HVAC Market - By Product Type (Heating Equipment, Ventilation Equipment, Air Conditioning Equipment, Chillers, Cooling Towers), By End Use (Residential, Commercial, and Industrials), By Installation, By Distribution Channel & Forecast, 2024 – 2032

Published Date: July - 2024 | Publisher: MIR | No of Pages: 240 | Industry: Industrial-Machinery | Format: Report available in PDF / Excel Format

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HVAC Market Size

HVAC Market was valued at around USD 294 billion in 2023 and is anticipated to register a CAGR of 5.6% between 2024 and 2032. The global industry is driven by rising demand for energy-efficient and sustainable cooling solutions.

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According to the International Energy Agency, energy consumption for space cooling increased by more than 5% in 2022 from 2021. According to the U.S. Energy Information Administration, nearly 88% of U.S. households use Air-conditioning (AC). Two-thirds of U.S. households use central AC or a central heat pump as their main AC equipment. Higher energy consumption for space cooling leads to peak electricity demand, especially during hot days, increasing the possibility of power outages.

HVAC Market Report Attributes
Report Attribute Details
Base Year 2023
HVAC Market Size in 2023 USD 294 Billion
Forecast Period 2024 - 2032
Forecast Period 2024 - 2032 CAGR 5.6%
2032 Value Projection USD 481 Billion
Historical Data for 2021 – 2023
No. of Pages 340
Tables, Charts & Figures 510
Segments covered Product Type, End Use, Installation, Distribution channel, Region
Growth Drivers
  • Rising demand for energy-efficient and sustainable cooling solutions
  • Strict government regulations
Pitfalls & Challenges
  • Energy shortages and crisis
  • Fluctuation in raw material prices

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The growing popularity of HVAC systems isn't just a matter of convenience. Governments around the world are stepping up efforts to make them more energy-friendly and cut down on the pollution they produce. For example, the U.S. government recently set stricter rules for room air conditioners and portable air cleaners. These new rules will kick in over the next few years and are expected to save households billions of dollars on energy bills over the next three decades. Even more countries are jumping on the bandwagon when it comes to protecting the environment. Nearly two dozen nations have signed on to a treaty that limits the use of certain refrigerants that are known for their impact on climate change. This treaty has been signed by countries like Brazil, Indonesia, and even Eritrea, bringing the total to almost 150 member nations around the globe.

The world is currently in the midst of an energy crisis, which has created a huge challenge for the market that sells heating and cooling systems (HVAC). Several events, including the COVID-19 pandemic, the economic crisis, and the war in Ukraine, have caused this crisis. For example, in 2022 and 2023, the UK faced a severe energy crisis, and many people found it difficult to pay their energy bills. In July 2022, China also faced a power shortage due to heat waves and drought. This energy crisis has made people more aware of the importance of using air conditioners and heaters that are energy-efficient, as well as renewable energy sources and batteries that can store energy. Consumers are now seeking out air conditioners and heaters that are efficient.

HVAC Market Trends

Imagine if you could control your home's temperature, air quality, and humidity from your phone or voice assistant. That's what smart technologies in HVAC systems do! Sensors keep a close eye on these things, and smart systems use data to automatically adjust them for maximum comfort and energy efficiency. This not only saves you money but also helps reduce your environmental impact. Speaking of saving money, smart systems can also predict when maintenance is needed, preventing unexpected breakdowns and keeping your system running smoothly. This means less stress for you and a longer lifespan for your HVAC system. Now, let's talk about noise. HVAC systems can sometimes be noisy, especially fans, compressors, and ducts. Too much noise can make it hard to concentrate, sleep, or just relax. Modern solutions focus on reducing noise right at the source. They improve insulation and use special devices to control sound. They also line the ducts with materials and use vibration isolation to keep noise from traveling through your home. These improvements make HVAC systems much quieter, creating a peaceful and relaxing atmosphere for you and your family.

HVAC Market Analysis

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When it comes to heating and cooling your home or office, there are a lot of different options out there. The HVAC industry can be broken down into five main types of productsheating equipment, ventilation equipment, air conditioning equipment, chillers, and cooling towers. Air conditioning equipment is one of the most popular product types in the HVAC industry. In 2023, this segment of the industry brought in about $124 billion in revenue. And by 2032, it's expected to reach $210 billion! This huge growth is because people are demanding air conditioning systems that are energy-efficient and good for the environment. New technologies, like inverter-based systems, smart controls, and Internet of Things (IoT) integration, are making air conditioning systems more energy-efficient and convenient than ever before. These systems can be controlled remotely, which makes it easy to save energy and money. And they're also better for the environment, because they use less energy. These new technologies are becoming more and more popular in homes, businesses, and industries. They offer a lot of benefits, like improved energy efficiency, convenience, and cost savings. So if you're looking for a new air conditioning system, be sure to check out these cutting-edge solutions.

