HVAC Systems Market by Equipment (Cooling Equipment, Heating Equipment, and Ventilation), by Implementation Type (New Construction and Retrofit), and by End User (Residential, Commercial, and Industrial) – Global Opportunity Analysis and Industry Forecast

HVAC Systems Market by Equipment (Cooling Equipment, Heating Equipment, and Ventilation), by Implementation Type (New Construction and Retrofit), and by End User (Residential, Commercial, and Industrial) – Global Opportunity Analysis and Industry Forecast, 2024 – 2030

The HVAC systems market size was valued at USD 209.37 billion in 2023, and is predicted reach USD 332.17 billion by 2030, with a CAGR of 6.26% during the forecast period, 2024–2030.

HVAC (heating, ventilation, and air conditioning) systems can be defined as the technology used for controlling indoor environmental conditions, including temperature, humidity, and air quality, within buildings and vehicles. HVAC systems work by circulating air through ducts, utilizing heating or cooling mechanisms such as furnaces or air conditioners, and filtering the air to maintain comfortable and healthy indoor conditions. The advantages of HVAC systems include providing thermal comfort, improving indoor air quality, controlling humidity levels, and enhancing overall energy efficiency, leading to increased comfort and productivity while also reducing energy costs.

One of the primary drivers influencing the HVAC system market is the increasing implementation of energy-saving regulations. Notably, regulatory bodies such as the U.S. Department of Energy (DOE) have established minimum efficiency standards, exemplified by metrics such as Seasonal Energy Efficiency Ratio (SEER), for air conditioning and heat pump systems. These regulations, aimed at reducing energy consumption and increasing cost savings for consumers, drive manufacturers to develop and produce more energy-efficient HVAC units. As a result, consumers are inclined to invest in these systems to comply with regulatory requirements and mitigate energy costs, consequently fostering market growth.

Additionally, the growing demand for improved indoor and outdoor air quality serves as another significant driver for the HVAC system market. Heightened awareness regarding the importance of air quality compels property owners to invest in HVAC systems equipped with advanced filtration technologies. These technologies, such as HEPA filters and UV-C light sterilization, effectively eliminate pollutants, allergens, and pathogens from indoor air. This trend drives HVAC manufacturers to innovate and develop new solutions prioritizing air quality improvement, thus further propelling market growth.

On the other hand, the global HVAC system market faces restraints, notably stemming from the price volatility of raw materials. Factors such as inflation and disruptions in the supply chain contribute to increasing expenses for essential raw materials such as steel, copper, and aluminium, consequently raising production expenses for HVAC manufacturers. This surge in costs places pressure on small and mid-size HVAC manufacturers, impacting their profitability and hindering investments in research and development, thereby restraining the overall growth of the market.
However, the integration of Internet of Things (IoT) technology presents ample opportunities for the HVAC system market. IoT integration enables remote control capabilities, enhanced energy efficiency, and predictive maintenance solutions for HVAC systems. By incorporating IoT devices and sensors, users can remotely monitor and adjust settings, optimize energy consumption, and proactively address maintenance issues. As demand grows for smarter and more efficient buildings, the implementation of IoT integration is expected to create significant opportunities in the HVAC system market.

Segment Overview
The global HVAC systems market is segmented on the basis of equipment, implementation type, end user, and region.
 By equipment, the market is divided into cooling equipment, heating equipment, and ventilation.
 By implementation type, the market is categorized into new construction and retrofit
 By end user, the market is classified into residential, commercial, and industrial.
 By region, the market is segmented into North America, Europe, Asia-Pacific, and the rest of the world (RoW).

The Asia Pacific region holds the dominant share of global HVAC systems market in 2023
The Asia-Pacific region comprises China, Japan, India, South Korea, Australia, Indonesia, Singapore, Taiwan, Thailand, and other countries. The increasing adoption of residential air conditioning, particularly in Southeast Asia, is driving growth in the Asia-Pacific HVAC system market. According to the International Energy Agency (IEA), space cooling has become the fastest-growing energy consumption segment in buildings across Southeast Asia. The IEA also notes a significant increase in electricity consumption for cooling purposes in the region over recent decades. Despite this surge, only 15% of households in Southeast Asia currently own an air conditioner, indicating substantial untapped potential for growth in key markets.

As incomes rise and access to electricity improves in the region, air conditioning is expected to become more affordable for a broader segment of the population in Southeast Asia. This trend is influenced by rising temperatures and improving economic conditions, making air conditioning an essential and achievable comfort for households across the region. Consequently, Southeast Asia is anticipated to experience a significant increase in air conditioner sales in the coming years, driven by factors such as rising temperatures and consumer incomes.
The IEA projects substantial growth for the HVAC system market in Southeast Asia, estimating that the total number of air-conditioner units in the region will rise from 40 million units in 2017 to 300 million units by 2040. This rapid growth reflects the increasing demand for air conditioning solutions due to climatic factors and the economic prosperity of consumers in the region. Therefore, the Asia-Pacific HVAC system market is poised for significant expansion, driven by the growing demand for residential air conditioning across Southeast Asia.

Key Market Players
The key players in the HVAC systems market include:
• Midea Group Co Ltd.
• Daikin Industries Ltd.
• Gree Electric Appliances Inc.
• Johnson Controls International Plc.
• Carrier Global Corporation
• Samsung Electronics Co., Ltd.
• Trane Technologies Plc.
• LG Electronics Inc.
• Panasonic Holdings Corporation
• Lennox International Inc.

Recent Developments
January 2024
Carrier introduced an energy-efficient air conditioner utilizing R-32 refrigerant, known for its significantly lower Global Warming Potential (GWP) of 675. This characteristic contributes to reducing carbon footprints and fostering sustainability.

January 2024
Daikin has acquired UK-based heating solution provider Robert Heath Heating Ltd. This acquisition is expected to strengthen Daikin's presence in the UK HVAC industry.

November 2023
Trane Technologies partnered with Nucor Corporation and U.S. Steel to supply HVAC systems made with low-carbon steel.

October 2023
Lennox acquired AES with the aim of expanding its commercial HVAC services throughout North America. This strategic acquisition is anticipated to introduce new offerings for customers, reinforcing Lennox's growth strategy within the commercial heating and cooling business segment.

September 2023
Johnson Controls introduced the air365 Hybrid dual fuel system, which combines a heat pump and furnace in a single unit. The air365 Max provides a comprehensive solution designed to enhance efficiency, reduce costs, and minimize carbon emissions, thus offering significant benefits in terms of time, money, and environmental impact.

KEY BENEFITS
• The report provides quantitative analysis and estimations of the HVAC systems market from 2024 to 2030, which assists in identifying the prevailing market opportunities.
• The study comprises a deep dive analysis of the HVAC systems market including the current and future trends to depict prevalent investment pockets in the market.
• Information related to key drivers, restraints, and opportunities and their impact on the HVAC systems market is provided in the report.
• Competitive analysis of the players, along with their market share is provided in the report.
• SWOT analysis and Porters Five Forces model is elaborated in the study.
Value chain analysis in the market study provides a clear picture of roles of stakeholders.