HVAC Control Market (By System; By Implementation Type: New Construction and Retrofit; By End User: Residential, Commercial, and Industrial) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2021 - 2030

The global HVAC control market size is expected to hit around US$ 26 billion by 2030, registering growth at a CAGR of 6.2% over forecast period 2021 to 2030. HVAC control is used to regulate operations of air conditioning and heating systems. It is basically a control system equipped with sensing device, which is used to compare actual state such as temperature with a target state. 

Increase in industrialization has led to surge in demand for heating and cooling equipment in various industries such as mining and power generation. Increase in energy bills and strict regulations considering environmental norms have enforced various commercial organizations and industries to install HVAC control in their operating areas. In addition, surge in demand for remote access control systems, which are easy to operate has considerably led growth in investments by commercial, industrial, and residential end users in HVAC systems. This growth in investments of has led to development of advanced HVAC control systems with various sensors. Development in infrastructure of residential, commercial, and industrial buildings have also increase the demand for HVAC controls.  

Increase in population in developing economies such as India, China, Mexico, Brazil, and others has resulted in rapid urbanization, which is expected to boost development of the industrial sector, which, in turn, is expected to increase the demand for HAVC control market. In May 2018, according to the United Nations (UN), around 68% of the world population is expected to live in urban areas by 2050. This is expected to result in increase of industrial construction activities around the globe and create the need for HVAC controls. Similarly, governments across the globe are helping in development of industrial infrastructure. For instance, in October 2019, the Government of India planned to spend around $1.4 trillion in next five years for infrastructural development. Similarly, in August 2019, Tokyo International Conference on African Development (TICAD) planned to invest $20 billion in Africa in next three years. This is expected to boost the HVAC control market growth during the forecast period. However, low adoption of HVAC controls, owing to lack in awareness among end users, complexity in upgrading existing HVAC systems, and fluctuations in raw material prices hinder the market growth. 

The novel coronavirus has rapidly spread across various countries and regions, causing enormous impact on lives of people and overall community. Originating as a crisis to human health, it now poses significant threat to worldwide trade, economy, and finance. The impact of lockdown, owing to COVID-19 is vague and economic recovery of HVAC control manufacturers is completely based on their cash reserves. Market players can afford a complete lockdown only for a limited period, after which they would have to alter their investment plans. HVAC control manufacturers had to emphasize on protecting their staff, operations, and supply chain partners to effectively respond to immediate crisis and discover new ways of working after coronavirus cases began to decline. Furthermore, number of COVID-19 cases are expected to reduce in the near term as vaccine for COVID-19 has been introduced in the market. This is further expected to lead to re-initiation of HVAC control companies at their full-scale capacities, which would aid the market to recover by the start of 2022.

Furthermore, growth in HVAC industries across the globe and rise in demand for cloud computing in HVAC is anticipated to drive the market growth during the forecast period. In addition, to improve performance, manufacturers are continuously introducing new types of HVAC controls for industrial sector. 

Report Highlights

HVAC controls for residential application accounted for the second largest share of the market in 2019

The increasing awareness of energy conservation and efficiency and environmental protection has fuelled the adoption of energy-efficient HVAC controls. These solutions help in the optimum utilization of energy and maintain the most comfortable and healthy environment indoors. Favorable government regulations and tax credit facilities on the installation of HVAC systems and the growing focus of end users on reducing electricity bills have significantly contributed to the growth of the HVAC controls market for residential applications. COVID-19 has impacted the residential sector by affecting the individual economy, which will cause the market to slow down. The market is also impacted by the supply and demand disruptions in countries such as the US, Germany, China, and Australia. One of the key impacts on the HVAC controls market for the residential sector is the increased economic slowdown due to travel restrictions and reduced consumer demand due to lockdowns. The shortage of supply is expected to increase prices of HVAC control systems and related components and equipment in countries such as the US, Australia, and Germany, which are highly dependent on Chinese players for operations.

Sensors component segment to register with the highest growth rate during the forecast period

Sensors are responsible for sensing various elements in the atmosphere and sending this information accurately to controllers, which can then be processed for taking appropriate actions. These sensors also detect if the actions taken by controllers and controlled equipment have given the desired results. The development of wireless technology and its application in IoT and smart homes are the factors fueling the market for sensors in HVAC controls.

