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The industrial HVAC market is estimated to decline at a CAGR of 6.5% between 2022 and 2027. The size of the market is forecast to increase by USD 4,714.13 million. The growth of the market depends on several factors, including increasing demand for energy-efficient HVAC systems, growing adoption of cleanrooms across industries, and stringent regulations for use of explosion-proof HVAC equipment in hazardous environments.
This report extensively covers market segmentation by end-user (process industry and discrete industry), type (HVAC equipment and HVAC services), and geography (APAC, Europe, North America, 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.
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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 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 HVAC systems and the launch of new products by the vendors will drive the market in focus during the forecast period.
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 sources 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.
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 government in these countries to launch various regulations to curb emissions. HVAC 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 HVAC 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.
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 Industrial HVAC 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.
Robert Bosch GmbH - The company offers industrial HVAC such as Solar thermal heating systems, Ventilation, and air conditioning systems, and Intrusion alarm systems.
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 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 industrial HVAC systems in the process industry.
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The process industry segment was valued at USD 5,958.56 million in 2017 and continue to grow by 2021. 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.
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APAC is projected to contribute 49% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The industrial HVAC 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 HVAC 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 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.
The market in the region witnessed certain challenges in 2020. The outbreak of COVID-19 affected many countries in the region, including China, India, South Korea, and Japan. However, from Q4 2021 onwards, many countries, including China, India, South Korea, and Japan, started conducting large-scale COVID-19 vaccination drives, and therefore, the restrictions on all sectors, including the industrial, were removed. This helped in the restoration of supply chains in the market in focus. Vendors in the market in APAC have also been focusing on expanding their operating base. Such expansions by the vendors in the region will drive growth in the market in focus during the forecast period.
The 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. The market has been segmented by end-user (process industry and discrete industry), type (HVAC equipment and HVAC services), and geography (APAC, Europe, North America, South America, and Middle East and Africa).
Industrial HVAC Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Decelerate at a CAGR of 6.5% |
Market growth 2023-2027 |
USD 4,714.13 million |
Market structure |
Fragmented |
YoY growth (%) |
7.4 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALFA LAVAL, 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., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Shield Air Solutions Inc., Specific Systems LLC, Stryker Corp., and WHESCO Group Inc. |
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, and 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. |
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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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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