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The HVAC for Commercial Market size is estimated to grow by USD 25.3 million, accelerating at a CAGR of 4.37% between 2023 and 2028. The market is experiencing significant growth, driven by the rising number of data centers and increasing demand for energy-efficient and smart building solutions. The market is witnessing the emergence of connected and Internet of Things (IoT)-enabled HVAC systems, which offer enhanced energy management and improved indoor air quality. High market competition is pushing companies to innovate and offer more advanced and cost-effective solutions such as HVAC. Additionally, stringent energy regulations and growing awareness of sustainability are further fueling the market's growth. Despite these opportunities, challenges such as complex installation processes and high upfront costs remain. However, with advancements in technology and increasing adoption of financing models, these challenges are being addressed, making the market an exciting and dynamic space to watch.
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The HVAC for Commercial market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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 heating, ventilation, and air conditioning systems.
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The equipment segment was valued at USD 64.10 million in 2018 and continued to grow until 2022. 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 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. These factors will drive the growth of the market in APAC during the forecast period.
The market refers to the business sector that deals with heating, ventilation, and air conditioning systems designed for commercial and industrial applications. The Department of Energy and ENERGY STAR program play significant roles in promoting energy efficiency in this market. IoT technology is increasingly being integrated into commercial HVAC systems, enabling smart HVAC technologies such as sensors and data-driven analytics. OEMs are focusing on producing energy-efficient climate control solutions for various sectors like offices, schools and colleges, restaurants, hotels, shops, apartments, hospitals and clinics, sport centers, warehouses, and factories. The awareness of ecofriendly solutions and the need for maintaining good indoor air quality are key drivers for the growth of this market. Smart heating, ventilation, and air conditioning technologies are expected to revolutionize the industry with their ability to optimize energy usage and enhance overall system performance. Our researchers analyzed the data with 2023 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 energy-efficient 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. Hence, such factors are driving the market during the forecast period.
Emerging smart and connected HVAC is a major market trend. The global market is experiencing a trend towards smart and connected heating, ventilation, and air conditioning 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 heating, ventilation, and air conditioning 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 IoT in HVAC systems will catalyze the growth of the commercial heating, ventilation, and air conditioning market. Hence, such factors are driving the market during the forecast period.
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. Hence, such factors are hindering the market during the forecast period.
The HVAC for Commercial 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 HVAC for Commercial market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
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 HVACs, which allow compressor to ramp up or down based on the needs within each space for cooling and heating.
The HVAC for Commercial market growth analysis 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 HVAC for Commercial market is a significant sector driving energy-efficient climate control solutions in various industries, including offices, schools and colleges, restaurants, hotels, shops, apartments, hospitals and clinics, sport centers, warehouses, factories, and more. The Department of Energy and ENERGY STAR program play crucial roles in promoting energy efficiency and sustainable buildings. The Market is witnessing growth due to increasing commercial activity and the construction sector's focus on energy efficiency. Global decarbonization efforts and environmental concerns are also propelling the market forward. IoT technology is a key trend, with smart heating, ventilation, and air conditioning technologies, vaccines, sensors, and data-driven analytics enabling energy savings and improved indoor air quality.
Key players in the Market include OEMs, aftermarket service providers, and engineers. The market is segmented by building types, end-users, and regions. Existing building stock presents a significant opportunity for market growth, with the need for upgrades and retrofits to meet energy efficiency standards. Energy-efficient HVAC systems and sustainable buildings - IoT technology for climate control and data-driven analytics - Awareness and demand for ecofriendly solutions. The market is expected to grow at a steady rate, with increasing demand for energy-efficient solutions and the implementation of IoT technology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
185 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.37% |
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Market growth 2024-2028 |
USD 25.3 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.15 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 34% |
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Key countries |
China, US, Japan, India, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Arkema Group, Carrier Global Corp., Daikin Industries Ltd., Danfoss AS, Emerson Electric Co., Fujitsu Ltd., Gree Electric Appliances Inc. of Zhuhai, Haier Smart Home Co. Ltd., Honeywell International Inc., Johnson Controls International Plc., Lennox International Inc., LG Electronics Inc., MIDEA Group Co. Ltd., Mitsubishi Electric Corp., Nortek, Panasonic Holdings Corp., Rheem Manufacturing Co., Robert Bosch GmbH, Samsung Electronics Co. Ltd., and Trane Technologies plc |
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Market dynamics |
Parent market analysis, Market forecasting, market growth and trends, market report, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our HVAC for Commercial market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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