The HVAC controls market in APAC is projected to grow at the highest CAGR during the forecast period.

APAC held the largest share of the HVAC controls market in 2020. Technological advancements and inclination toward the use of energy-efficient products fuel the growth of the HVAC controls market in APAC. The growing population in developing countries in this region, along with environmental awareness, is supporting the adoption of HVAC controls. The rise in the adoption of green buildings and government initiatives to regulate energy-efficient practices across the commercial sector is also aiding the adoption of HVAC controls in this region. However, the APAC market is expected to see a dip owing to the halt of both ongoing as well as new infrastructure and construction projects due to COVID-19. Also, as the pandemic has also affected individual per capita income, the adoption of new HVAC systems in the residential segment has significantly decreased. However, this loss is expected to be recovered in the coming years with a gradual recovery of the country’s overall economy.

Besides APAC, North America holds a significant market share. The HVAC controls market in North America accounted for the second-largest share in 2020. Supportive government plans, favorable laws, programs, and associations are the other major factors driving the growth in this region. However, the US is expected to face a significant reduction in its market size in 2020 due to the adverse effects of COVID-19 on the infrastructure, industrial, and commercial sectors. The adoption of HVAC control systems might be largely impacted in 2020 due to the shutdown of various on-going construction sites. However, with these projects gradually resuming operations, the demand for HVAC control systems used in such projects may increase with time in the coming years, along with economic recovery.

Key Players

Key companies profiled in the HVAC control market report include Carrier Global Corporation, Daikin Industries, Danfoss, Delta Controls, Emerson Electric, Honeywell International Inc, Johnson Controls, LG Electronics,  Schneider Electric, and Siemens. 

Driver

The amalgamation of the HVAC industry and IoT provides for vastly superior customer-centric services, enabling remote appliance control. The key benefits of the inclusion of IoT in the energy sector are the operational visibility into HVAC appliances and ways to reduce, by a large margin, energy consumption. By integrating smart devices with motion sensors, for example, HVAC contractors can get their devices to continuously monitor occupancy within the building. When no movement is detected for a prolonged period of time, the system can suggest, through an app notification, to turn heating (or cooling) down to lower the power usage. The controls can also easily employ the latest networking and AI technologies and thus be capable of learning the tenants’ preferences and adjusting to their comfort needs automatically over time. HVAC manufacturers are striving to provide consumers with smart HVAC systems and increase their market share. In any commercial or residential building, lighting and HVAC systems consume maximum energy. Implementing IoT in these applications and enabling machine-to-machine (M2M) connectivity would help in cost saving, resource conservation, predictive maintenance, comfort control, and healthy building performance. As a result, demand for IoT-based HVAC control systems has increased.

Restraint

Global warming and the need to achieve maximum energy conservation have become major global issues. Advanced HVAC systems help to address these concerns effectively; however, awareness regarding the benefits of HVAC systems and controls is low. The implementation of HVAC systems in residential buildings in developed countries is high; however, because of the high cost associated with the implementation of these systems, the adoption remains low even though the environmental benefits are high. Setting up an HVAC system in a building is a part of a subcontract given to a specialized company by contractors. However, a majority of subcontracting companies lack technical expertise and budget, which leads to the implementation of ineffective HVAC systems and controls. Additionally, there is a lack of awareness regarding HVAC standards among contractors.

Residential HVAC construction firms are unaware of the latest Seasonal Energy Efficiency Ratio (SEER) standards, which is hindering the adoption of HVAC controls. However, governments are supporting the adoption of HVAC systems by providing tax credits and rolling out regulations and standards.

Opportunity

Cloud computing helps in storing data, carrying out processes, and running businesses using internet servers located in a remote location. It has evolved to become an engine of enterprise technology innovation. In HVAC systems, contractors store various data, such as information related to HVAC loads, equipment implemented in a building, proposals, maintenance activities, and others, which are created in a variety of systems that are disconnected from each other. Acquiring such data manually is aligned with the risk of data loss and may also lead to confusion. To solve this problem, a common platform, i.e., cloud computing, can be used, providing access to everyone dealing with the project. Updated information regarding the project, client requirement, and equipment and controls selection can be done easily with a cloud platform. The same data can be used for future reference. Cloud computing helps in adhering to regulations, selecting energy-efficient HVAC systems and controls, analyzing HVAC load, storing sales data, and maintaining data for technicians.

