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The HVAC Equipment Market size is estimated to grow at a CAGR of 6.22% between 2022 and 2027. The size of the market is forecast to increase by USD 48.34 billion. The growth of the market depends on several factors, including the increasing residential and commercial construction activities, the cost advantages associated with renting HVAC equipment, and the increase in demand for centralized HVAC systems.
This HVAC equipment market forecast report extensively covers market segmentation by end-user (non-residential and residential), product (air conditioning equipment, heating equipment, and ventilation equipment), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The market share growth by the non-residential segment will be significant during the forecast period. The non-residential end-users of the equipment are manufacturing facilities, commercial and industrial buildings, data centers, retail stores, healthcare facilities, and educational institutions. The increase in construction activities in the non-residential end-user segment will drive the demand for the equipment during the forecast period.
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The non-residential segment was valued at USD 67.75 billion in 2017 and continue to grow by 2021. The segment accounts for the largest revenue share of the market because the large share is attributed to the rising need for energy efficiency among organizations and commercial firms. HVAC and lighting systems account for a major part of energy consumption in commercial buildings. Therefore, it is crucial for vendors to develop HVAC systems that are energy-efficient and comply with regional as well as international regulations. Telecommunication and data centers also use the equipment to maintain the optimum temperature in the rooms where servers and other devices are kept. Such factors will increase the market growth during the forecast period.
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APAC is estimated to contribute 55% to the growth of the global HVAC equipment market share 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 HVAC equipment market in APAC is primarily driven by the public sector as well as private enterprises in countries such as India and China, which are investing large amounts of money in construction projects. The increasing construction of commercial and industrial buildings, along with the rising investments in infrastructural development in the region, will further support the growth of the market in the region during the forecast period.
In 2020, the market in APAC witnessed a significant decline in revenue due to the COVID-19 pandemic. However, with the easing of lockdown restrictions and large-scale COVID-19 vaccination drives, the sales of new equipment improved in 2021. Non-residential consumers like office buildings, retail outlets, and industrial buildings upgraded their old equipment and systems to prevent the spread of the pandemic through air recirculation. They will introduce new variable-speed fan motors and better airflow-control systems. Such modifications will further escalate the demand for equipment in this region. Moreover, vendors in the equipment market in APAC have also been focusing on expanding their operating base. Such expansions by vendors in the region are anticipated to drive the growth of the regional market during the forecast period.
The increasing residential and commercial construction activities are notably driving the market growth, although factors such as stringent regulations may impede the market growth. 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.
Increasing residential and commercial construction activities is the major driver of the growth of the market. Infrastructural projects related to commercial and residential buildings are increasing globally at a significant rate, owing to population growth and regulatory support from various government bodies for construction projects.
As the population increases, the need for residential and commercial spaces will rise, which, in turn, will boost the number of construction projects. The number of residential and commercial buildings is rapidly increasing in developing countries such as the UAE, Saudi Arabia, India, and China, which will propel the demand for HVAC equipment.
The advent of smart HVAC systems is the major trend in driving the growth of the market. A smart HVAC system is an intelligent technology that enables users to control their equipment remotely using a smartphone, tablet, or desktop. The traditional HVAC system only allows users to change the temperature of the building using the built-in control panel or switch. On the other hand, a smart HVAC system gives consumers more user-friendly, efficient, and accessible control over the traditional HVAC system. Also, a smart HVAC system not only can run more efficiently but also reduce energy costs.
Thus, a smart HVAC system can help in saving around 13% per month on energy bills. Also, the smart HVAC system consists of sensors that can help users to prevent costly breakdowns. Thus, the equipment helps users in maximizing control for greater efficiency, reduced operating costs, and extended equipment life. Hence, the advent of smart HVAC systems will lead to the growth of the market during the forecast period.
Stringent regulations are the major hindrance to the growth of the market. Vendors that offer the equipment must comply with the regulations framed by various government organizations and independent agencies. These regulations are aimed at ensuring that proper measures are taken while operating, installing, and manufacturing the equipment. The ACCA standard focuses on the new installation requirements for HVAC systems. As per this regulation, the correct design, proper installation, and testing have a large impact on consumers' satisfaction as well as on energy savings. This standard details the level of performance, which ensures that sound industry practices are followed during the design and installation phases of an HVAC system.
The design shall also consider the effects of fire on HVAC systems. Compliance with such regulations can increase the cost borne by the vendors, which, in turn, can affect their profit margins. Non-compliance can lead to penalties, including suspension of licenses, imprisonment, and an order to cease future operations. This can further impact revenue generation in the market during the forecast period.
The 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 HVAC Equipment Market Customer Landscape
Vendors 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.
Electroluxgroup - The company offers HVAC equipment such as air handling units, air-source heat pumps, chillers, coils and condensers and condensing units.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The HVAC equipment market analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
HVAC Equipment Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.22% |
Market growth 2023-2027 |
USD 48.34 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.65 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 55% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AAON Inc., AB Electrolux., Daikin Industries Ltd., Emerson Electric Co, Fujitsu Ltd., Gree Electric, Haier Smart Home Co. Ltd., Hitachi Ltd., Ingersoll Rand Inc., Johnson Controls International Plc., Lennox International Inc., LG Electronics Inc., MIDEA Group, Nortek Inc., Rheem Manufacturing Co., Bosch Thermotechnik GmbH, Samsung Electronics Co. Ltd., Seeley International Pty Ltd., Whirlpool Corp., and A. O. Smith Corp. |
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 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 End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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