Residential Heating, Ventilation, and Air Conditioning (HVAC) Market Analysis APAC,Europe,North America,Middle East and Africa,South America - US,China,Japan,Germany,UK - Size and Forecast 2024-2028

HVAC for Residential Market Size 2024-2028

The HVAC for Residential Market size is forecast to increase by USD 42.39 billion, at a CAGR of 8.56% between 2023 and 2028. The residential HVAC market is witnessing growth due to the significant role of the construction industry in driving demand. The rise in commercial and residential buildings boosts the need for HVAC equipment like heating equipment and air conditioners. The APAC region, a major construction market, is expected to lead, driven by infrastructure and real estate developments. Green building trends increase environmental concerns, spurring HVAC demand. Residential heating, ventilation, and air conditioning systems maintain indoor air quality in various buildings. Challenges arise with the shift towards renewable energy sources, potentially impacting the demand for traditional heating equipment and HVAC. However, policy support and technological advancements, such as smart equipment by brands like Hisense, aid efficiency and sustainability goals, reducing greenhouse gas emissions and reliance on non-renewable resources like natural gas and electricity.

HVAC for Residential Market Forecasting and Size

Market  Forecast 2024-2028

To learn more about this HVAC for Residential market report,  Request Free Sample

HVAC for Residential Market Segmentation

The HVAC for Residential market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Type Outlook 
  • HVAC equipment
  • HVAC services

• Product Outlook 
  • Air conditioning system
  • Heating system
  • Ventilating system

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Type Segment Analysis: 

The market share growth by the HVAC equipment segment will be significant during the forecast period. Heating, ventilation, and air conditioning equipment comprises heating equipment, ventilation equipment, and air conditioning systems. Builders of new modern industrial spaces are not only focusing on the design and architectural aspects but also on sustainable practices. This has led to the adoption of energy-saving systems such as HVAC units and renewable power generation sources in industrial spaces.

Request Free Sample

The heating, ventilation, and air conditioning equipment segment was the largest and was valued at USD 43.18 billion in 2018. However, many industrial end-users in the US are now adopting VRF technology. The introduction of advanced ventilation equipment to improve outdoor air quality and reduce the energy costs incurred on ventilation systems is projected to increase the setting up of new manufacturing facilities for ventilation and air conditioning across North America and the Asia-Pacific. Furthermore, stringent government regulations regarding carbon emissions and air quality maintenance in the industrial sectors are estimated to boost the growth of the market during the forecast period.

Product Segment Analysis

Based on the product, the market has been segmented into air conditioning system, heating system, and ventilating system. The air conditioning system?segment will account for the largest share of this segment. Air conditioning systems are used to moderate the air quality and temperature within an enclosed space in residential buildings. Air conditioning is also used for removing particulates and humidifying/dehumidifying the space. These systems often utilize high-power fans to distribute the conditioned air. Air conditioning equipment is required to maintain the quality of indoor air as exterior temperature changes throughout the year, and it becomes difficult for people to adapt, especially in enclosed spaces that do not have adequate ventilation. Also, the increasing number of high-rise buildings and residential complexes across the world is boosting the adoption of air conditioning equipment. Thus, the air conditioning segment is expected to drive the growth of the market during the forecast period.

Regional Analysis

For more insights on the market share of various regions, Download Sample PDF now!

APAC is estimated to contribute 49% 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 heating, ventilation, and air conditioning residential market in APAC is primarily driven by the increasing residential construction in countries such as India and China. The increasing construction of residential buildings, along with increasing demand for energy-efficient HVAC systems, will also support the growth of the residential HVAC market in the region during the forecast period. Many APAC countries are witnessing an increase in population. This population growth is leading to an increase in demand for new residential houses in the region. 

In addition, the new infrastructural development projects are likely to fuel the demand for energy-efficient heating, ventilation, and air conditioning equipment, which will subsequently drive the growth of the residential heating, ventilation, and air conditioning market in the region during the forecast period. The rising number of small residential setups in countries such as China, India, and Japan has resulted in the launch of compact air conditioning and air handling equipment in the region. Vendors are focusing on providing energy-efficient air-conditioning and ventilation systems in a compact package to increase their share in the market in APAC during the forecast period.

HVAC for Residential Market Dynamics and Customer Landscape 

The Residential HVAC market is experiencing robust growth, driven by the rise in demand for HVAC systems in the construction industry to cater to the comfort needs of homeowners amidst growing temperatures and increasing consumer spending on residential properties. An emerging trend in this market is the increasing use of renewable energy sources such as heat pumps for residential heating, supported by policy initiatives aimed at reducing greenhouse gas emissions and promoting environmentally friendly practices.

However, the industry faces challenges including the lack of skilled labor in HVAC manufacturing companies, which can hinder production and innovation efforts. To address these challenges and capitalize on market opportunities, companies are investing in smart equipment, AI, analytics, and automation, with solutions like those offered by Hisense, IntelliPro, and CoolingXpert. Technologies such as sleep mode and temperature optimization help enhance energy efficiency, reducing reliance on traditional natural gas and electricity sources. As the market continues to evolve, market research and growth reports play a crucial role in guiding strategic decisions and staying ahead of industry trends.

