The global HVAC Equipment Market size was valued at US$ 195.0 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 6.6% from 2023 to 2030. HVAC equipment is an indoor and vehicular environment comfort technology that offers thermal comfort and adequate indoor air quality. HVAC plays a major role in residential structures such as apartment buildings, senior living facilities, hostels, single-family homes, medium to large industrial buildings, hospitals, skyscrapers, airplanes, trains, cars, submarines, and ships. Heating equipment cost-effectively provides the necessary heating environment. The HVAC industry is aiming to provide cost-effective equipment to cater to the energy needs of industrial and commercial customers and meet green technology/process requirements. HVAC players are introducing eco-friendly equipment by phasing out chlorofluorocarbons, hydro chlorofluorocarbons (CFCs and HCFCs), and other harmful refrigerant-based equipment.
Global HVAC Equipment Market: Regional Insights
APAC region held dominant position in the global HVAC equipment market in 2022, accounting for 51.5% share in terms of volume, followed by North America and Europe, respectively.
Figure 1: Global HVAC Equipment Market Share (%), By Region, 2022
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Global HVAC Equipment Market Drivers:
Strict regulatory norms
Strict regulatory norms are expected to drive the growth of the global HVAC equipment market during the forecast period. Governments in different countries have imposed stringent regulations, to protect the environment and stabilize greenhouse gas levels in the atmosphere. There are 83 signatories and 192 member countries which have signed or accepted the Kyoto Protocol, an international treaty which extended the 1992 United Nations Framework. A similar treaty, the Montreal Protocol, achieved universal ratification (in 1999), and signatories signed the protocol with a willingness to protect the depleting ozone layer and implemented the regulations in their respective countries. Such regulations are expected to boost the demand for HVAC equipment. Conventional equipment, which emits harmful gases such as chlorofluorocarbons (CFCs) and hydro chlorofluorocarbons (HCFCs) are needed to be replaced. Furthermore, other regulations are boosting the adoption of HVAC equipment including LEED (Leadership in Energy & Environmental Design) certified projects and mandatory SEER (Seasonal Energy Efficiency Ratio) ratings (SEER of 13.0 and above in the U.S.) for HVAC systems.
Constant climate variations are expected to propel the global HVAC equipment market growth over the forecast period.
Constant climate variations are expected to propel the global HVAC equipment market growth over the forecast period. Climate change is boosting the demand for HVAC equipment systems. There have been significant climate variations in the last two decades due to rising greenhouse gas effects. This, in turn, is leading to increased demand for efficient HVAC systems, to meet changing climatic variations. As a result of this, the demand for HCAC equipment is expected to accelerate.
HVAC Equipment Market Report Coverage
|Market Size in 2022:
|US$ 195.0 Mn
|Historical Data for:
|2017 to 2021
|2023 to 2030
|Forecast Period 2023 to 2030 CAGR:
|2030 Value Projection:
|US$ 326.5 Mn
United Technologies Corporation (Carrier), LG Corporation, Daikin Industries. Ltd., AB Electrolux, Haier Inc., Lennox International Inc., Samsung Electronics, and Panasonic Corporation
|Restraints & Challenges:
Global HVAC Equipment Market Opportunities:
Increasing adoption of advent of smart grid technology
Rising trend of smart homes can present lucrative growth opportunities in the global HVAC equipment market. The home automation market globally is growing at a robust pace, with average annual growth of 38.4%. This growth is primarily driven by energy management and security systems. As a result of this, HVAC systems manufacturers are focused on solutions that can be integrated with smart technologies. Therefore, there is a gradual shift toward smart building
Global HVAC Equipment Market Trends:
Increasing demand for smart air conditioning systems across residential and commercial applications
Unitary air conditioning systems are anticipated to show strong growth across the Asia Pacific region and in countries such as Brazil where construction activities are expected to remain high over the forecast period. Smart air conditioning systems across residential and commercial applications are gaining popularity. Features such as air conditioner operation through smartphones, Wi-Fi technology, and advanced sensing are being incorporated into the air conditioners presently.
HVAC equipment is anticipated to build truly high-efficiency units; unfortunately, increased efficiency would not come without increased cost and complexities. The usage of net-zero energy facilities is gaining momentum; in such a facility any building will produce as much energy as it consumes.
Global HVAC Equipment Market Restraints:
High consumption of energy is expected to restrain growth of the global HVAC equipment market during the forecast period
High consumption of energy is expected to restrain the growth of the global HVAC equipment market during the forecast period. Major entities in the commercial segment such as retail complexes, hostels, entertainment centers, and others typically rely on centralized HVAC systems for space conditioning. According to the International Energy Agency (IEA) in 2021 and the U.S. Department of Energy, around 25-35% of electricity consumption is due to HVAC systems. According to the same source, a large part (20% - 60%) of this energy consumption is contributed by parasitic energy use (energy used to power fans and pumps used for the transfer of heating and cooling). Thus, centralized HVAC systems have burdened energy bills despite being more efficient (in terms of energy unit consumption per unit area of space conditioned) as compared to unitary systems.
Figure 1: Global HVAC Equipment Market Share (%), By End User, 2022
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Global HVAC Equipment Market Segmentation:
The global HVAC Equipment Market report is segmented into Product Type and End-use
The Residencial segment held a dominant position in the market and accounted for a 41.6% share of the global HVAC equipment market in 2022. The segment is growing due to rising infrastructure development and increasing urbanization across major regions, creating a demand for more office spaces. Commercial HVAC units require large space and are therefore installed on rooftops of big restaurants, shopping malls, theaters, and other commercial spaces.
Global HVAC Equipment Market: Key Developments
In July 2021, Hitachi, a Japan-based multinational company, launched its first modular side throwvariable refrigerant volume(VRF) air conditioning system.
In February 2020, Panasonic Corporation, a Japan-based multinational company, launched a futuristic range of connected air conditioners.
Global HVAC Equipment Market: Key Companies Insights
Some of the key players in the global HVAC Equipment Market are LG Corporation, Daikin Industries. Ltd., AB Electrolux, Haier Inc., Lennox International Inc., Samsung Electronics, and Panasonic Corporation
*Definition: An HVAC stands for Heating Ventilation and Air conditioning. HVAC equipment refers to various devices and systems to control and maintain the temperature humidity and air quality in an indoor environment.
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