HVAC Market expected to be worth US$231.11 billion by 2027

Heating, ventilation, and air conditioning (HVAC) is a technological system used to provide cooling, ventilation, and heating to a building.

The global heating, ventilation, and air conditioning (HVAC) market was valued at US$156.44 billion in 2021 and is expected to be worth US$231.11 billion in 2027, growing at a CAGR of 6.72% between 2022 and 2027.

Heating, ventilation, and air conditioning (HVAC) is a technological system used to provide cooling, ventilation, and heating to a building. Heating appliances such as heaters, furnaces, and heat pumps are used to generate heat in buildings via central heating or local heating. Ventilation appliances are used to change or replace air in any building to regulate temperature. Air conditioning units are used to cool indoor air for thermal comfort.

The HVAC industry’s emphasis is gradually shifting toward energy efficiency. Several automakers are focusing on green initiatives to save money while lowering greenhouse gas emissions. As a result, there has been a recent trend toward environmentally friendly HVAC units. This includes products that use less energy and are powered by renewable energy sources, thereby lowering energy costs.

The residential segment is expected to grow at a CAGR of around 9% during the forecasted period. The rise in multi-family and single-family housing is creating new opportunities for the residential HVAC market. Residential HVAC demand is expected to be more or less stable in developed parts of the world; however, demand from newer markets, particularly developing markets, is expected to be significantly higher. This is primarily due to rising population in emerging markets and market maturity in developed markets.

In 2021, Asia Pacific will account for more than half of all HVAC revenue. Rapid urbanisation, population growth, and rising consumer disposable income have all contributed to the region’s meteoric rise over the years. The commercial sector has recently expanded, opening up possibilities for future regional growth. North America, closely followed by Europe, was the second-largest consumer of HVAC systems. The region’s HVAC system market has matured; however, replacement sales due to ageing infrastructure or retrofit projects are creating alternate revenue streams for OEMs in North America, in addition to expansion into the services and maintenance category. The region is expected to grow at a CAGR of more than 7% during the forecast period.

In order to remain relevant and profitable, OEMs are focusing on two buzzwords: technology and energy efficiency. Market players prioritise research and development in order to develop technologically advanced and differentiated products in order to gain a competitive advantage. Companies are also concentrating on developing products that adhere to regional regulatory norms in order to avoid losing business due to regulatory violations.