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The Commercial HVAC Market size is estimated to grow by USD 24.63 million between 2022 and 2027 accelerating at a CAGR of 4.43%. The growth of the commercial heating, ventilation, and air conditioning (HVAC) market share depends on several factors, including the rising number of data centers, the growth of the construction market, and the rising need for regulatory compliance in HVAC equipment.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising number of data centers is a prominent market driver. The demand for data centers and servers has increased due to the significant rise in data generation in various industries. As of January 2021, nearly 8,000 data centers were reported globally, with the US, UK, Germany, China, Canada, and the Netherlands having the most significant number. Data centers require HVAC systems to maintain consistent temperature, humidity, airflow, and cleanliness for critical equipment. Cooling systems account for a significant part of the overall costs of data center operations. Precision air conditioners have become necessary due to the increasing number of data centers.
The rise in internet penetration, IoT-connected devices, and smart devices has increased the demand for data centers. The establishment of data centers and the need to optimize their energy use will require efficient HVAC systems, leading to an increase in the demand for commercial heating, ventilation, and air conditioning (HVAC) market.
Emerging smart and connected HVAC is a major market trend. The global market is experiencing a trend towards smart and connected HVAC systems. This is made possible by advances in portable devices and monitoring systems, which enable end-users to better manage their HVAC systems. Smart thermostats are a significant beneficiary of these advancements, with many companies offering models that are automatically installed with advanced firmware and algorithms, resulting in boosted energy efficiency and reduced installation costs.
IoT integration with HVAC systems has added to their capability, offering benefits such as real-time monitoring, predictive maintenance, and greater controllability. With companies increasingly offering new solutions, the use of the Internet of Things (IoT) market in HVAC systems will catalyze the growth of the commercial heating, ventilation, and air conditioning (HVAC) market.
High market competition is a major market challenge. The global market is highly competitive with established international companies and regional players. Local companies in APAC offer HVAC systems at lower prices due to lower manufacturing costs. To combat competition, international companies are setting up local manufacturing units in key regional areas.
Regulations on HVACs in APAC are less restrictive, leading to sales of counterfeit products and further price-based competition. Consolidation activities in the market have intensified with the entry of building control solution providers. Competition has led to a reduction in market shares of individual companies and lower profit margins.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
MIDEA Group - The company offers V6 series HVAC which allow compressor to ramp up or down based on the needs within each space for cooling and heating.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the equipment segment will be significant during the forecast period. HVAC equipment includes heating equipment, ventilation equipment, and air conditioning equipment. The rise in construction activities, particularly in the Middle East and Asia, will fuel the demand for HVAC systems.
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The equipment segment was valued at USD 61.90 million in 2017 and continued to grow until 2021. Builders of new modern commercial spaces are focusing on design and architectural aspects as well as sustainable practices, which has increased the adoption of energy-saving systems such as HVAC units and renewable power generation sources in commercial spaces. The rising demand for heat pumps due to environmental awareness is also driving the growth of the segment. Moreover, stringent government regulations regarding carbon emissions and air quality in the commercial and residential sectors are estimated to boost the growth of the segment during the forecast period.
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APAC is estimated to contribute 34% to the growth of the global commercial heating, ventilation, and air conditioning (HVAC) market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the market in APAC is driven by an increase in infrastructure spending on commercial projects. The spending on the commercial real estate sector is increasing in many emerging economies such as India, China, Vietnam, and the Philippines, which is contributing to the commercial heating, ventilation, and air conditioning (HVAC) market in APAC. The rising number of smart city projects in Asia is also contributing to the growth of the real estate sector, which is fueling the demand in the region.
This market report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The market in the region witnessed certain challenges in 2020 due to lockdown restrictions. However, many countries conducted large-scale COVID-19 vaccination drives from 2021 onward. Therefore, restrictions on all sectors were removed, which led to the restoration of supply chains and a revival in demand for these systems during 2021-2022. These factors will drive the growth of the market in APAC during the forecast period.
The market research report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The market encompasses a range of components including dampers, condenser fans, compressors, evaporators, and blowers. These components work together to regulate energy usage and maintain comfortable indoor temperatures. Additional components such as coolers and cooling towers help dissipate heat from the system. The market also includes advanced systems like VRF Systems (Variable Refrigerant Flow), which offer efficient cooling and heating solutions for commercial spaces. With a focus on energy efficiency and sustainability, the market continues to innovate to meet the needs of modern buildings and businesses.
Commercial HVAC Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.43% |
Market growth 2023-2027 |
USD 24.63 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.19 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 34% |
Key countries |
US, China, India, Japan, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arkema Group, Carrier Global Corp., Daikin Industries Ltd., Danfoss AS, Emerson Electric Co., Fujitsu Ltd., Haier Smart Home Co. Ltd., Honeywell International Inc., Johnson Controls International Plc., Lennox International Inc., LG Electronics Inc., MIDEA Group, Mitsubishi Electric Corp., Nortek Inc., Panasonic Holdings Corp., Rheem Manufacturing Co., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Trane Technologies plc, and Zhuhai Gree Electric Appliances Co. Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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