Global HVAC Systems Market By Product (Cooling, Heating and Ventilation), By End User (Residential, Commercial, and Industrial), By Regional Outlook, COVID-19 Impact Analysis Report and Forecast, 2021 - 2027
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Market Report Description
The Global HVAC Systems Market size is expected to reach $191.1 billion by 2027, rising at a market growth of 5.5% CAGR during the forecast period. The HVAC systems are capable of offering cooling and heating to commercial as well as residential buildings. HVAC systems are located anywhere from single-family homes to submarines where they offer the measures for maintaining a healthy environment. These systems utilize fresh air from the outdoors to offer high indoor air quality, thereby gaining huge traction in new construction.
The V in HVAC, or ventilation, refers to the process of substituting or exchanging the air inside a space. This offers a superior quality of air indoors and includes the removal of moisture, heat, smoke, odors, dust, carbon dioxide, airborne bacteria, and other gases and temperature control & oxygen replenishment.
The demand for HVAC (Heating, ventilation, and air conditioning) is boosted by the emergence of unique & technically sophisticated products which are energy-efficient and can be accessed remotely. The growth of the global HVAC systems market is expected to be boosted by the utilization of natural refrigerants, like CO2, along with growing efforts by several governments around the world with an aim to support energy-efficient products. Moreover, the growth of the HVAC systems would be boosted by the paradigm shift towards the acceptance of energy-efficient air conditioners that can decrease costs and power wastage.
COVID-19 Impact Analysis
The outbreak of the global COVID-19 pandemic has created a devastating impact on the worldwide economy since the onset. In the first quarter of 2020, the growth of the global heating, ventilation, and cooling system market has witnessed a slowdown due to the outbreak of the COVID-19 pandemic. This is due to the stringent lockdown restrictions of various component manufacturing units across the countries like the U.S., Germany, Ireland, China, and others. The strict lockdown measures had slowed down the manufacturing process but also decreased the customer demand for these devices.
Though, the demand for HVAC systems is directly proportional to air fillers across residential utilization, purified air supply across commercial buildings, and the reduction of suffocated air over industrial areas. In addition, various government bodies like the Federation of European Heating, Ventilation and Air Conditioning Association, ASHRAE, and others are installing mitigation tactics that would be helpful in decreasing the chances of this system becoming contaminated with the COVID-19 virus. This, as a result, would create new growth avenues for the growth & demand for these systems throughout the present pandemic.
Market Growth Factors:
HVAC systems offer superior Indoor Air Quality and help in energy conservation
The United States Environmental Protection Agency states that indoor air quality is approximately two to five times worse in comparison to outdoor air, majorly since there is a congestion of the airflow. This polluted air inside the home can cause colds to stay for a longer period and allergies to be more serious. An HVAC system can enhance air quality by consistently exchanging the indoor air with outdoor, fresh air that is also filtered for the best quality possible.
Technologically sophisticated HVAC systems
The growth of the global HVAC market is driven by the surge in demand for technologically sophisticated heating, ventilation, and cooling systems. The development in green-labeled products because of the rising environmental awareness has resulted in thermally driven air-conditioners. Makers like Lennox International Inc., Daikin Industries, Ltd., and others are providing these systems. These air-conditioners use both natural gas and solar energy, hence conforming to energy efficiency.
Market Restraining Factor:
Low availability of efficient labor to slow down the market growth
The growth of the market is expected to be hindered by the low availability of efficient technicians for HVAC systems. As per the Bureau of Labor Statistics, the U.S. has a low availability of above 70,000 technicians. Also, the companies are expected to witness approximately 115,000 new heating, ventilation, cooling, and refrigeration qualified technicians in the upcoming years.
Based on Product, the market is segmented into Cooling, Heating and Ventilation. Heating units like heat pumps, boilers, and furnaces, are extensively utilized in commercial, residential, and industrial applications. Space heating, steam generation, molding, vaporization, floor & wall heating, and drying are some of the major applications of heating equipment. Therefore, the growth of this segment is expected to be boosted by those regions that have excessive cold climatic conditions and industries that need a heating process.
