Abstract
Summary
The global HVAC system market is expected to be valued at USD 206.3 billion in 2023 and is projected to reach USD 280.1 billion by 2028; it is expected to grow at a CAGR of 6.3% from 2023 to 2028. HVAC systems use refrigerants such as hydrofluorocarbons (HCFs) and hydrochlorofluorocarbons (HCFCs), which emit greenhouse gases (GHGs). Further, several HVAC equipment emit significant amounts of CO2 as they account for ~40% of the total energy consumption in a building. However, in recent years, there have been several advancements in HVAC technology that can help reduce carbon emissions. Moreover, Freon 22, also known as HCFC-22 and R-22, is used as the primary refrigerant chemical in residential air-conditioning units and heat pumps. The United States Environmental Protection Agency (EPA) banned the production of Freon 22 in January 2020.
“Air-handling unit to account for the largest ventilation equipment segment for HVAC system market”
Variable frequency drives (VFDs) are often used in air-handling units (AHUs) to control the speed of the motors that power the fans. VFDs can adjust the speed of the motor to match the air flow requirements of the system, which can help reduce energy consumption and improve system efficiency. By using VFDs in AHUs, the system can better match the airflow needs of the building, allowing for better temperature and humidity control. VFDs also allow for more precise control over the system, which can improve the overall efficiency of the HVAC system.
“Industrial application to grow at the second highest CAGR for HVAC system market.”
Industrial buildings require a lot of energy to operate their processes. HVAC systems used in industrial buildings help to reduce costs related to energy. Industrial owners are installing efficient HVAC systems in warehouses, control rooms, distribution centers, and production facilities to increase the optimum use of energy in these areas. For instance, The US Environmental Protection Agency (EPA) regulates refrigerants in HVAC systems to protect the environment. HVAC systems in industrial settings must comply with EPA regulations for refrigerants.
“India to grow at the highest CAGR for Asia Pacific HVAC system market”
India is one of the top-ranking developing economies in the world. India, being the second-most populated country, has many infrastructure projects, including residential and commercial. Increasing awareness about energy preservation using energy-efficient equipment is fuelling the growth of the smart home industry in the country. Initiatives such as Foreign Direct Investment (FDI), expansion of metro rail, smart city projects, and “Housing for All by 2020” are expected to boost the demand for HVAC systems in the country.
The study contains insights from various industry experts, ranging from component suppliers to Tier 1 companies and OEMs. The break-up of the primaries is as follows:
• By Company Type: Tier 1 – 40%, Tier 2 – 25%, and Tier 3 – 35%
• By Designation: C-level Executives – 33%, Directors – 48%, and Others – 19%
• By Region: North America – 18%, Europe – 35%, Asia Pacific – 40%, RoW – 7%
The key players operating in the HVAC system market are DAIKIN INDUSTRIES, Ltd. (Japan), Johnson Controls (US), Carrier (US), Trane Technologies plc (US), and LG Electronics (South Korea).
This research report categorizes the HVAC system market by cooling equipment (Unitary Air Conditioners, Variable Refrigerant Flow Systems (VRF), Chillers, Room Air Conditioners, Coolers, and Cooling Towers), by heating equipment (Heat Pumps, Furnaces, Unitary Heaters, and Boilers), by ventilation equipment (Air-handling Units (AHUs), Air Filters, Dehumidifiers, Ventilation Fans, Humidifiers, and Air Purifiers), by implementation type (New Constructions and Retrofits), by application (Residential, Commercial, and Industrial) and region (North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America). The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the HVAC system market. A detailed analysis of the key industry players has been done to provide insights into their business overview, solutions, and services; key strategies; Contracts, partnerships, agreements. new product & service launches, mergers and acquisitions, and recent developments associated with the HVAC system market. Competitive analysis of upcoming startups in the HVAC system market ecosystem is covered in this report.
