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The global HVAC market size is expected to grow at a CAGR of 5.43% from 2022-2028. The global market is undergoing tremendous modifications due to the increasing integration of the Internet of Things (IoT) technology with HVAC products, making them innovative and accessible. The emphasis on connecting several sensors within building ecosystems, including HVAC, has grown for achieving energy efficiency. Speak directly to the analyst to clarify any post sales queries you may have.
In 2022, the major economies in APAC, including China, Japan, and India, witnessed increasing commercial construction activities due to an expanding number of companies in various sectors setting up their offices in distinct regions to capture the target and potential customer base. In the APAC region, the increasing demand for energy-efficient HVAC systems and stringent regulations for the use of explosion-proof HVAC equipment is boosting the adoption across industries. It will offer enormous growth opportunities in the HVAC market. Further, Middle East countries are witnessing drastic climate changes. Rising temperatures and heat waves increased the demand for HVAC systems in commercial and residential buildings to control indoor climate conditions, further propelling the HVAC market growth. Along with providing residents with comfort, filtering can also improve indoor air quality. Hence these factors propel sales growth across the Middle East & Africa region during the forecast period.
MARKET TRENDS & DRIVERS
Replacement of Existing Equipment with Energy Efficient Products
In 2020, the commercial sector experienced the steepest decline due to the hard-hit hotel & motel industry and sports & convention centers. The commercial sector has witnessed constant growth since 2021, with the recovering economy. Energy-efficient HVAC technologies for residential and commercial buildings have the potential to provide environmental and economic benefits. They are optimizing energy-efficient HVAC technologies, and proper installation planning help to reach energy-saving potential by up to 40%. Therefore, replacing existing equipment with energy-efficient HVAC technologies will boost the growth rate of the HVAC market in the future.Rising Construction Industry
In the long run, the construction industry globally is expected to experience steady growth due to low-interest rates in a few European countries and stable economic growth. The construction of hotels, amusement parks, private & government offices, and sports & convention centers is growing, thereby supporting the HVAC market in the construction sector.The global HVAC market is highly dependent on the construction industry for revenue through new installations, whether residential or commercial. The refurbishment of buildings provides massive revenue to the HVAC industry. The industry witnessed an increased inflow of public and private investments, mainly in countries, such as Spain, Cyprus, Italy, and the Netherlands. In 2022, The Construction Intelligence Center (CIC) revised the growth forecast for the European construction industry. This was because of the improved performance of some significant developed city markets and a brighter outlook for the European economy.
SEGMENTATION ANALYSIS
INSIGHTS BY EQUIPMENT TYPE
HVAC commonly refers to heating, ventilation, cooling, collective heating, and cooling technologies used at commercial, residential, industrial, and public utility buildings. The heating equipment segment in the global HVAC market was valued at USD 91.06 billion in 2022 and is expected to reach USD 123.85 billion by 2028. The heating equipment industry is characterized by intense competition. The heating equipment is generally fragmented. Hence, the industry is characterized by many local/domestic vendors.The air conditioning industry is characterized by the presence of many domestic and multinational vendors, and the industry is seasonal and characterized by modern technology. Air-conditioners are in the fastest-growing segment and have a vast addressable industry in developed and developing economies. APAC, Europe, and North America are expected to witness rapid growth in Air-conditioners by value because of higher construction activity and the demand for renovation activities.
