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The HVAC equipment market size is forecast to increase by USD 52.1 billion at a CAGR of 6.33% between 2023 and 2028. Market growth hinges on several factors, notably the uptick in residential and commercial construction, the cost efficiency of HVAC rental equipment, and the rising demand for centralized HVAC systems. These factors collectively drive the market forward, reflecting a trend towards more efficient and sustainable building practices. The increase in construction activities, especially in urban areas, underscores the need for reliable HVAC systems to ensure comfort and energy efficiency. The cost advantages of renting HVAC equipment over purchasing provide flexibility and affordability for businesses. Additionally, the shift towards centralized heating, ventilation, and air conditioning systems highlights a growing preference for integrated and energy-efficient cooling and heating solutions. These trends underscore the market's evolution towards more sustainable and efficient HVAC technologies, driving growth and innovation in the sector. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
Market Forecast 2024-2028
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The HVAC equipment 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 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 70.70 billion in 2018. 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, companies must develop these 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 58% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The growth of the 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.
The market is pivotal in providing efficient cooling and heating systems for various sectors, especially as they adapt to long-term climate change. Industries like the construction sector, shopping centers, industrial facilities, and warehouses rely on these systems for climate control and maintaining indoor air quality. The demand for energy-efficient HVAC systems is increasing to reduce greenhouse gas emissions. These systems incorporate ventilation and air quality management, addressing issues like air pressure, moisture, and smoke. With the integration of Internet of Things (IoT) and programmable thermostats, This equipment is becoming smarter and more efficient, offering sustainable solutions for environmental challenges. 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.
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, including residential HVAC and commercial HVAC.
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 heating, ventilation, and air conditioning 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 heating, ventilation, and air conditioning 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 heating, ventilation, and air conditioning 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. companies 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 heating, ventilation, and air conditioning system.
However, the design shall also consider the effects of fire on HVAC systems. Compliance with such regulations can increase the cost borne by the companies, 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.
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.
Electrolux Group - The company offers HVAC equipment such as air handling units, air-source heat pumps, chillers, coils and condensers and condensing units.
We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including:
A. O. Smith Corp., AAON Inc., Bosch Thermotechnik GmbH, Daikin Industries Ltd., Electrolux AB, Emerson Electric Co., Fujitsu Ltd., Gree Electric Appliances Inc. of Zhuhai, Haier Smart Home Co. Ltd., Hitachi Ltd., Ingersoll Rand Inc., Johnson Controls International Plc., Lennox International Inc., LG Electronics Inc., MIDEA Group Co. Ltd., Nortek, Rheem Manufacturing Co., Samsung Electronics Co. Ltd., Seeley International Pty Ltd., and Whirlpool Corp.
Technavio's heating, ventilation, and air conditioning equipment market forecasting report offers 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 equipment market is at the forefront of providing solutions for thermal comfort and air quality in buildings. With a focus on energy-efficient solutions and green technologies, HVAC systems play a crucial role in achieving net zero emissions and meeting zero-emission building targets. These systems include ventilation systems and air filters to reduce air pollution levels and ensure a healthy environment. They also incorporate smart heating, ventilation, and air conditioning control systems and variable speed drive technology for optimal performance. The market is driven by the need for sustainability in sustainable building projects and compliance with regulatory requirements for carbon neutrality and employee safety.
Furthermore, the market is evolving rapidly to meet the demand for energy-efficient and environmentally friendly solutions in temperature regulation and air quality. With a focus on smart building technologies and green buildings, HVAC systems are incorporating real-time data and smart devices for efficient operation. These systems play a crucial role in addressing sustainability challenges and reducing carbon emissions. They include various components such as air conditioners, boilers, and heat exchangers to provide residential space heating and cooling. The market is also witnessing advancements in machine learning and decentralized heating, ventilation, and air conditioning systems for improved performance in commercial and industrial settings.
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Market Scope |
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Report Coverage |
Details |
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Page number |
176 |
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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 6.33% |
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Market growth 2024-2028 |
USD 52.1 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.86 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 58% |
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Key countries |
China, US, Japan, Germany, 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 |
A. O. Smith Corp., AAON Inc., Bosch Thermotechnik GmbH, Daikin Industries Ltd., Electrolux AB, Emerson Electric Co., Fujitsu Ltd., Gree Electric Appliances Inc. of Zhuhai, Haier Smart Home Co. Ltd., Hitachi Ltd., Ingersoll Rand Inc., Johnson Controls International Plc., Lennox International Inc., LG Electronics Inc., MIDEA Group Co. Ltd., Nortek, Rheem Manufacturing Co., Samsung Electronics Co. Ltd., Seeley International Pty Ltd., and Whirlpool Corp. |
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Market dynamics |
Parent market analysis, market research and growth, 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 |
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Customization purview |
If our HVAC equipment market growth and trends 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 HVAC equipment 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 End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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