End User Outlook
Based on End User, the market is segmented into Residential, Commercial, and Industrial. The residential segment procured the highest revenue share of the HVAC Systems market in 2020. In addition, residential HVAC units are compact and have a simple installation in comparison to commercial or industrial units. The residential segment consists of equipment utilized in small spaces, like stores & restaurants, and houses.
|Market size value in 2020||USD 126.9 Billion|
|Market size forecast in 2027||USD 191.1 Billion|
|Historical Period||2017 to 2019|
|Forecast Period||2021 to 2027|
|Revenue Growth Rate||CAGR of 5.5% from 2021 to 2027|
|Number of Pages||183|
|Number of Tables||263|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Product, End User, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America was the second-largest region in the HVAC systems market in 2020. Moreover, the region would showcase a moderate growth rate during the forecast period. The European market would display a promising growth rate, boosted by the thriving tourism industry and real estate industry in the region. Governments of various countries in both regions are encouraging the usage of energy-efficient systems by offering subsidies and tax advantages. Due to this, current customers are also updating new energy-efficient systems along with the new constructions.
KBV Cardinal Matrix - HVAC Systems Market Competition Analysis
Free Valuable Insights: Global HVAC Systems Market size to reach USD 191.1 Billion by 2027
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Samsung Electronics Co, Ltd. are the forerunners in the HVAC Systems Market. Companies such as Carrier Corporation, Johnson Controls International Plc, and Hitachi Ltd. are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Carrier Global Corporation, Johnson Controls International PLC, Hitachi, Ltd., Emerson Electric Co., Mitsubishi Electric Corporation, Trane Technologies PLC, Samsung Electronics Co., Ltd., Daikin Industries, Ltd., LG Electronics, Inc. and Lennox International, Inc.
Recent Strategies Deployed in HVAC Systems Market
Partnerships, Collaborations, and Agreements:
- Mar-2021: Carrier Global Corporation collaborated with Emerson, a global technology, software, and engineering leader providing innovative solutions. In this collaboration, Emerson joined the Carrier Alliance program, under which Emerson would continue to offer leading-edge software & technologies from its air conditioning and cold chain businesses like valves, compressors, and sensors, to a wide variety of products within the Carrier portfolio.
- Mar-2021: Carrier entered into an agreement with Watsco to form a joint venture. This joint venture was aimed to acquire Temperature Equipment Corporation (TEC), the largest Carrier distributor in the Midwest. This acquisition would align with Carrier Global's established mission to execute strategic bolt-on M&A and to extend its long-term relationships with TEC and Watsco. In addition, this joint venture would also enable the companies to continue to benefit from the entrepreneurial culture and their market position, which the Mungo family has built at TEC.
- Dec-2020: Carrier Global Corporation entered into an agreement with Danfoss, a Danish multinational company. In addition, Danfoss also joined the Carrier Alliance program. Under the agreement, Danfoss would supply numerous components that include valves, compressors, heat exchangers, and drives across Carrier’s HVAC and Refrigeration portfolios. The agreement also included that Danfoss would supply Carrier-branded replacement compressors.
Acquisitions and Mergers:
- Jun-2021: Carrier acquired a controlling stake of Guangdong Giwee Group and its subsidiaries that include Guangdong Chigo Heating & Ventilation Equipment Co., Ltd. This acquisition aimed to expand Carrier's access to the swiftly expanding variable refrigerant flow (VRF) and light commercial market. Following this acquisition, Carrier also intended to expand Carrier's geographic footprint and market position.
- Dec-2020: Daikin Air-conditioning India took over the air handling business of Ahmedabad-based Citizen Industries. This acquisition aimed to improve Daikin's product positioning in the commercial air-conditioning market and also help the company to strengthen its presence in the expanding commercial air-conditioning market.
- Nov-2020: Emerson took over 7AC, provider of heating and air conditioning products and services. Under this acquisition, 7AC would offer a one-step solution, which demonstrates more energy efficiency and air quality than the prevailing top-class products.
- Jun-2020: Johnson Controls took over H&C Contracts Ltd, East Lancashire Refrigeration Ltd, and McDowall Air Conditioning Ltd. These acquisitions aimed to expand Johnson Controls’ business in the HVAC sector, enabling the company to expand its product portfolio and fill geographical service gaps across the UK and Ireland. These solutions were conventionally centered on the business-critical surrounding and in particular, large tonnage chillers.
- Apr-2020: Mitsubishi Electric Corporation took over all shares of AQS PRODUKTER AB, a comfort, process, and IT cooling and heat pump distributor in Sweden. This acquisition aimed to strengthen and expand Mitsubishi's offering on the Swedish market.
- Nov-2019: Johnson Controls took over EasyIO Building and Energy Management System. This acquisition aimed to make substantial growth opportunities as Johnson Controls leverages the EasyIO products and team in the Americas, Middle East, Europe, and APAC building automation markets, and also the global HVAC and refrigeration markets.
