HVAC Equipment Market - Forecasts from 2024 to 2029

The HVAC equipment market is expected to grow at a CAGR of 4.32% from estimated value of US$242.445 billion in 2024 to US$299.578 billion in 2029.

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 as 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 large number of systems installed.

Heating, Ventilation, and Air Conditioning (HVAC) Market Drivers:

• Increasing demand for heat pumps

A heat pump is a large HVAC device that uses a refrigeration cycle to move thermal energy from a colder location to a hotter one to transfer heat. By doing this, the hotter area gets heated, and the colder area gets cooled. A heat pump can draw heat from the chilly outside air to warm a building during cold weather. On the other hand, the pump may be made to move heat from the house to the outside when it gets warmer. Heat pumps are more energy-efficient than other means of heating or cooling a home because they can transfer heat rather than create it. In any climate, heat pumps offer a very efficient substitute for conventional air conditioners and furnaces.

• Rapid development in industrialization

The market's growth is primarily driven by the rapid rise in industrialization and urbanization on a global scale. One of the most important demographic shifts of the modern era is the migration of people from rural to urban areas. Nowadays, 56.2% of people on the planet reside in cities. There is a trend toward increased urbanization worldwide, but it is particularly noticeable in Latin America and the Caribbean, where over 80% of people currently reside in urban areas. It appears that urbanization will keep going in this upward direction; by 2050, 68% of people on the planet are expected to live in urban areas, according to UN predictions.

• Rising demand due to erratic and harsh climatic conditions.

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. However, 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.

Heating, Ventilation, and Air Conditioning (HVAC) Market Restraint:

• Rising competition to control margins

Well-known suppliers face intense competition in the global HVAC equipment market. Energy efficiency is a major concern for manufacturers operating internationally. Energy-efficient HVAC product releases have already started from a number of competitors, and as a result, these companies now control the pricing of the market. As a result, comparatively smaller competitors are compelled to lower their prices to match the degree of technological innovation found in these goods. However, there are few opportunities to vertically integrate and remove the buyer in the HVAC equipment market because of the high capital requirements and industry expertise. The absence of alternatives boosts suppliers' bargaining power and level of competition. The availability of raw materials and price increases will pose serious challenges to the HVAC equipment market.

Heating, Ventilation, and Air Conditioning (HVAC) Market Geographical Outlook

Asia Pacific is projected to grow rapidly during the forecast period

The Asia-Pacific region is anticipated to grow significantly as a result of rising levels of urbanization and disposable income. The continued growth of sustainable building projects and the accomplishment of zero-emission building goals are anticipated to propel the boiler market in this region. In addition, the industrial sector's need for boilers is expected to grow due to the country's ongoing efforts to draw in foreign direct investments (FDIs) and accelerate industrialization. The demand for industrial boilers is expected to rise significantly in the Asia-Pacific region, especially in China and India. These nations are quickly becoming major centers of the world's manufacturing, and the size of their populations presents opportunities for expanding a number of profitable industries, including textiles, consumer goods, food and drink, and more.

Heating, Ventilation, and Air Conditioning (HVAC) Market Developments:

• In November 2023, Mitsubishi Electric Corporation made an announcement regarding the development of an aluminum vertical flat tube (VFT) design that can enhance heat exchanger performance in heat-pump air conditioners by an unprecedented 40%. Mitsubishi Electric's new VFT heat exchanger, which has an internal volume that is up to 20% less than that of HFT designs, also lowers refrigerant charge when compared to traditional aluminum horizontal flat tube (HFT) heat exchangers.
• In December 2023, Daikin Europe NV introduced a line of residential air-to-air heat pumps using difluoromethane (R32) as a refrigerant. The outdoor unit dimensions are 662 mm x 442 mm x 1022 mm. The 2.5 kW to 3.5 kW output range and seasonal coefficient of performance (SCOP) range from 4.85 to 5.17.
• In April 2022, Mitsubishi Electric Trane HVAC US (METUS) launched its next-generation Lossnay(R) RVX2 Energy Recovery Ventilator (ERV) units. These Lossnay RVS2 ventilator units are equipped with new CO2 sensors and a new remote control that allows the user to adjust the airflow. Furthermore, these new features reduce ductwork costs and user time.
• In March 2022, Haier, the global leader in home appliances and consumer electronics, launched its new Elegante Cool AC Series. These 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%.

Key Market Segmentation:

HVAC equipment Market is segmented and analyzed as below:

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-User

• Residential
• Industrial
• Commercial

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Indonesia
• Others