The HVAC system market to reach US$ 455.96 billion by 2028
There is a growing penetration of IoT enabled devices across residential, commercial, and industrial sectors. Taking advantage of the same, and to provide their customers with unique solutions, HVAC manufacturers developed the smart HVAC system. These systems utilize wireless technology to communicate with nearby smart devices and adjust the indoor environment automatically. Additionally, in commercial settings, these systems can aid in energy saving while providing a quieter environment. Furthermore, harnessing the power of artificial intelligence (AI) and machine learning(ML), such systems can be improvised for predictive maintenance, thus offering better cost savings and longer operational life. Owing to integration of such advanced technologies, adoption of smart HVAC systems has been rising across residential, commercial, and industrial sectors. HVAC manufacturers have been entering into collaborations with different ecosystem companies or improving their product offerings. All such factors have been collectively driving the HVAC system market size.
Impact of COVID-19 Pandemic on HVAC System Market Growth
The continuous growth in the COVID-19 patient pool compelled government authorities across the US and other countries to impose stringent travel bans and social restrictions in the first three quarters of 2020, which led to significant disruptions in construction industry and manufacturing plants among others. Containment measures also led to the limited availability of the workforce, which further hampered manufacturing, supply, sales and installation of these systems. Hence HVAC system market size witnessed significant decline during this period. The HVAC system market growth experienced a slowdown owing to the presence of limited workers in manufacturing facilities, temporary shutdown of factories, and reduced demand from residential, commercial, and industrial sectors in 2020.
Market Insights – HVAC System Market
The growth in the construction industry in the countries such as the US, UK, and emerging economies like China and India is influencing the increasing demand for the installation of HVAC systems. These countries have also witnessed rising activity in the industrial sector, comprising manufacturing facilities and other institutional and industrial facilities, which has been driving the market demand for HVAC systems. Further, a green initiative by government authorities across the globe is boosting the demand for eco-friendly HVAC systems. For instance, in 2022, Chromasun, a manufacturer in Australia, is developing chillers that utilize gas and solar panels to function and are very energy efficient.
In China, after recovering from the COVID-19 pandemic in the past few years, there has been a rise in construction activities and a rise in demand for energy-saving equipment. European countries such as Germany and the UK are experiencing high growth in their construction sector, which will spur the growth of HVAC products in the region. In addition, several trends like smart homes and green energy with a focus on enhancing energy efficiency using advanced HVAC technologies across countries such as the US, Germany, and Italy are expected to offer lucrative opportunities for market growth. However, the COVID-19 outbreak has hampered the global HVAC system market. The construction industry has also been adversely affected by restrictions on travel and limitations in the supply chain for raw materials.
The global HVAC system market is highly fragmented. Overall, there is strong competition among current market players. The surge in demand for eco-friendly HVAC systems and smart homes has pushed participants to undertake innovative developments in HVAC technologies with a focus on enhancing energy efficiency. Significant corporations are engaging in partnerships, acquisitions, product innovation, and development strategies, which are boosting HVAC system market growth.
Based on component, the HVAC system market is segmented into thermostat, air handling units (AHU), central ACs, furnace, heat pump, compressor, others. Different type of components is used in HVAC system which plays distinct role from each other. Every HVAC system consists of different primary parts which makes the HVAC system work properly. The thermostat is a piece of hardware that is mounted on a wall within premises. The thermostat shows the ambient temperature and uses this data to turn on and off HVAC system. Its objective is to regulate the system so that when user adjusts the temperature inside the premises it does so with just the right amount of warm or chilly air.
The HVAC system market analysis is segmented into component, type, implementation, and application. Based on component, the HVAC system market is segmented into thermostat, air handling units, central ACs, furnace, heat pump, compressor, and others. On the basis of type, the HVAC system market is segmented into split system, ductless system, and packaged system. Based on installation, the HVAC system market analysis is bifurcated into new installation and retrofit. On the basis of application, the market is further segmented in to residential, commercial and industrial. Based on geography, the HVAC system market is primarily segmented into North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and South America (SAM). Daikin Industries, Ltd.; Emerson Electric Co.; Rheem Manufacturing Company; Honeywell International Ltd.; Johnson Controls International plc; LG Electronics, Inc.; EVAPCO; Lennox International; Carrier AG and Trane Technologies, Inc. are among the key HVAC system market players.