Report Details

Global Heating, Ventilation & Air Conditioning (HVAC) Market (by Type, End User, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

  • Published: 1st Oct 2023
  • Pages: 173
  • Format : Pdf

Market Insight:

Heating, Ventilation and Air Conditioning (HVAC), is a technological system, which is used to provide cooling ventilation and heating facilities to the building. Heating appliances like heater, furnace and heat pumps, are used to generate heat in buildings via central heating or local heating. Ventilation appliances are used to change or replace air in any building to regulate temperature. Air conditioning appliances are used in cooling of indoor air for thermal comfort.

The HVAC industry is gradually shifting the emphasis toward energy efficiency. Several OEMs are focusing on green initiatives in order to save money while reducing greenhouse emissions. As a result, there has been a shift in recent years toward eco-friendly HVAC units. This includes products that use less power and run on renewable energy sources, lowering energy costs. The global heating, ventilation & air conditioning (HVAC) market is expected to be worth US$178.17 billion in 2023, witnessing growth at a CAGR of 6.72%, during the forecasted period. 

Segment Covered:   

  • By Type: The report identifies two segments in terms of type: Equipment and Aftermarket & Services. Equipment segment held the largest share of the global HVAC market. Escalating e-commerce heating device sales and the introduction of energy-efficient products such as geothermal and solar HVAC equipment by the companies are anticipated to drive the global HVAC equipment market in future.
  • By End-User: The market report splits the HVAC equipment market into two different segments, on the basis of end user: Commercial and Residential. Residential HVAC equipment is further classified as ductless and unitary, while commercial HVAC equipment is classified as ductless, unitary, and applied. The residential segment is foreseen to be the fastest growing segment, growing at a highest CAGR during the forecasted period. An increase in multi-family and individual homeowners is opening up opportunities for the residential HVAC segment. Residential HVAC demand is expected to be more or less stagnant in developed parts of the world; however, demand from newer markets, particularly developing markets, is expected to be significantly higher. This is primarily ascribed to the growing population in emerging markets and market maturity in developed markets. 

Geographic Coverage: 

According to this report, the global heating, ventilation and air conditioning (HVAC) market is divided into four regions: Asia Pacific, North America, Europe, and ROW. The countries covered in Asia Pacific region are China, Japan, India, and Rest of Asia Pacific, while North America includes the US, Canada, and Mexico. Moreover, Germany, UK, and Rest of Europe are included in the Europe region.

Asia Pacific dominated the HVAC market, accounting for the maximum share. Rapid urbanization, population growth, and rising consumer disposable income have all contributed to the region's phenomenal growth over the years. North America was the second-largest consumer of HVAC systems, closely followed by Europe. The market for HVAC systems in the region has reached maturity; however, replacement sales due to aging infrastructure or retrofit projects are creating alternate revenue streams for OEMs in North America in addition to expansion into the services and maintenance category. and a thriving social and mobile commerce ecosystem. 

Top Impacting Factors:

Growth Drivers

  • Growing Global Population 
  • Increasing Construction Activities
  • Growing Smart Thermostat Market
  • Intensifying Annual Mean Temperature      


  • Increasing Raw Materials Prices
  • Data Infrastructure System Security    


  • Emerging Home Automation Market 
  • Surging Demand for Invertor Air Conditioner (AC) 
  • Technological Advancements  

Driver: Intensifying Annual Mean Temperature

With the increasing temperature due to increasing concentration of carbon dioxide in the atmosphere resulting from the burning of fossil fuels at home and gasoline fuels in vehicles, the summers are getting longer and warmer year by year. This has led to increasing application of air conditioning and ventilation equipment by the population. Hence, with the intensifying global annual mean temperature, the revenues of the global HVAC market are growing as well.

  • Challenge: Data Infrastructure System Security

Any disruption of the data infrastructure owing to employee inaccuracies or misconduct, energy & utility outages, malicious attacks by hackers and viruses could impact the goodwill, partner & business operation of the company along with compromising the security of the proprietary data of the company. Further, it could lead to expose the identifiable data relating to business partners, relationship with the customers and skills of the existing employees, upcoming product launches and ongoing research & development programs related to HVAC systems. In past few years, growing risk to the safety of the company's data infrastructure system is one of the main challenges experienced by the companies engaged in the HVAC market. Such events would significantly impact the company’s overall performance, increase its regulatory & remediable expenses and may lead to failure launch of upcoming HVAC system, thus, could be seen as a major key challenge for the global HVAC market.

  • Trend: Emerging Home Automation Market

Home Automation (Smart Homes) involves control of the buildings’ appliances, lighting, heating, ventilation, air conditioning and security systems. Increasing demand for home automation has resulted in high demand for HVAC equipment for energy savings. As a result, the growing automation market is a major growth driver for the market. Also, rising shift of manufacturers from other consumer electrical industries such as an electronic calculator, recreational vehicles to HVAC market would open additional opportunities for industry.

The COVID-19 Analysis:      

During initial stages, the pandemic had created an enormous economic downturn worldwide, which has been felt at every level of the heating, ventilation and air conditioning (HVAC) industry. The commercial sector was hit particularly hard in every part of the world; customer demand, operation and planning among HVAC manufacturers and distributors were changed. Many HVAC manufacturers also halted the production in the initial stages of the pandemic. 

After mid 2020, the HVAC industry was more focused on sustainability, diversity, technological solutions and environmental stewardship. They were sophisticated about finance and practical about operations. New digital technologies like artificial intelligence (AI and IoT) supported the growth of the market and further technological advancements are expected to support the market growth during the post COVID period.

Analysis of Key Players:   

The global heating, ventilation and air conditioning (HVAC) market is moderately concentrated. Market players have implemented sustainable growth techniques in the market. To strengthen their position in the market, some of the leading competitors are pursuing various growth methods such as mergers, acquisitions, collaborations, and agreements. The key players in the global heating, ventilation and air conditioning (HVAC) market are:

  • Daikin Industries
  • Emerson Electric Co.
  • Mitsubishi Electric Corporation
  • Samsung Electronics
  • Johnson Controls International Plc.
  • Raytheon Technologies Corporation
  • Honeywell International Inc.
  • Schneider Electric SE
  • Trane Technologies Plc.
  • Nortek Inc.
  • Jackson Systems
  • Lennox International, Inc.
  • Danfoss AS

Technology and energy efficiency are two buzzwords that OEMs are aiming to target in the short term in order to remain relevant and profitable. To gain a competitive advantage, market players prioritize research and development in order to develop technologically advanced and differentiated products. Companies are also focusing on developing products that adhere to regional regulatory norms in order to eliminate the risk of losing business due to regulatory violations. For instance, Lennox International, Inc. introduced four ultra-low emission gas furnaces which were developed to comply with the new California South Coast Air Quality Management District’s Rule.

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