There is a growing need of controlled usage of air conditioners as customers are growing increasingly conscious about the harmful impact of prolonged usage of ACs on the environment. This has led to a surge in the demand for Wi-Fi enabled thermostats, which incorporate wireless connectivity and enable remote monitoring and control over the air conditioning unit settings.  This functionality lets users create scheduling programs from any location with an internet connection. The ability to remotely control AC units optimizes comfort and energy usage.

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Imagine your home as a cozy bubble, safe from the extremes of the outside world. That's thanks to your HVAC system, the unsung hero that keeps your living space comfy and healthy. HVAC stands for Heating, Ventilation, and Air Conditioning, and it's a vital part of your home. The folks in the HVAC business have divided homes, offices, and factories into three main categories based on how they use their HVAC systems1. At home This is where you and your family live, and it's where most people have an HVAC system. In 2023, families around the world spent a whopping $140 billion on HVAC for their homes! That's a lot of money, but it's worth it because your HVAC system keeps your house just the way you like it. 2. At work Offices, shops, and other commercial buildings also need HVAC systems to create a comfortable environment for their employees and customers. 3. At the factory Factories and other industrial buildings use HVAC systems to control the temperature and air quality for their machinery and workers. Back to talking about homesYour HVAC system does a lot more than just keep you cool in the summer and warm in the winter. It also makes sure the air you breathe is clean and fresh. It does this byHeating the airWhen it's cold outside, your HVAC system will use a furnace, heat pump, or boiler to warm up the air inside your home. Cooling the air When it's hot outside, your HVAC system will use an air conditioner to cool down the air inside your home. Moving the airYour HVAC system has fans and ducts that move the air around your home. This helps to circulate the warm or cool air throughout your house and keep it evenly heated or cooled. Cleaning the air Your HVAC system can also use filters to clean the air in your home. This helps to remove dust, pollen, and other pollutants from the air.

On the other hand, in the commercial premises such as offices, retail spaces, restaurants, hotels, and educational institutions, HVAC systems are designed to create comfortable environments for occupants while meeting specific operational needs. Here, centralized heating and cooling systems, rooftop units, and variable refrigerant flow (VRF) systems are common solutions used to regulate indoor temperatures efficiently across larger areas.

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The heating, ventilation, and air conditioning (HVAC) market in North America is booming. In 2023, it raked in a whopping $105 billion. And it's only expected to grow, reaching an estimated $165 billion by 2032. Why is North America leading the pack? Because there's a huge demand for HVAC systems here, and not just basic ones. People are going for the fancy stuff, like variable refrigerant flow systems (VRF) and smart thermostats. So, what's driving this demand? Well, for one, energy costs are going up. And governments are getting serious about energy efficiency. People want to save money and do their part for the planet. Here's a fun factIn 2022, the International Energy Agency noticed that energy use for cooling our homes jumped by more than 5%. And in the US, a whopping 88% of homes have air conditioning. That's a lot of cool air! But here's where it gets a bit trickyWhen everyone turns on their ACs at the same time, it can strain our power grids, leading to power outages. So, it's important to think about energy efficiency when choosing an HVAC system.

The demand for environmentally friendly and energy-efficient products is changing the market dynamics and pushing manufacturers to come up with new ideas and solutions that support the concept of responsible consumption.

In terms of country US dominating with the overall market share of around 82% in the North America market. The U.S. HVAC market is mature but continues to grow steadily, supported by factors such as construction activities, replacement demand, energy efficiency regulations, and the adoption of advanced HVAC technologies. The residential and commercial sectors remain the primary drivers of the market, with a focus on energy-efficient and sustainable HVAC solutions. Major manufacturers operating in the country include Carrier, Trane, Lennox, Rheem, and York.

On the other hand, Canada HVAC industry expressing notable growth rate of around 4.8% in 2023. Market growth in Canada is driven by factors such as new construction, replacements, and energy efficiency initiatives.

The Europe market was valued at around USD 80 Billion in 2023 and is anticipated to register a CAGR of 4.8% between 2024 to 2032. Europe prioritizes energy efficiency due to stringent environmental regulations and high energy costs.  Heat pumps are gaining traction due to their ability to provide both heating and cooling efficiently. Additionally, the European market is witnessing a surge in demand for district heating systems, which utilize centralized heating plants to distribute heat to multiple buildings, promoting energy conservation.

