HVAC Systems & Services Market To Generate $319.9 Billion Revenue by 2030
- Published: October 2022
The global HVAC systems & services market is expected to generate $319.9 billion revenue by 2030, growing at a CAGR of 5.0% during 2021–2030. This can be ascribed to the increasing count of government initiatives to support the construction sector.
For example, in India, government regulations on energy efficiency are strengthening, the urbanization rate is increasing, and the number of government-sponsored residential development projects is rising. Thus, India's construction sector will become the world's third-largest by 2025.
Growing Commercial Sector Drives HVAC Demand
The commercial sector is projected to have the largest share, over 40%, in 2030.
According to recent data from the U.S. Census Bureau, the seasonally adjusted U.S. construction spending rose by 9.3% between November 2020 and November 2021. Supply and demand are working together to increase consumption. Building materials have witnessed price increases due to the continuous supply chain issues, while labor costs have gone up as a result of companies trying to gather workers in a competitive labor market.
In terms of demand, the Federal Government's vigorous fiscal stimulus program and strong economic growth in some sectors have left many individuals and businesses flush with cash, enabling them to invest significantly in aspects such as construction.
Moreover, the percentage change in the spending on commercial warehouses since January 2020 has been +27.5%, the total change in spending since January 2020 has been +$10,024.0 million, and the total spending in 2021 was $46,510.0 million.
Countries such as the U.S., Mexico, Canada, and Qatar have exhibited major investments in the construction sector, attributed to the upcoming FIFA World Cup in 2022 (Qatar) and 2026 (U.S., Canada, and Mexico). Due to the major sports events hosted in the past and scheduled in the coming years, the demand for HVAC systems is expected to grow.
North America Is Second-Largest Buyer of HVAC Systems
North America is witnessing increasing temperatures during the peak summer, making HVAC a critical amenity inside buildings. As per the National Centers for Environmental Information, the yearly temperature in North America has increased at an average of 0.13 degrees Celsius since 1910; however, the average rate of increase has been a little more than twice, at 0.29 degrees Celsius, since 1981.
Moreover, in the last few years, the region’s construction industry has displayed healthy growth in terms of investment, predominantly led by the residential and commercial sectors. According to the U.S. Census Bureau, around $1,781.3 billion has already been spent on construction, $1,426.0 billion of it in private construction, in 2022.
Furthermore, the rise in electricity prices and the need to curb carbon emissions have led to an increase in the adoption of building management systems. This has been observed as a major driver of the demand for smart and energy-efficient HVAC systems, such as VRF, in North America.
Furthermore, the U.S. dominates the North American market, holding a share of 80% in 2021. It is also projected to remain the larger market during the forecast period.
The most-significant HVAC systems & services market players are Johnson Controls International plc, Trane Technologies plc, Carrier Global Corporation, Daikin Industries Ltd., Samsung Electronics Co. Ltd., LG Electronics Inc., Gree Electric Appliances Inc. of Zhuhai, Midea Group Co. Ltd., Danfoss A/S, and Lennox International Inc.