The global HVAC Equipment Market is estimated to be valued at US$ 207.87 Mn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The HVAC equipment market comprises of equipment such as heating equipment, ventilating equipment, and air conditioning equipment that manages and controls indoor temperature, humidity, and air quality. HVAC equipment helps in maintaining comfortable indoor environment for residential, commercial as well as industrial spaces. Growing construction of residential & commercial buildings along with rising disposable income is boosting demand for HVAC equipment globally. Installation of HVAC equipment provides comfort cooling and heating and regulates air quality in buildings by filtering out pollutants, allergens, and improving air circulation which in turn enhances occupant health, comfort and productivity in workspaces.
Market key trends:
Increasing focus on energy efficiency of HVAC equipment is a key trend. Manufacturers are developing technologically advanced and energy efficient HVAC equipment to respond to global commitments towards reducing carbon emissions. For instance, variable refrigerant flow (VRF) HVAC systems use inverter-driven compressor technology for zoning control and deliver high energy savings. Growing adoption of IoT enabled smart HVAC systems is another trend. Smart HVAC equipment can be remotely monitored and controlled through mobile apps and Voice assistant for efficient operation. Rapid urbanization along with increasing spending on infrastructure development across emerging economies in Asia Pacific and Latin America is auguring well for HVAC equipment market. Rise of smart homes concept integrated with home automation systems is further propelling demand for Wi-Fi enabled smart HVAC equipment. However, high initial installation and maintenance costs of HVAC equipment remains a challenge for market growth.
Porter’s Analysis
Threat of new entrants: The HVAC equipment market has moderate threat of new entrants due to established brands, significant capital requirements for R&D and manufacturing.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of different brand options and price sensitivity.
Bargaining power of suppliers: A few major companies dominate the supply chain with proprietary technology and components giving them stronger bargaining power.
Threat of new substitutes: Low threat as HVAC equipment has no close substitutes for temperature and climate control requirements in residential and commercial buildings.
Competitive rivalry: High competition among established brands to increase market share through product innovations, customer service and brand promotions.
Key Takeaways
The global HVAC equipment market is expected to witness high growth, exhibiting CAGR of 6.6% over the forecast period 2023 to 2030, due to increasing construction of green buildings and growing focus on energy-efficient cooling systems.
Regionally, Asia Pacific dominates the HVAC equipment market holding over 35% share owing to rapid urbanization and infrastructure growth in China and India. North America follows in terms of revenue supported by renovation of existing buildings to upgrade HVAC systems. Growth in Europe is driven by strict energy efficiency mandates boosting sales of smart and technologically advanced equipment.
Key players operating in the HVAC equipment market are United Technologies Corporation (Carrier), LG Corporation, Daikin Industries. Ltd., AB Electrolux, Haier Inc., Lennox International Inc., Samsung Electronics, and Panasonic Corporation. Major players are investing in R&D to launch innovative products with connectivity and sensing features for Indoor air quality and climate control in smart homes and IoT integrated buildings.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it