In terms of country, Germany is dominating the Europe HVAC market in terms of market value of around USD 12.3 Billion during the 2023. Germany stands as a prominent player, driven by its robust manufacturing sector and the adoption of energy-efficient building practices.

On the other hand, Italy experiencing notable growth in HVAC industry and anticipated to grow at 5.4% CAGR during the forecast period. Italy's HVAC industry is influenced by both new construction activities and the replacement of aging systems, particularly in historical buildings. France's market is driven by stringent energy regulations and the demand for comfortable indoor environments in residential and commercial spaces.

The Asia Pacific market was valued at around USD 81.4 Billion in 2023 and is anticipated to register a CAGR of 6.9% between 2024 to 2032. Asia Pacific region is expected to witness the fastest growth in the market due to rapid urbanization, rising disposable incomes, and government initiatives promoting sustainable infrastructure.

In terms of country China is dominating the Asia Pacific market in terms of market value around USD 45 Billion in the year 2023 and expected to reach around USD 84 Billion by 2032. Key drivers in China include rapid urbanization, infrastructure development, and growing construction activities. The residential sector is the largest end-user, followed by the commercial and industrial sectors.

On the other hand, India is emerging as a fastest growing country for the HVAC market in terms of CAGR of 7.5% between 2024 to 2032. Market growth in India is driven by factors such as rising disposable incomes, urbanization, and construction activities, with both residential and commercial sectors being significant consumers of HVAC systems.

HVAC Market Share

In the bustling world of cooling and heating, a few titans stand tallDaikin, Midea, Gree, Carrier, and Trane. Together, they control a whopping 25-30% of the market in 2023. The need for energy-saving solutions, stricter government rules, and rapid tech breakthroughs have created a golden opportunity for these manufacturers. They're racing to outsmart each other with fancy smart HVAC systems to meet the growing demand. But it's not all smooth sailing. To stay ahead of the curve, these giants are constantly adapting, listening to customers, and innovating like crazy. They're not just selling products; they're reshaping the industry with their clever ideas and fierce competition.

HVAC Market Companies

Major companies operating in the market include

  • Bosch
  • Carrier Group
  • Daikin Industries Inc.
  • Danfoss
  • GREE Electric Appliances, inc.
  • Haier Group
  • Hisense HVAC equipment Co., Ltd.
  • Johnson Controls Plc
  • Lennox International
  • LG Electronics
  • Midea Group
  • Mitsubishi Electric Group
  • Panasonic Corporation
  • Rheem Manufacturing Company
  • Trane Technologies    

HVAC Industry News

  • In February 2024, Rheem developed the Endeavor heat pump for homeowners who looking for more sustainable HVAC systems with reduced emissions and less environmental impact. The heat pump features industry-leading built-in Bluetooth connectivity that makes it faster and easier for a contractor to install & service a new system.
  • In February 2024, Carrier introduced a smart thermostat that offers affordable connectivity for homeowners to cater to the growing demand for smart HVAC systems. The Carrier Smart Thermostat is developed with homeowner needs and preferences in mind including a clean, contemporary design. The unit supports accessories and integrates with smart home systems.  
  • In September 2023, Daikin introduced Daikin Cloud Plus, an intelligent web-based remote monitoring and service solution. Cloud-based technology provides easy access through individual login to a central portal, enabling 24/7 tracking and control from configuration through to ongoing management of energy usage and operational performance, while simplifying maintenance to keep costs down through condition monitoring.
  • In May 2023, Haier developed a new air conditioning system with supersonic cooling in 10-sec technology, ensuring rapid cooling. It is based on a new-generation DC inverter technology with pulse kill control and kick torque start technology, enabling stable operation and a rapid rise in the compressor frequency to 50Hz in just 0.24 seconds.

The HVAC market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Billion) (Thousand Units) from 2021 to 2032, for the following segments

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Market, By Product Type  

 

  • Heating Equipment
    • Furnaces
    • Boiler
    • Heat Pumps
  • Ventilation Equipment
    • Air Handlers
    • Ductwork
    • Fans
  • Air Conditioning Equipment
  • Chillers
  • Cooling Towers   

Market, By End Use  

  • Residential
  • Commercial
  • Industrials   

Market, By Installation  

  • New Construction
  • Replacement/Retrofit  

Market, By Distribution Channel  

  • Direct
  • Indirect

The above information is provided for the following regions and countries

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa
    • Rest of MEA

 

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