The HVAC system market size is estimated to be USD 197.0 billion in 2021 and is projected to reach USD 271.5 billion by 2026; it is expected to grow at a CAGR of 6.6% from 2021 to 2026. According to the Consumer Technology Association (CTA), the number of smart homes in the US is expected to reach ~35.2 million units by 2020. The growth in smart homes is expected to create demand for HVAC systems. An HVAC system is used in smart homes for controlling air temperature, humidity, and fresh air intake. It helps maintain better airflow and comfortable temperatures in every room. In a smart home, one can monitor the system performance and respond to system-generated alarms from local or remote locations.
New energy-efficient HVAC systems are replacing the traditional HVAC systems. Upcoming technologies such as ice-powered AC, motion-activated air conditioning systems, and smart vents are integrated into modern HVAC systems to increase energy efficiency, reduce energy costs, and lower carbon emissions. The installation cost of energy-efficient HVAC equipment in residential, commercial, and industrial applications depends on several other factors. For instance, in the residential application, the installation cost of all HVAC systems depends on the size of the house, additional ductwork, type of equipment, and SEER value of the equipment. For instance, an HVAC system replacement costs about USD 3,250 to USD 12,350 for an average-sized 2,000 sq. ft. home in a moderate climate zone. Moreover, the average installation costs of different heating and cooling systems may vary with parameters such as the energy efficiency level and size of the unit needed for the building.
“VRF Systems: The fastest cooling equipment of HVAC system market .”
Countries such as Japan, China, and South Korea are the early adopters of VRF technology, which is the major reason for the large size of the market in APAC. VRF systems are used in multifamily residential buildings, hotels, and schools. The high efficiency, design flexibility, and long operational life of VRF systems are expected to fuel the market growth.
“Furnaces: The fastest heating equipment of the HVAC system market .”
The market for furnaces is expected to grow at the highest CAGR during the forecast period. The growth of the furnaces segment is mainly driven by their low initial cost, higher lifespan, and increasing demand in residential applications. The residential segment dominated the HVAC system market for furnaces. Government grants and rebates for homeowners on replacing old heating equipment with new furnaces are expected to increase the demand for furnaces in residential application. For instance, the British Columbia (BC) government offers rebates of up to USD 700 to homeowners for a new gas furnace.
“Air handling units: Largest growing ventilation equipment of HVAC system market”
The rising use of air-handling units in commercial buildings, hospitals, and universities is expected to fuel the growth of the market. The market for air purifiers is expected to grow at the highest CAGR of 13.9% from 2021 to 2026. The demand for air purifiers is growing due to degrading air quality. Further, people are more exposed to high risks of contracting respiratory and other cardiovascular diseases due to the rising air pollution. Increasing health concerns among people regarding air contamination are expected to drive the demand for air purifiers globally.
“Commercial: Largest application of HVAC system market”
The commercial application segment is expected to hold the largest market share during the forecast period. The growth is attributed to the increasing adoption of HVAC systems in commercial buildings, growing demand for energy-efficient devices, and rising awareness regarding energy conservation in developing regions such as APAC and RoW. Moreover, increasing investments by governments for the construction of commercial spaces are also expected to propel the growth of the HVAC system market for commercial application.
“Europe: The second largest region in the global HVAC system market .”
Europe held the second-largest size of the HVAC system market in 2020. The growing awareness regarding energy saving, high per capita income, and supportive government plans for reducing carbon footprint help surge the growth of the HVAC system market in Europe. Moreover, the growth of the European HVAC system market is driven by the growing demand for high-end and energy-efficient devices from residential and commercial buildings.
The study contains insights from various industry experts, ranging from component suppliers to Tier 1 companies and OEMs. The break-up of the primaries is as follows:
- By Company Type: Tier 1 – 40%, Tier 2 – 25%, and Tier 3 – 35%
- By Designation: C-level Executives – 35%, Directors – 28%, and Others – 37%
- By Region: APAC – 40%, Europe – 35%, North America – 18%, RoW – 7%
DAIKIN INDUSTRIES (Japan), Johnson Controls (US), Carrier (US), Trane Technologies plc, (US), LG Electronics (South Korea), Emerson Electric Co. (US), Honeywell International Inc. (US), Mitsubishi Electric Corporation (Japan), Nortek Air Management (US), Samsung Electronics (South Korea), Danfoss (Denmark), FUJITSU (Japan), GREE (China), Hitachi (Japan), Midea (China), Panasonic (Japan), Haier Smart Home (China), Toshiba (Japan), Whirlpool (US), Siemens (Germany), Electrolux (Sweden), Lennox (US), Schneider Electric (France), Ferroli (Italy), and Bosch Thermotechnology (Germany) are among the many players in the HVAC system market.
The report segments the HVAC system market and forecasts its size, by value, based on by Cooling Equipment, Heating Equipment, Ventilation Equipment, Implementation Type, Application and Geography.
The report also provides a comprehensive review of market drivers, restraints, opportunities, and challenges in the HVAC system market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.
Key Benefits of Buying the Report
The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the sub-segments. This report will help stakeholders and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the HVAC system market and provides them information on key market drivers, restraints, challenges, and opportunities. The report also covers COVID-19 impact on HVAC system market.