by The HVAC Equipment Market is estimated to be valued at US$ 207.87 Mn or Bn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The HVAC equipment market involves heating, ventilation, and air conditioning products used for indoor temperature regulation and indoor air quality in residential, commercial, and industrial buildings. Key HVAC equipment include air conditioners, heat pumps, furnaces, air handlers, air purifiers, ventilation fans, and thermostats. Rapid urbanization and rising disposable income are driving the demand for HVAC systems for thermal comfort in homes and workplaces. Furthermore, stringent energy efficiency standards by various governments are propelling the demand for eco-friendly HVAC equipment.
Market Dynamics:
Growth in construction activities due to rapid urbanization: Rapid urbanization in developing economies has increased construction activities for both residential and commercial buildings. According to World Bank, urban population in India is estimated to rise from 34% to 50% from 2018 to 2050. Growing population coupled with rising income levels is fueling the demand for constructed spaces and thereby driving the HVAC equipment market.
Rising energy efficiency standards: Stringent government regulations regarding energy consumption from heating and cooling systems are propelling the demand for energy-efficient HVAC equipment. For instance, in 2019 the U.S. government issued new minimum efficiency standards for residential furnaces and water heaters effective from 2023. Growing emphasis on reducing carbon footprint is compelling HVAC manufacturers to develop eco-friendly solutions.
Segment Analysis
The HVAC equipment market is dominated by the air conditioning sub-segment, accounting for more than 60% of the global market share. This is because air conditioning has become necessity in commercial as well as residential sector owing to rising temperatures due to climate change. Further, growing construction of commercial buildings such as malls, hospitals etc requires efficient air conditioning systems.
PEST Analysis
Political: Government’s focus on developing green buildings and reducing dependence on fossil fuels through policies supporting HVAC systems is positively impacting the market growth. Economic: Rising income levels, rapid urbanisation and industrialisation in developing countries is driving the demand for HVAC equipment. Social: Changing lifestyle, growing nuclear family concept and awareness about indoor air quality is augmenting the use of efficient HVAC systems. Technological: Advancements in IoT, AI and machine learning is enabling development of smart and energy efficient HVAC systems with remote monitoring capabilities.
Key Takeaways
The Global HVAC Equipment Market Size is expected to witness high growth, exhibiting CAGR of 6.6% over the forecast period, due to increasing stringent energy efficiency standards globally. The Asia Pacific regional market is anticipated to grow the fastest owing to rapid infrastructure development and rising living standards in developing countries such as India and China.
Regional analysis
The Asia Pacific regional market is dominating with over 40% market share and is projected to continue its dominance during the forecast period. This is attributed to robust economic growth, rising construction activities for infrastructure development in India and China. Further, government initiatives to build green buildings in the region is propelling the regional market growth.
Key players
Key players operating in the HVAC equipment market are United Technologies Corporation (Carrier), LG Corporation, Daikin Industries. Ltd., AB Electrolux, Haier Inc., Lennox International Inc., Samsung Electronics, and Panasonic Corporation. United Technologies Corporation (Carrier) is the global leader with wide product portfolio and geographical footprint. LG Corporation is also a major player leveraging innovative technologies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
