The global heating, ventilation, and air conditioning (HVAC) market stood at $240.8 billion in 2019, and it is expected to reach $358.1 billion in 2030. China, being the largest producer and user of HVAC systems, generated the highest demand for such equipment during the historical period (2014–2019). The key factors behind the industry advance globally are the rising demand for such equipment in the construction sector, government support for their adoption, and surging global surface temperature.
Several governments around the world have imposed nationwide lockdowns to curb the spread of the coronavirus. This has severely affected supply chains globally, due to which businesses, especially manufacturing entities, have been badly impacted. Thus, companies operating in the global HVAC market have witnessed a dip in their sales. Due to job losses and salary deductions, there has been a steep decline in the spending power of people for non-essential goods, which has further pushed down the demand for HVAC systems.
HVAC Services To Lead the Way with Largest Share and Fastest Growth till 2030
The service bifurcation, under the offering segment, held the larger revenue share in the HVAC market during the historical period (2024–2019), and it will observe the higher CAGR during the forecast period. If not serviced regularly, the equipment can lead to 20% more energy consumption than those that undergo periodic maintenance. Additionally, the 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, HVAC equipment is being regularly serviced around the world, which is anticipated to drive the growth of in the coming years.
The industrial category held a substantial share in the market during the historical period (2014–2019), based on end user, and it is prognosticated to continue the trend during the forecast period. The expansion of the food and beverage (F&B) sector has been a major driving factor for the surging demand for HVAC systems by industrial customers. An F&B manufacturing unit requires adequate HVAC arrangement in order to maintain the safety and hygiene level mandated by government bodies, such as the Food and Drug Administration (FDA). For example, an F&B manufacturing unit requires properly designed air handling systems to control airborne particulates and odors.
The Asia-Pacific (APAC) region dominates the global HVAC market, in terms of both volume and value, and it is also expected to be the fastest-growing region during the forecast period. The region‘s dominance can be attributed to the increasing urban population, local manufacturing of HVAC systems, and economic prosperity. For instance, according to the World Bank, the urban population in India increased from 27.8% of the total in 2011 to 34.4% in 2019. Similarly, the urban population in Thailand and Indonesia grew from 45% and 51% in 2011 to 50.6% and 55.9% in 2019, respectively.
Product Launch Ranks High among Important Strategic Developments
In recent years, companies in the HVAC market have focused on launching new and improved products, to remain the frontrunners, as well as grab a larger share of the overall revenue pie. Such measures further help players strengthen the position, geographical reach, and customer base in the market.
For instance, in February 2020, Annexair Inc. launched an eco-friendly biocomposite-based ventilation system, made from recycled plastic bottles. With this product, the greenhouse gas effect can be reduced by 85%, as it is around 50%–60% lighter than conventional steel units.
Similarly, in January 2020, LG Electronics Inc. launched the Whisen ThinQ air conditioners in Seoul, South Korea. The company is launching new products to stay ahead of its local rival, Samsung Electronics Ltd. The new 2020 Whisen ThinQ air conditioners are priced from $2,456 (KRW 2.85 million) to $4,653 (KRW 5.4 million).
Johnson Controls International PLC, Trane Technologies plc, Carrier Global Corporation, Daikin Industries Ltd., Samsung Electronics Co. Ltd., Lennox International Inc., Gree Electric Appliances Inc. of Zhuhai, Mitsubishi Electric Corporation, Toshiba Carrier Corporation, LG Electronics Inc., Fujitsu Limited, Midea Group Co. Ltd., and Danfoss A/S are the leading global HVAC market players.