HVAC Systems Market (By Product: Heating, Ventilation, Cooling; By End Use: Residential, Commercial, Industrial) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030.

Published Date : Jun 2022 | No. of Pages : 150+ Pages | Category : Advanced Materials

The global HVAC systems market was estimated at USD 136.35 billion in 2021 and it is expected to surpass around USD 234.98 billion by 2030, poised to grow at a CAGR of 6.23% from 2022 to 2030.

HVAC Systems Market Size 2021 to 2030

The rising adoption of energy-efficient and renewable energy products is anticipated to be a significant driving factor for HVAC demand. Demand for eco-friendly systems, and advanced technology usage in products including software and automation, are a few key factors contributing to the industry’s success. The growing usage of ACs in homes, as well as offices, has favored the HVAC industry over the years. To further boost this demand, rising incomes and standard of living in several emerging economies have also driven business profitability in recent years.

The growing popularity of ductless HVAC(Heating, ventilation, and air conditioning) is also gaining traction and will create avenues for market growth over the mid-term. Installing ACs in buildings without ducts is an impossible task and this is where ductless systems come to save the day. These compact units can be installed almost anywhere devoid of ducts. Apart from new product development energy-efficient and tech-savvy products are also carving a niche for themselves in the market. For instance, products that work on geothermal technologies or renewable energy sources are helping consumers cut energy costs while benefitting OEMs meet sustainability targets.

Apart from efficiency, technology is also making this a lucrative market. Building automation systems are popular among contractors and architects. Therefore, the demand for Building Automation Systems (BAS) is gaining traction, as such creating avenues for the market. Further, ACs are no longer operated manually but can be controlled remotely with a smartphone, PC, or tablet. This functionality and smart feature is also emerging as a popular trend in the market creating revenue streams for manufacturers.

Scope of The Report

Report Coverage Details
Market Size in 2021 USD 136.35 billion
Revenue Forecast by 2030 USD 234.98 billion
Growth rate from 2022 to 2030 CAGR of 6.23%
Base Year 2021
Forecast Period 2022 to 2030
Segmentation Product, end use, region
Companies Covered Carrier Corporation; Daikin Industries, Ltd.; Emerson Electric Co.; Hitachi Ltd.; Johnson Controls International plc; Lennox International, Inc.; Trane Technologies

 

Product Insights

The cooling segment dominated the market for HVAC systems and accounted for the largest revenue share of 54.7% in 2021. According to the data published by the International Energy Agency (IEA), cooling accounts for over 10% of the world’s electricity consumption. The statistics are huge and probably explain why the cooling segment has dominated the HVAC(Heating, ventilation, and air conditioning) equipment market over the years.  Growing population and disposable incomes particularly in the hotter regions globally have instigated the usage of air conditioners, subsequently favoring the demand for cooling systems such as air conditioners (AC), unitary ACs, etc. The cooling segment from 2022 to 2030 is projected to grow at an approximate CAGR of 6%.

Apart from cooling, heating is also a major segment exhibiting gradual growth over the years. As of 2021, the segment captured over 20.0% share of the market. The segment over the long term is projected to gain traction as the market gradually transitions from a fuel-based working model to efficient low-carbon solutions. Further, the proliferation of solar-based heat pumps will also create avenues for segment growth over the forecast period.

End-use Insights

The residential segment dominated the market for HVAC systems and accounted for the largest revenue share of 40.1% in 2021. An increase in multi-family and individual homeowners is creating avenues for the residential HVAC segment. As such in 2021 the segment was approximately valued at more than USD 50.0 billion. In developed parts of the world, the demand for residential HVAC(Heating, ventilation, and air conditioning) is expected to be more or less stagnant; however, the demand from newer markets particularly developing markets will be slightly on a higher end. This is primarily ascribed to the growing population in emerging markets and market maturity in developed markets.

Commercial HVAC space offers huge opportunities for growth. The segment is projected to witness a CAGR exceeding 6.0% in the market for HVAC systems from 2022 to 2030. Several trends including green and smart technology to automated systems are expected to play a pivotal role in shaping the future of the commercial HVAC market. As the COVID-19 pandemic becomes an endemic, and permanent WFH models slowly transition to a hybrid working model, the demand for HVAC in commercial settings is anticipated to witness an uptick.

Regional Insights

Asia Pacific dominated the HVAC systems market and accounted for a revenue share of over 40.0% in 2021. Increasing urbanization, growing population, and increasing consumer disposable income are key success factors to the region's tremendous growth over the years. Lately, the commercial sector has been growing creating prospects for future regional growth.

North America, closely followed by Europe was the second-largest consumer of HVAC systems in 2021. The market for HVAC systems as such has reached maturity; however, replacement sales due to aging infrastructure or retrofit projects are creating alternate revenue streams for OEMs apart from expansion into the services and maintenance category. The region is anticipated to witness a CAGR exceeding 5.5% over the forecast period.

Key Players

  • Carrier Corporation
  • Daikin Industries, Ltd.
  • Emerson Electric Co.
  • Hitachi Ltd.
  • Johnson Controls International plc
  • Lennox International, Inc.
  • Trane Technologies 

Market Segmentation

  • By Product Outlook
    • Heating
    • Ventilation
    • Cooling
  • By End-use Outlook
    • Residential
    • Commercial
    • Industrial
  • By Regional Outlook
    • North America
      • U.S.
      • Canada
      • Mexico
    • Europe
      • U.K.
      • Germany
      • France
      • Spain
      • Italy
      • Latvia
    • Asia Pacific
      • China
      • India
      • Japan
      • South Korea
      • Australia
    • South America
      • Brazil
      • Argentina
      • Chile
    • Middle East & Africa

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