Segmentation by Equipment
- Heating
- Heat Pump
- Boiler Units
- Furnaces
- Others
- Air Conditioning
- RAC
- CAC
- Chillers
- Heat Exchangers
- Others
- Ventilation
- Air Handling Units
- Air filters
- Humidifiers & Dehumidifiers
- Fan Coil Units
- Others
INSIGHTS BY END-USER
The global residential sector HVAC market was valued at USD 135.63 billion in 2022 and is growing at a CAGR of 4.99% during the forecast period. The demand from the residential sector grew by over 5.63% due to an increase in the refurbishment of houses and stable residential new construction activities. The shift in housing preferences to large homes and the low-interest rates resulted in the increased demand for home improvements and new constructions. Many construction projects in the US provide the highest revenue to HVAC systems, and the demand is expected to increase during the forecast period. In Europe, climatic variations led to high demand for all product categories of HVAC in 2022. The demand for HVAC equipment in the Nordics varies drastically from mainland Europe. Construction activities in the region are highly concentrated in Western Europe, with a high demand for replacement.Segmentation by End-user
- Residential
- Commercial
- Office Spaces
- Airport & Public Utilities
- Hospitality
- Hospitals
- Industrial & Others
GEOGRAPHICAL ANALYSIS
- The APAC region holds the most extensive global HVAC market share. It is expected to witness a CAGR of 6.44% during the forecast period, buoyed by spiking demand from the residential sector, commercial offices, and buildings. The major economies in APAC, including China, Japan, and India, are witnessing increasing commercial construction activities due to an expanding number of companies in various sectors setting up their offices in distinct regions to capture the target and potential customer base. In 2022, China accounted for the largest revenue share of 43.73% of the APAC HVAC system market. It is estimated to witness an incremental growth of USD 21.81 billion during the forecast period. The China market is witnessing a spurt in multiple real estate projects and public-private investments in various residential, industrial, and commercial development zones because of the boom in urbanization.
- The Europe HVAC Market was valued at USD 61.2 billion in 2022 and is expected to reach USD 86.49 billion by 2028, registering a CAGR of 5.92 % during the forecast period. This growth is mainly driven by Western European, the two largest economies. France and Germany account for one-third of the market and experienced annual growth rates of 4.72% & 5.93%, respectively, in the forecast period. Major factors spiking the sales rate for HVAC equipment in Europe are rising average construction spending, increasing retail building construction projects, rising government spending on sustainable building development, industrial developments, rapid urbanization, changing climatic conditions, and growth in disposable income across European countries.
Segmentation by Geography
- APAC
- China
- India
- Japan
- Australia
- North America
- US
- Canada
- Europe
- Western Europe
- Germany
- France
- UK
- Italy
- Netherlands
- Nordic
- Norway
- Denmark
- Sweden
- Others
- Central & Eastern Europe
- Russia
- Poland & Austria
- Other CEE Countries
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
COMPETITIVE LANDSCAPE
Systemair, Johnson Controls, Zehnder, Ostberg, and Aldes are some of the key players in the global HVAC market. Other players operating in the global HVAC market include LG, Panasonic, Carrier, Regal, and others. The prominent vendors focus on developing advanced HVAC and investing in R&D initiatives to enlarge their product line and gain a competitive advantage in the market.Other attractive prospects in the form of IoT are expected to change the industry's working as they connect all components and create an environment where the device operation can be managed efficiently using smart management solutions. Moreover, because of a highly competitive industry, R&D investments in the HVAC market are limited and have substantial investments, mainly from large vendors. Moreover, the short time-to-market and narrow acceptance of new technologies add to market challenges for HVAC vendors. R&D investments are more focused on cost reduction of the production process and improvement of the existing product technology for value addition than developing new products. As a result, a lot of mergers & acquisitions are taking place to develop and enhance the offerings and attributes to survive in the global HVAC market.
Key Company Profiles
- Systemair
- Johnson Controls
- Zehnder
- Ostberg
- Aldes
- Bosch
- Daikin
- Samsung
- Mitsubishi Electric
Other Prominent Vendors
- LG
- Panasonic
- Carrier
- Midea
- Regal
- Raytheon Technologies
- Honeywell
- Flakt Group
- Beijer Ref
- Flexit
- Grundfos
- Swegon
- VTS
- Nuaire
- Nortek
- Alfa Laval
- Hitachi
- Lu-Ve
- Vent-Axia
- Rosenberg
- S & P
- WOLF
- CIAT
- AL-KO
- DynAIR
- Danfoss
- Lennox
- Backer Springfield
- Dunham-Bush
- TCL
- TROX
- Vaillant Group
- Ingersoll Rand
- Camfil
KEY QUESTIONS ANSWERED:
