Australia and New Zealand HVAC Market Overview
Australia and New Zealand HVAC market was valued at $2.3 billion in 2018, and is poised to register a CAGR of 5.7% during 2019-2024. The growing demand for HVAC systems in residential applications and rising construction industry in the region are some of the major factors boosting the market growth. Additionally, the market is further exhibiting healthy growth on account of growing population, rising industrial production, and growing real estate industry.
Energy consumption in Australia’s residential sector in 1990 was about 299 petajoules (PJ), which increased to about 402 PJ in 2008. This is projected to further increase to 467 PJ by 2020 as per the current trend. The high energy consumption, along with the government to push for efficiency regulations, has led to an ever-growing demand for HVAC systems across the country.
Based on HVAC type, cooling category accounted for major market share in 2018 in the region, and is expected to record increased growth during the forecast period. The primary factor behind this is the temperate climate of the country, due to its proximity to ocean currents. Along with this, environmental factors such as global warming and rising pollution are contributing to the demand for energy-efficient cooling equipment which, in turn, propelling the growth of the cooling category.
Among ventilation equipment, ventilation fans sub-category is the most sought-after choice in both Australia and New Zealand, since they have extended applications, including kitchens, living rooms, and washrooms. The growing awareness among populace regarding indoor air quality (IAQ) and technological advancement in ventilation systems adding significantly to the popularity of ventilation fans in the country. Driven by stringent regulations introduced by the government to reduce energy consumption in buildings, the ventilation fans market is expected to benefit from the increasing demand for energy-efficient fans.
Among cooling equipment, VRF systems was the fastest growing sub-category during the period 2014-2018 in Australia and New Zealand HVAC market. The major factors behind its growth include high energy saving potential and low maintenance requirement, along with increasing manufacturers’ preference for the promotion and distribution of these systems. The market in this category is further expected to witness positive growth during the forecast period.
Based on end-user, Australia and New Zealand HVAC market has been categorized into commercial, industrial, and residential. The commercial category accounted for the largest share in 2018. Rapid urbanization and economic growth have led to an increase in construction of malls, hospitals, commercial buildings, and hotels, and thereby, contributing to the growing demand for HVAC systems. Moreover, expansion of commercial spaces, corporate hubs, special economic zones (SEZs), and organized retail outlets is also driving the market for HVAC systems across the region.
On the basis of commercial HVAC segment, Australia and New Zealand HVAC market has been divided into offices and buildings, hospitality, transportation, supermarkets/hypermarkets, healthcare, institutions, and others. Offices and buildings commercial end-user segment generated highest revenue share in 2018. The construction of offices and buildings in urban areas has been increasing steadily, attributed to the growing population in major cities. This has further led to the opening-up of more offices sectors such as banking, financial services and insurance (BFSI), retail, and information technology (IT) which, in turn, expanding the economy of the region. With such rapid growth, the category is expected to continue generating the demand for HVAC systems.
Australia and New Zealand HAVC Market Dynamics
Government regulations and standards are supporting the growth and development of the ANZ HVAC market. The focus of the Australian Government toward reduction in gas emission by 5% in 2020 and by 26–28% in 2030 is one of the major factors contributing to the growth in demand for HVAC systems. It includes net zero energy building (NZEB), which consumes as much energy as can be produced onsite through renewable resources. The designing of NZEBs would boost the demand for energy-efficient HVAC systems.
The preference toward green/smart buildings is gaining importance, owing to factors such as high carbon emissions, increasing pollution level, and growing awareness toward creating a healthy and sustainable environment. A green building consists of practices, including energy efficiency, water conservation, greenhouse gas emission reduction, waste reuse and recycling, reduce natural resource consumption, and protect environment. Real estate companies are focusing on the construction of green/smart buildings due to their increasing demand.
Australia and New Zealand HVAC Market Competitive Landscape
Australia and New Zealand HVAC market is fragmented and competitive in nature, owing to the presence of established HVAC players and rising number of regional players. Daikin Industries Ltd. was ranked 1st in the Australia and New Zealand HVAC market in 2018, followed by Johnson Controls International plc. Other major established players include United Technologies Corporation, Mitsubishi Electric Corporation, and Fujitsu Limited. Apart from this, the market comprises regional players, including Fonko Air Conditioning, Kirby HVAC&R Pty Ltd., Actron Engineering Pty Ltd., Sanden International (Australia) Pty Ltd., and Temperzone Ltd.