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The HVAC aftermarket market size is estimated to grow at a CAGR of 7.77% between 2022 and 2027 and the size of the market is forecast to increase by USD 32,929.46 million. The growth of the market depends on several factors, such as the robust growth of the construction industry, growing industrialization in developing economies, and the long life of HVAC systems.
This report extensively covers market segmentation by product (air conditioning equipment, heating equipment, and ventilation equipment), end-user (non-residential and residential), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
HVAC Aftermarket Market Forecast 2023-2027
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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 robust growth of the construction industry is the key factor driving the global heating, ventilation & air conditioning (HVAC) aftermarket market growth. Developments in the construction industry play a key role in driving the market. New construction in the residential, commercial, and industrial sectors has increased the demand for HVAC systems to improve building efficiency and thereby boost market returns. As the demand for HVAC systems grows, so does the demand for services to maintain them. Innovation in building design and growing interest in building energy efficiency have created opportunities for HVAC service providers to increase their market position.
Government regulations introduced in countries around the world are forcing HVAC system suppliers to comply with industry standards. For example, the commercial building disclosures outlined by the Australian government provide strong incentives to improve the performance and efficiency of HVAC systems. It requires building owners to sell or rent office space of 2,000 square meters or more to comply with their respective energy efficiency standards. This facilitates the installation of efficient HVAC systems. Additionally, HVAC systems are seeing more and more installations in the residential construction market, especially in developed countries like the United States. Increased installation of privately owned residential units has led to increased acceptance of indoor AC units by residential users, contributing to revenue generation in the target market. Strong growth in the construction industry will therefore have a positive impact on the growth of the market during the forecast period.
The adoption of cogeneration equipment will fuel the global heating, ventilation & air conditioning (HVAC) aftermarket market growth. Despite their energy efficiency, HVAC systems often consume large amounts of energy and emit it in the form of residual gases. The gases emitted by HVAC systems are non-toxic, but when they enter the stratosphere they decompose into simple compounds that lead to ozone depletion. The growing threat of ozone requires developments to support energy-saving systems such as the cogeneration process that helps conserve energy used in HVAC systems. Combined heat and power (CHP), is the simultaneous production of heat and electricity from a single source. This technology was developed with steam turbine power plants a century ago. However, since the 1980s, technological progress has improved the efficiency of the cogeneration cycle, attracting attention. Over the years, the emergence of new power generation technologies and improvements in cycle efficiency has increased sales of cogeneration systems.
By using cogeneration as a supplement to HVAC systems, residual gases can be recovered from the system and reused for other activities such as hot water, offsetting greenhouse gas emissions and fuel consumption. This prevents the HVAC system from overheating. These benefits of using a cogeneration process to complement the HVAC system help save time and money. In addition, using a combined heat and power process can reduce the power consumption of traditional HVAC systems by approximately 50%. Additional heat is provided by the cogeneration process, allowing both residential and non-residential customers to use their HVAC systems for short periods of time to reduce emissions. These advantages are expected to increase demand for HVAC systems and increase demand for HVAC aftermarket products and services. Such factors will have a positive impact on the growth of the market during the forecast period.
Fluctuating prices of HVAC systems' raw materials can majorly impede the growth of the market. Volatile raw material prices affect the production costs of various types of HVAC systems. As a result, many major players enter into long-term contracts with their suppliers to reduce the impact of commodity price fluctuations on their operations. However, small providers cannot enter into such agreements. Therefore, fluctuations in commodity prices affect business. Stainless steel, iron, bronze, and copper are the primary raw materials used in manufacturing HVAC systems, directly impacting the market globally. The prices of these commodities are subject to factors such as inflation, production, and supply.
Raw material shortages are a major challenge for the entire heating, ventilation & air conditioning (HVAC) aftermarket market. Additionally, motors and compressors used to manufacture industrial HVAC systems require rare earth metals such as neodymium. Boron, on the other hand, is required to convert magnets into permanent magnet motors. This is because boron produces a stronger magnetic field than other types of materials. These magnets are twice as strong as normal ferrite-based magnets. Rare earth metals are difficult to mine and then process into products. Such metals are also only available to a limited extent. Price fluctuations, therefore, have a negative impact on the cost of such permanent magnet motors. China is a major supplier of rare earth magnets. Most industrial HVAC suppliers source their industrial-grade motors and compressors from component suppliers. Fluctuations in raw material prices and availability affect and reduce vendor profitability. This poses challenges for the growth of the market during the forecast period.
The air conditioning equipment segment will contribute a major share of the market, due to rising per capita income and rising preference for air conditioners. The air conditioning equipment segment is expected to grow due to several factors such as increasing global temperature and humidity. Air conditioning systems are necessary to maintain indoor air quality. The rise in commercial real estate such as offices, shopping malls, restaurants, and hotels across the globe is another key factor influencing the market growth.