Research Coverage:
Key Benefits of Buying the Report
• Analysis of key drivers (Increasing demand for energy-efficient HVAC systems, Rising constructions activities in residential and industrial sectors, Government regulatory policies and incentives to ensure energy saving and conservation of natural resources, Growing demand for indoor and outdoor air quality, Technological advancements in HVAC systems), restraints (High maintenance, repair, and installation costs for HVAC systems, Limited space in commercial and residential buildings for large HVAC systems, Lack of technical knowledge and shortage of skilled labor), opportunities (Rapid transformation of IoT within HVAC industry, High penetration of VRF systems in residential and commercial applications, Efforts to develop next-generation low global warming potential refrigerants for HVAC systems), and challenges (Lack of awareness about benefits of HVAC systems in developing countries, Increase in environmental concerns and aging infrastructure) influencing the growth of the HVAC system market.
• Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the HVAC system market
• Market Development: Comprehensive information about lucrative markets – the report analyses the HVAC system market across varied regions.
• Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the HVAC system market
• Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like DAIKIN INDUSTRIES, Ltd. (Japan), Johnson Controls (US), Carrier (US), Trane Technologies plc (US), and LG Electronics (South Korea), among others in the HVAC system market.
Table of Contents
1 INTRODUCTION 31
1.1 STUDY OBJECTIVES 31
1.2 MARKET DEFINITION AND SCOPE 31
1.2.1 INCLUSIONS AND EXCLUSIONS 32
1.3 STUDY SCOPE 32
1.3.1 MARKETS COVERED 32
1.3.2 REGIONAL SCOPE 33
1.3.3 YEARS CONSIDERED 33
1.4 CURRENCY 33
1.5 MARKET STAKEHOLDERS 34
1.6 SUMMARY OF CHANGES 34
1.7 RECESSION ANALYSIS 35
2 RESEARCH METHODOLOGY 37
2.1 RESEARCH DATA 37
2.1.1 SECONDARY DATA 38
- 2.1.1.1 List of major secondary sources 38
- 2.1.1.2 Key data from secondary sources 38
2.1.2 PRIMARY DATA 39
- 2.1.2.1 Key data from primary sources 39
- 2.1.2.2 Breakdown of primaries 39
2.1.3 SECONDARY AND PRIMARY RESEARCH 40
- 2.1.3.1 Key industry insights 41
2.2 MARKET SIZE ESTIMATION 41
2.2.1 BOTTOM-UP APPROACH 43
- 2.2.1.1 Approach for arriving at market size using bottom-up analysis 43
2.2.2 TOP-DOWN APPROACH 45
- 2.2.2.1 Approach for arriving at market size using top-down analysis 45
2.3 MARKET BREAKDOWN AND DATA TRIANGULATION 46
2.4 RESEARCH ASSUMPTIONS 47
2.5 RISK ASSESSMENT 47
2.6 ASSUMPTIONS: RECESSION 48
2.7 STUDY LIMITATIONS 48
3 EXECUTIVE SUMMARY 49
3.1 GROWTH RATE ASSUMPTIONS/FORECAST 49
4 PREMIUM INSIGHTS 54
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN HVAC SYSTEM MARKET 54