Product Launches and Product Expansions:
- Aug-2021: LG Air Conditioning Technologies USA launched two new splits Dedicated Outdoor Air System (DOAS) units. These units enable building owners and facility managers to effectively condition outside air for enhanced indoor air quality & comfort, without compromising on reliability, flexibility, or ease of integration. These new split DOAS models are built for compatibility with LG's Multi V Variable Refrigerant Flow (VRF) outdoor units and combine effortlessly with LG VRF controls.
- Jul-2021: Johnson Controls-Hitachi Air Conditioning India released SideSmart, the world’s first slim modular side throw VRF model air conditioner. SideSmart is a single module of 18 HP and with a modular combination of up to 72 HP. In addition, SideSmart is a heat pump type (-20°C to 52°C), made for providing brilliant performance in all seasons.
- Apr-2021: Lennox unveiled the Model L packaged rooftop line in the first-ever Lennox Commercial Product Showcase. The light commercial HVAC system features an all-new rooftop controller, the Lennox CORE Control System, and Service App. This Model L kicks off the rooftop revolution and sets up a standard for a premium light commercial product.
- Apr-2021: Lennox introduced Ultimate Comfort System, updated the whole-home heating and cooling system. The Ultimate Comfort System integrates the best of the Dave Lennox Signature Collection to develop an exclusive whole-home comfort system, which effortlessly and intelligently operates together to finely tuned the home and provide constantly clean, perfect air.
- Mar-2021: Hitachi introduced a new range of Room Air Conditioners for the new-age consumers. Through the expanded product portfolio, Hitachi Cooling & Heating India provides more innovations, which provide unparalleled indoor experience and improve comfort in life. With these technologically improved Room ACs, SET-FREE mini & Cassette models for premium residential & smaller commercial spaces, to more efficient SET-FREE Sigma & new Ductable air conditioning type models for big commercial buildings, the company provides excellent products, which can fulfill everyone's diverse needs.
- Jan-2021: Samsung released large capacity Variable Refrigerant Flow (VRF) air conditioning systems in India. This latest side discharge VRF system, DVM S Eco would provide an extremely efficient, quiet, and eco-friendly air conditioning solution and provide a dedicated single outdoor unit for affordable multi-room cooling.
- Nov-2020: Emerson unveiled a new line of Copeland scroll compressors for commercial comfort applications developed for the refrigerant R32. This latest compressor range would enable manufacturers to fulfill the needs from the Ecodesign directive and the F-Gas phasedown. This innovative compressor range is developed for industry-leading efficiency and reliability and is perfect for its customers and end-users to apply over a broad range of commercial applications like heat pumps, chillers, close control units, and rooftops.
- Aug-2020: Trane Technologies launched the Sintesis Balance CMAF, a fully electric single unit to heat and cool buildings. The air-cooled multi-pipe solution is a new model in the Sintesis suite of high-performance indoor climate systems by Trane, which is available for clients in the Middle East, Europe, and Africa.
Scope of the Study
Market Segments Covered in the Report:
By End User
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Carrier Global Corporation,
- Johnson Controls International PLC,
- Hitachi, Ltd.,
- Emerson Electric Co.,
- Mitsubishi Electric Corporation,
- Trane Technologies PLC,
- Samsung Electronics Co., Ltd.,
- Daikin Industries, Ltd.,
- LG Electronics, Inc.
- Lennox International, Inc.
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What would be the size of the HVAC systems market by 2027?
The HVAC systems market size is projected to reach USD 191.1 billion by 2027.
What are the key driving factors and challenges in the HVAC systems market?
HVAC systems offer superior Indoor Air Quality and help in energy conservation are driving the market in coming years, however, Low availability of efficient labor limited the growth of the market.
Who are the leading players in the HVAC systems market?
Carrier Global Corporation, Johnson Controls International PLC, Hitachi, Ltd., Emerson Electric Co., Mitsubishi Electric Corporation, Trane Technologies PLC, Samsung Electronics Co., Ltd., Daikin Industries, Ltd., LG Electronics, Inc. and Lennox International, Inc.
Which segment shows a high revenue share of the HVAC systems market in 2020?
The cooling product segment acquired the maximum revenue share of the HVAC systems market in 2020 and would showcase a similar kind of trend even during the forecast period.
Which segment shows the high growth rate of the HVAC systems market over the forecast period?
The commercial segment would witness the fastest growth rate during the forecast period.
Which region shows the largest market share?
Asia-Pacific emerged as the largest region of the global HVAC systems market in 2020.