HVAC System Market Growth, Size, Share, Trends, Key Players Analysis, and Forecast till 2030

The HVAC system market size is expected to grow from US$ 246.10 billion in 2022 to US$ 597.7 billion by 2030; it is estimated to record a CAGR of 11.3% from 2022 to 2030. The growing emphasis on smart and connected HVAC systems to enhance overall energy efficiency is likely to remain a key trend in the market.

HVAC System Market Analysis

The surge in demand for eco-friendly HVAC systems and smart homes has encouraged participants to undertake innovative developments in HVAC technologies, focusing on enhancing energy efficiency. Significant corporations engage in partnerships, acquisitions, product innovation, and development strategies. Additionally, in 2023, the HVAC industry is shifting toward smart connected systems. With smart connected systems, homeowners and building managers can control their HVAC systems remotely using mobile devices and smartphones. These systems feature precise temperature control and can adjust automatically to changing weather conditions to improve energy efficiency. Moreover, the rise of heat pumps is changing the HVAC system market outlook, as there is a need to phase down HFC refrigerants. Other agents of change include greater connectivity among systems.

HVAC System Market Overview

HVAC is an abbreviation for Heating, Ventilation, and Air Conditioning. The word HVAC refers to a full home comfort system that can heat and cool your house while also improving indoor air quality. HVAC is sometimes mistaken with the term AC, however, AC only refers to air conditioning on its own, whereas HVAC refers to the entire system, which may or may not include an air conditioning unit. The purpose of an HVAC system is to provide optimal home comfort conditions. To do this, a full system must be assembled from an air conditioner, furnace, air handler, ducting, thermostat, and maybe extra equipment such as a humidifier or air purifier.

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HVAC System Market: Strategic Insights

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HVAC System Market Drivers and Opportunities

Emerging Technologies Promote Demand for Smart HVAC Systems

There is a growing penetration of IoT-enabled devices across residential, commercial, and industrial sectors. HVAC manufacturers are manufacturing smart HVAC systems utilizing wireless technology to communicate with nearby smart devices and adjust the indoor environment automatically. A smart HVAC system can understand the temperature or humidity of different rooms and adjust the climate accordingly. It can also customize the climate based on individual members’ preferences present on the floor. Additionally, these systems can save energy in commercial settings while providing a quieter environment. Such systems can be improvised for predictive maintenance by harnessing the power of artificial intelligence (AI) and machine learning (ML), thus offering better cost savings and longer operational life. The adoption of smart HVAC systems has been rising across residential, commercial, and industrial sectors due to the integration of such advanced technologies.

Growing Initiatives to Promote

HVAC manufacturers have been collaborating with different ecosystem companies to improve their product offerings. In June 2020, Schneider Electric SE, Somfy Group, and Danfoss A/S partnered with Assa Abloy AB to develop and deploy seamless smart solutions for commercial and residential applications. Danfoss A/S is one of the largest manufacturers of HVAC systems in Europe, and the company’s participation in such collaboration can strongly aid in HVAC product development. Thus, collaborations can offer customers cutting-edge connected solutions such as smart HVAC systems, which, in turn, are expected to positively impact the growth of the HVAC system market.

HVAC System Market Report Segmentation Analysis

Key segments that contributed to the derivation of the HVAC System market analysis are component, type, implementation, and application.

• Based on components, the HVAC system market is segmented into thermostats, air handling units (AHU), central ACs, furnaces, pumps, compressors, and others. The central ACs segment held the largest share of the market in 2022.
• Based on type, the market is segmented into split systems, ductless systems, and packaged systems. The split system segment held a significant market share in 2022.
• Based on implementation, the market is categorized into new installation and retrofit. The new installation segment held the largest share of the market in 2022.
• Based on application, the market is categorized into residential, commercial, and industrial. The commercial segment held the largest share of the market in 2022.

HVAC System Market Share Analysis by Geography

The geographic scope of the HVAC System market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

North America dominated the market in 2023. The North American HVAC System market is segmented into the US, Canada, and Mexico. North America is recording a growing demand for energy-efficient HVAC systems. Consumers are getting sensitive to their energy consumption and are more questing for technologies that will help reduce costs and environmental impact. This demand also aligns with regulatory objectives and sustainability practices, providing more impetus to the market for high-efficiency HVAC equipment.

HVAC System Market Regional Insights

The regional trends and factors influencing the HVAC System Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses HVAC System Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

HVAC System Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The HVAC System Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the HVAC System Market are:

1. Daikin Industries, Ltd.
2. Emerson Electric Co.
3. Honeywell International Inc.
4. Johnson Controls Inc.
5. LG Electronics
6. Carrier Global Corporation

Disclaimer: The companies listed above are not ranked in any particular order.

HVAC System Market News and Recent Developments

The HVAC System market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the HVAC System market are listed below:

• Voltas launched its new commercial AC product line-up for commercial spaces at the ACREX India 2024 in Noida. The new Inverter Scroll Chillers have a cooling capacity ranging from 12-72 TR with eco-friendly refrigerants. The product is IoT-enabled, BMS compatible, silent in operation, and convenient for the user, as it can be operated through a mobile app. Through this new line of Inverter Scroll Chillers, the company aims to further enhance its goal of encouraging commercial spaces, to use cutting-edge technology, for incorporating energy-efficient solutions into their operations. (Source: Voltas, Press Release, April 2024)

• Daikin Comfort Technologies North America Inc. launched Quality Install, which the company describes as a powerful new way to commission indoor comfort systems using cloud-connected equipment. (Source: Daikin Comfort Technologies, Press Release, January 2024)

HVAC System Market Report Coverage and Deliverables

The “HVAC System Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:

• HVAC System market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• HVAC System market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• HVAC System market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the superconductor market
• Detailed company profiles