HVAC Systems Market Size, Demand, Trends, Growth, Forecast To 2031

(MENAFN- Straits Research) HVAC uses various technologies to regulate the air's temperature, humidity, and purity in an enclosed space. The objective is to provide adequate thermal comfort and indoor air quality. The laws of heat transfer, thermodynamics, and fluid mechanics serve as the foundation for HVAC system design in mechanical engineering. Sometimes "refrigeration" is added to the field's acronym as HVAC&R or HVACR, or "ventilation" is eliminated as in HACR (as in the designation of HACR-rated circuit breakers).
HVAC systems play a significant role in residential structures such as single-family homes, apartment complexes, hotels, and senior living facilities, as well as in medium- to large-sized industrial and office buildings such as skyscrapers and hospitals, as well as in transportation such as cars, trains, airplanes, ships, and submarines, and in marine environments where secure and healthy building conditions are controlled for temperature and humidity using outside air.
Market Dynamics
Government Tax Credits and Rebate Programs Drive the Global Market
It is anticipated that the availability of tax credit and rebate programs and other financial benefits associated with the purchase of energy-efficient HVAC systems will increase market sales. Governments at multiple levels, including the federal and state levels, have enacted standards to enhance the operation of HVAC systems. Proactive government initiatives will emerge as market growth drivers over the forecast period.
For instance, the Taxpayer Relief Act of 2012 (U.S.)-2017 allows customers to petition for the Federal Energy Tax Credit. The credit is not available for all HVAC systems. The 25C tax credits are 10% of the total installation costs (up to USD 500) or from USD 50 to USD 300 for HVAC systems that qualify for the tax credits. Launching similar programs would be crucial to market expansion during the forecast period.
Integration of IoT with HVAC Systems Creates Tremendous Opportunities
Several industries, including automotive, BFSI, transportation and logistics, manufacturing, and healthcare, are discovering the future applications of IoT. It offers real-time data processing by assisting organizations in analyzing and identifying hidden patterns, relationships, and unique insights that facilitate improved decision-making. Integrating IoT with HVAC systems enables businesses to analyze external data such as the number of occupants, their comfort preferences, the humidity level, and the outside temperature, among others. HVAC systems utilize this information to set optimal temperatures, alter fan rates, and improve the energy efficiency of the entire system.
Additionally, IoT enables predictive maintenance for consumers and HVAC companies, thereby reducing maintenance costs and preventing catastrophic system failures. Due to these advantages, the number of IoT-enabled devices is expected to increase. IoT Analytics GmbH projects that the number of IoT device connections will increase at a CAGR of 13%, from 11.7 billion in 2020 to 30.9 billion in 2025. Consequently, the proliferation of IoT-enabled devices is anticipated to increase the adoption of connected HVAC systems, creating growth opportunities in the market.
Regional Analysis
Asia-Pacific is the most significant global HVAC systems market shareholder and is estimated to exhibit a CAGR of 6.2% during the forecast period. Asia-Pacific holds the largest share of the global HVAC systems market as a result of expanding demand from the residential, commercial office, and building sectors. Major Asia-Pacific economies such as China, Japan, and India are experiencing a rise in commercial construction as businesses from various industries establish offices throughout the region to secure their target and potential consumers. Due to China's rapid urbanization, the country's market is also experiencing an increase in public and private investment in real estate projects and various residential, commercial, and industrial developments, fostering the growth of the HVAC system market.
North America is estimated to exhibit a CAGR of 5.5% over the forecast period. This region's HVAC market is mature. However, replacement sales prompted by aging infrastructure or retrofit projects generate new revenue streams for original equipment manufacturers (OEMs) and their expansion in the services and maintenance sector. North America is also anticipated to have a sizable market share since the green construction approach is one of the industry's most important pillars. In addition, green buildings have energy-efficient designs and building techniques for ventilation and heating. Builders repair HVAC systems. They focus on employing environmentally favorable building materials that maintain a building's stable temperature and encourage natural ventilation to reduce the HVAC system's energy consumption.
Key Highlights

The global HVAC systems market was valued at USD 189.33 billion in 2022. It is estimated to reach USD 341.40 billion by 2031, growing at a CAGR of 6.8% during the forecast period (2023–2031).
Based on the product, the global HVAC systems market is bifurcated into heating, ventilation, and cooling.
The cooling segment dominates the global market and is projected to exhibit a CAGR of 5.91% over the forecast period.
Based on end-user, the global HVAC systems market is segmented into residential, commercial, and industrial.
The residential segment owns the highest market share and is estimated to exhibit a CAGR of 5.4% during the forecast period.
Asia-Pacific is the most significant global HVAC systems market shareholder and is estimated to exhibit a CAGR of 6.2% during the forecast period.

Competitive Players
The key global HVAC systems market players are Carrier Corporation; Emerson Electric Co.; Hitachi Ltd.; Daikin Industries, Ltd.; Johnson Controls International plc; Trane Technologies; Lennox International, Inc.; Samsung Electronics Co. Ltd.; Rheem Manufacturing Company; LG Electronics; Havells India Ltd.; Mitsubishi Electric; Haier Group; and Hitachi Ltd.
Market News

In July 2023, HD Hyundai Heavy Industries Co., the world's largest shipbuilder by orders, announced that it developed an HVAC system for ships that uses ammonia as a refrigerant. HD Hyundai Heavy has received approval in principle (AIP) from the American Bureau of Shipping (ABS), a U.S. quality assurance and risk management organization, for the system.


In June 2023, Ardian, a premier global private investment firm, announced that its North America Fund team had acquired a majority stake in Tom Barrow Company, a market-leading provider of commercial HVAC solutions in the Southeast United States. The management team and founding family will retain a significant minority stake in the company.

Global HVAC Systems Market: Segmentation
By Product

Heating
Ventilation
Cooling

By End-User

Residential
Commercial
Industrial

By Regions

North America
Europe
Asia-Pacific
South America
The Middle East and Africa

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