Global HVAC Market Expected to Reach USD 136.5 bn by 2024 | HVACR System
Global HVAC Market Expected to Reach USD 136.5 bn by 2024 | HVACR System

Global HVAC market is expected to reach USD 136.5 billion by 2024, registering a CAGR of 3.9 per cent during forecast period, according to P&S Intelligence market report.

The market is buoyed by several factors, predominantly increasing government initiative across the globe, coupled with overall growth in the construction sector. Furthermore, rising average global temperature is propelling the year over year (YoY) growth of the market.

Global warming has led to rise in temperature and has been a major driving force for the rising demand for HVAC systems, across the globe. According to NASA’s Goddard Institute of Space Studies (GISS), since 1980, the average global temperature increased by 0.5C per year. Additionally, some countries in regions such as Middle East and Africa (MEA) and Asia-Pacific (APAC) experience subtropical and hot climate, resulting in intensely hot and humid summers; thereby, making them heavily dependent on HVAC systems for their cooling requirements.

Insights on market segments

On the basis of HVAC type, the global HVAC market is segmented into heating, ventilation, and cooling, wherein cooling category is further segmented into variable refrigerant flow (VRF), ducted split or packaged unit, split unit, chillers, and room air conditioners (RACs). Of which, split unit system accounted for the largest revenue share in 2018. Increasing preference toward ductless air conditioning systems have been one of the major drivers for its growth. Commercial and residential were the prime sectors for continued demand in HVAC systems. As of 2018, more than 60 per cent of the US households are estimated to have deployed central air conditioning system.

On the basis of end-user type, the market is segmented into commercial, industrial and residential, wherein industrial is further segmented into food and beverage (F&B), automotive, energy and utilities, and oil and gas. Of these categories, food and beverage category recorded highest revenue share in the industrial HVAC market in 2018. F&B manufacturing unit requires properly designed air handling system to control airborne particulates and odours. Whereby the system isolates food from outdoor airborne contamination infectious pathogens like Salmonella, Listeria, and E. coli. Further, strict guidelines from agencies such as Food Safety Modernisation Act (FSMA) lead to renovations or expansions in the F&B sector in US.

In 2017, around 640 food and beverage manufacturing units underwent renovations and expansionary projects including 63 new brewery manufacturing units. Countries such as US are witnessing increasing consumer demand from F&B sector. During 2018-2021, consumption of F&B is projected for a growth of 11.3 per cent in North America region.

North America region has been one of the largest consumers of HVAC system. The region exhibits very high temperature during peak summer, where the use of these systems becomes a critical need. Further, populace in the region has a high purchasing power parity (PPP), wherein according to the statistics provided by the World Bank, the US, and Canada recorded annual per capita income of USD 59,531.6 and USD 45,032.1 in 2017. In commercial buildings, HVAC system consumes 40 per cent of the total power consumption. The OEMs in the market are investing in launching new and innovative products, in order to increase the efficiency level of HVAC systems. For instance, in July 2018, Carrier and Toshiba entered into a partnership and launched energy efficient air conditioning solution ‘Hi-wall’ air conditioner. It aims to reduce energy consumption by 40 per cent as compared to 3-Star AC and can save up to USD 725 over a period of five years. The regions including APAC, US and MEA are highly adopting technologies, which includes district cooling and solar refrigerant systems. Some of the major players in the global HVAC market include Johnson Controls International PLC, Samsung Electronics Co, Lennox International, Ingersoll-Rand, United Technologies Corporation, Daikin Industries, Mitsubishi Electric Corporation, Toshiba Carrier Corporation, LG Electronics, Fujitsu Limited, Midea Group, Gree Electric Appliances, Inc. of Zhuhai, and Danfoss A/S.