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.
The HVAC (Heating, Ventilation, and Air Conditioning) equipment market deals with products related to heating, ventilation, and air conditioning systems. These include cooling systems, space heaters, air purifiers, humidifiers/dehumidifiers, and ventilation fans used for industrial, commercial and residential applications. HVAC equipment provide temperature and humidity control, air filtration and fresh air ventilation for buildings. Growth in construction activities, rising demand for energy efficient systems and increasing spending on centralized cooling systems are driving market growth.
The HVAC equipment market is driven by rising demand for energy efficient cooling systems. Stringent government regulations regarding energy consumption and carbon footprint are encouraging consumers to opt for energy star certified HVAC equipment. For instance, according to the U.S. Department of Energy, energy efficient HVAC systems save around 30% more energy compared to standard units. Additionally, rapid urbanization and rising disposable incomes in developing nations have boosted expenditure on centralized cooling systems for commercial and residential infrastructure. However, high initial installation and maintenance costs of HVAC equipment limits market growth. Technological advancements in building automation systems and increasing adoption of smart HVAC equipment integrated with IoT (Internet of Things) provides lucrative opportunities over the forecast period.
Strength: HVAC equipment is highly efficient in providing thermal comfort and indoor air quality. Recent technological advancements have resulted in HVAC systems with improved energy efficiency and minimal environmental footprint. Growing awareness about green buildings and sustainability is driving demand for eco-friendly HVAC solutions.
Weakness: High initial investment costs associated with HVAC equipment installation limits its adoption. Unavailability of skilled workforce for installation and maintenance of complex HVAC systems is another challenge faced.
Opportunity: Rapid urbanization and increasing construction of commercial buildings offer significant growth opportunities. Rising disposable incomes in developing economies are boosting spending on comfort appliances like HVAC. Growing focus on LEED certified green buildings will augment demand for smart and IoT integrated HVAC control systems.
Threats: Volatility in prices of key raw materials required for manufacturing HVAC equipment poses inflation risks. Stringent government regulations pertaining to energy efficiency standards necessitate frequent product upgrades which increases costs.
The global HVAC equipment market is expected to witness high growth, exhibiting CAGR of 6.6% over the forecast period, due to increasing construction activities in both residential and commercial sectors across the globe. Rapid urbanization and growing population are major drivers of construction boon.
North America currently dominates the global HVAC equipment market accounting for over 30% of total market share in 2023, led by strong growth in the US construction industry. Asia Pacific region is anticipated to witness the fastest growth on the back of booming infrastructural development in China and India. Countries like India, Vietnam and Indonesia are emerging as high potential 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. Major players are launching smart and connected HVAC equipment with IoT integration to gain competitive advantage. Key players are actively collaborating with construction giants to strengthen their position in regional construction HVAC system requirements.