HVAC System Market

HVAC System Market Size Survey Report – In a Glance

As per the survey report on the global HVAC System Market, the market is projected to foresee a CAGR of 7.3% between 2024-2033, and further generate a market size of USD 409.6 billion revenue by the end of 2033. In the year 2024, the market size was valued at USD 225.9 billion revenue.

• The global HVAC System Market is projected to grow on account of rise in manufacturing sector.
• In Japan, the government initiatives towards reduced carbon emission, can be attributed to the growth in the HVAC System Market.
• KDMI analyst’s growth analysis foresees insufficient technical expertise to challenge market growth.
• Asia Pacific, having the highest market share in the HVAC System Market, is projected to dominate the global market.

HVAC System Market Analysis

HVAC denotes heating, ventilation, and air conditioning, the system that functions together to keep an environment at a comfortable temperature and enhance air quality. HVAC systems aid manufacturing facilities in adhering to necessary regulations by regulating indoor air quality, guaranteeing proper ventilation and handling environmental parameters such as humidity and temperature. By adhering to these compliances, the manufacturing capacities prevent penalties and improve its credibility and reputation. The increase in manufacturing activities is one of the significant growth drivers of the HVAC system. As of 2023, Manufacturing resulted in around USD 2.3 trillion to the United States GDP totalling 10.2% of the U.S. GDP. The manufacturing companies are emphasizing spending on energy-efficient HVAC systems in the region to satisfy evolving industry demands, resulting in the adoption of HVAC system market growth. Carrier Corporation, Daikin Industries, Fujitsu, Haier Group, Havells India Ltd and Hitachi Ltd. are significant companies in the global HVAC System Market

Analyst’s Observation on Japan HVAC System Market Survey

Energy efficient HVAC system uses the least probable energy to monitor any indoor temperature, to maximize operations to minimize energy consumption without comparing temperature humidity, indoor air quality and pressure levels. By consuming less proportion of energy, optimized HVAC systems directly minimize carbon emissions, resulting in reduced environmental influence. The Japanese government's initiatives aiming to minimize greenhouse emissions by 46% as of 2030 and its will to carry on with strenuous efforts in its hardship to satisfy the supercilious aim of reducing its release by 50%, is a significant growth driver of the HVAC system market in the region. Daikin, Panasonic Corporation, Hitachi, LG Electronics, and Mitsubishi Electric Corporation are significant companies in the Japanese HVAC System market.

HVAC System Market Growth Driver & Market Restraint

Growth Driver

Growth in construction sector:

The increasing awareness of energy-efficient remedies and the requirement to minimize carbon emissions push the adoption of energy-efficient HVAC components, eventually pushing its market. The growing construction activities, specifically in emerging economies, push the demand for HVAC systems in new commercial and residential buildings. Further, the growing population in the equatorial region also results in high demand for commercial as well as residential sectors, which eventually boosts the HVAC system market globally. In the United States, there were around 919,000 construction establishments as of the 1st quarter of 2023, the sector generates nearly USD 2.1 trillion every year and the construction sector is considered to be one of the largest consumers for mining, manufacturing and numerous other services.

Technological advancement in HVAC system:

Initiating from burning wood to next-gen AI-based automated heating mechanisms, the race towards intelligent and completely automated HVAC technologies is under continuous process. The integration of IoT and AI technology is an explainable HVAC trend, where AI technology allows HVAC systems to constantly maximize performance with the help of data analytics and machine learning. Further, presently, HVAC systems are incorporating advanced filtration technologies such as UV-C light purification and HEPA filters to eradicate air contaminants. Several innovations are in progress, for instance, companies based out of the U.S. provide products that depend on the dual-fuel heat pump concept. Such continuous technological innovations are driving the growth of the HVAC system market globally.

Market Restraint

High service cost:

Initial ownership cost for HVAC systems requires huge capital investment, leading to restricted demand for HVAC systems from medium and small-scale businesses. Further, the annual maintenance of HVAC systems costs around USD 75 to 200, which is expensive for most residential owners.

Refrigerant Leaks:

Air conditioning system depends largely on refrigerants to cool air and in the absence of proper refrigerant fluid levels, the system of air conditioning is not able to cool the home effectively. One of the fundamental reasons for refrigerant fluid levels is refrigerant leaks, which minimize the cooling capacity of the system and can even harm the ambience.

HVAC System Market Segmentation

Our experts at KD Market Insights have segmented the global HVAC System Market research report as:

HVAC System Market Regional Synopsis

Asia Pacific dominates the HVAC System market due to the growing number of smart home construction in the region. Chinese technologies such as Building Information Modelling, smart cities and green building solutions are responsible for the high demand for HVAC systems in the market. A smart HVAC system use advanced technology, such as sensors and smart thermostats, to maximize ventilation, heating and air conditioning. The Smart application of the HVAC system is regulated remotely and mixed with home automation podiums for improved energy effectiveness and comfort. Among several innovations, the integration of smart HVAC mechanisms is playing a significant part in improving occupant’s comfort and the building's sustainability. The significant rise in the real estate sector is another reason for the high demand for HVAC systems in the Asia Pacific region. The Indian real sector is expected to expand to USD 5.8 trillion by 2047, contributing around 15.5% to the existing GDP. Regular innovation, such as the introduction of new ventilation mechanisms for residential sectors with UV-C technology, CO2 sensors and HEPA filters by LG, is a prominent reason for the growth of the HVAC system market.

