HVAC Market Size, Share, Analysis, Growth Size & Trends 2031

Report Description

HVAC Market Outlook 2031

The global HVAC market size was valued at USD 153.61 Billion in 2022 and is projected to reach USD 263.96 Billion by 2031, expanding at a CAGR of 6.2% during the forecast period, 2023–2031. The growth of the market is attributed to need to maintain an ambient environment in a building due to changing climatic conditions.

HVAC stands for heating, ventilation, and air conditioning, and this system heats and cools industrial, commercial, and residential buildings. Ventilation is the process of replenishing or exchanging air within a room. This enhances the quality of indoor air by removing dust, heat, carbon dioxide, moisture, bacteria, smoke, and other contaminants, as well as managing temperature and maintaining oxygen quality.

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The Covid-19 pandemic affected the demand and supply of HVAC market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.

HVAC Market Trends, Drivers, Restraints, and Opportunities

• Increasing government regulatory regulations and incentives to promote energy efficiency and natural resource conservation, are estimated to drive the market
• Changes in industrialization, urbanization, and migration are some of the major factors driving the automotive HVAC market.
• Most customers have prioritized smart features and energy efficiency in their purchases, and this trend is projected to continue in the coming years, which is projected to fuel the market.
• Lack of skilled labor act as a major factor that can hamper the market growth during the forecast period.
• Lack of awareness about the advantages of HVAC systems in emerging nations act a key challenge that can restrict the market growth.
• The HVAC industry is undergoing rapid IoT revolution which is projected to create lucrative opportunities for the market players during the forecast period.

Scope of HVAC Market Report

The report on the global HVAC market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

HVAC Market Segment Insights

The cooling segment held a major market share in 2020

Based on equipment, the market is segregated into heating, ventilation, and cooling. The cooling segment held major market share of around 54.5% of the total revenue in 2020. Cooling accounts for more than 10% of global electricity consumption, according to data published by the International Energy Agency (IEA). The numbers are staggering, which helps to understand why the cooling segment has long dominated the HVAC equipment industry.

The use of air conditioners has increased due to rising population and disposable incomes, particularly in the hotter regions. As a result, cooling systems such as unitary AC’s and air conditioners are in more demand. Heating segment is projected to grow at a substantial rate during the forecast period.

In 2020, the segment accounted for around 20.1% of the market share. The industry is expected to gain pace as the market shifts away from a fuel-based operating model toward more efficient low-carbon alternatives.

The new construction segment is projected to expand at a rapid pace during the forecast period

In terms of implementation, the market is bifurcated into new construction and retrofit. The new construction segment is projected to expand at a rapid pace during the forecast period. Several governments are investing heavily in development of infrastructure, such as airport, retail, hotel, and educational facility expansion projects.

The demand for HVAC systems to regulate temperature and humidity, maintain air quality, and remove pollutants in buildings is increasing as construction activities increase. Government rules for smart homes, as well as subsidies for implementing energy-efficient HVAC systems in upcoming building projects, are estimated to boost the market.

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The commercial segment is projected to hold major market share during the forecast period

On the basis of end-users, the market is fragmented into residential, commercial, and industrial. The commercial segment is projected to expand at a CAGR of around 6% during the forecast period. Several developments, from green and smart technologies to automated systems, are projected to have a significant impact on the commercial HVAC market's future.

The demand for HVAC in the commercial segment is expected to rise as the COVID-19 pandemic grows and permanent WFH models gradually migrate to a hybrid working style.

The residential segment held a major market share of around 40% of the total share in 2020. The residential HVAC market is expanding due to an increase in multi-family and single-family homes.

Residential HVAC demand is likely to remain mostly unchanged in developed countries of the world, new markets, particularly developing markets, will, however, have a slightly larger demand. This is attributed to the rising population in emerging economies and the maturation of the market in developed markets.

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Regional Analysis

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific dominated the market and held a major share of around 40% in 2020. Increased urbanization, increasing population, and rising consumer disposable income have all contributed to the region's market growth.

North America is projected to hold major market share during the forecast period. Replacement sales owing to aged infrastructure or retrofit projects are providing OEMs with revenue streams other than expanding into the services and maintenance area.

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