Challenge

In March 2020, the World Health Organization (WHO) made an assessment and announced the COVID-19 disease to be pandemic. COVID-19 pandemic has led to severe global socio-economic disruptions impacting millions of people across the world. Concerns have been raised about the spread of the disease through the operation of HVAC systems, since the infectious disease can spread by several different routes, including transmission through the air. According to the Centers for Disease Control (CDC), the virus that causes COVID-19 is thought to spread mainly from person to person through respiratory droplets that are produced when an infected person sneezes, coughs, sings, talks, etc. These droplets can land in the mouths or noses of people who are nearby or possibly be inhaled, which is way more likely when people are in close contact with one another (within about 6 feet). Theoretically, these infected droplets could be dispersed through an HVAC system and spread to other occupants, but this scenario appears to be unlikely. Even the World Health Organization (WHO) has contributed to guidance on ventilation and air-conditioning systems in the context of COVID-19. WHO worked closely with the World Meteorological Organization Joint Office for Climate and Health and the United States National Oceanic and Atmospheric Administration (NOAA) through the Global Heat Health Information Network to develop and update the guidelines.

Market Segmentation

By System

• Temperature Control Systems
• Ventilation Control Systems
• Humidity Control Systems
• Integrated Control Systems

By Implementation Type

• New Construction
• Retrofit

By End User

• Residential
• Commercial
• Industrial

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia-Pacific
• LAMEA
  • Latin America
  • Middle East 
  • Africa

The report provides revenue of the global HVAC control market for the period 2017–2030, considering 2021 as the base year and 2030 as the forecast year. The report also provides the compound annual growth rate (CAGR) for the global market during the forecast period. The global HVAC control market studies past as well as current growth trends and opportunities to gain valuable insights of these indicators of the market during the forecast period from 2021 to 2030.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted HVAC control market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

The report includes an elaborate executive summary, along with a snapshot of the growth behavior of various segments included in the scope of the study. Furthermore, the report sheds light on the changing competitive dynamics in the global HVAC control market. These indices serve as valuable tools for existing market players as well as for entities interested in entering the global HVAC control market.

The report delves into the competitive landscape of the global HVAC control market. Key players operating in the global HVAC control market have been identified, and each one of these has been profiled for distinguishing business attributes. Company overview, financial standings, recent developments, and SWOT are some of the attributes of players in the global HVAC control market that have been profiled in this report.

The HVAC control market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to HVAC control market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of HVAC control market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new HVAC control market. These factors have benefited the growth of the global market for HVAC control. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for HVAC control.

In this study, the years considered to estimate the market size of HVAC control are as follows:

• History Year: 2016-2020

• Base Year: 2020

• Estimated Year: 2021

• Forecast Year 2021 to 2030

Major highlights of report:

• Figures related to sales volume, market remuneration, and segmental shares

• Featuring market dynamics

• Growth prospects and expansion graph

• PROCON study of direct & indirect sales channels

• Profiles of prominent traders, dealer, and distributors in the industry

Geographical landscape: North America, Europe, Asia-Pacific, South America, Middle East and Africa

• Industry forecasts based on region and at country level

• Data about sales volume recorded, industry share held, and profit margins amassed

• Overall remuneration and estimated growth rate for each regional market

Major Key Points Covered in Report:

Executive Summary: It includes key trends of the HVAC control market related to products, applications, and other crucial factors. It also provides analysis of the competitive landscape and CAGR and market size of the HVAC control market based on production and revenue.

Production and Consumption by Region: It covers all regional markets to which the research study relates. Prices and key players in addition to production and consumption in each regional market are discussed.

Key Players: Here, the report throws light on financial ratios, pricing structure, production cost, gross profit, sales volume, revenue, and gross margin of leading and prominent companies competing in the HVAC control market.

Market Segments: This part of the report discusses about product, application and other segments of the HVAC control market based on market share, CAGR, market size, and various other factors.

Research Methodology: This section discusses about the research methodology and approach used to prepare the report. It covers data triangulation, market breakdown, market size estimation, and research design and/or programs.