Key Market Driver- Rise in demand for HVAC in the construction industry

The residential HVAC market is witnessing growth due to the significant role of the construction industry in driving the demand for HVAC systems. The rise in the construction of commercial and residential buildings is driving the demand for heating, ventilation, and air conditioning equipment and services, driving residential heating, ventilation, and air conditioning market growth. The construction industry is expanding worldwide, and numerous factors are contributing to its growth. The APAC region is the major construction market and is expected to grow at the highest rate, primarily due to infrastructure and real estate developments. The trend of green buildings is on the rise, leading to an increase in environmental concerns and driving the demand for HVAC systems. These systems are widely used in office buildings and high-rise buildings to maintain the temperature within the premises. 

However, most countries in APAC prefer ductless air conditioning as it is more economical and consumes less energy than central air conditioning for the residential sector. Ductless systems can be used to heat and cool the entire house or installed in new room additions, individual rooms, or basements to ensure zoned HVAC solutions. Various ductless solutions, such as mini-split Acs, are preferred as they are more economical and flexible than a central HVAC system. Mini-split ACs can either be installed in ceilings, walls, or floors. Such a development is expected to drive the growth of the market during the forecast period.

Significant Market Trends- Increasing use of renewable energy sources for residential heating

The shift toward renewable energy sources for greater prominence in residential heating systems is a challenge to vendors, as it will curb the demand for boiler-based heating systems. In 2021, Strict environmental regulations will pave the way for the adoption of renewable sources. The adoption of renewable sources is expected to be experienced in changing the energy mix for residential heating, particularly in Europe. Renewable sources can potentially provide approximately 40% of the energy used for residential heating by 2035.

Moreover, the bright spot is that with the given legislation, the share of low-cost renewable heat can be significantly increased with the introduction of hybrid heating systems. The replacement of existing heating, ventilation, and air conditioning systems with hybrid systems is relatively easy with minimum building refurbishment. Thus, increasing use of renewable energy sources for residential heating is expected to drive the growth of the market during the forecast period.

Major Market Challenge - Lack of skilled labor in HVAC manufacturing companies

Manufacturing advanced modern HVAC systems and providing aftermarket services are the most important factors for HVAC manufacturers. Technical skills and knowledge are mandatory while installing or handling any type of heating, ventilation, and air conditioning system. At present, retaining and finding skilled labor are the major challenges faced by HVAC contractors. The shortage of labor will affect the profit margins of manufacturers as aftermarket services are affected.

Moreover, HVAC companies are facing challenges in filling up HVAC technician job openings. With the shortage of skilled personnel and an oversupply of owners, contractors will need to be more vigilant in recruiting new talent. Companies lacking desirable benefits and advancement opportunities may fail to sign in vital talent, which is required to keep their businesses running. Such factors may hinder the growth of the market during the forecast period.

Major HVAC for Residential Market Companies

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.

Daikin Industries Ltd. - The company offers residential HVAC-products such as Daikin POLARA wall mount cooling only single zone air conditioners, 19 Series Wall Mount cooling only single zone air conditioner, Daikin ATMOSPHERA wall mount heat pump, Daikin FDMQ heating and cooling multi zone systems etc.

We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including Carrier Global Corp., Daikin Industries Ltd., Danfoss AS, Electrolux AB, Fujitsu Ltd., Gree Electric Appliances Inc. of Zhuhai, Haier Smart Home Co. Ltd., Honeywell International Inc., Johnson Controls International Plc, Lennox International Inc., LG Electronics Inc., MIDEA Group Co. Ltd., Paloma Co. Ltd., Panasonic Holdings Corp., Samsung Electronics Co. Ltd., Systemair AB, Toshiba Corp., Trane Technologies Plc, Whirlpool Corp., and National HVAC-Service. 

Technavio's HVAC for Residential market forecast report offers an in-depth market growth analysis 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.  

Market Analyst Overview

The HVAC for residential market is witnessing unprecedented growth due to increasing consumer spending and the necessity for cooling solutions in growing temperatures. Shipments of air conditioners and heat pumps are on the rise, especially in cold regions where policy support aims to reduce greenhouse gas emissions. Smart equipment such as Hisense's IntelliPro and CoolingXpert offer automation and analytics, including features like sleep mode to optimize energy usage. With a focus on sustainability, the market is shifting towards natural gas and electricity-powered systems, bolstering the global supply chain for raw materials and enhancing delivery time. 

Air ventilators and filtration systems from companies like Ensavior combat air pollution and improve indoor air quality, crucial for mitigating risks like virus spread and respiratory infections, particularly in regions like California where policy regulations are stringent. Major market players such as Carrier Corporation, Robert Bosch, and Mitsubishi Electric drive innovation with energy-efficient systems and novel technology solutions. However, challenges like semiconductor chip shortages and workforce retirement pose hurdles to the semi-consolidated market, necessitating research and development initiatives to meet thermal comfort demands in residential construction activities and commercial sectors alike. 

Request Sample PDF

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

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

We can help! Our analysts can customize this HVAC for Residential market research report to meet your requirements. Get in touch