1. How big is the HVAC market?2. What is the growth rate of the global HVAC market?
3. What are the significant trends in the global HVAC market?
4. Who are the key players in the global HVAC market?
5. Which region holds the most prominent global HVAC market share?
6. What is the market size of the global Residential HVAC market?
Table of Contents
1 Research Methodology2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.1.1 Inclusions
4.1.2 Exclusions
4.1.3 Market Estimation Caveats
4.2 Base Year
4.3 Scope of Study
4.4 Market Segmentation
4.4.1 Market Segmentation by Equipment
4.4.2 Market Segmentation by Heating Equipment
4.4.3 Market Segmentation by Air Conditioning Equipment
4.4.4 Market Segmentation by Ventilation Equipment
4.4.5 Market Segmentation by End-user
4.4.6 Market Segmentation by Geography
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Premium Insights
7 Market at a Glance
8 Introduction
8.1 Overview
8.1.1 Advantages of Smart Hvac Systems
8.1.2 Disadvantages of Smart Hvac Systems
8.1.3 Initiatives for Better Risk Management
8.1.4 Measures to Improve Profit Margins
8.1.5 Challenges Associated with Hvac Systems for Residential and Commerical Use
8.1.6 Recent Mergers & Acquisitions and Product Development Initiatives
8.1.7 Development of Environment-Friendly Hvac Equipment
8.1.8 Impact of Residential Construction Projects
8.1.9 Impact of Non-Residential Construction Projects
8.1.10 Challenges Associated with Hvac Equipment for Residential and Commerical Use
8.2 Repowereu Plan
8.3 Benefits of Ira for Heating Equipment
8.4 Value Chain
8.4.1 Raw Material Suppliers & Components
8.4.2 Manufacturers
8.4.3 Dealers /Distributors
8.4.4 Retailers
8.4.5 End-users
8.5 Impact of COVID-19
9 Market Opportunity & Trends
9.1 Replacement of Existing Hvac Equipment with Energy-Efficient Products
9.2 Emergence of IoT and Product Innovations to Aid Replacements
9.3 Adverse Climatic Conditions & High Demand for Hvac Systems
10 Market Growth Enablers
10.1 Growth of Global Construction Industry
10.2 Surge in Airport Modernization Projects Worldwide
10.3 Rise in Demand for Vrf Systems
11 Market Restraints
11.1 Low Availability of Skilled Labor
11.2 Stringent Regulatory Environments Worldwide
11.3 Implications of COVID-19 Outbreak
12 Market Landscape
12.1 Market Overview
12.1.1 Highlights
12.2 Market Size & Forecast
12.2.1 Value
12.3 Five Forces Analysis
12.3.1 Threat of New Entrants
12.3.2 Bargaining Power of Suppliers
12.3.3 Bargaining Power of Buyers
12.3.4 Threat of Substitutes
12.3.5 Competitive Rivalry
13 Equipment
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.2.1 Key Insights
13.3 Heating
13.3.1 Market Overview
13.3.2 Market Size & Forecast
13.3.3 Market by Geography
13.3.4 Heat Pumps: Market Size & Forecast
13.3.5 Boiler Units: Market Size & Forecast
13.3.6 Furnaces: Market Size & Forecast
13.3.7 Other Heating Equipment: Market Size & Forecast
13.4 Air Conditioning
13.4.1 Market Overview
13.4.2 Key Takeaways
13.4.3 Market by Geography
13.4.4 Rac: Market Size & Forecast
13.4.5 Cac: Market Size & Forecast
13.4.6 Chillers: Market Size & Forecast
13.4.7 Heat Exchanger: Market Size & Forecast (Includes Cooling Towers)
