Fan Coil Unit Market: Current Analysis and Forecast (2022-2028)

A fan coil unit (FCU), or vertical fan coil unit (VFC), is a device that uses a coil and fan to heat or cool a room without ductwork. Fan coil units are standalone systems that circulate the existing air in a space. They can also be part of a large HVAC system. In recent years the growing demand for energy-efficient FCU models fuels the growth of the fan coil unit market because energy efficiency is the major concern with the utilization of traditional HVAC systems. Also rising construction for commercial and industrial buildings globally is likely to increase the demand for fan coil units in the future.

The fan coil unit market is expected to grow at a steady rate of around 5% owing to the rising demand for renewable energy due to high power consumption and a growing focus on reducing carbon emissions creating a huge demand for the market. Rising technological advancements and product development by major key players are also contributing to the growth of the market. For instance, in 2020, Dunham-Bush launched a new generation of chilled water fan coil units - CR-CF. These fan coil units are designed to operate at low noise and high-efficiency performance.

Based on type, the market is segmented into horizontal concealed, horizontal exposed, underfloor, and wall mounted. Among them, the horizontal concealed category is to witness the highest CAGR during the forecast period owing to the high demand for horizontal concealed fan coils in hotels, apartments, dormitories, military barracks, assisted living, facilities, and offices because of its features such as highly compact, super lightweight design, high thermal efficiency, and lower operating costs.

On the basis of component, the market is categorized into two pipe and four pipe. Among these, the four pipe held a significant share of the market in 2020. The four-pipe FCU includes double supply and return piping and allows either hot or cold water to the unit at any given moment. Due to modern requirements of individual comfort, a high focus on energy efficiency, and rising construction of building projects, like classrooms in schools, offices, shop areas, patient-or staff rooms at hospitals, and many more, four-pipe fan coil units are found to be more popular which will drive the market growth.

Based on application, the market is fragmented into residential, commercial, and industrial. Among them, the commercial category is anticipated to have significant growth during the forecast period. This is mainly due to the rising demand for FCUs in hotels and restaurants also with an increasing number of construction projects, the requirement for HVAC systems is projected to rise considerably, which in turn is expected to boost the demand for fan coil units during the forecast period.

For a better understanding of the market adoption of the fan coil unit industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the high demand for HVAC systems in residential or commercial buildings, growing construction projects, increasing demand for low energy consumption products in real estate, and rising concerns about air quality and increasing HVAC applications in the air conditioning sector and heating projects are expected to enhance the demand for fan coil units in the region.

Some of the major players operating in the market include: Barcol-Air (UK) Ltd, Crane Holdings Co., Haier lnc., Hitachi Ltd., Johnson Controls, LG Electronics, Midea Group, Mitsubishi Electric Corporation, Samsung, TROX GROUP