HVAC Systems Analysis Report and Segment Forecasts till 2030

HVAC System market is projected to expand at a compound annual growth rate of 6.3 percent from 2022 to 2030. 

Varied climatic conditions and the need to maintain an ambient environment in a building is a key trend that is expected to impact the market over the forecast period. In recent times, the availability of smart features and energy efficiency have been key purchase criteria for most customers. The trend is expected to gain traction over the next few years. As such over the last few years the use of geothermal cooling and heating equipment has been on a rise, subsequently reducing dependence on fuel-based equipment. Customer inclination towards comfort is creating avenues for growth.

The global HVAC systems market size was valued at USD 136.3 billion in 2021. It is projected to expand at a compound annual growth rate of 6.3 percent from 2022 to 2030. 

Although the prospects look supportive, the supply chain shortages amidst the pandemic impacted the market for HVAC systems in 2020; however, the market entered recovery from H32020 onwards as manufacturing activities gradually resumed post a strict lockdown.

In the Asia Pacific, the market for HVAC systems is anticipated to witness healthy growth over the mid-term. An increase in multi-family and individual homeowners is creating avenues for future growth. The HVAC industry is gradually shifting focus on energy efficiency. Green initiatives are the focus area for several OEMs with an emphasis on saving money while reducing greenhouse emissions. Therefore, over the recent years, there has been a shift toward eco-friendly HVAC units. This includes products that consume less power and operate on renewable sources of energy thereby reducing energy costs.

To meet the demand OEMs are developing products that are not just energy-efficient but also incorporate the latest technologies offering better connectivity. Today buildings constructed are “green” resulting in an increase in installations of thermostats, sensors, and smart meters that can be controlled from a smartphone or PC. The software enabled HVAC systems are also trending, and are expected to create opportunities over the forecast period. Technology is slowly making in-roads in the HVAC field, creating favorable long-term growth avenues.

The cooling segment dominated the market for HVAC systems and accounted for the largest revenue share of 54.7 percent in 2021. According to the data published by the International Energy Agency (IEA), cooling accounts for over 10 percent of the world’s electricity consumption. The statistics are huge and probably explain why the cooling segment has dominated the HVAC equipment market over the years.  Growing population and disposable incomes particularly in the hotter regions globally have instigated the usage of air conditioners, subsequently favoring the demand for cooling systems such as air conditioners (AC), unitary ACs, etc. The cooling segment from 2022 to 2030 is projected to grow at an approximate CAGR of 6 percent.

Apart from cooling, heating is also a major segment exhibiting gradual growth over the years. As of 2021, the segment captured over 20.0% share of the market. The segment over the long term is projected to gain traction as the market gradually transitions from a fuel-based working model to efficient low-carbon solutions. Further, the proliferation of solar-based heat pumps will also create avenues for segment growth over the forecast period.