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The ductless HVAC system market size is forecast to increase by USD 14.2 billion at a CAGR of 7.1% between 2023 and 2028. The market is experiencing significant growth, driven by the rapid expansion of commercial and residential construction projects worldwide. This trend is fueled by the increasing demand for energy-efficient and cost-effective heating and cooling solutions. Additionally, the rapid transformation of the Internet of Things (IoT) within the HVAC industry is enabling advanced automation and remote monitoring capabilities, further boosting market growth. Stringent government regulations aimed at reducing carbon emissions and improving energy efficiency are also pushing the adoption of ductless HVAC systems. These factors are expected to continue driving market growth in the coming years. The market is poised for expansion, with key players focusing on innovation, product development, and strategic partnerships to stay competitive.
The market is witnessing significant growth due to the increasing demand for cooling systems in both residential and nonresidential construction. Key players in the market include Carrier and LG Electronics. The integration of Internet of Things (IoT) technology in HVAC systems is a major trend, enabling real-time performance data, energy efficiency, and power saving. HVAC professionals are increasingly focusing on energy-saving and eco-friendly cooling solutions using low GWP refrigerants such as hydrofluorocarbons and hydrochlorofluorocarbons. Sensors, control valves, and smart thermostats are essential components of ductless HVAC systems, ensuring energy efficiency and sustainability in buildings. The market is driven by environmental concerns and the adoption of energy-efficient technologies to mitigate the effects of climate change. Mini-split systems are gaining popularity due to their energy-saving capabilities and ease of installation. The market is expected to continue its growth trajectory as the demand for sustainable buildings increases.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The single-zoned segment is estimated to witness significant growth during the forecast period. Ductless HVAC systems, also known as mini-split, split, or multi-split systems, have gained significant traction in both residential and nonresidential applications due to their energy-saving and eco-friendly cooling capabilities. Companies like Carrier and LG Electronics lead the market with innovative solutions, integrating the Internet of Things (IoT) for real-time performance data and smart temperature management.
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The single-zoned segment was the largest segment and was valued at USD 19 billion in 2018. These systems consist of sensors, control valves, and smart thermostats, enabling energy efficiency and power saving. Hydrofluorocarbons (HFCs) and hydrochlorofluorocarbons (HCFCs) are being replaced with low global warming potential (GWP) refrigerants to reduce environmental concerns and combat climate change. Product innovation includes easy installation, energy-efficient devices, and sustainable buildings. Reznor brand offers VRF systems for large-scale applications, while mini-split systems cater to residential infrastructure. Hence, such factors are fuelling the growth of this segment during the forecast period.
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APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Ductless HVAC systems, also known as mini-split, split, or multi-split systems, have gained significant traction in both residential and nonresidential applications due to their energy-saving and eco-friendly cooling capabilities. Companies like Carrier and LG Electronics lead the market with innovative solutions, integrating the Internet of Things (IoT) for real-time performance data and smart temperature management. These systems consist of sensors, control valves, and smart thermostats that enable power saving and energy efficiency. HVAC professionals are increasingly installing these systems in sustainable buildings to address environmental concerns and climate change.
Rapid rising commercial and residential construction globally is notably driving market growth. Urbanization is a significant factor fueling the expansion of the construction industry in these regions. In the HVAC sector, ductless systems are gaining popularity, particularly in commercial sectors due to their energy-efficient and sustainable features. Thus, such factors are driving the growth of the market during the forecast period.
The market is witnessing significant growth in the commercial sectors due to the integration of smart features and a focus on sustainability. IoT technology plays a pivotal role in enhancing the efficiency of these systems, enabling data collection, storage, and analysis in the cloud. This results in improved system performance, predictive maintenance, and cost savings through remote monitoring, control, and diagnosis.
Additionally, ductless HVAC systems offer energy conservation and indoor air quality benefits, making them an attractive choice for retrofitting existing buildings. Strategic partnerships between market players and technology providers drive innovation in energy-efficient product offerings, smart home automation, and reducing carbon emissions. Thus, such trends will shape the market's growth during the forecast period.
Stringent government regulations are the major challenge that affects the growth of the market. The market has gained significant traction in the commercial sector due to its energy-efficient and sustainable features. With the increasing focus on reducing Carbon Emissions and promoting Indoor Air Quality, ductless systems have become a popular choice for retrofitting existing buildings and new construction projects. These systems offer Smart Features such as energy conservation, smart home automation, and product offerings that cater to various climate conditions and budgets.
Moreover, strategic Partnerships between manufacturers and technology providers have led to advancements in the industry, enabling ductless HVAC systems to provide superior performance and enhanced user experience. The new regulations set by the National Appliance Energy Conservation Act (NAECA) and the Department of Energy require a minimum Seasonal Energy Efficiency Ratio (SEER) of 14 for residential systems in northern states and 15 in southern states, effective from 2023. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting 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 market growth analysis strategies.
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.
Carrier Global Corp: The company offers Performance Cassette Indoor Unit that blends into over-head space to deliver quiet comfort Ductless HVAC system.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key 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.
Cooling Solutions for Smart Homes and Sustainable Buildings The Ductless HVAC Systems market is witnessing significant growth due to the increasing demand for energy-efficient and eco-friendly cooling solutions. These systems, including Split Systems, Mini Split Systems, Multi Split Systems, and VRF Systems, are becoming popular in both residential and nonresidential construction projects. Key players in the market, such as Carrier and LG Electronics, are focusing on product innovation to cater to the growing demand. The integration of the Internet of Things (IoT) in HVAC systems is a major trend, enabling real-time performance data and energy consumption monitoring. HVAC professionals are emphasizing the use of energy-saving technologies, such as smart thermostats, sensors, control valves, and energy-efficient devices. Eco-friendly refrigerants, like those with low Global Warming Potential (GWP) such as Hydrofluorocarbons (HFCs) and Hydrochlorofluorocarbons (HCFCs), are replacing traditional cooling agents to reduce environmental concerns. In the residential application, ductless systems offer easy installation, temperature management, Transport and power saving features, making them an attractive option for homeowners. The increasing focus on sustainable buildings and climate change concerns further boosts the market growth. Mini-split systems, in particular, are gaining popularity due to their energy efficiency and versatility. These systems offer zoned temperature control, making them ideal for large homes or buildings with varying temperature requirements. Overall, the Ductless HVAC Systems market is expected to continue its growth trajectory, driven by the need for energy-efficient and eco-friendly cooling solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.1% |
Market growth 2024-2028 |
USD 14.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.63 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 47% |
Key countries |
China, US, Germany, Japan, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Carrier Global Corp., Daikin Industries Ltd., Electrolux group, Fujitsu General Ltd., Haier Smart Home Co. Ltd., Hanon Systems, Hitachi Ltd., Lennox International Inc., LG Electronics Inc., MAHLE GmbH, MIDEA Group Co. Ltd., Mitsubishi Electric Corp., Panasonic Holdings Corp., Rheem Manufacturing Co., Samsung Electronics Co. Ltd., Sanden Corp., Sharp Corp., Subros Ltd., Trane Technologies plc, and Valeo SA |
Market dynamics |
Parent market analysis, market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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 Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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