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Heating, Ventilation and Air Conditioning (HVAC) Systems - Global Market Trajectory & Analytics

  • ID: 4805533
  • Report
  • January 2022
  • Region: Global
  • 466 Pages
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • Daikin Industries Ltd.
  • Electrolux AB
  • Fujitsu Ltd.
  • Hitachi Ltd.
  • Lennox International Inc.
  • Midea Group Co., Ltd.

Global Heating, Ventilation and Air Conditioning (HVAC) Systems Market to Reach US$252.7 Billion by the Year 2026


Heating, ventilation, and air conditioning (HVAC) systems are important and indispensable with omnipresent applications in virtually all buildings and factories. HVAC systems are extensively employed in residential and commercial buildings across various sectors, including education, healthcare, retail, office, government and airport. Growth in the market is anticipated to be propelled by increasing demand for energy-efficient HVAC systems for reducing energy consumption and carbon emissions. Rising concerns over climate change, increasing energy prices and carbon emissions continue to push the adoption of HVAC systems in commercial spaces. The market is also set to gain from the increasing demand for energy saving products. Rebates for energy-efficient systems such as air conditioning and HVAC are encouraging commercial building users to implement and upgrade HVAC systems. In recent years the industry witnessed a sea of change in the technology employed largely as a result of consumers` desire to have advanced micro controls integrated into their systems, and also due to a spurt in demand for eco-friendly refrigerants. Therefore, technology improvements in the recent past have been geared towards meeting energy efficiency levels mandated by Governments across the world and convenience expected by average consumers.

Amid the COVID-19 crisis, the global market for Heating, Ventilation and Air Conditioning (HVAC) Systems estimated at US$175.9 Billion in the year 2020, is projected to reach a revised size of US$252.7 Billion by 2026, growing at a CAGR of 6.3% over the analysis period. Cooling Systems, one of the segments analyzed in the report, is projected to grow at a 6.6% CAGR to reach US$198.3 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Heating Systems segment is readjusted to a revised 5.6% CAGR for the next 7-year period. This segment currently accounts for a 17.8% share of the global Heating, Ventilation and Air Conditioning (HVAC) Systems market. Demand for heat pumps is attributed to availability of systems with advanced functions that allow space heating and cooling while also heating water. The ability of heat pumps to offer higher efficiency as compared to other space heating and cooling unit is expected to further increase their adoption in the coming years. The climate change and gradually increasing average temperature are driving the adoption of cooling equipment during summers.

The U.S. Market is Estimated at $31 Billion in 2021, While China is Forecast to Reach $53.3 Billion by 2026


The Heating, Ventilation and Air Conditioning (HVAC) Systems market in the U.S. is estimated at US$31 Billion in the year 2021. The country currently accounts for a 16.9% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$53.3 Billion in the year 2026 trailing a CAGR of 7.2% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.2% and 6.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.4% CAGR while Rest of European market (as defined in the study) will reach US$10.6 Billion by the end of the analysis period. The demand for air conditioners in developing regions such as Asia-Pacific is very high with some households owning more than one appliance, whereas the demand for air conditioners from the developed regions remains comparatively low. The market in Asia-Pacific is anticipated to also benefit from technological advancements and increasing investment in the consumer electronics sector across the region. The market in developed regions is propelled by rising consumer awareness about star-labeled HVAC products, increasing use of VRV and adoption of inverter-based air conditioning systems.

Ventilation Systems Segment to Reach $22.9 Billion by 2026


In the global Ventilation Systems segment, USA, Canada, Japan, China and Europe will drive the 4.26% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$12 Billion in the year 2020 will reach a projected size of US$16.2 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$5 Billion by the year 2026, while Latin America will expand at a 5.5% CAGR through the analysis period.

Select Competitors (Total 136 Featured):