4.2 HVAC SYSTEM MARKET IN NORTH AMERICA, BY COUNTRY AND EQUIPMENT TYPE 55
4.3 HVAC SYSTEM MARKET FOR COMMERCIAL APPLICATIONS, BY TYPE 55
4.4 HVAC SYSTEM MARKET, BY COUNTRY 56
5 MARKET OVERVIEW 57
5.1 INTRODUCTION 57
5.2 MARKET DYNAMICS 57
5.2.1 DRIVERS 58
- 5.2.1.1 Increasing demand for energy-efficient HVAC systems 58
- 5.2.1.2 Rising constructions activities in residential and industrial sectors 59
- 5.2.1.3 Government regulatory policies and incentives to ensure energy saving and conservation of natural resources 60
- 5.2.1.4 Growing demand for indoor and outdoor air quality 60
- 5.2.1.5 Technological advancements in HVAC systems 61
5.2.2 RESTRAINTS 61
- 5.2.2.1 High maintenance, repair, and installation costs of HVAC systems 62
- 5.2.2.2 Limited space in commercial and residential buildings for large HVAC systems 62
- 5.2.2.3 Lack of technical knowledge and shortage of skilled labor 63
5.2.3 OPPORTUNITIES 63
- 5.2.3.1 Rapid transformation of IoT within HVAC industry 64
- 5.2.3.2 High penetration of VRF systems in residential and commercial applications 64
- 5.2.3.3 Efforts to develop next-generation low global warming potential refrigerants for HVAC systems 65
5.2.4 CHALLENGES 65
- 5.2.4.1 Lack of awareness about benefits of HVAC systems in developing countries 65
- 5.2.4.2 Increase in environmental concerns and aging infrastructure 66
5.3 VALUE CHAIN ANALYSIS 66
5.4 ECOSYSTEM ANALYSIS 68
5.5 PORTER’S FIVE FORCES ANALYSIS 70
5.5.1 DEGREE OF COMPETITION 71
5.5.2 BARGAINING POWER OF SUPPLIERS 71
5.5.3 BARGAINING POWER OF BUYERS 71
5.5.4 THREAT OF SUBSTITUTES 71
5.5.5 THREAT OF NEW ENTRANTS 71
5.6 KEY STAKEHOLDERS AND BUYING CRITERIA 72
5.6.1 KEY STAKEHOLDERS IN BUYING PROCESS 72
5.6.2 BUYING CRITERIA 73
5.7 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESS 73
5.8 CASE STUDY ANALYSIS 74
5.8.1 TOWER OF LONDON INSTALLS HVAC SYSTEMS FROM AIREDALE 74
5.8.2 THE EBELL OF LOS ANGELES AND WILSHIRE EBELL THEATER HOUSE REPLACE OLD AND INEFFICIENT HVAC SYSTEMS 75
5.8.3 GEORGIA SCHOOL DISTRICT UPGRADES HVAC SYSTEMS AND LOWERS ENERGY COSTS 75
5.8.4 VIRGINIA DATA CENTER INSTALLATION IN MODULAR HVAC SYSTEMS 76
5.8.5 ALACHUA COUNTY LIBRARY DISTRICT IN GAINESVILLE, FLORIDA, IMPLEMENTS INNOVATIVE HVAC SOLUTIONS USING ICEBANK ENERGY STORAGE SYSTEM OF CALMAC 76
5.9 TECHNOLOGY ANALYSIS 77
5.9.1 KEY TECHNOLOGIES 77
- 5.9.1.1 Air conditioning units 77
- 5.9.1.2 Heating units 77
- 5.9.1.3 Ventilation systems 78
5.9.2 COMPLEMENTARY TECHNOLOGIES 78
- 5.9.2.1 Sensors 78
- 5.9.2.2 Building automation systems 78
5.9.3 ADJACENT TECHNOLOGIES 79
- 5.9.3.1 Software technologies 79
5.10 AVERAGE SELLING PRICE ANALYSIS 79
5.10.1 AVERAGE SELLING PRICES OF HVAC SYSTEM EQUIPMENT, BY APPLICATION (USD) 80
5.10.2 AVERAGE SELLING PRICE TRENDS 80
