Global HVAC Systems market anticipated to expand at 5.9% CAGR till 2026

Amid the COVID-19 crisis, the global market for Heating, Ventilation and Air Conditioning (HVAC) Systems estimated at US$201 Billion in the year 2020, and is expected to expand at a compound annual growth rate (CAGR) of 5.9 percent from 2021 to 2026.

HVAC demand is primarily driven by the advent of novel technologically advanced products, which are energy-efficient and can be remotely accessed. The use of natural refrigerants, such as CO2, coupled with increasing efforts by various governments across the globe to promote energy-efficient products is expected to drive the market. Furthermore, a paradigm shift towards the adoption of energy-efficient air conditioners that reduce costs and power wastage is expected to upkeep HVAC demand over the forecast period.

In addition to addressing the customer’s comfort demands for HVAC systems, companies are developing products such as, IoT-enabled heating and cooling systems offer real-time monitoring of system functionality and condition. These HVAC systems also alert customers or managers on system failure, unusual behaviour, and maintenance cycle to reduce repair costs. These factors are anticipated to increase the product demand in the near future. Due to unpredictable climatic conditions and rising temperatures, several customers consider HVAC equipment as a beneficial investment.

Moreover, HVAC units also add to the aesthetic value of residential and commercial places. Cooling Systems, one of the segments analysed in the report, is projected to grow at a 6.2 percent CAGR to reach US$204 Billion by the end of the analysis period. The real estate industry has been one of the primary consumers of HVAC systems. The sector comprises four subsectors – retail, housing, commercial, and hospitality.

The growth of the real estate industry is increasing owing to the rising demand for office space, sub-urban & urban accommodations, and the growth of the corporate sector, subsequently favouring the product demand. The spread of coronavirus has had a negative impact on the market in 2020 but is expected to provide impetus to the market in the long run.

Owing to increased awareness about the health hazards caused by the impure surrounding air, more and more customers are investing in HVAC systems for purifying the air and creating a hygienic indoor environment. Thus, the pandemic has opened up new opportunities for the market participants.