Southeast Asia HVAC Market to Generate Revenue Worth $32,824.1 Million in 2030
- Published: April 2022
The Southeast Asia HVAC market is projected to generate $32,824.1 million revenue in 2030, advancing at a CAGR of 6.4% during 2021–2030, primarily due to the increasing infrastructure development and growing hospitality industry.
The Southeast Asia HVAC market growth is driven by the rising number of commercial buildings and the energy-saving policies of regional countries, which are making people replace their conventional HVAC appliances with energy-efficient ones. For instance, in the Philippines, the Department of Energy (DoE) has published energy efficiency guidelines under the Philippine Energy Labeling Program (PELP) for ACs, refrigerators, TV sets, and lights. These guidelines encourage the implementation of the Energy Efficiency Performance Rating (EEPR) system, along with specific mechanical, electrical, and plumbing (MEP) standards that AC products must follow. The use of IoT and other energy-efficient technologies will further boost the air conditioner market in the Philippines.
Residential End Users To Witness Fastest Growth
The residential category, by end user, is expected to witness the fastest growth, at a CAGR of 7.1%. This will mainly be due to the increasing number of residential construction projects in Southeast Asia. For instance, South Korea has planned to develop 830,000 housing units by 2025 under housing redevelopment projects undertaken by state-run agencies. Such projects will provide stability in the housing market and increase the demand for HVAC systems.
Moreover, in December 2021, the Myanmar government planned several infrastructure projects with China, Japan, and Thailand. China has pledged $596 million in financial aid for environmental infrastructure, rural transportation, and medical facilities. Along with this, the government is focusing on developing special economic zones (SEZs), which is likely to propel the market for HVAC systems.
Acquisitions Are Most-Effective Strategic Measures Taken by Players
Players in the Southeast Asia HVAC industry are involving in acquisitions and product launches to gain a significant position. For instance, in February 2022, Carrier signed a binding agreement to acquire Toshiba Corporation's ownership stake in Toshiba Carrier Corporation (TCC), a VRF and light commercial HVAC joint venture with Carrier. This agreement will strengthen Carrier’s HVAC segment and scale up the VRF product portfolio globally. Toshiba will retain a 5% ownership stake in TCC, and Carrier will consolidate over $2 billion in unconsolidated revenue in the deal, which is expected to close by Q3 2022.
Similarly in February 2022, Johnson Controls International plc launched the OpenBlue indoor air quality (IAQ) service solution to help organizations optimize IAQ and energy costs. This service will help organizations keep their employees healthy, aid in annual IAQ assessment, and pinpoint the risk areas, for better IAQ and energy efficiency.
The major players operating in the Southeast Asia HVAC market include Daikin Industries Ltd., Panasonic Corporation, Midea Group Co. Ltd., Carrier Global Corporation, Johnsons Controls International PLC, and Samsung Electronics Co. Ltd.