According to the market research report published by P&S Intelligence, HVAC market is expected to reach USD 136.5 billion by 2024, registering a CAGR of 3.9 per cent during forecast period. 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, particularly due to greenhouse emission, 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.
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 towards 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.
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. Also, in 2017, the construction industry displayed a 6 per cent increase in investment from previous year, predominantly led by residential and commercial building construction.
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.