5.11 PATENT ANALYSIS 82
5.12 TRADE ANALYSIS 87
5.13 TARIFF ANALYSIS 89
5.14 STANDARDS AND REGULATORY LANDSCAPE 91
5.14.1 REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS 91
- 5.14.1.1 North America: List of regulatory bodies, government agencies, and other organizations 91
- 5.14.1.2 Europe: List of regulatory bodies, government agencies, and other organizations 92
- 5.14.1.3 Asia Pacific: List of regulatory bodies, government agencies, and other organizations 93
- 5.14.1.4 RoW: List of regulatory bodies, government agencies, and other organizations 94
5.14.2 STANDARDS & REGULATIONS RELATED TO HVAC SYSTEM MARKET 95
- 5.14.2.1 Environmental HVAC requirements 96
- 5.14.2.1.1 Current HCFC regulations 96
- 5.14.2.1.2 New HFC regulations 96
- 5.14.2.1.3 US regulations 96
- 5.14.2.1.4 Canadian regulations 96
- 5.14.2.2 HVAC efficiency standards 96
- 5.14.2.3 HVAC tech certifications 96
- 5.14.2.1 Environmental HVAC requirements 96
5.15 KEY CONFERENCES AND EVENTS, 2023-2024 97
5.16 COMPANY INFORMATION FOR TOP HVAC SYSTEM MANUFACTURERS 98
5.17 TIER 2 AND TIER 3 SUPPLIERS OF HVAC SYSTEM MARKET 102
6 HVAC SYSTEM MARKET, BY COOLING EQUIPMENT 104
6.1 INTRODUCTION 105
6.2 UNITARY AIR CONDITIONERS 107
6.2.1 COMMERCIAL SEGMENT TO ACCOUNT FOR LARGEST SHARE OF COOLING EQUIPMENT MARKET FOR UNITARY AIR CONDITIONERS 107
- 6.2.1.1 Split air conditioners 107
- 6.2.1.2 Packaged air conditioners 108
6.3 VRF SYSTEMS 110
6.3.1 GROWING POPULARITY DUE TO ENERGY EFFICIENCY, FLEXIBILITY, AND ZONING CAPABILITIES 110
6.4 CHILLERS 112
6.4.1 DRIVES REFRIGERATION CYCLE OF COOLING EQUIPMENT 112
- 6.4.1.1 Scroll chillers 112
- 6.4.1.2 Screw chillers 113
- 6.4.1.3 Centrifugal chillers 113
- 6.4.1.4 Reciprocating chillers 114
- 6.4.1.5 Absorption chillers 115
6.5 ROOM AIR CONDITIONERS 116
6.5.1 RESIDENTIAL SEGMENT TO HOLD LARGEST SHARE OF ROOM AIR CONDITIONERS MARKET 116
6.6 COOLERS 119
6.6.1 RESIDENTIAL SEGMENT TO ACCOUNT FOR LARGEST SHARE OF COOLERS MARKET 119
- 6.6.1.1 Ducted coolers 119
- 6.6.1.2 Window coolers 120
6.7 COOLING TOWERS 121
6.7.1 ASIA PACIFIC TO HOLD LARGEST SHARE OF COOLING TOWERS MARKET 121
- 6.7.1.1 Evaporative cooling towers 122
- 6.7.1.2 Dry cooling towers 122
- 6.7.1.3 Hybrid cooling towers 123
7 HVAC SYSTEM MARKET, BY HEATING EQUIPMENT 125
7.1 INTRODUCTION 126
7.2 HEAT PUMPS 128
7.2.1 INCREASING ADOPTION OF COST-EFFECTIVE HEAT PUMPS 128
7.2.2 CASE STUDY: KING EDWARD VII HIGH SCHOOL INSTALLS HEAT PUMPS TO UTILIZE RENEWABLE ENERGY WITHIN BUDGET 129
- 7.2.2.1 Air-to-air heat pumps 129
- 7.2.2.2 Air-to-water heat pumps 129
- 7.2.2.3 Water-to-water heat pumps 129
7.3 FURNACES 131
7.3.1 LOW COST AND HIGH EFFICIENCY TO FUEL DEMAND FOR FURNACES 131
7.3.2 CASE STUDY: FURNACE REPLACEMENT FOR COLONIAL HOME INCREASES EFFICIENCY 131
