Heating, Ventilation and Air Conditioning (HVAC) Market - Forecast(2021 - 2026)

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Heating, Ventilation and Cooling Market Overview

Heating, Ventilation and Cooling (HVAC) Market size was valued at $121.2 billion in 2020, and it is estimated to grow at a CAGR of 5.0% during 2021-2026. The growth is mainly attributed to the increasing adoption split units owing to its easier installation, high energy efficiency drives the 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 set to create opportunities for the adoption of HVAC industry. 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. The rising adoption of split units, especially ducted split air conditioners will drive the market growth. The continuous increase in the prices and availability of these raw materials has been a major challenge for the HVAC equipment market. 

Heating, Ventilation and Cooling Market Report Coverage

The report: “Heating, Ventilation and Cooling Market Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the 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, Windowded) 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: North America (U.S, Canada, Mexico), South America (Brazil, Argentina, Chile, Colombia and Others), Europe (Germany, France, UK, Italy, Spain, Russia, Netherlands and Others), APAC (China, Japan, South Korea, India, Australia, Indonesia, Malaysia and Others) and RoW (Middle East and Africa)

Key Takeaways

  • APAC dominated the Heating, Ventilation and Cooling Market in term of revenue in 2020 owing to the setup of international HVAC exhibitions.
  • 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.

Heating, Ventilation and Cooling Market, By Application, 2020

Heating, Ventilation and Cooling Market

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Heating, Ventilation and Cooling Market Segment Analysis – By Cooling 

Air Conditioners held the major market share of 52.3% in 2020 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.

Heating, Ventilation and Cooling Market Segment Analysis – By Application

Commercial sector is the fastest growing segment in Heating, Ventilation and Cooling Market and estimated to grow at a CAGR of 6.9% during forecast period 2021-2026. Increasing adoption of ventilation and air cooling systems in offices, retail shops, shopping malls, hotels and others set to boost the demand of 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.

Heating, Ventilation and Cooling Market Segment Analysis – By Geography

North America dominated the Heating, Ventilation and Cooling Market in 2020 with a market share of 37.6%, followed by APAC and Europe. 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. The rise in the population in various regions such as Asia-Pacific and North American regions will in turn leads to the development in residential buildings which is also a major driver for the HVAC equipment market. The other drivers include the changes in the atmospheric conditions, advancement of technologies and replacement of aging equipment and many more.

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.

Advancements in Technology

Adoption of Internet of Things (IoT) Technology in industries have been driving the Heating, Ventilation and Cooling Market. HVAC and building automation systems can be used for analyzing sensor data to run systems more efficiently and provide more comfortable environments. Incorporation of the HVAC industry and IoT provides for vastly superior customer-centric services, enabling remote appliance control. Integration of IoT and IoT in HVAC benefits the industry in various applications such as real time monitoring, preventive maintenance, remote diagnosis, inter-operability in buildings and increased efficiency. This is poised to drive the market.

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. Therefore, the maintenance costs also become a major a major challenge for HVAC end users which hampers the growth of the market.

Heating, Ventilation and Cooling Market Landscape

Product Launches, Acquisitions, and R&D activities are key strategies adopted by players in the Heating, Ventilation and Cooling Market. HVAC major 10 companies include Johnson Controls International plc, United Technologies Corporation, Ingersoll-Rand plc, Daikin Industries Ltd, Mitsubishi Electric Corporation, Toshiba Carrier Corporation, LG Electronics Inc, Fujitsu Limited, Midea Group Co. Ltd and others.

Acquisitions/Technology Launches

  • In November 2019, Johnson Controls had acquired EasyIO Building and Energy Management System (BEMS) product line in order to expand its HVAC and refrigeration systems, thereby driving the market.
  • In September 2019, Daikin Industries Ltd had launched a split AC GTL28 3 on the occasion of its 95th anniversary. This new AC draws electricity less than 3.5 ampere which is less than operating a hair dryer or microwave. Introduction of advanced products se t to increase Heating, Ventilation and Cooling Market share.

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1. HVAC Market Overview
    1.1 Definitions and Scope
2. 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. 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. HVAC Market – Industry Market Entry Scenario Premium (Premium)
    4.1 Regulatory Scenario
    4.2 Ease of Doing Business Index
    4.3 Case Studies
    4.4 Customer Analysis
5. HVAC Market – Startup Company Scenario (Premium)
    5.1 Venture Capital and Funding Scenario
    5.2 Startup Company Analysis
6. 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. HVAC Market – By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
8. HVAC Market – By Components (Market Size -$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. HVAC Market – By Cooling (Market Size -$Million/Billion)
    9.1 Cooling  Tower
        9.1.1 Evaporative
        9.1.2 Hybrid
    9.2 Chiller
        9.2.1 Centrifugal
        9.2.2 Water Cooled
        9.2.3 Screw
        9.2.4 Absorption
        9.2.5 Others
    9.3 Cooler
        9.3.1 Ducted
        9.3.2 Windowed
    9.4 Air Conditioner
        9.4.1 Split Unit
        9.4.2 Window
        9.4.3 Central
        9.4.4 Others
    9.5 Others
10. HVAC Market – By Heating (Market Size -$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. HVAC Market – By Ventilation (Market Size -$Million/Billion)
    11.1 Ventilation Fans
    11.2 Draft Inducers
    11.3 Air Filtration
    11.4 Air Purification
    11.5 Humidifier
    11.6 Dehumidifier
    11.7 Others
12. HVAC Market – By Application (Market Size -$Million/Billion)
    12.1 New Fit
        12.1.1 Residential
        12.1.2 Commercial
            12.1.2.1 Hotels
            12.1.2.2 Retail Buildings
            12.1.2.3 Others
        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
            12.2.2.1 Hotels
            12.2.2.2 Retail Buildings
            12.2.2.3 Others
        12.2.3 Industrial
        12.2.4 Government and Public Services
        12.2.5 Others
13. HVAC Market - By Geography (Market Size -$Million/Billion)
    13.1 North America
        13.1.1 U.S
        13.1.2 Canada
        13.1.3 Mexico
    13.2 Europe
        13.2.1 Germany
        13.2.2 France
        13.2.3 UK
        13.2.4 Italy
        13.2.5 Spain
        13.2.6 Russia
        13.2.7 Netherlands
        13.2.8 Others
    13.3  APAC
        13.3.1 China
        13.3.2 Japan
        13.3.3 South Korea
        13.3.4 India
        13.3.5 Australia
        13.3.6 Indonesia
        13.3.7 Malaysia
        13.3.8 Others
    13.4 South America
        13.4.1 Brazil
        13.4.2 Argentina
        13.4.3 Chile
        13.4.4 Colombia
        13.4.5 Others
    13.5 RoW
        13.5.1 Middle East
        13.5.2 Africa
14. HVAC Market - Market Entropy
    14.1 New product launches
    14.2 M&A's, collaborations, JVs and partnerships
15. HVAC Market – Industry Competitive Landscape (Premium)
    15.1 Market Share – Region
    15.2 Market Share by Country
    15.3 Market Share By Industry
16. HVAC Market – Key Company List by Country Premium (Premium)
17. 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