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The Heating, Ventilating, and Air Conditioning (HVAC) Services Market size is estimated to grow at a CAGR of 7.43% between 2023 and 2028. The market size is forecast to increase by USD 28.76 billion. The growth of the market depends on several factors such as the rapidly growing surface temperature, the growing demand for retrofitting in developed countries, and the need to reduce energy consumption and operating costs.
The report includes a comprehensive outlook on the HVAC services market, offering forecasts for the industry segmented by Service Type, which comprises air conditioning services, heating services, and ventilation services. Additionally, it categorizes End-user into non-residential and residential, and covers Geography regions, including APAC, Europe, North America, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
HVAC Services Market Forecast 2024-2028
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Gradual increases in temperature are causing weather patterns to shift and upsetting the natural equilibrium of the environment. Humans and all other living things on earth are at great risk from this. The global surface temperature rises in tandem with greenhouse gas concentrations. The warmest decade on record is the one that ended in 2020.
In addition, since the 1980s, the decade has been warmer than the previous one every time. There are more hot days and heat waves in almost all land locations. Elevated temperatures exacerbate heat-related ailments and complicate the working of employees. Consequently, the high temperature will require most air conditioning systems to equate the temperature, which will drive the market during the forecast period.
The integration of the Internet of Things (IoT) with HVAC systems opens new avenues for the market in terms of revenue, and it is still in its developing stages in the heating, ventilating, and air conditioning (HVAC) services market. The commercial building sector is likely to be the earliest adopter of this technology, with IoT linking components or systems with network connectivity to the internet and enabling them to send and receive data over a network.
Moreover, IoT allows devices to communicate without human-to-human or human-to-computer intervention and helps commercial building owners develop efficient systems for building processes. Hence, the advancement in technology will boost the growth of the market during the forecast period.
Many key heating, ventilating, and air conditioning services market players enter into long-term contracts with suppliers to reduce the impact of the fluctuations in raw material prices on their business operations. However, small market players cannot enter into such contracts and hence, fluctuations in raw material prices affect their businesses. This directly impacts the global HVAC services market.
The prices of raw materials depend on factors such as inflation, production, and supply. Additionally, motors and compressors used to manufacture industrial HVAC equipment require rare-earth metals, such as neodymium, while boron is required to convert magnets into permanent magnet motors, as it creates stronger magnetic fields than other types of materials. Hence, such challenges are expected to impede the growth of the market during the forecast period.
The air conditioning services segment is estimated to be significant during the forecast period. Air conditioners are found everywhere, ranging from apartments, shopping malls, and business establishments to entertainment centers but the affordability of environmentally optimized air conditioning products remains a major challenge. Air conditioning plays a major role in optimizing indoor environments and temperatures, especially in places with hot and dry climates, and hence, it has become a part of the critical infrastructure that underpins modern indoor spaces.
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The air conditioning services segment was valued at USD 26.37 billion in 2018. Additionally, the demand for air conditioning services is expected to increase exponentially during the forecast period as the economic growth in emerging markets continues to accelerate. Hence, factors like the expanding construction industry worldwide, deregulation of the real estate and construction sector, the great potential for energy savings, and low and easy maintenance requirements for air conditioners are all major factors driving the growth of the heating, ventilating, and air conditioning services market during the forecast period.
Based on end-user, the market has been segmented into non-residential and residential. The non-residential segment will account for the largest share of this segment.?HVAC systems are increasingly being deployed in the industrial sector to maintain the temperature of the equipment for better performance. Furthermore, the rise in the number of net-zero buildings is a major trend in the construction business. A net-zero building can produce renewable energy to meet its annual energy consumption requirements. This reduces the need for non-renewable energy in the building. Thus, the growing demand for HVAC systems such as chillers in industries and net-zero buildings trends in the commercial sector is expected to fuel the growth of the non-residential segment, thereby driving the HVAC services market growth during the forecast period.
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APAC is estimated to contribute 46% to the growth during the forecast period. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Some of the factors for the heating, ventilating, and air conditioning services market growth in the region include the rapid growth in population, extreme climatic conditions, rising urbanization, and expansion in the middle-income population.
In addition, the growth in commercial and residential constructions is a key driver for the demand for HVAC systems in the region, which also positively affects the energy-efficient HVAC systems market. Moreover, the adoption of green building initiatives in developing countries like China and India is another factor that is driving the demand for energy-efficient HVAC systems in APAC. Hence, such factors are expected to drive HVAC services market growth in the APAC region during the forecast period.
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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Air Comfort, Alexander Mechanical Inc., Blue Star Ltd., Carrier Global Corp., Daikin Industries Ltd., EMCOR Group Inc., Emerson Electric Co., ENGIE SA, Ferguson plc, Fujitsu General Ltd., Ingersoll Rand Inc., J and J Air Conditioning, Johnson Controls International Plc, Lennox International Inc., LG Electronics Inc., Nortek, Samsung Electronics Co. Ltd., Service Logic, and Siemens AG
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The HVAC services market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
HVAC Services Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.43% |
Market Growth 2024-2028 |
USD 28.76 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.78 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABM Industries Inc., Air Comfort, Alexander Mechanical Inc., Blue Star Ltd., Carrier Global Corp., Daikin Industries Ltd., EMCOR Group Inc., Emerson Electric Co., ENGIE SA, Ferguson plc, Fujitsu General Ltd., Ingersoll Rand Inc., J and J Air Conditioning, Johnson Controls International Plc, Lennox International Inc., LG Electronics Inc., Nortek, Samsung Electronics Co. Ltd., Service Logic, and Siemens AG |
Market dynamics |
Parent market analysis, 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 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. |
We can help! Our analysts can customize this market research 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 Service Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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