North America is expected to grow with the fastest CAGR due to the growing promotions of the government, for reducing carbon emissions and the greenhouse effect. The USA EPA’s State and Local Climate and Energy Program aids local, state and tribal authorities in developing programs and policies to minimize greenhouse gas emissions, enhance air quality and reduce energy costs. American HVAC system manufacturers, namely Lennox HVAC, Trane HVAC and Goodman Manufacturing, are producing HVACs which provide unmatched efficiency, smart thermostats, improved consistent cooling & heating and minimal sound levels. These reliable HVAC units in the USA last for a longer period and offer extraordinary service, eventually propelling the market growth of the HVAC system market in the region.

Government schemes for energy efficient equipment in Europe has stimulated the HVAC system market in the region. In Germany, the solutions of centralized air conditioning are rising in demand through VRF system and chillers. Presence of wholesalers such as Woley in the United Kingdom is another growth factor of HVAC system market. It has 478 physical stores and around 6 large distribution centers & offers huge variety of products needed by global installers. Middle East and North Africa region faces extremely hot weather and expanding infrastructure sector.

Regional Company Names

• Daikin
• Panasonic Corporation
• Hitachi
• LG Electronics
• Mitsubishi Electric Corporation

HVAC System Market Competitive Landscape

Some of the key players who have the top global HVAC System Market share:

• Johnson Controls
• Daikin Industries Ltd.
• Lennox International Inc.
• Carrier
• Mitsubishi Electric Corporation
• Nortek Global HVAC LLC
• LG Electronics
• Emerson Electric Co.
• Trane Technologies
• Samsung

1. Executive Summary
   1. Market Overview
   2. Key Findings
   3. Market Trends
   4. Market Outlook
2. Introduction
   1. Scope of the Report
   2. Research Methodology
   3. Definitions and Assumptions
   4. Acronyms and Abbreviations
3. Market Dynamics
   1. Drivers
   2. Restraints
   3. Opportunities
   4. Challenges
4. Global Air Freshener Market
   1. Market Overview
   2. Market Size and Forecast
   3. Market Segmentation
      1. By Product type
      2.  By Cooling
      3. By Heating
      4. By Ventilation
      5. By Service Type
      6. By Implementation Type
      7. By Application
      8. By Region
5. Market Segmentation by Cooling
   1. Unitary Air Conditioner
   2.  VRF
   3. Others
6. Market Segmentation by Heating
   1. Heat Pump
   2. Furnace
   3. Others
7. Market Segmentation by Ventilation
   1. AHU
   2. Air Filter
   3. Others
8. Market Segmentation by Service Type
   1. Installation
   2. Maintenance & Repair
   3. Others
9. Market Segmentation by Implementation Type
   1. New Construction
   2. Retrofit
   3. Others
10. Market Segmentation by Application
    1. Commercial
    2. Residential
    3. Others
11. Market Segmentation by Product Type
    1. Heating Equipment
    2. Cooling Equipment
    3. Ventilation Equipment
    4. Others
12. Regional Analysis
    1. North America
       1. United States
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       2. Canada
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       3. Mexico
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
    2. Europe
       1. United Kingdom
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       2. Germany
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       3. France
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       4. Italy
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       5. Spain
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       6. Rest of Europe
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
    3. Asia Pacific
       1. China
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       2. Japan
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       3. India
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       4. Australia
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       5. South Korea
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       6. Rest of Asia Pacific
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
    4. Latin America
       1. Brazil
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       2. Argentina
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       3. Colombia
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       4. Rest of Latin America
          1. Market Size and Forecast
          2. Key Trends and Developments
          3.               Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
    5. Middle East & Africa
       1. South Africa
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       2. Saudi Arabia
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       3. UAE
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
       4. Rest of Middle East & Africa
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Cooling, Heating, Ventilation, Service Type, Implementation Type, Application, and Product Type        
13. Competitive Landscape
    1. Market Share Analysis
    2. Company Profiles
       1. Johnson Controls
       2. Daikin Industries Ltd.
       3. Lennox International Inc.
       4. Carrier
       5. Mitsubishi Electric Corporation
       6. Nortek Global HVAC LLC
       7. LG Electronics
       8. Emerson Electric Co.
       9. Trane Technologies
       10. Samsung
       11. Others
14. Strategic Recommendations
15. Appendix
    1. List of Tables
    2. List of Figures
16. References