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HVAC Systems Market Size, Analysis 2027 | Industry Growth Report

HVAC Systems Market Analysis Report By Product, By End Use, By Region And Segment Forecasts From 2020 To 2027

Report ID: MN17619918  |  Published: July 2020  |  No of Pages: 144
Format: Electronic (PDF)  |  Industry: HVAC (Heating, Ventilation, & Air Conditioning)  |  Publisher: Grand View Research

Industry Insights

The global HVAC systems market size was worth USD 130.5 billion in 2019. It is anticipated to grow at 6.1% CAGR over the forecast duration, 2020 to 2027. Factors such as the advent of energy-efficient HVAC systems and rapid urbanization are propelling the growth of the market. Further, to promote energy-efficient HVAC systems, governments worldwide are offering a rebate, thereby, contributing to the growth of the market.

HVAC systems are gaining traction due to rising purchasing power and growing construction sectors across emerging countries. Climate change is the other major factor attributing to the growth of the HVAC systems. Due to the rising average temperature, consumers spending on these systems has increased considerably.

North America HVAC system market

Further, owing to the advent of technologies such as IoT, remote control success, and automated control systems, HVAX systems have gone through a significant transformation. An automatic control system helps in controlling the temperature and speed of the fan by detecting the surrounding climate. On the other hand, the remote control allows operating the system remotely with the help of an internet connection. The IoT-based HVAC system can provide information on a real-time basis, thereby, reducing the cost of maintenance significantly.

HVAC also adds to the aesthetic value of commercial and residential places. Key manufacturers have ramped up their investment to produce a hybrid HVAC system that uses various sources for cooling and heating. For example, Trane provides dual fuel XL16c EarthWise, which is a hybrid system for cooling and heating.    

Owing to the aforementioned advantages, the market is estimated to witness significant growth over the next few years. However, the high cost of installation and challenges involved in its operation are anticipated to hinder the market growth. Additionally, the dynamic weather pattern in different regions is likely to affect the HVAC life cycle. Damp climatic conditions can reduce the HVAC life expectancy, thereby, impeding the market growth.

Product Insights

Based on the product, the HVAC system market can be categorized into ventilation, cooling, and heating. Heating systems can be used for various applications such as molding, space heating, tensile testing, wall, and floor heating. Ventilation results in easy removal of odors, humidity, and other pollutants from the closed area or indoor area. Ventilation is highly energy-efficient in reducing the temperature and help in improving the air quality in indoor areas.

On the other hand, in 2019, the cooling system held the largest share in the market with more than 50.0% of the share. The dynamic climatic condition and considerable demand from the commercial sector are attributing to the growth of this segment. Variable Refrigerant Flow (VRF) is a cooling system that is used for applications such as food preservation, proteins, vaccines, chemicals, and enzymes. Further, these systems are used in domains such as manufacturing, food production, transportation, and healthcare among others.

End-use Insights

On the basis of end-use, the market is bifurcated into commercial, industrial and residential. Of them, the residential segment held the largest share of over 40.0% by revenue in 2019. Residential HVAC systems are simpler and smaller as compared to industrial and commercial HVAC systems. Residential systems find their application in small restaurants, small stores, and homes.

Global HVAC system market

On the other hand, the commercial segment is anticipated to grow at the maximum CAGR over the forecast duration primarily because of increased spending on construction and growing urbanization. A commercial HVAC system acquires less space and is normally located on the rooftops of a commercial building such as restaurants, hotels, shopping malls, and others. As these systems operate continuously, high energy is consumed. Replacement and retrofitting of such HVAC systems to reduce energy consumption are likely to segment the market demand.

Regional Insights

Asia Pacific led the HVAC system market occupying the highest share in 2019. Factors such as increasing population, rapid urbanization, and rising purchasing power are attributing to the growth of this region. Leading countries such as India, China, and Japan together contribute to over 70.0% of the market growth.

On the other hand, rising tourism and the real-estate industry are driving the European market. Europe and North American markets are dominated by increasing demand for HVAC units. Additionally, increasing industrialization, rising construction activities, and stringent government regulations are further projected to drive these regions’ growth. Further, increasing collaboration between industry experts and regulatory bodies is driving regional growth.

Impact of COVID-19

HVAC systems have been severely affected due to the outbreaks of COVID-19. Shutting down of different manufacturing units across the Asia Pacific, Europe and North America have adversely affected the market growth. Apart from shutting down the various manufacturing unit, consumer's spending on HVAC equipment has gone down considerably. However, with several governments lifting the restrictions and allowing manufacturing units to operate, which, in turn, is anticipated to surge the demand for HVAC systems.

HVAC Systems Market Share Insights

Key players in the market are Arkema S.A, Lennox International, Inc., LG Corporation, Samsung Electronics, Daikin Industries Ltd., and Carrier Corporation among others. Owing to the presence of leading market players, there is intense competition in the market. HVAC units are widely used in commercial, residential, and industrial as they control humidity, air quality, and temperature.

Key players are investing a heavy amount in research and development to produce innovative, cost-effective, and energy-efficient units. Air conditioning units are prevalent among HVAC systems with over 100 million units across the globe. Further, these players focus on mergers & acquisitions to consolidate their position in the market. For example, in 2019, Ingersoll Rand and Mitsubishi Electric Corporation formed a joint venture to boost the sale of HVAC and VRF systems.

Report Scope

Attribute

Details

The base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Revenue in USD Billion and CAGR from 2020 to 2027

Regional scope

North America, Europe, APAC, South America, and MEA

Country scope

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, India, China, Japan, South Korea, Australia, Brazil, Argentina, and Chile

Report coverage

Revenue forecast, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global HVAC systems market report on the basis of product, end-use, and region:

• Product Outlook (Revenue, USD Billion, 2016 - 2027)
    • Heating
    • Ventilation
    • Cooling

• End-use Outlook (Revenue, USD Billion, 2016 - 2027)
    • Residential
    • Commercial
    • Industrial

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • U.K.
        • Germany
        • France
        • Italy
        • Spain
    • the Asia Pacific
        • India
        • China
        • Japan
        • South Korea
        • Australia
    • South America
        • Brazil
        • Argentina
        • Chile
    • Middle East & Africa (MEA)

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