Industrial HVAC Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, Germany, UK, Japan, China - Size and Forecast 2024-2028

HVAC for Industrial Market Size 2024-2028

The HVAC for Industrial market size is forecast to increase by USD 7.01 billion at a CAGR of 8.63% between 2023 and 2028. The market's growth is influenced by several factors, including the increasing demand for energy-efficient HVAC systems, the growing adoption of cleanrooms across industries, and stringent regulations governing the use of explosion-proof heating, ventilation, and air conditioning equipment in hazardous environments. Energy-efficient HVAC systems are sought after for their ability to reduce energy consumption and lower operating costs. The proliferation of cleanrooms in various sectors, such as pharmaceuticals and electronics, drives the need for HVAC to maintain strict environmental controls. Additionally, stringent regulations mandate the use of explosion-proof HVAC equipment in hazardous environments to ensure safety and compliance. The report also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.

What will be the Size of the HVAC for Industrial Market During the Forecast Period?

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HVAC for Industrial Market Segmentation

The HVAC for Industrial market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• End-user Outlook
  • Process industry
  • Discrete industry
• Type Outlook 
  • HVAC equipment
  • HVAC services
• Region Outlook
  • APAC
    • China
    • India
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • North America
    • The U.S.
    • Canada
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By End-User

The market share growth by the process industry segment will be significant during the forecast period. Process industries include oil and gas, power, pulp and paper, water and wastewater treatment, chemical and petrochemical, mining and metal, pharmaceutical, and food and beverages industries. The process industry segment holds a dominating share of the market. This is primarily because government regulations and rising energy costs are prompting these industries to reduce energy use in the manufacturing process. The growing awareness among end-users about energy efficiency and environmental sustainability has increased the demand for energy-efficient systems in the process industry.

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The process industry segment was valued at USD 5.95 billion in 2018. In industrial premises, the threat of explosion due to dust or chemical or vapor leaks during operations is constant. The oil and gas, chemical and petrochemical, and mining industries are categorized as highly explosive industrial environments. However, the increasing number of accidents in such process industries has augmented concerns about safety. Therefore, the demand for explosion-proof HVAC systems has increased significantly in this market segment. 

By Region

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APAC is estimated to contribute 50% 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.

The market in APAC is expected to grow significantly during the forecast period. Countries such as China, Japan, India, Vietnam, South Korea, Malaysia, and Australia will drive market growth. China, Japan, and India are the largest markets for industrial heating, ventilation, and air conditioning in APAC. This is primarily because of the growing population, improving per capita income of people, and rapid industrialization. The market is supported by the rise in demand for industrial HVAC from the food and beverage warehousing industry. The population is growing in various APAC countries. This population growth is leading to an increase in the consumption of various products, including food products. This will encourage manufacturers operating in the food and beverage industry to open new plants in this region. The economic growth in South Asia is attracting investments in several industries, including oil and gas, chemical, and petrochemical, which will drive the growth of the regional market during the forecast period.

HVAC for Industrial Market Dynamics and Customer Landscape

The market is experiencing significant growth due to the rising demand for sustainable buildings in residential buildings, commercial buildings, and industrial buildings. Advanced climate control technologies are essential for ensuring thermal comfort and maintaining optimal indoor air quality. These systems are crucial for space cooling and heating applications in the commercial sector. The increasing need for affordable housing units and commercial infrastructure drives product demand. Components such as thermostats, dampers, condenser fans, compressors, and evaporators play pivotal roles in commercial heating, ventilation, and air conditioning systems, enhancing the building's interior and regulating indoor air and humidity levels. The market also benefits from improvements in commercial HVAC systems, contributing to a higher standard of living and reducing mortality rates. Our researchers analyzed the market research and growth 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.

Key Market Driver

The increasing demand for energy-efficient HVAC systems is notably driving market growth. End-user industries are increasing their production volume to cater to the growing demand, which has augmented the need for energy-efficient equipment for different industrial processes. According to Technavio estimates, on average, almost 9% of the cost of production is spent on electricity in most industries. The increasing consumption of electricity in energy-intensive industries has propelled regulatory authorities to encourage the adoption of energy-efficient equipment.

Regulatory authorities across the world have implemented many stringent guidelines related to energy efficiency. According to the US Energy Information Administration (EIA) estimates, US residential consumers used about 3,802 terawatt-hours of electricity in 2020, of which 1.61 trillion kWh was consumed for heating, ventilation, air conditioning, and refrigeration (HVAC and R) applications, forming about 42% of the total energy consumption. These end-users persistently need to increase operational efficiency. This is encouraging process and discrete industries to shift from traditional HVAC systems to more energy-efficient ones.

