Latin America HVAC Market - Forecast(2022 - 2027)

Report Code: ESR 0617 Report Format: PDF + Excel

LATAM Heating, Ventilation and Cooling Market Overview

Heating, Ventilation and Cooling (HVAC) Market size was valued at $8.4 billion in 2021, and it is estimated to grow at a CAGR of 6.2% during 2022-2027. The growth is mainly attributed to the increasing adoption of split units owing to its easier installation, high energy efficiency, driving the LATAM Heating, Ventilation and Cooling Market. Release of greenhouse gases and increasing pollution due to the presence of oil and gas industries has led to the global warming potential which is set to create opportunities for the adoption of new refrigerants in the HVAC industry. The increasing demand in residential and commercial infrastructure have led to the rise in urbanization. This growing demand in the construction industry will drive the HVAC equipment market including heat Pumps, air conditioners, air handlers, cooling towers and dehumidifiers. The rising adoption of split units with humidity control solutions, especially ducted split air conditioners will drive the market growth. The continuous increase in the prices and availability of these raw materials and components such as cooling panels has been a major challenge for the growth of the HVAC equipment market. 

LATAM Heating, Ventilation and Cooling Market Report Coverage

The report: “LATAM Heating, Ventilation and Cooling Market Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the LATAM Heating, Ventilation and Cooling Market.

By Cooling: Cooling Towers (Evaporative Cooling Tower, Hybrid Cooling Tower), Air Conditioners (Split Unit, Central, Window and Others), Chillers (Centrifugal, Absorption, Screw, Water Cooled and Others), Coolers (Ducted, Windowed) and Others.
By Heating: Heating Pump (Air to Water, Air to Air, Water to Air), Boilers (Gas Condensing, Oil Condensing, Steam Water and Others), Furnaces (Oil, Gas, Electric and Others), Space Heaters, Unitary Heaters and Others.
By Ventilation: Ventilation Fans, Draft Inducers, Humidifiers, Air Filtration, Air Purification, Humidifiers, Dehumidifiers and Others.
By Components: Compressor, Control Systems (Sensors, Controller, Others), Expansion Valve, Evaporator Coils, Ventilation Fan and Blower Unit, Filters, Dampers and Others.
By Application: New Fit (Residential, Commercial (Hotels, Retail Building, Others), Industrial, Government and Public Services); Retrofit (Residential, Commercial (Hotels, Retail Building, Others), Industrial, Government and Public Services).
By Region: Brazil, Argentina, Mexico, Chile, Colombia, Peru, Ecuador and Others.

Key Takeaways

  • Brazil dominated the LATAM Heating, Ventilation and Cooling Market in term of revenue in 2021.
  • Integration of IoT technology has been pushing the HVAC industry with growing trend of smart homes in APAC and European regions.
  • Increasing adoption of variable refrigerant technology HVAC systems in commercial sector provide opportunities for the global market.
  • High initial investment and stiff competition are the major challenges that hamper the growth of the market.

LATAM Heating, Ventilation and Cooling Market, By Application, 2020

LATAM Heating, Ventilation and Cooling Market

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LATAM Heating, Ventilation and Cooling Market Segment Analysis – By Cooling 

Air Conditioners held the major market share of 66.9% in 2021 owing to high adoption of HVAC systems in residential sector. There is high adoption of split type HVAC systems as it involves in easier installation process compared to traditional systems. It is of more efficient and customizable as there are two components to a split system. It also offers less maintenance and value added services as the energy efficiency of HVAC split system is high compared to other types. This is poised to propel the market. Rising VRF adoption in the region is also propelled to drive the AC market growth.

LATAM Heating, Ventilation and Cooling Market Segment Analysis – By Application

Commercial sector is the fastest growing segment in LATAM Heating, Ventilation and Cooling Market and is estimated to grow at a CAGR of 7.2% during forecast period 2022-2027 despite unstable economic performance in the region. Increasing adoption of ventilation and air cooling systems in offices, retail shops, shopping malls, hotels and others is set to boost the demand of LATAM Heating, Ventilation and Cooling Market. With the increase in investments of IT sector, there is high adoption of HVAC systems in IT offices. Thus, the adoption of HVAC systems is anticipated to increase in commercial buildings, thereby driving the market during forecast period.

