HVAC Equipment Market

HVAC Equipment Market Size:

The global HVAC equipment market size reached US$ 221.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 343.1 Billion by 2032, exhibiting a growth rate (CAGR) of 4.9% during 2024-2032. The market is driven by significant technological advancements, energy efficiency regulations and environmental sustainability awareness. This, along with the rising trend for smart and connected systems and urbanization in emerging economies and increasing number of green building initiatives are further driving HVAC equipment market growth.

HVAC Equipment Market Analysis:

• Major Market Drivers: The global HVAC equipment market is driven by several major drivers which includes technological advancements, energy efficiency regulations and rising awareness of environmental sustainability. Technological innovations like smart thermostats and energy efficient HVAC systems drive HVAC equipment market growth by offering better performance and cost savings for consumers. Furthermore, growing urbanization and industrialization fuels the demand for HVAC equipment in both residential and commercial sectors mainly in emerging economies experiencing rapid development and infrastructure expansion thereby driving HVAC equipment market growth.
• Key Market Trends: Key trends in HVAC equipment market includes the increase in smart and connected systems mainly driven by the Internet of Things (IoT) technology which enables remote monitoring and control for enhanced efficiency and comfort. In line with this, the rising demand for energy efficient and environmentally friendly HVAC solutions, stimulated by growing awareness of climate change and sustainability is another significant key trend in HVAC equipment market. Furthermore, the integration of renewable energy sources like solar power into HVAC systems is becoming more prevalent further advancing the industry towards greener and more sustainable practices.
• Geographical Trends: Geographical trends in HVAC equipment market vary regionally because of factors like climate, economic development and regulatory policies. In developed regions like North America and Europe there is a strong prominence on energy efficiency and environmental sustainability which drives the demand for advanced HVAC systems with high efficiency ratings and ecofriendly refrigerants. Emerging economies in Asia Pacific, Latin America and Middle East are experiencing rapid urbanization and industrialization which fuels the need for HVAC solutions to meet growing infrastructure demands. Furthermore, government initiatives promoting green building practices and energy conservation further shape the geographical trends with investment in energy efficient HVAC technologies on the rise globally, hence driving HVAC equipment market growth.
• Competitive Landscape: Some of the major market players in the HVAC equipment industry include Carrier Global Corporation, Daikin Industries Ltd., Danfoss AS, Emerson Electric Co., Honeywell International Inc., Johnson Controls International, Lennox International Inc, LG Electronics Inc., Mitsubishi Electric Corporation, Panasonic Holdings Corporation, Samsung Electronics Co. Ltd., Trane Technologies plc and Whirlpool Corporation, among many others.
• Challenges and Opportunities: The global HVAC equipment market faces various challenges which include fluctuation in raw material costs, strict regulatory standards and evolving consumer preferences. Rapid technological advancements also present significant challenges as manufacturers struggle to keep up with innovations while maintaining affordability. However, these challenges bring opportunities for market players to innovate and differentiate their products, mainly in energy efficiency and smart technology integration. Furthermore, the rising focus on sustainability opens new avenues for development of ecofriendly HVAC solutions, leveraging renewable energy sources and advanced refrigerants. The expanding markets in developing regions provide opportunities for HVAC equipment market growth through infrastructure development and rising demand for modern HVAC systems.
   

HVAC Equipment Market Trends:

Technological Advancements

The integration of internet of thing (IoT) technologies in HVAC systems is a significant advancement in how climate control is managed within residential and commercial buildings. By incorporation of smart, connected systems users can control their HVAC settings remotely through their smartphones, tablets or any other smart devices. This connectivity allows for precise temperature adjustment, monitoring and scheduling from anywhere providing enhanced user convenience and operational efficiency. For instance, Resideo launched the Honeywell Home T10+ Smart Thermostat Kits, offering complete indoor air quality and comfort control through RedLINK 3.0 technology, providing customizable solutions for HVAC systems. These kits enhance the T10 Pro Smart Thermostat, enabling control over multiple indoor air quality equipment simultaneously, simplifying setup and customization for customers. The result is not only improved energy management and reduced costs but also a more responsive and intuitive climate control environment.

Rising Demand for Improved Air Quality

The demand for improved air quality has significantly increased, particularly following the global health crisis. Consumers and businesses now prioritize HVAC systems that excel not only in temperature regulation but also in enhancing indoor air quality. This shift has led to advancements in filtration and ventilation technologies within HVAC systems. For instance, LG's Plasmaster Ionizer++ technology effectively removes up to 99.9% of adhering bacteria (Staphylococcus aureus, Escherichia coli, and Pseudomonas aeruginosa) in the test room of 30m³. Furthermore, the integration of air purification technologies directly into HVAC units is becoming more common, ensuring cleaner and healthier indoor environments in both residential and commercial spaces.

Rising Awareness for Environmental Sustainability

The global push for increased energy efficiency in HVAC systems is mainly driven by a growing awareness of environmental issues and government regulations. Manufacturers are developing high-efficiency components like variable speed compressors and smart thermostatic controls that adapt energy usage based on real-time demands. Carrier introduced its Infinity 20 Air Conditioner with Greenspeed intelligence, which runs at different speeds to manage humidity better and adjust to heating and cooling demands, thereby minimizing energy consumption. Systems with Greenspeed intelligence allow Carrier to provide highly efficient cooling for homes and small businesses. This not only helps in cutting down operational costs for users but also contributes to broader environmental sustainability efforts by minimizing the energy-intensive impact of heating and cooling buildings.

