The HVAC System market is projected to reach US$ 220 billion by 2030

Demand for water-cooled chillers and energy-efficient solutions boosts the HVAC system market growth. 

HVAC systems are experiencing extensive adoption amidst climate change and temperature needs. Such factors promoted revenue generation of HVAC system market players. Technological advancements such as integrating sensors into cooling equipment have significantly impacted the demand and acceptance of these systems. IoT-integrated cooling systems enable users to control them from distant locations. Moreover, market participants are increasingly investing in developing compact cooling units that are cost and energy-efficient. Companies’ initiatives have boosted cooling system demand, thereby driving the growth of HVAC systems. HVAC systems provide benefits such as cost and energy savings and help maintain sustainable goals regarding environmental safety. The focus is to limit the number of hydrofluorocarbon refrigerants (HFC) used in many air conditioners, as HFC is considered the most damaging to energy utilization.

 

Market growth and rising water cooled chillers demand 

According to the latest market study, the global Heating, Ventilation, and Air Conditioning (HVAC) system market size is expected to reach USD 219.49 Billion in 2030 and register a revenue CAGR of 5.5 per cent during the forecast period. Demand for cooling systems among end-users is a significant factor driving the growth of the HVAC system market. The rapid urbanization and growing construction industry across the globe are projected to boost the HVAC system market growth.

According to reports and data studies, the chiller segment accounted for a significant revenue share in 2021. The rising demand for chillers is mainly attributed to increasing application in process cooling of end-use industries. In the food & beverage industry, for instance, process cooling is extensively used for pasteurization and food baking processes. This results in the generation of an enormous amount of heat. Therefore, chillers are used in these processes to maintain the temperature of equipment and protect it from overheating. Chillers are also extensively used in the medical & pharmaceutical industries. Water-cooled chillers equipment is also preferred in industries where a cooling tower is under maintenance or needs replacement. This significantly reduces equipment downtime and maintenance costs.

The development of low Global Warming Potential refrigerants is another factor for which consumers should be able to adopt HVAC systems. However, lack of awareness has restrained the adoption rate and limited market growth for these effective refrigerants. In addition, HVAC system contractors’ minimal knowledge of HVAC system standards hinders their business growth.

The HVAC system market in APAC is segmented into China, India, Japan, South Korea, and the rest of APAC. The Asia Pacific is expected to grow at the fastest CAGR due to massive HVAC system manufacturers in China, India, Japan, South Korea, and Taiwan. Increasing industrial and infrastructural operations in the Asia Pacific, especially in China and India, led to a rise in construction projects. Such factors will likely drive APAC’s HVAC system market size during the forecast period.

In one of the initiatives undertaken during March 2022, enVerid Systems, a leading provider of sustainable air quality solutions based in Massachusetts, announced a partnership with Kirloskar Chillers, a leading manufacturer and provider of innovative solutions for comfort and process cooling and heating applications based in Pune, Maharashtra, to expand its presence in Indian markets. Furthermore, Kirloskar Chillers will be the sole Indian distributor of enVerid’s HVAC Load Reduction (HLR) modules, which use Sorbent Ventilation Technology (SVT) to safely clean indoor air in commercial buildings, reducing cooling loads associated with conditioning large volumes of outside air while also improving humidity control and indoor air quality.

The primary goal of a commercial HVAC system is to provide comfort and make occupants feel comfortable by giving high-quality air in an environment with humidity ranging from 40 – 60 per cent. High temperatures through the summer in the northern region of India and high humidity levels in the southern and western areas are driving the growth of the HVAC systems and air conditioning equipment. In addition, the increasing proliferation of commercial and residential construction is also projected to foster HVAC sales in India.