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Cooling Equipment to Grow Fastest in Global Heating, Ventilation, and Air Conditioning (HVAC) Market by 2030
The global heating, ventilation, and air conditioning (HVAC) market generated revenue of $240.8 billion in 2019, which is predicted to increase to $367.5 billion by 2030, at a CAGR of 3.9% during 2020–2030 (forecast period). The key reasons behind the industry advance are the rising demand for such equipment in the construction sector, government support for their adoption, and surging global surface temperature.
Structural Analysis of HVAC Market
The service bifurcation, under the offering segment, held the larger revenue share in the HVAC market in 2019. If not serviced regularly, the equipment can lead to 20% more energy consumption than those that undergo periodic maintenance. Additionally, dirty filters and coils in such appliances become the perfect home for mold and bacteria, which can cause numerous diseases. Due to all such hazards, the HVAC equipment is being regularly serviced around the world.
The cooling category, based on equipment type, would display the highest value CAGR in the HVAC market during the forecast period, owing to the increasing disposable income and global temperatures, which are pushing the sale of air conditioning appliances.
Till 2030, the commercial division would contribute the highest revenue to the HVAC market, on the basis of the end user of the equipment. With the rising number of office and other commercial buildings being constructed and expansion of the hospitality sector, HVAC systems are being rapidly adopted for commercial purposes around the world.
In the coming years, the demand for consulting would increase the quickest in the HVAC market, based on service. These services involve the visit of a technician, who inspects the appliance and recommends servicing, maintenance, part change, or complete replacement.
Geographically, Asia-Pacific (APAC) was the largest division in the HVAC market, in terms of revenue, during the historical period (2014–2019). This is ascribed to the rapid economic growth and surging urban population in regional nations, which are driving HVAC sales. With an increase in the disposable income, people in India and China are able to spend more on refrigeration and air conditioning system, which earlier were considered a luxury.
Energy-Efficient Systems are the Major Market Trend
In the HVAC market, energy-efficient appliances are currently trending. As these systems consume less energy, the pressure on power plants is lessened, which, in turn, reduces the burning of fossil fuels. To achieve this, governments of numerous countries are implementing policies, such as the ECO Niwas Samhita energy conservation building code for residential buildings implemented by Government of India in 2018. Similarly, under the C40 China Building Program, China aims to systematically implement energy conservation schemes for buildings. Additionally, with the rapid construction of smart cities and net zero energy buildings, the adoption of smart HVAC systems would increase further in the coming years.
Global Warming Driving Demand for HVAC Systems
The key growth driver for the HVAC market is the constant rise in the world’s temperature, as a result of global warming. Chlorofluorocarbons (CFCs), carbon dioxide (CO2), nitrogen oxides, methane, and other greenhouse gases, which are released during the burning of fossil fuels, are responsible for global warming. The National Aeronautics and Space Administration (NASA) has reported a 0.90 °Celsius rise in the average global temperature in 2017, from the 1951–1980 period. This temperature rise is leading to an increasing demand for HVAC systems, specifically those used for cooling purposes.
Growth of Manufacturing Sector Offering Market Players Lucrative opportunities
The players in the HVAC market can take advantage of the rapidly expanding manufacturing industry, primarily in APAC and the U.S. For instance, the sector in the APAC region is predicted to witness a 5% CAGR during 2019–2024, as a result of government support and heavy investments. This would lead to the construction of new production plants and expansion of the existing ones, which would result in a high HVAC system installation rate. For instance, BASF Corporation inaugurated its first production site in Myanmar, in May 2018. That same month, Solenis LLC opened a manufacturing plant, its ninth in APAC, in Zhuhai city, Guangdong province, China.
Market Players Looking to Consolidate their Position via Product Launches
To gain an edge over their competitors, HVAC market players have launched several new and improved products in the recent past. For example, in February 2020, Annexair introduced a ventilation appliance made out of recycled plastic bottles. As it is up to 60% lighter than a steel unit, it reduces the greenhouse gas effect by as much as 85%.
Similarly, in November 2019, Blue Star launched a new room air conditioner, equipped with an air purifier, in India, to cater to the increasing demand for air purifiers here.
The major players in the global HVAC market are Johnson Controls International PLC, Daikin Industries Ltd., LG Electronics Inc., Mitsubishi Electric Corporation, Gree Electric Appliances. Inc. of Zhuhai, Danfoss A/S, Smardt Chiller Group Inc., Qingdao Haier Co. Ltd., GAMI Air Conditioners Manufacturing, Ingersoll-Rand Plc, United Technologies Corporation, SKM Air Conditioning LLC, Petra Engineering Industries Co., Thermax Limited, Midea Group Co. Ltd., Thermal Care Inc., Blue Star Limited, The Arctic Chiller Group Ltd., Frigel Firenze SpA, Hero-Tech Refrigeration Equipment Co. Ltd., Aermec UK Ltd., Dunham-Bush Holding Bhd., Fluid Chillers Inc., Multistack LLC, Airedale International Air Conditioning Limited, Lennox International Inc., Whirlpool Corporation, Havells India Limited, Panasonic Corporation, Fujitsu General Limited, Voltas Limited, Zamil Air Conditioners, Rheem Manufacturing Company, Middle East Air Conditioner Co. Ltd., Kirby HVAC&R Pty Ltd., and M.T.A. S.p.A.
HVAC Market Size Breakdown by Segment
The HVAC market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Offering