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Industry Insights, Market Size, CAGR, High-Level Analysis: HVAC Systems MarketThe global HVAC systems market size was valued at USD 130.5 billion in 2019 and is projected to register a CAGR of 6.1% from 2020 to 2027. Increasing urbanization and emergence of energy-efficient HVAC systems are the factors driving the market growth. Furthermore, governments across the globe are engaged in promoting the usage of energy-efficient HVAC units by offering incentives and rebate programs. Such programs and initiatives are also anticipated to drive the market growth over the forecast period. The demand for HVAC equipment is rapidly increasing owing to growing spending in the construction sector and rising disposable incomes across major economies. Another major factor contributing to the high demand for HVAC equipment across the globe is climate change. Due to rising temperature and unpredictable climatic conditions, several customers consider HVAC equipment as a beneficial investment. Furthermore, rising customer inclination toward comfort has increased the demand for HVAC systems. Technologies such as Internet of Things (IoT), automated control systems, and remote control access are transforming HVAC equipment. Automated control systems detect the surrounding climate and automatically control the temperature and fan speed to offer optimum comfort. Remote control access allows users to operate connected systems through mobile applications with the help of internet. IoT-enabled HVAC units can be connected to the internet and can provide real-time information about the condition of the systems to users and manufacturers, helping them anticipate defects and reduce maintenance costs. Heating, ventilation, and air conditioning (HVAC) units add to the aesthetic value of residential and commercial places. Companies are heavily investing in R&D to manufacture innovative products such as hybrid HVAC equipment that use multiple sources of energy for heating and cooling applications. For instance, Trane offers a dual fuel XL16c EarthWise Hybrid heating system, a hybrid heating and cooling system which combines a heat pump and dual-stage furnace contained in a single cabinet. Although the market is anticipated to witness steady growth owing to the aforementioned benefits, high installation and maintenance cost, high-energy consumption, and other operational challenges can hinder the HVAC systems market. Climatic conditions in different regions can have adverse effects on the life cycle of HVAC systems. Regions with generally damp climatic conditions often tend to reduce the life expectancy of HVAC systems due to their corrosive effects, which is anticipated to hinder the market growth.
Product Insights of HVAC Systems MarketHVAC systems can broadly be segmented into three categoriesheating, ventilation, and cooling. Heating systems are widely used in applications such as space heating, molding, floor and wall heating, and tensile testing. Ventilation systems remove excess humidity, odors, pollutants, and other contaminants from the indoor area. It is the most energy-efficient and cost-effective method to reduce temperature and improve the indoor air quality. The cooling segment dominated the global market with a share of over 50.0% in 2019. This is attributed to the rising demand from the commercial sector and changing climatic conditions across several regions. Variable Refrigerant Flow (VRF) cooling systems are used for a wide range of applications such as preservation of food, chemicals, proteins, enzymes, and vaccines. These systems find application across various industries such as healthcare, manufacturing, food production, and transportation, thereby driving the segment growth over the forecast period.
End-use InsightsBased on end use, the market has been segmented into residential, commercial, and industrial. The residential segment accounted for a market share of more than 40.0% in 2019. Residential HVAC units are smaller and simpler compared to commercial and industrial HVAC units. These systems are used in small spaces such as homes, small restaurants, and small stores. The commercial segment is anticipated to register the highest CAGR over the forecast period owing to increasing urbanization and rise in construction spending in the commercial sector. Commercial HVAC units take a significant amount of space and are generally located on rooftops of buildings such as shopping malls, hotels, big restaurants, theaters, and commercial offices. These systems are used continuously and therefore account for high energy consumption. Hence, retrofitting and replacement of these HVAC units with energy-efficient solutions to minimize energy consumption is expected to drive the segment growth over the forecast period.
Regional Insights of HVAC Systems MarketOn the basis of region, the market has been segmented into North America, Europe, Asia Pacific, South America, and Middle East and Africa. The Europe market is driven by the presence of substantial real estate and tourism sectors in the region. Commercial HVAC units dominate the North American and European markets owing to the well-established service industry and growing real estate sector. Implementation of stringent government norms, rising construction activities, and a stable industrial base are anticipated to drive the market in these regions. Asia Pacific dominated the global market in 2019 owing to the climatic conditions, growing population, increasing disposable income, availability of cost-effective systems for more comfort, and rapid urbanization in developing economies. China, Japan, and India collectively contributed to more than 70.0% of the total regional sales in 2019. Collaboration between regulatory bodies and industry experts to create awareness regarding star-labelled HVAC units is expected to drive the market. Additionally, favorable government initiatives promoting the use of advanced energy-efficient units in old and new buildings is anticipated to boost the regional market growth over the forecast period.
Market Share Insights of HVAC Systems MarketThe market is characterized by intense competition amongst the major players that dominate the market. The key participants in the market include Mitsubishi Electric Corp.; Arkema S.A.; LG Corporation; Lennox International, Inc.; Carrier Corporation; Samsung Electronics; and Daikin Industries Ltd. HVAC equipment are an essential part of industrial, commercial, and residential structures and are hence used in buildings to control and manage temperature, humidity, and air quality. Air conditioning systems dominate the market for heating, ventilation, and air conditioning with an annual consumption of more than 100 million units worldwide. Manufacturers invest heavily in R&D to manufacture cost-effective, energy-efficient, and innovative products. Furthermore, market players focus on mergers and acquisitions or forming strategic partnerships with smaller firms to expand their product portfolio and gain a larger market share. For instance, Mitsubishi Electric Corporation and Ingersoll Rand announced a joint venture in January 2018. The joint venture was aimed at the marketing, sales, and distribution of VRF and ductless HVAC systems.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of HVAC Systems Market Research ReportThis report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends from 2016 to 2027 in each of the sub-segments. For the purpose of this study, this market research report has segmented the global HVAC systems market report on the basis of product, end use, and region:
Product Outlook (Revenue, USD Billion, 2019 - 2030)
End-use Outlook (Revenue, USD Billion, 2019 - 2030)
Table of Contents Chapter 1. Methodology and Scope 1.1. Research Methodology 1.2. Research Scope and Assumptions 1.3. List of Data Sources 1.4. List of AbbreviationsChapter 2. Executive Summary 2.1. Market Summary 2.2. HVAC Systems Market, 2016 - 2027Chapter 3. Market Variables, Trends & Scope 3.1. Market Segmentation 3.2. HVAC Systems Market Size & Growth Prospects 3.3. HVAC Systems Market - Value Chain Analysis 3.4. HVAC Sys | read more...