HVAC Equipment Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, system type and end user.

Breakup by Type:

• Heating
• Air Conditioning
• Ventilation
• Others
   

Air conditioning accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes heating, air conditioning, ventilation, and others. According to the report, air conditioning represented the largest segment.

Air conditioning dominates the HVAC Equipment Market, reflecting widespread demand across residential, commercial, and industrial sectors. This trend is driven by the increasing need for climate control in diverse environments, coupled with rising global temperatures, which enhance the reliance on cooling systems. Technological advancements in energy efficiency and the integration of smart technology further fuel this sector's growth. For instance, in 2022, Johnson Controls-Hitachi Air Conditioning launched the airHome series, featuring innovative Hitachi air purification technologies like FrostWash to enhance indoor air quality and energy efficiency globally, starting in Europe and later expanding to Asia. As urbanization continues to increase, so does the installation of air conditioning systems in new buildings, maintaining its significant market share.

Breakup by System Type:

• Central
  • All-Air Systems
  • All-Water Systems
  • Air-Water Systems
  • Water-Source Heat Pumps
  • Heating and Cooling Panels
• Decentralized 
  • Local Heating Systems
  • Local Cooling Systems
  • Local Ventilation Systems
  • Local Air-Conditioning Systems
  • Split Systems
     

Central holds the largest share of the industry

A detailed breakup and analysis of the market based on the system type have also been provided in the report. This includes Central (All-Air Systems, All-Water Systems, Air-Water Systems, Water-Source Heat Pumps, Heating and Cooling Panels) and Decentralized (Local Heating Systems, Local Cooling Systems, Local Ventilation Systems, Local Air-Conditioning Systems, Split Systems). According to the report, central accounted for the largest market share.

Central HVAC systems are the most popular type of HVAC equipment due to their efficiency in regulating the temperature of entire buildings or homes from one centralized location. They are cost-effective over the long term and convenient to manage indoor temperatures uniformly. Innovations like variable speed technology and smart thermostat integration enhance their appeal by optimizing energy use and enhancing comfort. Furthermore, the increasing transition toward sustainable building practices has increased the demand for advanced, energy-efficient central HVAC systems, thereby creating a positive outlook for the market.

Breakup by End User:

• Residential
• Commercial
• Industrial
   

Commercial represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the end user. This includes residential, commercial and industrial. According to the report, commercial represented the largest segment.

The commercial sector emerges as the leading segment within the HVAC equipment market, primarily driven by its extensive needs for sophisticated heating, ventilation, and air conditioning systems. Commercial buildings, ranging from offices and shopping centers to hospitals and schools, require robust HVAC solutions to maintain optimal indoor air quality and comfort. The growth in this segment is fueled by ongoing construction activities and the retrofitting of older buildings with modern, energy-efficient systems. Additionally, regulatory standards focusing on energy conservation and environmental sustainability are prompting businesses to invest in advanced HVAC technologies. This push towards greener solutions is significantly influencing market dynamics, as companies seek to reduce their carbon footprint while ensuring energy efficiency.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest HVAC equipment market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for HVAC equipment.

North America stands as the leading market for HVAC equipment, holding the largest share due to several contributing factors. The region's diverse climate necessitates the use of HVAC systems to manage extreme temperatures, both hot and cold. This demand is complemented by stringent regulatory standards that encourage the adoption of energy-efficient technologies. In line with this, the prevalence of older buildings requiring system upgrades and the construction of new, energy-compliant structures further drive the market. Innovations in smart HVAC technologies, which offer enhanced control and efficiency, are particularly popular in this market. These factors collectively ensure North America's dominant position in the global HVAC equipment landscape.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the HVAC equipment industry include Carrier Global Corporation, Daikin Industries Ltd., Danfoss AS, Emerson Electric Co., Honeywell International Inc., Johnson Controls International, Lennox International Inc, LG Electronics Inc., Mitsubishi Electric Corporation, Panasonic Holdings Corporation, Samsung Electronics Co. Ltd., Trane Technologies plc and Whirlpool Corporation, etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Key players in the HVAC equipment market are diversifying their offerings to cater to a broad spectrum of climate control needs across residential, commercial, and industrial sectors. Companies are increasingly integrating smart technologies into their products, such as IoT-enabled devices that allow for remote monitoring and control, enhancing energy efficiency and user convenience. For instance, Carrier introduced a suite of digital solutions to improve engagement and remote management of commercial HVAC systems, providing customers with visibility into system performance and energy usage through a new equipment dashboard and mobile app. These innovations, coupled with enhanced customer support services like installation guidance and maintenance tips, are critical in driving the adoption of advanced HVAC solutions, thereby boosting market growth.

HVAC Equipment Market News:

• In 2024, Toshiba Carrier UK launched Interactive Intelligence II, a powerful web-based embedded building management solution. The new BMS offers advanced control and monitoring capabilities for HVAC systems, providing improved energy efficiency and comfort.
• In 2023, Panasonic Corporation completed the acquisition of Systemair's commercial air-conditioning business for 100 million euros, aiming to expand its commercial hydronic systems business in Europe. This strategic move aligns with Panasonic's commitment to human-centric technology and innovation for the well-being of people, society, and the planet.

HVAC Equipment Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the HVAC equipment market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global HVAC equipment market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the HVAC equipment industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.