In February 2022, Hitachi Air Conditioning India Ltd launched its range of energy-efficient and state-of-the-art air conditioning solutions for industrial and residential purposes. Thus, the growing demand for energy-efficient heating, ventilation, and air conditioning systems and the launch of new products by the vendors will drive the market in focus during the forecast period.

Major Market Trend

Increasing the use of renewable energy sources for HVAC systems is the primary trend in the market. The shift toward renewable energy sources is also gaining traction in the market. Strict environmental regulations will pave the way for the adoption of renewable sources. In the industrial sector, development is still in its nascent stage. The adoption of renewable energy is expected to be experienced in changing the energy mix for industrial heating, especially in Europe. Solar space heating is a method of using solar energy to reduce energy consumption for heating purposes. A solar space heating system works in conjunction with the existing building heating system, such as the oil or gas-fired heater, or independently to provide heated air for indoor space heating.

The use of solar space heating systems can enable end-users to cut down on heating fuel costs considerably. This hybrid system can also provide large-scale, cost-effective reductions in greenhouse gas emissions. The cost benefits that hybrid systems offer, in conjunction with the strict environmental regulations, will mold the market toward renewable energy sources, significantly impacting the market.

Significant Market Challenge

Environmental pollution due to HVAC systems is the major challenge impeding market growth. Pollution, especially air pollution, is a growing concern for the government in countries such as the US, China, and India. Pollution-related problems are encouraging the governments in these countries to launch various regulations to curb emissions. Heating, ventilation, and air conditioning systems can cause air and noise pollution, which can have a negative impact on the environment. The use of HVAC systems is adding to the problem of air pollution as they release hazardous gases such as hydrochlorofluorocarbons and chlorofluorocarbons into the environment. These gases have a negative impact on the environment as they are greenhouse gases that trap heat and lead to the depletion of the earth's ozone layer.

Moreover, as global climate change is increasing the average global temperatures, the use of heating, ventilation, and air conditioning is also increasing, which is contributing to environmental pollution and climate change. HVAC systems consume a lot of electricity, which puts a strain on the power generation sector. It also leads to more pollution, as many countries use coal for electricity generation. In addition, electricity generators are used in many places that face fluctuations in the power supply or frequent power outages, which leads to the release of carbon monoxide and other hazardous gases into the atmosphere, thus resulting in air pollution. Hence, an increase in air pollution levels because of HVAC systems can hinder the growth of the market during the forecast period.

HVAC for Industrial Market Customer Landscape

The HVAC for Industrial 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 HVAC for Industrial market research report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Market Customer Landscape

Key Companies & Market Insights

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.

Robert Bosch GmbH - The company offers industrial HVAC such as Solar thermal heating systems, Ventilation, and air conditioning systems, and Intrusion alarm systems. 

The HVAC for Industrial market research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Alfa Laval AB
• Carrier Global Corp.
• Daikin Industries Ltd.
• Emerson Electric Co.
• Furukawa Electric Co. Ltd.
• Hitachi Ltd.
• Honeywell International Inc.
• Ingersoll Rand Inc.
• Johnson Controls International Plc.
• Lennox International Inc.
• LG Electronics Inc.
• MIDEA Group Co. Ltd.
• Mitsubishi Electric Corp.
• Panasonic Holdings Corp.
• Samsung Electronics Co. Ltd.
• Shield Air Solutions Inc.
• Specific Systems LLC
• Stryker Corp.
• WHESCO Group Inc.

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.

Market Analyst Overview

The HVAC for Industrial market is pivotal in addressing climatic changes and ensuring comfortable indoor environments amidst rapid urbanization and rising construction activities. With a focus on energy efficiency, modern systems including cooling and heating systems, air conditioners, and heat pumps cater to diverse sectors like residential and commercial construction. Programmable thermostats and smart heating, ventilation, and air conditioning systems optimize energy usage while providing real-time data on temperature and environmental factors. Challenges such as system failures are mitigated by trained professionals equipped with specialized equipment and availability of replacement parts. The market also benefits from tax rebates and federal tax credits, fostering the adoption of energy-saving products and compliance with HVAC regulations to reduce carbon footprints and environmental hazards.

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What are the Key Data Covered in this HVAC for Industrial Market Research Report?

• CAGR of the market report during the forecast period
• Detailed information of market analysis and report on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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