13.4.8 Other Air Conditioning Equipment: Market Size & Forecast
13.5 Ventilation
13.5.1 Market Overview
13.5.2 Market Size & Forecast
13.5.3 Market by Geography
13.5.4 Air Handling Units: Market Size & Forecast
13.5.5 Air Filters: Market Size & Forecast
13.5.6 Humidifiers & Dehumidifiers: Market Size & Forecast
13.5.7 Fan Coil Units: Market Size & Forecast
13.5.8 Other Ventilation Equipment: Market Size & Forecast
14 End-user
14.1 Market Snapshot & Growth Engine (Value)
14.2 Market Overview
14.3 Residential
14.3.1 Market Overview
14.3.2 Market Size & Forecast
14.3.3 Market by Geography
14.4 Commercial
14.4.1 Market Overview
14.4.2 Market Size & Forecast
14.4.3 Market by Geography
14.4.4 Office Spaces: Market Size & Forecast
14.4.5 Airports & Public Utilities: Market Size & Forecast
14.4.6 Hospitality: Market Size & Forecast
14.4.7 Hospitals: Market Size & Forecast
14.4.8 Industrial and Others: Market Size & Forecast
15 Geography
15.1 Market Snapshot & Growth Engine (Value)
15.2 Geography Overview
16 APAC
16.1 Market Overview
16.1.1 Growth Factors:
16.2 Market Size & Forecast
16.3 Equipment
16.3.1 Market Size & Forecast
16.4 Heating
16.4.1 Market Size & Forecast
16.5 Air Conditioning
16.5.1 Market Size & Forecast
16.6 Ventilation
16.6.1 Market Size & Forecast
16.7 End-user
16.7.1 Market Size & Forecast
16.8 Commercial Application
16.8.1 Market Size & Forecast
16.9 Key Countries
16.9.1 China: Market Size & Forecast
16.9.2 Japan: Market Size & Forecast
16.9.3 India: Market Size & Forecast
16.9.4 Australia: Market Size & Forecast
17 Europe
17.1 Market Overview
17.2 Equipment
17.2.1 Market Size & Forecast
17.3 Heating
17.3.1 Market Size & Forecast
17.4 Air Conditioning
17.4.1 Market Size & Forecast
17.5 Ventilation
17.5.1 Market Size & Forecast
17.6 End-user
17.6.1 Market Size & Forecast
17.7 Commercial Application
17.7.1 Market Size & Forecast
18 Western Europe
18.1 Market Overview
18.2 Market Size & Forecast
18.3 Equipment
18.3.1 Market Size & Forecast
18.4 End-user
18.4.1 Market Size & Forecast
18.5 Key Countries
18.5.1 Germany: Market Size & Forecast
18.5.2 France: Market Size & Forecast
18.5.3 Uk: Market Size & Forecast
18.5.4 Italy: Market Size & Forecast
18.5.5 Netherlands: Market Size & Forecast
19 Nordic
19.1 Market Overview
19.2 Market Size & Forecast
19.3 Equipment
19.3.1 Market Size & Forecast
19.4 End-user
19.4.1 Market Size & Forecast
19.5 Key Countries
19.5.1 Norway: Market Size & Forecast
19.5.2 Denmark: Market Size & Forecast
19.5.3 Sweden: Market Size & Forecast
19.5.4 Other Nordic Countries: Market Size & Forecast
20 Central & Eastern Europe (Cee)
20.1 Market Overview
20.2 Market Size & Forecast
20.3 Equipment
20.3.1 Market Size & Forecast
20.4 End-user
20.4.1 Market Size & Forecast
20.5 Key Countries
20.5.1 Russia: Market Size & Forecast
20.5.2 Poland & Austria: Market Size & Forecast
20.5.3 Other Cee Countries: Market Size & Forecast
21 North America
21.1 Market Overview
21.2 Market Size & Forecast
21.3 Equipment
21.3.1 Market Size & Forecast
21.4 Heating
21.4.1 Market Size & Forecast
21.5 Air Conditioning
21.5.1 Market Size & Forecast
21.6 Ventilation
21.6.1 Market Size & Forecast
21.7 End-user