  • Daikin Industries Ltd.
  • Danfoss A/S
  • Electrolux AB
  • Emerson Electric Company
  • Fujitsu Ltd.
  • GREE, Inc.
  • Hitachi Ltd.
  • Honeywell International, Inc.
  • Ingersoll-Rand PLC
  • Johnson Controls International PLC
  • Lennox International Inc.
  • LG Electronics Inc.
  • Midea Group Co., Ltd.
  • Mitsubishi Electric Corporation
  • Nortek Global HVAC LLC
  • Panasonic Corporation
  • Qingdao Haier Co., Ltd.
  • Samsung Electronics Co., Ltd.
  • United Technologies Corporation (UTC)
  • Whirlpool Corporation
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Daikin Industries Ltd.
  • Electrolux AB
  • Fujitsu Ltd.
  • Hitachi Ltd.
  • Lennox International Inc.
  • Midea Group Co., Ltd.
I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Impact of COVID-19 Pandemic and Looming Global Recession: 2020 Marked as a Year of Disruption & Transformation
  • As the Race between the Virus & Vaccines Intensifies, Where is the World Economy Headed in 2021?
  • EXHIBIT 1: World Economic Growth Projections (Real GDP, Annual % Change) for 2020 through 2022
  • Pandemic-Led Challenges Leave Commercial HVAC Industry Out in the Cold
  • COVID-19-Led Bright Points
  • Pandemic-Hit HVAC Manufacturers Find Solace in Changing Customer Needs
  • COVID-19 Disruptions Lead to Spike in Unit Prices for HVAC Systems
  • Role of HVAC Systems in Increasing or Mitigating the Risk of COVID-19 Transmission
  • Key Recommendations and Tools for Improving Building Ventilation
  • HVAC Systems with Filtration: Relevant Answer to Tough COVID-19 Test
  • Global Market Prospects & Outlook
  • Prominent Challenges Daring Expansion of HVAC Market
  • HVAC Industry Deep Dive Reveals Upcoming, Game-Changing Trends
  • Sustainability & Technology: Elements Central to Latest Trends in HVAC Industry
  • Climate Change: An Important Driving Factor for Energy-efficient HVAC Systems
  • EXHIBIT 2: HVAC Energy Use by End-Use (in %)
  • Millennial Generation Plays an Important Role
  • Asia-Pacific Continues to Dominate Global Market
  • Competitive Scenario
  • HVAC Companies Adapt Strategies to Navigate Unsettling Phase of COVID-19
  • EXHIBIT 3: Global HVAC Systems Competitor Market Share Scenario (in %): 2021E
  • Recent Market Activity
  • Select Global Brands

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS
  • Pressing Need to Cut Energy Consumption and Operational Costs Impels Energy Efficient HVAC Systems Market
  • Select Innovations Enabling Efficient and High-Performance HVAC Systems
  • Use of Multi-Enzyme Solutions
  • Sustainable Retrofit
  • Air Conditioning with Ice Power
  • Digital Ceilings
  • Smart Glasses
  • Sustainable HVAC Ductwork
  • Major Market Restraints
  • Trends in HVAC Industry Taking Energy Efficiency to Next Level
  • Smart HVAC Systems Hold Immense Potential
  • Smart Thermostats: An Important Development
  • Integration of HVAC Systems and IoT Offers New Opportunities
  • AI for Reduced Building Heating & Cooling Expenses
  • Importance of Improving the Efficiency of HVAC Systems in US School Buildings
  • Cloud-Connected HVAC Systems Enable Creation of Smart and Efficient Facilities
  • Automated Control Systems for HVAC Equipment Gain Traction in Buildings
  • Alternative Energy Sources Garner Attention
  • Solar Powered HVAC Systems Gain Traction
  • EXHIBIT 4: Global Solar Power Market: Solar PV Capacity (in GW) and PV Generation (in TWh) for the Years 2017, 2019, 2021 and 2023
  • Heat Pumps Dominate the HVAC Market
  • Geothermal Cooling & Heating Presents Viable Option to Improve Building Efficiency
  • Closed- and Open-Loop Systems
  • Demand for Ductless ACs on the Rise
  • Strong Growth in Demand for Ductless Multi-Zone Systems
  • Global VRF System Market to Gain Pace
  • Outdoor Units Lead the Market
  • HVACs with Air Quality Systems: High in Demand
  • Air Conditioning Systems: Climate Change and Rising Temperatures Drive Market Growth
  • EXHIBIT 5: Adoption (in %) of Air Conditioning in Households
  • Deployment of Environment-Friendly Refrigerants Increases in ACs
  • List of Various Refrigerants Types
  • Green Refrigerants to Replace Hydro Fluorocarbons
  • Next-generation Factory Assembled Cooling Towers to Positively Impact Bottom Line of HVAC and Industrial Processes
  • Rise in Adoption of DeVAP systems
  • Rising Interest in Indoor Growth Facilities: An Emerging Market Driver
  • Construction Sector Investments Strongly Influence Market Prospects
  • EXHIBIT 6: Global Construction Industry Growth Outlook (in %) for years 2019 through 2025
  • EXHIBIT 7: Global Construction Market: Annual % Growth by Major Geographies for 2019-2025
  • Replacement and Refurbishment Demand for HVAC Systems
  • Urbanization Remains a Key Growth Driver
  • EXHIBIT 8: World Urban Population in Thousands: 1950-2050
  • EXHIBIT 9: Degree of Urbanization Worldwide: Urban Population as a % of Total Population by Geographic Region for the Years 1950, 1970, 1990, 2018, 2030 and 2050
  • Affluent Middle Class Opens Up Asia into a Major Market
  • EXHIBIT 10: Growing Middle Class Population in Asia Pacific Drives Demand for New HVAC Systems: Global Middle Class Population (In Million) by Region for the Years 2020, 2025 and 2030
  • EXHIBIT 11: Expanding Base of Middle Class in the Asian Region Provides the Perfect Platform for HVAC Systems: Global Middle Class Spending (US$ Trillion) by Region for the Years 2020, 2025, and 2030
  • Impact of COVID-19 on the Operation and Energy Consumption of Future HVAC Systems: Challenges Associated with Designing of HVAC Systems

