HVAC Equipment Market - Forecasts from 2022 to 2027

HVAC equipment market is projected to grow at a CAGR of 4.08% to reach US$285.470 billion in 2027 from US$215.707 billion in 2020.

Heating, ventilation and air conditioning (HVAC) equipment is a facility or a system installed in buildings, both commercial and residential, to provide environmental comfort to the people inside that space by changing the temperature or quality of the air. It can also control humidity by monitoring and controlling the movement and dispersion of air in the enclosure. It consumes a lot of energy, mostly in the form of electricity, depending upon certain factors, namely, the efficiency of the components used, the local climate, usage duration, and frequency, among others. The commercial HVAC equipment segment shares the largest portion of the market owing to its larger size and a large number of systems installed.

Urbanization in conjunction with rising disposable income is leading to the growth of residential and commercial infrastructure. This is a major reason why the HVAC equipment market is expected to boom during the forecast period. Also, the elevating demand for consumer goods is fueling the growth of industries, commercial offices, and governmental units, which in turn install a slew of air conditioning facilities. But there are concerns about the adverse environmental impact, such as greenhouse gas emissions and high-cost energy consumption, that this equipment brings with it. The sales in this market also face a challenge in terms of the high cost of providing specialized servicing facilities at regular intervals. Nevertheless, with technological innovations and investments in research and development projects, the players in this market are developing more energy-efficient and sustainable solutions for the market. Additionally, the companies are expected to increase their sales on account of developing cutting-edge technology and more user-friendly HVAC equipment for consumers. This would also invoke environment-friendly people to resort to HVAC equipment.

HVAC Equipment Market is expected to witness a significant demand due to erratic and harsh climatic conditions occurring in varied regions across the globe.

Due to the effects of global warming, the demand for more HVAC Equipment is on the rise as it makes living conditions more comfortable and livable for people. But the result of using them is counter-productive for the natural environment. For example, hydrofluorocarbon, a major greenhouse gas, is the predominant refrigerant used in air conditioners, and when released into the atmosphere during the manufacturing, installation, and operation of such equipment, it further warms the planet.

Geographically, the Asia-Pacific Region is expected to see a high CAGR in HVAC equipment sales due to the rapid urbanization taking place in that region coupled with rising incomes or living standards of the people.

Increased awareness among users in countries such as India, and China about purchasing energy-efficient HVAC equipment, which leaves fewer carbon footprints, is driving the technological innovations and sales of this market. The American region is a mature economy and is estimated to hold a major chunk of the HVAC equipment market. The seasonal and climatic variations happening all around the globe are expected to augment the sales of such equipment in the forecast period.

Key Developments

• In April 2022, Mitsubishi Electric Trane HVAC US (METUS) launched its next generation Lossnay® RVX2 Energy Recovery Ventilator (ERV) units. These Lossnay RVS2 ventilator units are equipped with new CO2 sensors and a new remote control which allows the user to adjust the airflow. Furthermore, these new features reduce ductwork costs and time for the user.
• The global leader in home appliances and consumer electronics, Haier launched its new Elegante Cool AC Series in March 2022. The revolutionary air conditioners can efficiently remove air pollutants and gently cool the ambient temperature of the room. The company claims that this newly launched series is equipped with Haier's Frost Self Clean Technology which can provide air sterilization of up to 99.9%.

COVID-19 Impact on HVAC Equipment Market

The government restriction and imposed lockdowns affected the growth of the HVAC equipment market. The protective measures are taken by the countries to contain the spread of the virus resulted in temporary shutdowns of the production and manufacturing units. Furthermore, the manufacturing and production of HVAC equipment were delayed which intensified the effect of the pandemic on the HVAC equipment market. Moreover, consumers were reluctant to spend on non-essential goods and products due to uncertain conditions in the market. Furthermore, the demand for HVAC equipment by the construction industry was also affected due to reduced construction activities during the pandemic. Thus, globally the demand for HVAC equipment was low which affected the growth of HVAC equipment market during this period.

Segmentation:

• By Equipment Type

Heating Equipment

• Heat Pumps
• Boilers
• Furnaces
• Unitary Heaters
• Space Heaters
• Others

Ventilation Equipment

• Fans
• Dehumidifiers
• Humidifiers
• Air Filters
• Air Purifiers
• Others

Air Conditioning Equipment

• Chillers
• Coolers
• Air Conditioning Equipment
• Cooling Towers
• Others
• By Component Type

Coils

Transducers

Actuators

Radiators

Condenser

Compressor

Other Component

• By End Users

Residential

Industrial

Commercial

• By Geography

North America

• USA
• Canada
• Mexico

South America

• Brazil
• Argentina
• Others

Europe

• UK
• Germany
• France
• Spain
• Others

The Middle East and Africa

• Saudi Arabia
• UAE
• Israel
• Others

Asia Pacific

• China
• Japan
• India
• South Korea
• Taiwan
• Indonesia
• Others