LATAM Heating, Ventilation and Cooling Market Segment Analysis – By Geography

Brazil dominated the LATAM Heating, Ventilation and Cooling Market in 2021 with a market share of 37.1%, followed closely by Mexico owing to implementation of new refrigerants in chillers and Air Conditioning units. The increasing demand in the residential and commercial infrastructure have led to the rise in urbanization. This growing demand in the construction industry will drive the HVAC equipment market. Increasing income level of customers, expansion and modernization of commercial and industrial facilities is resulting for the growth of HVAC systems in South America. The rising need for cooling equipment in commercial buildings is creating demand for the HVAC equipment

LATAM Heating, Ventilation and Cooling Market Drivers 

Increasing demand for energy efficient solutions and smart homes

Adoption of energy efficient appliances has become a major trend. As HVAC systems consume less energy, the pressure on power plants is lessened, which, in turn, reduces the burning of fossil fuels. HVAC system has become a prime choice of equipment that could easily become the backbone for smart homes. This has increased the demand for HVAC systems in industries. Integration of intelligent HVAC system equipped with sensors allow users in controlling the temperature in every room of their house at any point of time. This is poised to drive the market. In Mexico for example, HVAC accounts for 44% of a commercial building’s energy consumption. Thus, with increasing focus on energy reduction, HVAC is one of the first focus areas thus driving market growth.

Kigali Amendment on HFCs

The Kigali deal on HFCs is in fact fiendishly complicated and has taken years to negotiate in various technical and political forums. The final agreement caps and reduces the use of HFCs in a gradual process beginning in 2019. More than 100 developing countries will start taking action from 2024, a date that has sparked concern from some groups that the changes will be implemented too slowly. Countries, including Mexico and Brazil, will start phasing out synthetic HFCs in 2019. The deal reflects countries’ differing levels of development. Because nearly all HFCs are made by a handful of giant western chemical companies and are used in air-conditioning units and cooling systems made and sold in rich countries, it was relatively easy for their governments to put pressure on a single global industry. Alternatives such as hydrocarbons, ammonia and CO2 are widely available, safe, approved and on the market. As we see phase out of HFC refrigerant, HVAC systems compatible with such refrigerants will also see a decline in demand and ultimately be phased out and give way for new equipment. But phasing out HFC systems will definitely impact the market negatively as hybrid refrigeration systems would require less resources comparatively. This will in turn impact the growth of HVAC sensors in these regions as well.

LATAM Heating, Ventilation and Cooling Market Challenges 

Stiff Competition and High Cost of HVAC Systems

As there are huge number of players, there is stiff competition existing between the players. Due to intense competition, some HVAC companies offer them at low prices. Additionally high capital investment and lack of skilled labor which restricts the new players to enter into market. HVAC maintenance requires constant filter change, and regular check which involves huge cost. HVAC maintenance for instance costs $100-$150 as a one time fee excluding any repair or part issues. Therefore, the maintenance costs also become a major a major challenge for HVAC end users which hampers the growth of the market.

LATAM Heating, Ventilation and Cooling Industry Outlook

Product Launches, Acquisitions, and R&D activities are key strategies adopted by players in the LATAM Heating, Ventilation and Cooling Market. HVAC major 10 companies include

  1. Johnson Controls International plc
  2. United Technologies Corporation
  3. Ingersoll-Rand plc
  4. Daikin Industries Ltd
  5. Mitsubishi Electric Corporation
  6. Toshiba Carrier Corporation
  7. LG Electronics Inc
  8. Fujitsu Limited
  9. Gree Electric
  10. Midea Group

Recent Developments

  • In January, 2022 Walmart is set to deploy eco-friendly refrigerant in Mexico and Central America through Honeywell’s reduced global-warming potential refrigerant Solstice N40 (R-448A)
  • In July 2020 Brazil Published New AC Energy Efficiency Label Regulation. This regulation has been designed to increase the stringency of labeling standards for AC equipment.