4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

UNITED STATES
  • Government Initiatives Prop Up Demand for Energy Efficient Models
  • Positive Signs of Revival in Construction Market Augurs Well for HVAC Systems
  • After Facing a Severe Blow, Recovery in Construction Sector to Spur Growth
  • EXHIBIT 12: US Monthly Construction Spending in US$ Billion: Dec 2020-July 2021
  • US Commercial Construction Rebounds with Anticipated Spending on Infrastructure Projects
  • EXHIBIT 13: Total Construction Starts % Change in the US (Jan-July): 2019 Vs 2020
  • EXHIBIT 14: US Non-Residential Spending Trends (% YoY) Growth by Sector: 2021 and 2022
  • EXHIBIT 15: US New Construction Starts in US$ Billion by Sector: 2020
  • Rise in Home Buying Activity Benefits Demand
  • EXHIBIT 16: Housing Starts in US in Thousands: 2015-2020
  • EXHIBIT 17: Number of Housing Starts in Thousand Units by Type for Single-Family Units and Multi-Family Units (Jan 2021-Aug 2021)
  • Market Analytics

CANADA

JAPAN
  • Market Overview
  • Efforts toward Energy Conservation Impact Japanese HVAC Industry
  • Competitive Scenario
  • Market Analytics

CHINA
  • China Evolves into Core Market for HVAC Systems
  • China to Remain a Dominant Market for HVAC Systems in the Long Term
  • EXHIBIT 18: China’s Current Dominant Hold on Global Manufacturing Output & Its Central Role in World Trade Makes the Country a Major Market for HVAC Systems in Asia: Percentage Breakdown of Global Manufacturing Output by Region for the Years 1990, 2013, 2017 & 2025
  • Market Analytics

EUROPE

FRANCE

GERMANY

ITALY

UNITED KINGDOM

SPAIN

RUSSIA

REST OF EUROPE

ASIA-PACIFIC
  • Market Overview
  • Rising Standards of Living Fuel Market Expansion
  • Market Analytics

AUSTRALIA

INDIA
  • High Growth Opportunities Identified in India
  • Healthy Demand for Air Conditioner Systems
  • Regional Demand Patterns
  • Energy-Efficient Products Foray into the Market
  • Adoption of Natural Refrigerants
  • Market Analytics

SOUTH KOREA

REST OF ASIA-PACIFIC

LATIN AMERICA

ARGENTINA

BRAZIL

MEXICO

REST OF LATIN AMERICA

MIDDLE EAST
  • Market Overview
  • Market Analytics

IRAN

ISRAEL

SAUDI ARABIA

UNITED ARAB EMIRATES
  • Eco-Friendly Air Conditioning Systems Gain Traction
  • Market Analytics

REST OF MIDDLE EAST

AFRICA

IV. COMPETITION
  • Total Companies Profiled: 136
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • Daikin Industries Ltd.
  • Danfoss A/S
  • Electrolux AB
  • Emerson Electric Company
  • Fujitsu Ltd.
  • GREE, Inc.
  • Hitachi Ltd.
  • Honeywell International, Inc.
  • Ingersoll-Rand PLC
  • Johnson Controls International PLC
  • Lennox International Inc.
  • LG Electronics Inc.
  • Midea Group Co., Ltd.
  • Mitsubishi Electric Corporation
  • Nortek Global HVAC LLC
  • Panasonic Corporation
  • Qingdao Haier Co., Ltd.
  • Samsung Electronics Co., Ltd.
  • United Technologies Corporation (UTC)
  • Whirlpool Corporation
Note: Product cover images may vary from those shown