July 25, 2024
HVAC Equipment Market

The growing penetration of IoT-enabled smart HVAC systems anticipated to open up the new avenue for HVAC Equipment Market.

The HVAC Equipment Market is estimated to be valued at US$ 207.87 Mn 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 (Heating, Ventilation, and Air Conditioning) equipment market consists of various systems and equipment that are used to regulate the temperature, humidity and quality of air in residential and commercial buildings. The main types of HVAC equipment include air conditioners, chillers, furnace and heat pumps among others. These systems have seen growing demand over the years owing to increasing awareness around indoor air quality and thermal comfort especially in developing regions. HVAC equipment play a vital role in commercial real estate, hospitals, education institutions and manufacturing facilities by maintaining proper environment for efficient functioning.

Market Dynamics:

The global HVAC equipment market is primarily driven by rising construction of commercial buildings coupled with growing population. According to United Nations statistics, 68% of world population is projected to live in urban areas by 2050 which is significantly fueling the construction of new residential and non-residential buildings. Furthermore, rapid industrialization and economic development across Asia Pacific and Middle East countries is generating high demand for modern HVAC systems in manufacturing facilities and office spaces. Additionally, stringent government regulations around energy efficiency along with increasing adoption of renewable energy sources for HVAC operations is widening the scope of product innovations in the market. However, high installation and maintenance cost of advanced HVAC systems continues to restrain market growth, especially in underdeveloped regions.

Segment Analysis

 The HVAC equipment market is dominated by the commercial segment which accounts for over 55% share of the overall market. The dominance of the commercial segment can be attributed to rise in number of commercial infrastructure like office spaces, malls, hospitals etc. where HVAC equipment is integral to maintain optimum temperature and indoor air quality. The rise of smart homes and awareness about indoor air pollution is also driving demand in the residential segment.

Pest Analysis

 Political: Government policies and regulations regarding energy efficiency and emission standards for HVAC equipment are influencing participants to manufacture greener products.

Economic: Growth in the construction industry especially in developing nations is fueling demand. The rising disposable income is also augmenting sales of premium HVAC solutions.

Social: Increasing health concerns pertaining to indoor air quality and rising living standards are driving buyers towards sophisticated HVAC systems.

Technological: Advancements in connectivity, mobility, artificial intelligence, sensors etc. are aiding participants to introduce smart and energy-efficient HVAC solutions.

Key Takeaways

The global HVAC equipment market is expected to witness high growth, exhibiting CAGR of 6.6% over the forecast period, due to increasing urbanization and construction activities. The market size for 2023 is estimated to be US$ 207.87 Mn.

Regional analysis: North America dominated the HVAC equipment market in 2023 with over 30% share owing to extreme weather conditions and high acceptance of smart homes in countries like US and Canada. Asia Pacific is projected to witness fastest growth during the forecast period with China, India and Japan emerging as major markets.

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. The established players are investing heavily in research & development to integrate smart technologies in their product portfolio and gain a competitive edge in the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it