HVAC System Market size was valued at USD 232.8 billion in 2023 and is likely to reach USD 438.2 billion by the end of 2036, expanding at around 7.7% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of HVAC systems is evaluated at USD 247.7 billion.
With the rising stringency of carbon restrictions, there will be an increasing demand for energy-efficient buildings. As per the International Energy Agency, in 2022, building energy efficiency investments climbed by almost 14% to exceed USD 250 billion. Energy-efficient HVAC systems are therefore becoming increasingly necessary for both new construction and building retrofits. For instance, buildings that have undergone retrofitting can cut their energy use for heating and cooling by 50-90%. In addition, a well-maintained and energy-efficient HVAC system can significantly cut energy usage, and enable commercial buildings to lower their operating expenses and their carbon impact. Furthermore, it is anticipated that tax breaks and government programs that encourage the installation of energy-saving devices will promote the usage of HVAC systems and will have a favorable effect on HVAC system market expansion.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
7.7% |
Base Year Market Size (2023) |
USD 232.8 billion |
Forecast Year Market Size (2036) |
USD 438.2 billion |
Regional Scope |
|
Equipment Type (Cooling, Heating, Ventilation)
The cooling segment in the HVAC system market is poised to gain the largest share of 45.5% in the coming years. The segment's tremendous growth rate can be augmented by the rapidly increasing market for air conditioners, particularly in warm, developing nations regions where temperatures are rising. In most nations, including Brazil, Thailand, Japan, Kenya, Nigeria, Australia, and Spain, more people use their air conditioners to stay cool during extreme heat waves. As per the International Energy Agency, it is anticipated that by 2050, up to 2.5 billion homes in warmer countries will own air conditioning units. Moreover, in hot areas where the entire structure needs to be cooled for extended periods, air conditioning is especially helpful in transforming living. Furthermore, there will be a substantial need for cooling as urban air temperature and solar radiation have grown.
Application (Residential, Commercial, Industrial)
The residential segment in the HVAC system market is estimated to be the fastest-growing segment with a significant CAGR by 2036. This segment's rapid growth is attributed to the expanding rate of household air pollution caused by inadequate ventilation. A 2023 World Health Organization (WHO) report estimated that in 2020, household air pollution caused 3.2 million annual deaths, including approximately 237,000 deaths of children under the age of five. Eliminating the sources of dangerous pollutants such as allergens, and pathogens is an effective strategy to lessen their presence in households, which is possible to achieve with an HVAC system that incorporates cutting-edge filtration and purification technology that may considerably enhance indoor air quality. HVAC systems are important for infection control as they can have an impact on the mobility of infectious aerosols.
Application (New Construction Buildings, Retrofit Buildings)
The new construction buildings segment in the HVAC system market is projected to generate significant revenue over the coming years. This could be on account of the increasing number of hotels in the construction pipeline which might need HVAC systems to ensure that visitors are comfortable according to their unique requirements and preferences. For instance, as of the first quarter of 2024, there were more than 6190 hotels under development worldwide. Expanding construction endeavors encompassing the building of hotels is one of the main markets for HVAC systems. Air handling (AHU) systems are made especially for lodging facilities to circulate and purify the air, which may improve the summertime visitor experience when it's hot outside or when high humidity is likely to be uncomfortable.
Our in-depth analysis of the global market includes the following segments:
Application |
|
Equipment Type |
|
Sales Channel |
|
Service Type |
|
Implementation Type |
|
APAC Market Statistics
The Asia Pacific HVAC system market is set to gather the highest revenue share of 47.1% during the forecast period. The region's rising living standards, rapid urbanization, and an expanding building sector are likely to drive large investments in the HVAC industry from both domestic and foreign players. According to the Asian Development Bank, over 55% of Asia's population will live in cities by 2030. Moreover, people in the region will have greater access to air conditioning owing to the growing number of business buildings and offices, hotels, airports, and entertainment venues.
Also, in Japan, the data center (DC) market is expanding rapidly and is becoming increasingly attractive as a commercial prospect, led by the popularity of cloud computing and digital services. For instance, Japan's data center industry is expected to expand by around 7% between 2024 and 2029. Data centers require HVAC systems as a basic component to serve many functions outside just controlling the temperature, and keeping air quality under control.
China has become a global hub for the manufacturing of HVAC gear and components owing to its advantageous location, large pool of highly skilled workforce, and robust network of manufacturers, suppliers, and shipping firms. For instance, more than 230 million air conditioners were produced in China in 2023, roughly 21 million more than the year before.
South Korea HVAC system industry is positioned for ongoing expansion led by the increasing demand for smart homes in the country with the rapid integration of technology and digitalization. In 2020, more than 25% of households in South Korea used smart home applications.
North America Market Analysis
The North America HVAC system market is predicted to register a notable CAGR of 6.5% during the projected timeframe on account of the growth of the healthcare industry which has resulted in an increased need for hospital HVAC systems, as well as associated goods and services, to regulate air quality, ventilation, humidity, and temperature inside hospital buildings. HVAC systems are essential to hospitals as they help prevent the spread of illnesses including COVID-19, MERS, SARS, and tuberculosis.
The U.S. is constantly spending on maintenance and replacement of HVAC systems due to age, obsolete parts, or improper maintenance. As per statistics published by the U.S. Department of Energy, in the United States, USD 14 billion is spent on HVAC servicing and repairs, and three million heating and cooling systems are replaced annually.
Canada's severe climate makes the HVAC system crucial for households. The winter temperatures can drop significantly, so having a reliable HVAC system is necessary to maintain the warmth. In addition, in Canada's cold regions, heat pumps are a tried-and-true technology that may give the house year-round comfort control by providing heat in the winter.
To meet the needs of their customers, the major players in the HVAC system market are introducing a range of services by working together with well-known businesses that specialize in technology to improve their offerings.
Author Credits: Shweta Patidar
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?