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The global heating, ventilation, and air conditioning (HVAC) systems market is anticipated to be worth USD 234.9 billion by 2030 and grow at a CAGR of 6.3%. Key trends like changes in climatic conditions, need and desire for an ambient surrounding, and availability of innovative and energy-efficient features in HVAC systems are likely to gain more traction in the upcoming years. Additionally, fan settings, indoor air quality, unit age, size of the system, and preventive maintenance are the factors to boost the efficiency of HVACs, continue to encourage the industry growth for the foreseeable future.
The COVID-19 pandemic laid a negative impact on the market resulting in supply chain shortages. But later the market recovery was positive owing to the resumption of manufacturing activities post lockdown. Besides, the industry is expected to undergo several changes like focus on energy efficiency, adoption of green initiatives by various original equipment manufacturers (OEMs), implementation of eco-friendly HVAC units, and the use of renewable resources. These alterations have enabled costs reductions as well keeps the greenhouse emissions under permissible limits. Therefore, the post COVID-19 changes in market and growth in environmental awareness is expected to increase the demand for HVAC systems in the near future.
An increase in the use of heating equipment and geothermal cooling has been observed in past years which resulted in the reduction of fuel-based equipment. Besides, urban consumers are more inclined toward home comfort which is likely to contribute to the industry expansion during the forecast period. To meet the demand, OEMs are focused on the product developments that are not limited to being energy-efficient but also incorporated with innovative technologies for better connectivity. Additionally, the installation of smart meters, thermostats, and sensors in residential buildings that are centrally controlled using computers and smartphones through software-enabled HVAC systems. Thus, all these factors tend to favor the long-term growth of the industry during the forecast period.
In terms of segment, the cooling segment dominated the HVAC systems market due to the surge in the utilization of air conditioners especially, in tropical regions. For instance, according to the International Energy Agency (IEA) data, cooling usually accounts for 10% of electricity consumption globally. This statistical data implies a high demand for cooling systems like unitary air conditioners, which is likely to boost the industry’s growth. Besides, the heating segment upheld a 20% share in 2021 and has been experiencing growth over the past years. Due to the market transition from a fuel-based model to a low-carbon solution, the segment is expected to grow vertically.
In terms of region, Asia Pacific dominated the market on the account of increased urbanization, population expansion, and surging consumer disposable income. Additionally, the commercial sector in the U.S. is expected to create prospects for future growth. Hence, all these constitute as essential factors to drive the regional market growth during the forecast period. On the other hand, North America is also projected to expand in the forecast period owing to market maturity, and aging infrastructure that is intended to develop various revenue streams. A major growth objective is to scale-up the maintenance and service facility of HVAC units within the region.
Key players with the adoption of the go-to-market strategy are focused to create market expansion and maintain competition through mergers and acquisitions. For instance, Lennox International, Inc. inflated its ultra-low emission gas furnace line in December 2019 by inaugurating four furnaces that include SL280NV, SL297NV, EL180NE, and EL195LE. These were compiled with the latest San Joaquin Valley Air Pollution Control District Ultra Low NOx Rule 4905 and California South Coast Air Quality Management District’s Rule 1111. The purpose was to reduce nitrogen oxide emission, which is likely to increase the demand for HVAC systems.
Research Support Specialist, USA