- 7.3.2.1 Oil furnaces 131
- 7.3.2.2 Gas furnaces 132
- 7.3.2.3 Electric furnaces 132
7.4 UNITARY HEATERS 133
7.4.1 HIGH EFFICIENCY AND COST-EFFECTIVENESS OF UNITARY HEATERS TO BOOST MARKET GROWTH 133
- 7.4.1.1 Gas unit heaters 134
- 7.4.1.2 Oil-fired unit heaters 134
- 7.4.1.3 Electric unit heaters 134
7.5 BOILERS 135
7.5.1 RESIDENTIAL SEGMENT TO HOLD LARGEST SHARE OF HVAC SYSTEM MARKET FOR BOILERS 135
- 7.5.1.1 Steam boilers 136
- 7.5.1.2 Hot water boilers 136
8 HVAC SYSTEM MARKET, BY VENTILATION EQUIPMENT 138
8.1 INTRODUCTION 139
8.2 AIR-HANDLING UNITS 141
8.2.1 VARIABLE FREQUENCY DRIVES USED IN AIR-HANDLING UNIT TO CONTROL MOTOR SPEED 141
8.3 AIR FILTERS 143
8.3.1 ASIA PACIFIC TO HOLD LARGEST SHARE OF AIR FILTERS MARKET 143
8.4 DEHUMIDIFIERS 145
8.4.1 INDUSTRIAL SEGMENT TO ACCOUNT FOR LARGEST SHARE OF HVAC SYSTEM MARKET FOR DEHUMIDIFIERS 145
- 8.4.1.1 Refrigeration dehumidifiers 145
- 8.4.1.2 Absorption dehumidifiers 146
8.5 VENTILATION FANS 147
8.5.1 ASIA PACIFIC TO HOLD LARGEST SHARE OF VENTILATION FANS MARKET 147
- 8.5.1.1 Crossflow fans 148
- 8.5.1.2 Axial fans 149
- 8.5.1.3 Centrifugal fans 149
- 8.5.1.4 Domestic fans 149
- 8.5.1.5 Range hood fans 149
- 8.5.1.6 Power roof fans 150
8.6 HUMIDIFIERS 151
8.6.1 CHANGING WEATHER PATTERNS AND INCREASING INDOOR AIR POLLUTION 151
- 8.6.1.1 Warm-mist humidifiers 152
- 8.6.1.2 Ultrasonic humidifiers 152
- 8.6.1.3 Cool-mist humidifiers 153
8.7 AIR PURIFIERS 154
8.7.1 USED IN HOMES AND WORKPLACES TO IMPROVE INDOOR AIR QUALITY AND CONTROL SYMPTOMS OF ALLERGIES AND ASTHMA 154
- 8.7.1.1 HEPA air purifiers 155
- 8.7.1.2 Activated carbon air purifiers 155
- 8.7.1.3 Electrostatic air purifiers 155
- 8.7.1.4 Ionic air purifiers 155
9 HVAC SYSTEM MARKET, BY IMPLEMENTATION TYPE 158
9.1 INTRODUCTION 159
9.2 NEW CONSTRUCTION 160
9.2.1 GROWING URBANIZATION TO BENEFIT MARKET 160
9.3 RETROFIT 161
9.3.1 GOVERNMENT REGULATIONS FOR GREEN BUILDINGS 161
10 HVAC SYSTEM MARKET, BY APPLICATION 163
10.1 INTRODUCTION 164
10.2 COMMERCIAL 165
10.2.1 GROWING ADOPTION OF ENERGY-EFFICIENT EQUIPMENT TO BOOST HVAC SYSTEM MARKET FOR COMMERCIAL SPACES 165
- 10.2.1.1 Offices 168
- 10.2.1.2 Governments 169
- 10.2.1.3 Healthcare 169
- 10.2.1.4 Education 170
- 10.2.1.5 Retail 170
- 10.2.1.6 Airports 171
10.3 RESIDENTIAL 171
10.3.1 GOVERNMENT REGULATIONS AND TAX CREDIT PROGRAMS TO PROMOTE USE OF HVAC SYSTEMS IN RESIDENTIAL APPLICATIONS 171
10.4 INDUSTRIAL 174
10.4.1 GROWING USE OF ENERGY-EFFICIENT HVAC SYSTEMS IN INDUSTRIAL SPACES TO REDUCE OPERATIONAL COSTS AND SAVE ENERGY 174
11 HVAC SYSTEM MARKET, BY REGION 177
11.1 INTRODUCTION 178
11.2 NORTH AMERICA 181
11.2.1 NORTH AMERICA: IMPACT OF RECESSION 182
11.2.2 US 185
- 11.2.2.1 Increasing number of construction projects 185
11.2.3 CANADA 186
