The global HVAC equipment market was valued at USD 134 billion in 2022 and is expected to reach USD 234.36 billion by 2032, poised to grow at a compound annual growth rate (CAGR) 5.80% during the forecast period 2023 to 2032.
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Ket Takeaway
The Asia Pacific HVAC equipment market reached USD 58.96 billion in 2022 and is projected to be worth USD 104.10 billion by 2032, growing at a CAGR 6.1% between 2023 to 2032.
Asia Pacific is expected to contribute the largest revenue share of more than 45% in 2022 owing to rising population, rapid urbanization and increasing disposable income levels. Particularly, China dominated the global market and accounted for the highest unit sales in 2020 because of the presence of companies offering low-cost equipment in China and neighboring countries. This is a significant factor that drives the market growth in the Asia Pacific region.
North America contributed significantly amounting for the second-highest revenue share in 2021 and is expected to grow remarkably over the forecast period owing to the promotions by the Government in this region for the use of energy-efficient systems by providing subsidies and tax benefits. For instance, On 22nd September 2021, In North America, Carrier Corporation has introduced a new Toshiba Carrier touch screen controller for variable refrigerant flow (VRF) systems that can connect up to 128 indoor units to one simple interface. This controller enables building managers to access their complete VRF system from a single location, removing the need to monitor individual units.
The European region is also estimated to grow significantly owing to the growing tourism sector and real estate industry in the region.
The surge in use of technologically advanced products in the HVAC systems that are energy-efficient is the primary factor that drives the market growth. Also, the increasing use of natural refrigerants integrated with increasing efforts by various Governing agencies across the world to promote energy-efficient products are the attributes that is expected to drive the growth of the HVAC Equipment Market. Furthermore, the adoption of energy-efficient air conditioners that help in reducing costs and eliminating power wastage are estimated to boost the market demand.
The changing climatic conditions is one of the major factors that facilitates the rise in demand for the use of heating and cooling equipment’s and this attribute fosters the market growth. Additionally, the HVAC units add to the aesthetic value of residential and commercial places and this is anticipated to fuel the market growth. For instance, Carrier Corporation announced the debut of a new line of TruVu Dual IP Advanced Application Controllers for the i-Vu building automation system on September 29, 2021. This will aid in addressing the demand for accurate, dependable automated control in the most difficult HVAC zone applications. These controllers have been developed to make installation as simple as possible while also improving system control and monitoring.
Factors such as increasing global warming, need for comfort and rising disposable income are estimated to accelerate the market growth. Moreover, with the technological advancements the manufacturers of HVAC systems are improving the functionality of the systems that enhances the comfort level of the consumer and this attribute is expected to drive the growth of the HVAC Equipment Market. Emerson Electric Co., for example, unveiled the new Rosemount XE10 Continuous Emissions Monitoring System (CEMS) on September 9, 2021, which is meant to assist industrial companies in meeting more demanding environmental requirements and developing sustainability standards. With built-in performance analytics and automatic validation capabilities, this new system provides accurate emissions monitoring and reporting, reducing the risk of noncompliance shutdowns and penalties for plant operators.
| Report Highlights | Details |
| Market Size in 2032 | USD 234.36 Billion |
| Growth Rate | CAGR 5.80% From 2023 to 2032 |
| Largest Market | Asia Pacific |
| Fastest Growing Market | North America |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Product, End User, Geography |
| Companies Mentioned | Carrier Corporation, Daikin Industries Ltd., Ingersoll Rand, Johnson Controls, Trane Technologies, LG Electronics, Hitachi Ltd., United Technologies, Electrolux, Emerson Electric Co., Honeywell International Inc, Lennox International Inc. |
Based on the product, the cooling product segment is expected to witness the highest growth accounting for more than 54% of revenues share in 2022. It is also expected to grow significantly during the projection period. The cooling segment consists of air conditioning units that include unitary air conditioners, room air conditioners, split & packaged systems, cooling towers and portable units. With the evolution of technology in HVAC systems, valuable features such as IoT-integrated HVAC systems, remote operations, and small units are now possible, allowing for cost savings and improved energy efficiency and comfort. The HVAC Equipment Market is expected to increase as a result of all of these factors. Furthermore, rapidly changing climate conditions in the Middle East and Asia Pacific are expected to increase cooling unit demand.
Heating units, such as furnaces, boilers and heat pumps, are extensively used in residential, commercial, and industrial applications. Some of the major applications of heating equipment includes molding, floor & wall heating, space heating, steam generation, vaporization, and drying. As a result, regions with extremely cold climates and sectors that require heating are the primary drivers of the heating product segment's growth. Ventilation units are also becoming more popular around the world as air pollution levels grow and people become more conscious of the necessity of maintaining a healthy and safe atmosphere. The spike in demand for air purifiers and other ventilation equipment that lowers air contamination is expected to drive the market forward significantly.
Based on the end-use, the residential end use segment is expected to witness a significant revenue share during the forecast period amounting for more than 40% of the global share. It is also anticipated to grow remarkably during the forecast period. As the Residential HVAC units are compact and easy to install as compared to commercial or industrial units. The residential segment consists of HVAC units installed in small places such as houses, small stores and restaurants. Furthermore, the change in lifestyle and rising disposable incomes of the consumers are expected to fuel the market growth.
The commercial segment is also estimated to witness the fastest CAGR over the forecast period owing to increase in infrastructure development and surge in urbanization across major regions, generating demand for more office spaces. Commercial HVAC units require a huge amount of room to install, hence they are typically found on the rooftops of major restaurants, theatres, shopping malls, and other commercial spaces. In the commercial places, the HVAC systems are used continuously, and therefore require frequent maintenance. Therefore, retrofitting and replacement demand of these units is the major factor that is anticipated to drive the growth of the market.
Key Companies Profiled
The global HVAC Equipment Market is characterized by the presence of various small and big players. The major market player are Carrier Corporation, Daikin Industries Ltd., Ingersoll Rand, Johnson Controls, Trane Technologies, LG Electronics, Hitachi Ltd., United Technologies, Electrolux, Emerson Electric Co., Honeywell International Inc, Lennox International Inc. and, Mitsubishi Electric. As the market is competitive in nature, the players are indulged in rapid adoption of advanced technologies to improve the air of the indoor environment and in raising their competitive share by means of strategic initiatives like mergers, new product and acquisitions.
Segments Covered in the Report
By Product
By End-use
By Geography
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