21.7.1 Market Size & Forecast
21.8 Commercial Application
21.8.1 Market Size & Forecast
21.9 Key Countries
21.10 Market Snapshot & Growth Engine (Value)
21.10.1 Us: Market Size & Forecast
21.10.2 Canada: Market Size & Forecast
22 Latin America
22.1 Market Overview
22.2 Market Size & Forecast
22.3 Equipment
22.3.1 Market Size & Forecast
22.4 Heating
22.4.1 Market Size & Forecast
22.5 Air Conditioning
22.5.1 Market Size & Forecast
22.6 Ventilation
22.6.1 Market Size & Forecast
22.7 End-user
22.7.1 Market Size & Forecast
22.8 Commercial Application
22.8.1 Market Size & Forecast
22.9 Key Countries
22.10 Market Snapshot & Growth Engine (Value)
22.10.1 Brazil: Market Size & Forecast
22.10.2 Mexico: Market Size & Forecast
22.10.3 Argentina: Market Size & Forecast
23 Middle East & Africa
23.1 Market Overview
23.2 Market Size & Forecast
23.3 Equipment
23.3.1 Market Size & Forecast
23.4 Heating
23.4.1 Market Size & Forecast
23.5 Air Conditioning
23.5.1 Market Size & Forecast
23.6 Ventilation
23.6.1 Market Size & Forecast
23.7 End-user
23.7.1 Market Size & Forecast
23.8 Commercial Application
23.8.1 Market Size & Forecast
23.9 Key Countries
23.10 Market Snapshot & Growth Engine (Value)
23.10.1 Saudi Arabia: Market Size & Forecast
23.10.2 Uae: Market Size & Forecast
23.10.3 South Africa: Market Size & Forecast
24 Competitive Landscape
24.1 Competition Overview
25 Key Company Profiles
25.1 Systemair
25.1.1 Business Overview
25.1.2 Product Offerings
25.1.3 Key Strategies
25.1.4 Key Strengths
25.1.5 Key Opportunities
25.2 Johnson Controls
25.2.1 Business Overview
25.2.2 Product Offerings
25.2.3 Key Strategies
25.2.4 Key Strengths
25.2.5 Key Opportunities
25.3 Zehnder
25.3.1 Business Overview
25.3.2 Product Offerings
25.3.3 Key Strategies
25.3.4 Key Strengths
25.3.5 Key Opportunities
25.4 Ostberg
25.4.1 Business Overview
25.4.2 Product Offerings
25.4.3 Key Strategies
25.4.4 Key Strengths
25.4.5 Key Opportunities
25.5 Aldes
25.5.1 Business Overview
25.5.2 Product Offerings
25.5.3 Key Strategies
25.5.4 Key Strengths
25.5.5 Key Opportunities
25.6 Bosch
25.6.1 Business Overview
25.6.2 Product Offerings
25.6.3 Key Strategies
25.6.4 Key Strengths
25.6.5 Key Opportunities
25.7 Daikin
25.7.1 Business Overview
25.7.2 Product Offerings
25.7.3 Key Strategies
25.7.4 Key Strengths
25.7.5 Key Opportunities
25.8 Samsung
25.8.1 Business Overview
25.8.2 Product Offerings
25.8.3 Key Strategies
25.8.4 Key Strengths
25.8.5 Key Opportunities
25.9 Mitsubishi Electric
25.9.1 Business Overview
25.9.2 Product Offerings
25.9.3 Key Strategies
25.9.4 Key Strengths
25.9.5 Key Opportunities
26 Other Prominent Vendors
26.1 Lg
26.1.1 Business Overview
26.1.2 Product Offerings
26.2 Panasonic
26.2.1 Business Overview
26.2.2 Product Offerings
26.3 Carrier
26.3.1 Business Overview
26.3.2 Product Offerings
26.4 Midea
26.4.1 Business Overview
26.4.2 Product Offerings
26.5 Regal Rexnord Corporation
26.5.1 Business Overview
26.5.2 Product Offerings
26.6 Raytheon Technologies Corporation
26.6.1 Business Overview
26.6.2 Product Offerings
26.7 Honeywell
26.7.1 Business Overview
26.7.2 Product Offerings
26.8 Flakt Group
26.8.1 Business Overview
26.8.2 Product Offerings
