Global Global HVAC Equipment Market - Segmented by Equipment Type (Heating equipment, Air Conditioning Equipment, Ventilation equipment), End-user Application (Residential, Industrial, Commercial, Hospitality, Construction), and Region - Growth, Trends, and Forecast (2018 - 2023)
The global HVAC equipment market was valued at USD 94.68 billion in 2017, and is expected to reach a value of USD 126.58 billion by 2023, at a CAGR of 4.96%, during the forecast period (2018 - 2023). In residential, industrial or commercial buildings, heating or cooling is implemented by heating, ventilation, and air conditioning (HVAC) equipment. Major drivers of the global HVAC equipment market include, increase in new households, rising average construction spending, rapid urbanization, and growth in disposable income across several major economies. Growing requirement from the commercial segment and high demand for HVAC products in the Asia-Pacific region are the other key drivers of the market. However, high-energy consumption of HVAC equipment is a major factor restraining the growth of this market. During the forecast period, vendors of HVAC equipment are expected to have revenue generation opportunities in areas related to the advancement of energy efficient systems, increasing trend of smart homes, and implementation of green technologies. One of the key concerns that global manufactures have is focusing on energy efficiency.
Rise in Residential and Non Residential Users is driving Market Growth
Rising population has opened up new avenues for the global HVAC equipment market. Regions like Asia-Pacific are witnessing rapid growth in residential properties, with China and India in the driver’s seat. The largest producer of HVAC equipment is China. It is highly influenced by increasing construction expenditure and rising industrialization. Latest technological breakthroughs have assisted the advancement of new HVAC equipment in the residential segment across the world. This can make the overall processes more efficient, and can significantly improve accuracy in various applications. Growing number of housing units are opening up new arenas for HVAC equipment installations. The residential segment is poised to grow at a faster rate and air conditioner manufacturers were able to increase their top line in Asia-Pacific, because of increase in atmospheric temperature in the region. Inverter ACs are expected to be adopted more in India, as the region is struggling with power shortage; even cities have regular power cuts. All these factors are delivering and creating an impact in the residential market.
Heating Equipment is expected the largest Market Share
Demand for efficient heating equipment has led to its growth, making it one of largest contributor to global HVAC equipment market. Heating equipment provides required heating environment in a cost-effective manner. Rapid growth in technology has helped the rise of efficient solutions for verticals to reduce emissions in an economical manner. End-users, like the commercial and residential segments, are using small units of HVAC equipment in form of packages, in order to satisfy their energy demand. Large complexes are deploying efficient HVAC systems to meet their energy requirement. Regions like Asia-Pacific and North America are leading the global race, as contribution and penetration rate of heating HVAC equipment is rapidly growing. Countries, like China, Japan, and India are leading the APAC HVAC equipment. The major contributors to the heating equipment market are furnaces and heat pumps, adding value to the demand of the major verticals across the globe, followed by boilers and unitary heaters.
North America to Dominate the Market over the Forecast Period
North America holds the major share in the HVAC Equipment Market. Demand for HVAC equipment in the US is forecasted to witness exponential growth. Advancement will result in rapid gains with rise in the expenditure of construction. Growth in repair investments, as replacement demand, is contributing to the market growth. There’s a rising demand for HVAC efficient systems with sophisticated technology. However, federal tax incentives are targeted due to which high efficiency systems expired in the beginning of 2015. The effect of this has provided an advantage for homeowners with better HVAC systems, being replaced with smaller units. According to the recent reports, HVAC shipments will grow substantially by the end of 2023. Industries are following regulations, which continue to the drive demand.
Key Developments in the Market