- 11.2.3.1 Government initiatives to save energy 186
11.2.4 MEXICO 186
- 11.2.4.1 Increasing focus on promoting use of energy-efficient HVAC systems 186
11.3 EUROPE 187
11.3.1 EUROPE: IMPACT OF RECESSION 188
11.3.2 UK 190
- 11.3.2.1 High demand for energy-efficient devices from commercial and residential users 190
11.3.3 GERMANY 191
- 11.3.3.1 Increasing innovations in software solutions for HVAC professionals 191
11.3.4 FRANCE 192
- 11.3.4.1 Rising focus on reducing greenhouse gases 192
11.3.5 REST OF EUROPE 193
11.4 ASIA PACIFIC 194
11.4.1 ASIA PACIFIC: IMPACT OF RECESSION 194
11.4.2 CHINA 196
- 11.4.2.1 Growing industrialization and urbanization 196
11.4.3 JAPAN 198
- 11.4.3.1 Strict regulations for energy conservation 198
11.4.4 INDIA 198
- 11.4.4.1 Surging need to save energy to boost demand 198
11.4.5 REST OF ASIA PACIFIC 199
11.5 ROW 200
11.5.1 ROW: IMPACT OF RECESSION 200
11.5.2 SOUTH AMERICA 201
- 11.5.2.1 Strong focus on infrastructure development 201
11.5.3 MIDDLE EAST & AFRICA 202
- 11.5.3.1 Stringent regulations for enhancing energy performance of buildings 202
12 COMPETITIVE LANDSCAPE 203
12.1 OVERVIEW 203
12.2 KEY PLAYER STRATEGIES 203
12.3 COMPANY REVENUE ANALYSIS, 2020-2022 206
12.4 MARKET SHARE ANALYSIS, 2022 206
12.5 COMPANY EVALUATION QUADRANT 208
12.5.1 STARS 208
12.5.2 PERVASIVE PLAYERS 208
12.5.3 EMERGING LEADERS 208
12.5.4 PARTICIPANTS 209
12.6 STARTUP/SME EVALUATION QUADRANT 210
12.6.1 PROGRESSIVE COMPANIES 210
12.6.2 RESPONSIVE COMPANIES 210
12.6.3 DYNAMIC COMPANIES 210
12.6.4 STARTING BLOCKS 210
12.7 HVAC SYSTEM MARKET: COMPANY FOOTPRINT 212
12.8 STARTUP/SME EVALUATION MATRIX 216
12.8.1 LIST OF STARTUPS/SMES: HVAC SYSTEM MARKET 216
12.8.2 STARTUP/SME MATRIX: DETAILED LIST OF KEY STARTUPS/SMES 217
12.9 COMPETITIVE SCENARIO AND TRENDS 219
12.9.1 DEALS 219
12.9.2 PRODUCT LAUNCHES 223
13 COMPANY PROFILES 231
13.1 KEY PLAYERS 231
13.1.1 DAIKIN 231
13.1.2 JOHNSON CONTROLS INTERNATIONAL PLC 237
13.1.3 LG ELECTRONICS 242
13.1.4 CARRIER GLOBAL CORPORATION 246
13.1.5 TRANE TECHNOLOGIES PLC 256
13.1.6 EMERSON ELECTRIC CO. 261
13.1.7 HONEYWELL INTERNATIONAL INC. 264
13.1.8 MITSUBISHI ELECTRIC CORPORATION 269
13.1.9 SAMSUNG ELECTRONICS CO., LTD. 274
13.1.10 NORTEK AIR MANAGEMENT 277
13.2 OTHER KEY PLAYERS 280
13.2.1 DANFOSS 280
13.2.2 FUJITSU 281
13.2.3 GREE 282
13.2.4 HITACHI 283
13.2.5 MIDEA 283
13.2.6 PANASONIC HOLDINGS CORP 284
13.2.7 HAIER SMART HOME 285
13.2.8 TOSHIBA 286
13.2.9 WHIRLPOOL 286
13.2.10 SIEMENS AG 287
13.2.11 ELECTROLUX 287
13.2.12 LENNOX 288
13.2.13 SCHNEIDER ELECTRIC 289
13.2.14 FERROLI 289
13.2.15 BOSCH THERMOTECHNIK 290
14 APPENDIX 291
14.1 DISCUSSION GUIDE 291
14.2 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 294
14.3 CUSTOMIZATION OPTIONS 296
14.4 RELATED REPORTS 296
14.5 AUTHOR DETAILS 297