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1. LATAM HVAC Market Overview
    1.1 Definitions and Scope
2. LATAM HVAC Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By End User Industry
    2.3 Key trends segmented by Geography
3. LATAM HVAC Market – Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis (Comparison of General Price of Industry Solutions)
4. LATAM HVAC Market – Industry Market Entry Scenario Premium Premium (Premium)
    4.1 Regulatory Scenario
    4.2 Ease of Doing Business Index
    4.3 Case Studies
    4.4 Customer Analysis
5. LATAM HVAC Market – Startup Company Scenario (Premium)
    5.1 Venture Capital and Funding Scenario
    5.2 Startup Company Analysis
6. LATAM HVAC Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. LATAM HVAC Market – By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
8. LATAM HVAC Market – By Components (Market Size -$Million/Billion)
    8.1 Compressor
    8.2 Control System
        8.2.1 Sensors
        8.2.2 Controllers
        8.2.3 Others
    8.3 Expansion Valve
    8.4 Evaporator Coil
    8.5 Ventilation Fans
    8.6 Blower Unit
    8.7 Filler
    8.8 Damper
    8.9 Others
9. LATAM HVAC Market – By Cooling (Market Size -$Million/Billion)
    9.1 Cooling Tower
        9.1.1 Evaporative
        9.1.2 Hybrid
    9.2 Chiller
        9.2.1 Centrifugal
        9.2.2 Water Cooled
        9.2.3 Screw
        9.2.4 Absorption
        9.2.5 Others
    9.3 Cooler
        9.3.1 Ducted
        9.3.2 Windowed
    9.4 Air Conditioner
        9.4.1 Split Unit
        9.4.2 Window
        9.4.3 Central
        9.4.4 Others
    9.5 Others
10. LATAM HVAC Market – By Heating (Market Size -$Million/Billion)
    10.1 Heating Pump
        10.1.1 Air to Water
        10.1.2 Water to Air
        10.1.3 Air to Air
    10.2 Boiler
        10.2.1 Gas Condensing
        10.2.2 Oil Condensing
        10.2.3 Water
        10.2.4 Steam
        10.2.5 Others
    10.3 Furnace
        10.3.1 Oil
        10.3.2 Gas
        10.3.3 Electric
        10.3.4 Others
    10.4 Unitary Heater
    10.5 Space Heater
    10.6 Others
11. LATAM HVAC Market – By Ventilation (Market Size -$Million/Billion)
    11.1 Ventilation Fans
    11.2 Draft Inducers
    11.3 Air Filtration
    11.4 Air Purification
    11.5 Humidifier
    11.6 Dehumidifier
    11.7 Others
12. LATAM HVAC Market – By Application (Market Size -$Million/Billion)
    12.1 New Fit
        12.1.1 Residential
        12.1.2 Commercial
   Retail Buildings
        12.1.3 Industrial
        12.1.4 Government and Public Services
        12.1.5 Others
    12.2 Retrofit
        12.2.1 Residential
        12.2.2 Commercial
   Retail Buildings
        12.2.3 Industrial
        12.2.4 Government and Public Services
        12.2.5 Others
13. LATAM HVAC Market - By Geography (Market Size -$Million/Billion)
    13.1 Mexico
    13.2 Brazil
    13.3 Argentina
    13.4 Chile
    13.5 Colombia
    13.6 Peru
    13.7 Ecuador
    13.8 Others
14. LATAM HVAC Market - Market Entropy
    14.1 New product launches
    14.2 M&A's, collaborations, JVs and partnerships
15. LATAM HVAC Market – Industry Competitive Landscape (Premium)
    15.1 Market Share – Region
    15.2 Market Share by Country
    15.3 Market Share By Industry
16. LATAM HVAC Market – Key Company List by Country Premium Premium (Premium)
17. LATAM HVAC Market - Company Analysis
    17.1 Company 1
    17.2 Company 2
    17.3 Company 3
    17.4 Company 4
    17.5 Company 5
    17.6 Company 6
    17.7 Company 7
    17.8 Company 8
    17.9 Company 9
    17.10 Company 10