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The air conditioning equipment segment is valued at USD 25,627.56 million in 2017 and continued to grow by 2021.For example, the construction of office space in India will exceed 50 million square feet, up from about 45 million square feet. Such new construction activities will lead to increased demand for air conditioners during the forecast period. The market is expected to be driven by factors such as promising growth in the data center industry. This industry requires a wide range of cooling solutions that can be achieved with air conditioning. In addition, rising consumer preference for energy-efficient air conditioners is expected to have a positive impact on the growth of the air conditioning equipment segment. The use of energy-efficient air conditioners is also supported by the governments of various countries as they help reduce the need for electricity generation. Hence, increasing awareness and demand for energy-efficient air conditioners will support the growth of the air conditioning equipment segment during the forecast period.
Non-residential segment's end users in the market include both commercial and industrial customers. Commercial end users in this segment include educational institutions, commercial buildings such as shopping malls and complexes, retail stores, office buildings, hospitals, restaurants, and hotels. On the industry side, end users span a variety of industries, including the manufacturing, construction, mining, and pharmaceutical industry. The non-residential segment of the market is expected to witness a steady growth rate during the forecast period due to the increasing adoption of HVAC systems across the globe. The global heating, ventilation & air conditioning aftermarket market is experiencing significant growth due to factors such as increasing demand and availability of energy-efficient HVAC systems, rapid urbanization, and availability of HVAC system replacement. This has increased the installed base of HVAC systems. Factors such as increasing HVAC system replacement activity and growing demand for energy-efficient HVAC parts and components are expected to be the major drivers of the growth of this segment. The non-residential segment is expected to greatly benefit from regulations set by governments around the world, especially in Asia Pacific, Europe, and North America, to improve the energy efficiency of non-commercial buildings. The need to maintain indoor air quality (IAQ) at all times has also contributed to the increased acceptance of replacement and maintenance services for the market.
APAC is estimated to contribute 36% to the growth of the global market 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.
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APAC holds the highest share of the heating, ventilation & air conditioning aftermarket market, and the region is expected to grow faster than other regions during the forecast period, mainly due to the increase in real estate investment in the region. Factors such as rising air pollution levels and the need to meet regulatory standards for indoor air quality are driving the adoption of new HVAC systems in both residential and non-residential buildings. Also, the need to comply with international standards and growing awareness of indoor air quality is expected to further drive the growth of the market in the region during the forecast period. Economic development in the region has moved most of the population to urban areas. Growing industries such as construction, information technology, manufacturing, and outsourcing companies are also creating significant employment opportunities in countries such as India and China, increasing the demand for multifamily housing in these countries. Factors such as energy conservation and rising energy costs per unit are also driving HVAC system owners to seek regular maintenance and repair services for their HVAC systems. All these factors are expected to contribute directly to the growth of the heating, ventilation & air conditioning aftermarket market in the region during the forecast period.
In 2020, the market faced particular challenges due to the COVID-19 pandemic. The COVID-19 outbreak impacted the economies of many countries across the world. This negatively impacted demand for HVAC systems. However, in the fourth quarter of 2021, many countries started massive COVID-19 vaccination campaigns. Due to this restrictions were lifted in all sectors, including industrial, commercial, and residential. This restored the market supply chain. Along with this, vendors in the market also focused on providing energy-efficient HVAC systems in compact packages, further increasing their market share globally. Therefore, the market is expected to grow during the forecast period.
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.
AB Electrolux: The company provides different types of HVAC products and services in APAC, the Middle East, Europe, North America, and South America.
Carrier Global Corp: The company provides HVAC products and services for both residential and commercial customers.
We also have detailed analyses of the market’s competitive landscape and offer information on 18 market vendors, including:
The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.
The HVAC aftermarket market 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 Aftermarket Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.77% |
Market growth 2023-2027 |
USD 32,929.46 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.36 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Electrolux, Carrier Global Corp., Daikin Industries Ltd., Danfoss AS, Emerson Electric Co., Fujitsu Ltd., Haier Smart Home Co. Ltd., Hitachi Ltd., Lennox International Inc., LG Electronics Inc., MIDEA Group, Robert Bosch GmbH, Samsung Electronics Co. Ltd., Siemens AG, Gree Electric Appliances lnc.of Zhuhai, Johnson Controls International Plc, Nortek, Trane Technologies Plc, and Vaillant GmbH |
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 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 Market Share of Vendors
6 Five Forces Analysis
7 Market Segmentation by Product
8 Market Segmentation by End-user
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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