26.9 Beijer Ref
26.9.1 Business Overview
26.9.2 Product Offerings
26.10 Flexit
26.10.1 Business Overview
26.10.2 Product Offerings
26.11 Grundfos
26.11.1 Business Overview
26.11.2 Product Offerings
26.12 Swegon
26.12.1 Business Overview
26.12.2 Product Offerings
26.13 Vts
26.13.1 Business Overview
26.13.2 Product Offerings
26.14 Nuaire
26.14.1 Business Overview
26.14.2 Product Offerings
26.15 Nortek
26.15.1 Business Overview
26.15.2 Product Offerings
26.16 Alfa Laval
26.16.1 Business Overview
26.16.2 Product Offerings
26.17 Hitachi
26.17.1 Business Overview
26.17.2 Product Offerings
26.18 Lu-Ve
26.18.1 Business Overview
26.18.2 Product Offerings
26.19 Vent-Axia
26.19.1 Business Overview
26.19.2 Product Offerings
26.20 Rosenberg
26.20.1 Business Overview
26.20.2 Product Offerings
26.21 S & P
26.21.1 Business Overview
26.21.2 Product Offerings
26.22 Wolf
26.22.1 Business Overview
26.22.2 Product Offerings
26.23 Ciat
26.23.1 Business Overview
26.23.2 Product Offerings
26.24 Al-Ko
26.24.1 Business Overview
26.24.2 Product Offerings
26.25 Dynair
26.25.1 Business Overview
26.25.2 Product Offerings
26.26 Danfoss
26.26.1 Business Overview
26.26.2 Product Offerings
26.27 Lennox
26.27.1 Business Overview
26.27.2 Product Offerings
26.28 Backer Springfield
26.28.1 Business Overview
26.28.2 Product Offerings
26.29 Dunham Bush
26.29.1 Business Overview
26.29.2 Product Offerings
26.30 Tcl
26.30.1 Business Overview
26.30.2 Product Offerings
26.31 Trox
26.31.1 Business Overview
26.31.2 Product Offerings
26.32 Vaillant Group
26.32.1 Business Overview
26.32.2 Product Offerings
26.33 Ingersoll Rand
26.33.1 Business Overview
26.33.2 Product Offerings
26.34 Camfil
26.34.1 Business Overview
26.34.2 Product Offerings
27 Report Summary
27.1 Key Takeaways
27.2 Strategic Recommendations
28 Quantitative Summary
28.1 Market by Geography
28.1.1 Market Size & Forecast
28.2 Market by Equipment
28.2.1 Market Size & Forecast
28.3 Market by Air Conditioning Equipment
28.3.1 Market Size & Forecast
28.4 Market by Heating Equipment
28.4.1 Market Size & Forecast
28.5 Market by Ventilation Equipment
28.5.1 Market Size & Forecast
28.6 Market by End-user
28.6.1 Market Size & Forecast
28.7 Market by Commercial Application
28.7.1 Market Size & Forecast
29 Appendix
29.1 Abbreviations
Companies Mentioned
- Systemair
- Johnson Controls
- Zehnder
- Ostberg
- Aldes
- Bosch
- Daikin
- Samsung
- Mitsubishi Electric
- LG
- Panasonic
- Carrier
- Midea
- Regal
- Raytheon Technologies
- Honeywell
- Flakt Group
- Beijer Ref
- Flexit
- Grundfos
- Swegon
- VTS
- Nuaire
- Nortek
- Alfa Laval
- Hitachi
- Lu-Ve
- Vent-Axia
- Rosenberg
- S & P
- WOLF
- CIAT
- AL-KO
- DynAIR
- Danfoss
- Lennox
- Backer Springfield
- Dunham-Bush
- TCL
- TROX
- Vaillant Group
- Ingersoll Rand
- Camfil
Methodology
Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.
Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 344 |
| Published | February 2023 |
| Forecast Period | 2022 - 2028 |
| Estimated Market Value ( USD | $ 225.5 Billion |
| Forecasted Market Value ( USD | $ 309.62 Billion |
| Compound Annual Growth Rate | 5.4% |
| Regions Covered | Global |
| No. of Companies Mentioned | 43 |
