is the proliferation of multifamily and single-family homes in the region, which are shifting their focus to energy efficiency. This has paved the way for the growth of the market as consumers are becoming more aware of the benefits of energy-efficient HVAC systems.
Original Equipment Manufacturers (OEMs) are also playing a crucial role in driving market growth by focusing on green initiatives. These initiatives aim to save costs while reducing greenhouse gas emissions, which is in line with government efforts to promote the use of efficient heating and cooling technologies powered by renewable energy. This has resulted in a considerable shift in customer sentiment toward eco-friendly HVAC units, which is driving the HVAC systems market growth.
In addition to these factors, rapid technological advancements have also played a significant role in driving the HVAC systems market revenue. As new devices and equipment are becoming available, it is essential to make consumers aware of the benefits of utilizing them for their day-to-day operations. Products such as air purifiers and humidifiers are primarily used in medical facilities and homes to keep indoor air safe and free of contaminants. With the geriatric population growth in countries such as the United States and Mexico, the need for these devices is spurring the business growth in the region.
The manufacturing industry is also driving the demand for energy-efficient HVAC systems in the region. The rapid adoption of advanced technology has shifted the preference for smart manufacturing methods, impelling the demand for energy-efficient HVAC systems across the region's manufacturing facilities.
Asia Pacific HVAC Systems Market is Growing Rapidly Due to the Increased Concerns about Unpredictable Climatic Conditions
HVAC systems are gaining wide acceptance across the Asia Pacific region for both residential and commercial buildings. The technology is being widely used for heating and cooling purposes, and its popularity is expected to continue growing. The increase in construction activity across major economies such as China, Japan, and India are driving demand for HVAC systems.
Additionally, rising temperatures in the region are boosting the need for refrigeration equipment. The commercial sector is expanding, providing opportunities for future growth. The growing number of multi-family and individual homeowners is also creating demand for residential HVAC systems. Government focuses on energy-efficient technologies and greener refrigerants is also driving demand for HVAC systems in the region.
- Carrier Corporation
- DAIKIN APPLIED
- Danfoss A/S
- Emerson Electric Co.
- Honeywell International Inc.
- Ingersoll Rand
- JOHNSON CONTROLS
- Lennox International, Inc.
- Midea Group
The global HVAC systems market is segmented as follows:
By Ventilation Equipment
- Air Filter
- Ventilation Fan
- Air Handling Units
By Heating Equipment
- Heat pumps
- Unitary Heaters
By Cooling Equipment
- Unitary Air Conditioners
- VRF Systems
- Room Air Conditioners
- Cooling Towers
- New Construction
- North America
- The U.S.
- The UK
- Nordic countries
- Benelux Reunion
- The Netherlands
- Rest of Europe
- Asia Pacific
- New Zealand
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
Global HVAC Systems Market By Product